Paraguay

Paraguay(/ˈpærəɡwaɪ/;Spanish pronunciation:[paɾaˈɣwaj]), officially theRepublic of Paraguay(Spanish:República del Paraguay;Guarani:Paraguái Tavakuairetã), is alandlocked countryinSouth America. It is bordered byArgentinato thesouth and southwest,Brazilto theeast and northeast, andBoliviato the northwest. It has a population of around 6.1 million, nearly 2.3 million of whom live in thecapitaland largest city ofAsunción, and its surrounding metro area.
Spanishconquistadoresarrived in 1524, and in 1537 established the city ofAsunción, the first capital of theGovernorate of the Río de la Plata.During the 17th century, Paraguay was the center ofJesuit missions, where the nativeGuaraní peoplewere converted to Christianity and introduced to European culture.After theexpulsion of the Jesuitsfrom Spanish territories in 1767, Paraguay increasingly became a peripheral colony. Followingindependence from Spainin the early 19th century, Paraguay was ruled by a series of authoritarian governments. This period ended with the disastrousParaguayan War(1864–1870), during which the country lost half its prewar population and around 25–33% of its territory. In the 20th century, Paraguay faced another major international conflict—theChaco War(1932–1935) against Bolivia—in which Paraguay prevailed. The country came under a succession of military dictators, culminating in the 35-year regime ofAlfredo Stroessner, which lasted until his overthrow in 1989 by an internal military coup. This marked the beginning of Paraguay's current democratic era.
Paraguay is adeveloping country, ranking 105th in theHuman Development Index.It is a founding member ofMercosur, theUnited Nations, theOrganization of American States, theNon-Aligned Movementand theLima Group. Additionally, the city ofLuque, in metropolitan Asunción, is the seat of theSouth American Football Confederation.
While it is the only landlocked country in South America besidesBolivia, Paraguayan ports are able to access the Atlantic Ocean via theParaná–Paraguay Waterway.The majority of Paraguay's 6 million people aremestizo, and Guarani culture remains widely influential; more than 90% of the population speak various dialects of theGuarani languagealongside Spanish. Paraguay's GDP per capita PPP is the seventh-highest in South America. In a 2014 Positive Experience Index based on global polling data, Paraguay ranked as the "world's happiest place".
The origin of the name Paraguay is uncertain. One version postulates the name takes fromGuaraníparaguá"feather crown" andy"water" thusparaguaí"feather crown of waters".Other versions affirm that the name derives from thePayaguá people,for theParaguay Riverwas called thePayaguá-y, or "river of the Payaguás" by theGuaraníand hence would have come the name for the country; or that, also from the Guaraní,parawould mean sea,gua, originates, andy, river, thus Paraguay would mean "river which gives birth to the sea".
The indigenousGuaraníhad been living in eastern Paraguay for at least a millennium before the arrival of theSpanish. Western Paraguay, theGran Chaco, was inhabited by nomads of whom theGuaycurupeoples were the most prominent. The Paraguay River was roughly the dividing line between the agricultural Guarani people to the east and the nomadic and semi-nomadic people to the west in the Gran Chaco. The Guarcuru nomads were known for their warrior traditions and were not fully pacified until the late 19th century. These indigenous tribes belonged to five distinct language families, which were the bases of their major divisions. Differing language speaking groups were generally competitive over resources and territories. They were further divided into tribes by speaking languages in branches of these families. Today 17 separateethnolinguisticgroups remain.
The first Europeans in the area were Spanish explorers in 1516.The Spanish explorerJuan de Salazar de Espinosafounded the settlement ofAsunciónon 15 August 1537. The city eventually became the center of aSpanish colonial province of Paraguay.
An attempt to create an autonomous Christian Indian nationwas undertaken byJesuitmissions and settlements in this part of South America in the eighteenth century. They developedJesuit reductionsto bring Guarani populations together at Spanish missions and protect them from virtual slavery by Spanish settlers and Portuguese slave raiders, thebandeirantes, in addition to seeking their conversion to Christianity. Catholicism in Paraguay was influenced by the indigenous peoples: Thesyncreticreligion has absorbed native elements. Thereduccionesflourished in eastern Paraguay for about 150 years, until the expulsion of the Jesuits by the Spanish Crown in 1767. The ruins of two 18th centuryJesuit Missions of La Santísima Trinidad de Paraná and Jesús de Tavaranguehave been designated asWorld Heritage SitesbyUNESCO.
In western Paraguay, Spanish settlement and Christianity were strongly resisted by the nomadicGuaycuruand other nomads from the 16th century onward. Most of these peoples were absorbed into themestizopopulation in the 18th and 19th centuries.
Paraguay overthrew the local Spanish administration on 14 May 1811. Paraguay's first dictator wasJosé Gaspar Rodríguez de Franciawho ruled Paraguay from 1814 until his death in 1840, with very little outside contact or influence. He intended to create autopiansociety based on theGenevantheoristJean-Jacques Rousseau'sSocial Contract.Rodríguez de Francia was nicknamedEl Supremo.
Rodríguez de Francia established new laws that greatly reduced the powers of the Catholic church (Catholicism was then an established state religion) and the cabinet, forbade colonial citizens from marrying one another and allowed them to marry only blacks,mulattoesor natives, in order to break the power of colonial-era elites and to create amixed-raceor mestizo society.He cut off relations between Paraguay and the rest of South America. Because of Francia's restrictions of freedom,Fulgencio Yegrosand several other Independence-era leaders in 1820 planned acoup d'étatagainst Francia, who discovered the plot and had its leaders either executed or imprisoned for life.
After Francia's death in 1840, Paraguay was ruled by various military officers under a newjunta, untilCarlos Antonio López(allegedly Rodríguez de Francia's nephew) came to power in 1841. López modernized Paraguay and opened it to foreign commerce. He signed anon-aggression pactwith Argentina and officially declared independence of Paraguay in 1842. After López's death in 1862, power was transferred to his eldest son,Francisco Solano López.
The regime of the López family was characterized by pervasive and rigid centralism in production and distribution. There was no distinction between the public and the private spheres, and the López family ruled the country as it would a large estate.
The government exerted control on all exports. The export ofyerba mateand valuable wood products maintained the balance of trade between Paraguay and the outside world.The Paraguayan government was extremely protectionist, never accepted loans from abroad and levied hightariffsagainst imported foreign products. Thisprotectionismmade the society self-sufficient, and it also avoided the debt suffered by Argentina and Brazil. Slavery existed in Paraguay, although not in great numbers, until 1844, when it was legally abolished in the new constitution.
Francisco Solano López, the son of Carlos Antonio López, replaced his father as the President-Dictator in 1862, and generally continued the political policies of his father. Both wanted to give an international image of Paraguay as "democratic and republican", but in fact, the ruling family had almost total control of all public life in the country, including church and colleges.
Militarily, Carlos Antonio López modernized and expanded industry and theParaguayan Armyand greatly strengthened the strategic defenses of Paraguay by developing theFortress of Humaitá.The government hired more than 200 foreign technicians, who installedtelegraph linesand railroads to aid the expanding steel, textile, paper and ink, naval construction, weapons and gunpowder industries. TheYbycuífoundry, completed in 1850, manufactured cannons, mortars and bullets of all calibers. River warships were built in the shipyards of Asunción. Fortifications were built, especially along theApa Riverand inGran Chaco.Following the death of Carlos Antonio López, these projects continued under his son Francisco Solano.
In terms of socio-economic development, the country was dubbed "the most advanced Republic in South America", notably by the British judge and politicianSir Robert Phillimore.
According to George Thompson, Lieutenant Colonel of Engineers in the Paraguayan Army prior to and during the war, López's government was comparatively a good one for Paraguay:
On 12 October 1864, despite Paraguayan ultimatums,Brazil(allied with the Argentine Government under GeneralBartolomé Mitreand the rebelliousUruguayan coloradosled by Gen.Venancio Flores) invaded the Republic of Uruguay in order to overthrow the government of that time (which was under the rule of theBlanco Party, an ally of López),thus starting theParaguayan War.
The Paraguayans, led by theMarshal of the RepublicFrancisco Solano López, retaliated byattacking Mato Grossoon 15 December 1864 and later declared war against Argentina on 23 March 1865. The Blanco Government was toppled and replaced by a Colorado government under General Venancio Flores on 22 February 1865. Afterward, theArgentine Republic, theEmpire of Braziland the Republic of Uruguay signed theSecret Treaty of the Triple Allianceagainst the Paraguayan Government on 1 May 1865.
On 24 May 1866, theBattle of Tuyutíled to the loss of 6,000 men when a Paraguayan attack was repelled by the Allies. It was marked as the bloodiest battle in South America during the war.
The Paraguayans put up a ferocious resistance but ultimately lost in 1870 in theBattle of Cerro Corá, where Marshal Solano López refused to surrender and died in action.The real causes of this war, which remains the bloodiest international conflict in the history ofThe Americas, are still highly debatable.
Paraguay lost 25–33% of its territory to Argentina and Brazil, paid an enormous war debt, and sold large amounts of national properties to stabilize its internal budget. The worst consequence of the war was the catastrophic loss of population. At least 50% of Paraguayans died during the conflict, numbers to which it took many decades for the country to return. Of the disaster suffered by the Paraguayans at the outcome of the war,William D. Rubinsteinwrote:
"The normal estimate is that of a Paraguayan population of somewhere between 450,000 and 900,000, only 220,000 survived the war, of whom only 28,000 were adult males."
During the pillaging of Asunción in 1869, theImperial Brazilian Armypacked up and transported the Paraguayan National Archives toRio de Janeiro.Brazil's records from the war have remained classified. This has made Paraguayan history in the colonial and early national periods difficult to research and study.
In 1904 the Liberal revolution against the rule of Colorados broke out. The Liberal rule started a period of great political instability. Between 1904 and 1954 Paraguay had thirty-onepresidents, most of whom were removed from office by force.Conflicts between the factions of the ruling Liberal party led to theParaguayan Civil War of 1922.
The unresolved border conflict with Bolivia over the Chaco region finally erupted in the early 1930s in theChaco War. After both sides suffered great losses, Paraguay defeated Bolivia and established its sovereignty over most of the disputed Chaco region. After the war, military officers used popular dissatisfaction with the Liberal politicians to seize the power for themselves. On 17 February 1936, theFebruary Revolutionbrought colonelRafael Francoto power. Between 1940 and 1948, the country was ruled by generalHiginio Morínigo. Dissatisfaction with his rule resulted in theParaguayan civil war of 1947.In its aftermathAlfredo Stroessnerbegan involvement in a string of plots, which resulted in his militarycoup d'état of 4 May 1954. In the aftermath ofWorld War II, Paraguay became a hideout forNazi fugitivesaccused of war crimes.
A series of unstable governments ensued until the establishment in 1954 of the regime of dictatorAlfredo Stroessner, who remained in office for more than three decades until 1989. Paraguay was modernized to some extent under Stroessner's regime, although his rule was marked by extensive human rights abuses.
Stroessner and theColoradoparty ruled the country from 1954 to 1989. The dictator oversaw an era of economic expansion, but also had a poor human rights and environmental record (see "Political History"). Paraguay actively participated inOperation Condor.Torture and death for political opponents was routine. After his overthrow, theColoradocontinued to dominate national politics until 2008.
The splits in theColoradoParty in the 1980s, and the prevailing conditions – Stroessner's advanced age, the character of the regime, the economic downturn, andinternational isolation– were catalysts for anti-regime demonstrations and statements by the opposition prior to the 1988 general elections.
PLRAleaderDomingo Laínoserved as the focal point of the opposition in the second half of the 1980s. The government's effort to isolate Laíno by exiling him in 1982 had backfired. On his sixth attempt to re-enter the country in 1986, Laíno returned with three television crews from the U.S., a former United States ambassador to Paraguay, and a group of Uruguayan and Argentine congressmen. Despite the international contingent, the police violently barred Laíno's return.
The Stroessner regime relented in April 1987, and permitted Laíno to return to Asunción. Laíno took the lead in organizing demonstrations and reducing infighting among the opposition party. The opposition was unable to reach agreement on a common strategy regarding the elections, with some parties advocating abstention, and others calling for blank voting. The parties held numerous 'lightning demonstrations' (mítines relámpagos), especially in rural areas. Such demonstrations were gathered and quickly disbanded before the arrival of thepolice.
In response to the upsurge in opposition activities, Stroessner condemned the Accord for advocating "sabotage of the general elections and disrespect of the law". He used national police and civilianvigilantesof theColoradoParty to break up demonstrations. A number of opposition leaders were imprisoned or otherwise harassed.Hermes Rafael Saguier[es], another key leader of thePLRA, was imprisoned for four months in 1987 on charges of sedition. In early February 1988, police arrested 200 people attending a National Coordinating Committee meeting inCoronel Oviedo. Laíno and several other opposition figures were arrested before dawn on the day of the election, 14 February, and held for twelve hours. The government declared Stroessner's re-election with 89% of the vote.
The opposition attributed the results in part to the virtual Colorado monopoly on the mass media. They noted that 53% of those polled indicated that there was an "uneasiness" in Paraguayan society. 74% believed that the political situation needed changes, including 45% who wanted a substantial or total change. Finally, 31% stated that they planned to abstain from voting in the February elections.
On 3 February 1989, Stroessner was overthrown in a military coup headed by GeneralAndrés Rodríguez. As president, Rodríguez instituted political, legal, and economic reforms and initiated arapprochementwith the international community. Reflecting the deep hunger of the rural poor for land, hundreds immediately occupied thousands of acres of unused territories belonging to Stroessner and his associates; by mid-1990, 19,000 families occupied 340,000 acres (138,000 ha). At the time, 2.06 million people lived in rural areas, more than half of the 4.1 million total population, and most were landless.
The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental human rights. In May 1993, Colorado Party candidateJuan Carlos Wasmosywas elected as Paraguay's first civilian president in almost forty years, in what international observers deemed free and fair elections.
With support from the United States, the Organization of American States, and other countries in the region, the Paraguayan people rejected an April 1996 attempt by then Army Chief GeneralLino Oviedoto oust President Wasmosy.
Oviedo was nominated as the Colorado candidate for president in the 1998 election. However, when the Supreme Court upheld in April his conviction on charges related to the 1996 coup attempt, he was not allowed to run and was detained in jail. His former running mate,Raúl Cubas, became the Colorado Party's candidate, and was elected in May in elections deemed by international observers to be free and fair. One of Cubas' first acts after taking office in August was to commute Oviedo's sentence and release him. In December 1998, Paraguay's Supreme Court declared these actions unconstitutional. In this tense atmosphere, the murder of Vice President and long-time Oviedo rivalLuis María Argañaon 23 March 1999, led the Chamber of Deputies to impeach Cubas the next day.On 26 March, eight student anti-government demonstrators were murdered, widely believed to have been carried out by Oviedo supporters. This increased opposition to Cubas, who resigned on 28 March. Senate PresidentLuis González Macchi, a Cubas opponent, was peacefully sworn in as president the same day.
In 2003,Nicanor Duartewas elected as president.
For the 2008 general elections, the Colorado Party was favored in polls. Their candidate was Minister of EducationBlanca Ovelar, the first woman to be nominated as a candidate for a major party in Paraguayan history. After sixty years of Colorado rule, voters choseFernando Lugo, a former Roman Catholic Bishop and not a professional politician in civil government, and a member of the Authentic Radical Liberal Party, Paraguay's largest opposition party. Lugo was an adherent ofliberation theology. Lugo achieved a historic victory in Paraguay's presidential election, defeating the ruling party candidate, and ending 61 years of conservative rule. Lugo won with nearly 41% of the vote, compared to almost 31% for Blanca Ovelar of the Colorado party.Outgoing PresidentNicanor Duarte Frutoshailed the moment as the first time in the history of the nation that a government had transferred power to opposition forces in a constitutional and peaceful fashion.
Lugo was sworn in on 15 August 2008. The Lugo administration set its two major priorities as the reduction of corruption and economic inequality.
Political instability following Lugo's election and disputes within his cabinet encouraged some renewal of popular support for the Colorado Party. Reports suggested that the businessmanHoracio Cartesbecame the new political figure amid disputes. Despite the USDrug Enforcement Administration's strong accusations against Cartes related todrug trafficking, he continued to amass followers in the political arena.
On 14 January 2011, the Colorado Party convention nominated Horacio Cartes as the presidential candidate for the party. However, the party's constitution did not allow it.On 21 June 2012,impeachment proceedings against President Lugobegan in the country's lower house, which was controlled by his opponents. Lugo was given less than twenty-four hours to prepare for the proceedings and only two hours in which to mount a defense.Impeachment was quickly approved and the resulting trial in Paraguay's Senate, also controlled by the opposition, ended with the removal of Lugo from office and Vice President Federico Franco assuming the duties of president.Lugo's rivals blamed him for the deaths of 17 people – eight police officers and nine farmers – in armed clashes after police were ambushed by armed peasants when enforcing an eviction order against rural trespassers.
On 14 May 2011, Paraguay celebrated itsbicentenaryon the 200th anniversary of independence from the Spanish Empire as a sovereign state.
Lugo's supporters gathered outside Congress to protest the decision as a "politically motivated coup d'état".Lugo's removal from office on 22 June 2012 is considered byUNASURand other neighboring countries, especially those currently governed by leftist leaders, as a coup d'état.However, the Organization of American States, which sent a mission to Paraguay to gather information, concluded that the impeachment process was not a coup d'état, as it had been carried out in accordance with theConstitution of Paraguay.
From August 2013 to 15 August 2018, thePresident of ParaguaywasHoracio Cartes.Since 15 August 2018, thePresident of Paraguayhas beenMario Abdo Benítez. They are both from the conservativeColorado Party.President Mario Abdo enjoyed a close relationship with the Brazilian far-right president (in power 2019–2022),Jair Bolsonaro.In February 2019, President Mario Abdo Benitez was at Bolsonaro's side when Bolsonaro praised Paraguayan military dictator Alfredo Stroessner, calling him "a man of vision".In 2021, Paraguay became the first country in South America to produce electric energy in its100% renewable energysupply. In May 2023,Santiago Peñaof the long-ruling Colorado Party, won the presidentialelectionto succeed Mario Abdo as the nextPresident of Paraguay.On 15 August 2023, Santiago Peña was sworn in as Paraguay's new president.
Paraguay is divided by theRío Paraguayinto two well differentiated geographic regions. The eastern region (Región Oriental); and the western region, officially called Western Paraguay (Región Occidental) and also known as the Chaco, which is part of theGran Chaco. The country lies between latitudes19°and28°S, and longitudes54°and63°W.
The terrain consists mostly of grassy plains and wooded hills in the eastern region. To the west are mostly low, marshy plains. Paraguay contains six terrestrial ecoregions:Alto Paraná Atlantic forests,Chaco,Cerrado,Humid Chaco,Pantanal, andParaná flooded savanna.It had a 2019Forest Landscape Integrity Indexmean score of 6.39/10, ranking it 74th globally out of 172 countries.TheGuarani Aquiferis an importantexorheic basinto the region.
Although Paraguay is landlocked, there are a number of noteworthy lakeside beaches.
The overall climate istropicaltosubtropical. Like most lands in the region, Paraguay has only wet and dry periods. Winds play a major role in influencing Paraguay's weather: between October and March, warm winds blow from the Amazon Basin in the north, while the period between May and August brings cold winds from the Andes.
The absence of mountain ranges to provide a natural barrier allows winds to develop speeds as high as 161 km/h (100 mph). This also leads to significant changes in temperature within a short span of time; between April and September, temperatures will sometimes drop below freezing. January is the hottest summer month, with an average daily temperature of 28.9 degrees Celsius (84 degrees F).
Rainfall varies dramatically across the country, with substantial rainfall in the eastern portions, and semi-arid conditions in the far west. The far eastern forest belt receives an average of 170 centimeters (67 inches) of rain annually, while the western Chaco region typically averages no more than 50 cm (20 in) a year. The rains in the west tend to be irregular and evaporate quickly, contributing to the aridity of the area.
Wildlife in Paraguay include marsh deer, monkeys, armadillos, anteaters, otters, wild boars, tapirs, jaguars, ocelots, bats, and thecoypu.
Paraguay is arepresentative democraticrepublic, with amulti-party systemandseparation of powersacross three branches. Executive power is exercised solely by thePresident, who ishead of stateandhead of government.Legislative poweris vested in the two chambers of theNational Congress. Thejudiciaryis vested ontribunalsand Courts ofCivil Lawand a nine-member Supreme Court of Justice, all of them independent of the executive and the legislature.
Since the end of the1947 civil war, the country's politics have generally beendominatedby the conservativeColorado Party.
Themilitary of Paraguayconsist of anarmy,navy(includingnaval aviationandmarine corps) andair force.Paraguay's constitutionestablishes thepresident of Paraguayascommander-in-chiefof the armed forces.
Paraguay hascompulsory military service; all 18-year-old males, as well as 17-year-old males in the year of their 18th birthday, are liable for one year ofactive duty. While the constitution allows forconscientious objection, no enabling legislation has yet been approved.
Paraguay has partnered with Argentina, Brazil, and the United States in regional anti-terrorism and anti-narcotics efforts.In July 2005, U.S.special forcesbegan arriving at Paraguay'sMariscal Estigarribiaair base to support joint training and humanitarian operationsIn 2019, Asuncion hosted the first meeting of the Regional Security Mechanism (RSM), which promotes cooperation between Paraguay, Argentina, Brazil, and the U.S. in addressingtransnational crimeand terrorism in the "triple frontier" region.
Paraguay is the 73rd most peaceful country in the world, according to the 2024Global Peace Index.
Paraguay consists of seventeen departments and one capital district (distrito capital).
It is also divided into two regions: The "Occidental Region" or Chaco (Boquerón, Alto Paraguay and Presidente Hayes), and the "Oriental Region" (the other departments and the capital district).
These are the departments, with their capitals, population, area and the number of districts:
For many years, the country's image was associated with theillicit tradeinelectronic products,weaponsanddrugs. However, this scenario began to change in the 2000s, with the rise of legalized businesses such as the production of soy, maize, beef, among others. Data from the Central Bank of Paraguay (BCP) showed that, in 2006, exports related to the triangulation trade (China-Paraguay-Brazil), treated by Brazil – in most cases – as smuggling and embezzlement, represented 22% of the country's GDP. In 2016, this percentage dropped to 12%. With higher tax collections through legalized employment, the country has been able to improve its infrastructure, which was precarious. Paraguay has an economic development policy based on exports and dependence on the Brazilian market prevails. The triangulation trade has in its essence the export of products originating in China, with Brazil as its main destination. The energy exported is essentially the hydroelectric surplus generated by the Itaipu Power Plant, for which Brazil is the main buyer. And maquilas, whose main investors are Brazilians, also have a large consumer market in Brazil for their products. Therefore, in these three pillars of Paraguay's development strategy, there is the outstanding characteristic of re-exports. In the case of agricultural commodities, it is the export of products originating in Paraguay.
In the 2010s, the economy, largely directed towards soybean production, grew by an average of 4%. The economic growth did not, however, reduce poverty, which in 2018, according to official figures, reached more than 26% of the population. According toThe New York Times, Paraguay is "one of the Latin American countries where the gap between rich and poor has widened the most in recent years." In the countryside, 85% of agricultural land is owned by 2.6% of the owners. In addition, people of indigenous descent have been expelled to make way for soybean companies.
Thesoybeanexport market is largely dominated by multinationals (Cargill,Archer Daniels Midland,Bunge Limited, etc.) and therefore benefits few Paraguayans. Export companies and landowners pay little tax. For example, a study byECLAC(a UN agency) released in 2018 indicates that Paraguay is one of the countries where companies participate the least in the state budget.
Pesticidesand otherchemicalsare used heavily in soybean fields. The country's environmental standards are not met by companies and agrochemicals contaminate the environment. In 2019, theUnited Nations Human Rights Committeeissued a ruling urging Paraguay to undertake an investigation into the massive fumigation of agrochemicals and the poisoning of the population. However, the situation is not improving: "The high level of political corruption, the extreme fragility of institutions, the high level of social vulnerability, the omnipotence of economic interests in political decisions, as well as the location [of the country] in the geographic heart of the Southern Cone and its abundance of natural resources, make Paraguay an attractive target for imperial geopolitical interests," says sociologist Tomás Palau.Academic José Luis Insfrán also notes that the country's politicians "are subsidized by big business; they are the ones who implement the policies."
In 2005, theInternational Monetary Fundstated that fewer than 10% of workers in Paraguay participate in thepensionsystem, 95% of which is administered by two institutions. Both are financed on apay as you gosystem by worker contributions; the first,Instituto de Previsión Social[es]is for private sector employees, and thecaja fiscalfor public employees (including university professors, teachers, judicial employees, army officers and police officers) and veterans of the Chaco War (or their descendants).
The market economy is distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. Nonetheless, over the last 10 years the Paraguayan economy diversified dramatically, with the energy, auto parts and clothing industries leading the way.
Paraguay's most importanturban areasare located along theArgentina-Paraguay border:Asunción,Alberdi,Encarnación,PilarandCiudad del Este, the latter being the third most important free commercial zone in the world, only trailing behindMiamiandHong Kong.A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. The economy grew rapidly between 2003 and 2013 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion.
In 2012, Paraguay's government introduced the MERCOSUR (FOCEM) system in order to stimulate the economy and job growth through a partnership with both Brazil and Argentina.
TheCentral Bank of Paraguayis Paraguay's highest monetary authority, and the country's governing body, in finances and economics.  Its headquarters are inAsunción'sCarmelitasneighbourhood.
Paraguay is the sixth-largestsoybeanproducer in the world,the second-largest producer ofsteviaand the ninth-largest exporter ofbeef.
In 2018, in addition to soy, the country had a large production ofmaizeandsugar cane, where it positioned itself as the 21st largest producer in the world; other important cultures of the country arecassava,rice,wheat,orange,yerba mate, andsorghum. In livestock, Paraguay produced, in 2020, 481 thousand tons of beef, being the 26th largest producer in the world.
Soy farming was largely introduced by Brazilians: in 2019, almost 70% of soy and rice producers in Paraguay were people from Brazil, or descendants of Brazilians (the so-called brasiguaios). The first Brazilian producers began to arrive in the country in the 1980s. Before the Brazilian influx, much of the land in Paraguay was uncultivated.
More than 80% of the cultivable land is owned by 2.6% of landowners. Nearly 8 million hectares were illegally granted, in violation of the agrarian law, to regime supporters during the dictatorship of Alfredo Stroessner (1954–1989), and the state has done nothing since to identify the beneficiaries of this illicit enrichment. These owners include generals, businessmen, and politicians, former presidents of the Republic, Nicaraguan dictatorAnastasio Somoza Debayle, and even the rulingColorado Party. More than 130 peasant leaders have been assassinated since the fall of Stroessner in 1989.
The methods of appropriating land in Paraguay are numerous. Economist Luis Rojas says that the most common method is to buy land from small producers: "The peasant is offered a sum of money he has never seen in his life. He imagines it's a fortune, leaves for the city, spends it all in three or four months and makes the misery belts grow, because there is no work." Oxfam estimates that 900,000 people have been evicted from the countryside in the last ten years,which represents nearly one-seventh of the population. This crowd of landless peasants is swelling the poverty belts around Asunción, the capital.
TheWorld Banklists the top producing countries each year, based on the total value of production. By the 2019 list, Paraguay had the 79th most valuable industry in the world ($6.9 billion).The country was the seventh largest producer ofsoybean oilin the world in 2018.
Themineral industry of Paraguayproduces about 25% of the country'sgross domestic product(GDP) and employs about 31% of the labor force. Production ofcement,iron ore, andsteeloccurs commonly throughout Paraguay's industrial sector. The growth of the industry was further fueled by themaquilaindustry, with large industrial complexes located in the eastern part of the country. Paraguay put in place many incentives aimed to attract industries to the country. One of them is the so-called "Maquila law" by which companies can relocate to Paraguay, enjoying minimal tax rates.
In thepharmaceutical industry, Paraguayan companies nowmeet 70% of domestic consumption and have begun to export drugs. Paraguay is quicklysupplanting foreign suppliers in meeting the country's drug needs.Strong growth also is evident in the production of edible oils, garments, organic sugar, meat processing, and steel.
In 2003, manufacturing comprised 13.6% of the GDP and it employed about 11% of the working population in 2000. Paraguay's primary manufacturing focus is on food and beverages. Wood products, paper products, hides and furs, and non-metallic mineral products also contribute to manufacturing totals. Steady growth in the manufacturing GDP during the 1990s (1.2% annually) laid the foundation for 2002 and 2003, when the annual growth rate rose to 2.5%.Paraguay was ranked 93rd in theGlobal Innovation Indexin 2024.
Literacy rates have been extremely low among Paraguay's indigenous population, who had a literacy rate of 7.1% compared to the 51% rate of the general population as of the 2002 census.
Only 2.5% of Paraguay's indigenous population had access to clean drinking water and only 9.5% had electricity as of 2002.
According to official data from the M.O.P.C (Ministry of Public Works and Communications of Paraguay), in 2019, there were a total of 78,850 km (48,995 mi) of roads, of which 10,372 km (6,445 mi) were paved.One of the most important recent investments in the country's history is the construction of theBioceanic Corridor, which will cross the north of Paraguay in a horizontal line, connecting Brazil to Argentina, reaching both the ports of northern Chile, as to Brazilian ports. The work will open a new route for exports of products to Asia, and will enable the development of an isolated region of Paraguay, the Chaco. In February 2022, Paraguay inaugurated 275 km of the road (about half of the route), connecting Carmelo Peralta (Alto Paraguay), on the border with Brazil, to Loma Plata (Boquerón), in the center of the country.Paraguay has also been implementing the country's firstdouble highway: 149 km of theRoute 2, which connects the capital Asunción to Ciudad del Este, on the border with Brazil (the highway that also connects withport of Paranaguá). In January 2022, there were almost 100 km duplicated.
TheParaná-Paraguay systemis a natural north–south downstream waterway of 1,600 km of a navigable network area, that gives the region direct access to theocean, therefore, river transport is important and extensive, concentrating the most commercial maritime traffic to theport of Buenos Aires. Asunción is one of the main ports of Paraguay.
Asunción airportis an important stopover for international airlines andCiudad del Este airport, is an important international air cargo hub.
All ofParaguay's electricityis generated byhydropower, making it one of thecleanest in the world.
Paraguay has an installed electrical production capacity of 8,110 MW, producing 63 billionkWh/year in 2016; with domestic consumption of just 15 billion kWh, the excess production is sold to Brazil, Argentina, and Uruguay, making Paraguay the world's largest exporter of electric power.This production is from two largehydroelectric powerprojects along its borders, including theItaipu Dam, the world's second largest generating station.
Paraguay's population is distributed unevenly through the country, with the vast majority of people living in the eastern region near the capital and largest city,Asunción, which accounts for 10% of the country's population. TheGran Chacoregion, which includes theAlto Paraguay,BoquerónandPresidente Hayes Department, and accounts for about 60% of the territory, is home to less than 4% of the population. About 63% of Paraguayans live in urban areas, making Paraguay one of the least urbanized nations in South America.
For most of its history, Paraguay has been a recipient of immigrants, owing to its low population density, especially after the demographic collapse caused by the Paraguayan War. Immigrants includeItalians,Germans, Spanish,English, Russians,Koreans, Chinese,Arab,Japanese,Ukrainians,Poles,Jews, Brazilians,Argentines,Americans,Bolivians,Venezuelans,Mexicans,Chileans,Taiwanese,Asian peopleandUruguayans.Along withGerman Argentines, German Paraguayans are one of the most prominent and growingGermancommunities in South America, with some 25,000 German-speakingMennonitesliving in the ParaguayanChaco.German settlers founded several towns, such asHohenau,Filadelfia,Neuland,ObligadoandNueva Germania. Several websites that promote German immigration to Paraguay claim that 5–7% of the population is of German ancestry,including 150,000 people of German-Brazilian descent.Similarly, from the 1920–30s, Paraguay receivedwavesofSlavic immigrantswho settled in Asunción and Southern Paraguay (Itapúa,MisionesandÑeembucú), especially in the towns ofFram,Coronel Bogado,Encarnación,San Juan del Paraná,San Ignacio, andPilar.Paraguay has also been a haven for communities persecuted for the religious faith, like theBruderhofwho were forced to leave England in 1941 because of their pacifist beliefs.Many of these communities have retained their languages and culture, particularly theBrazilians, who represent the largest and most prominent immigrant group, at around 400,000.Many Brazilian Paraguayans are of German, Italian and Polish descent.There are an estimated 63,000Afro-Paraguayans, comprising 1% of the population.
There is no official data on the ethnic composition of the Paraguayan population, as the Department of Statistics, Surveys and Censuses of Paraguay does not ask aboutraceandethnicityin census surveys, although it does inquire about the indigenous population. According to the 2022 census, indigenous people made up 2.3% of Paraguay's total population.
Traditionally, the majority of the Paraguayan population is considered mixed (mestizoin Spanish). According to the 2022 census, Paraguay has a population of 6 109 944, of which 95% are Mestizo/White and 5% are labelled as "other", which includes members of 17 distinct ethnolinguistic indigenous groups.
Christianity, particularlyCatholicism, is the dominant religion in Paraguay.According to the 2002 census, 89.9% of the population was Catholic, 6.2% wasEvangelical Protestant, 1.1% identified with other Christian sects, and 0.6% practiced indigenous religions. A U.S. State Department report on Religious Freedom names Catholicism, evangelical Protestantism, mainline Protestantism, Judaism (Orthodox, Conservative, and Reform),The Church of Jesus Christ of Latter-day Saints, and theBaháʼí Faithas prominent religious groups. It also mentions a large Muslim community inAlto Paraná(as a result of Middle-Eastern immigration, especially fromLebanon) and a prominent Mennonite community in Boquerón.
Paraguay is a bilingual nation. Both Spanish andGuaraníare official languages. The Guaraní language is a remarkable trace of the indigenous Guaraní culture that has endured in Paraguay. Guaraní claims its place as one of the last surviving and thriving of South American indigenous national languages.In 2015, Spanish was spoken by about 87% of the population, while Guaraní is spoken by more than 90%, or slightly more than 5.8 million speakers. 52% of rural Paraguayans are bilingual in Guaraní. While Guaraní is still widely spoken, Spanish is generally given a preferential treatment in government, business, media and education as one of South America'slingua francas.
There are approximately 19 other indigenous languages spoken in Paraguay, many of which are threatened by extinction. Languages such as Guana, Ayoreo and Ishir (Chamacoco) are considered endangered.
Literacywas about 93.6% and 87.7% of Paraguayans finish the fifth grade according toUNESCO's last Educational Development Index 2008. Literacy does not differ much by gender.A more recent studyreveals that attendance at primary school by children between 6 and 12 years old is about 98%. Primary education is free, mandatory and takes nine years. Secondary education takes three years.
Main universities, all in the capital city, in Paraguay include:
The net primary enrollment rate was at 88% in 2005.Public expenditure on education was about 4.3% of GDP in the early 2000s.
Average life expectancy in Paraguay is rather high given its poverty: as of 2006, it was 75 years,equivalent to far wealthier Argentina, and the eighth highest in the Americas according to World Health Organization. Public expenditure on health is 2.6% ofGDP, while private health expenditure is 5.1%.Infant mortality was 20 per 1,000 births in 2005.Maternal mortality was 150 per 100,000 live births in 2000.
TheWorld Bankhas helped the Paraguayan government reduce the country's maternal and infant mortality. TheMother and Child Basic Health Insurance Projectaimed to contribute to reducing mortality by increasing the use of selected life-saving services included in the country's Mother and Child Basic Health Insurance Program (MCBI) by women of child-bearing age, and children under age six in selected areas. To this end, the project also targeted improving the quality and efficiency of the health service network within certain areas, in addition to increasing the Ministry of Public Health and Social Welfare's (MSPandBS) management.
Paraguay's cultural heritage can be traced to the extensiveintermarriagebetween the original male Spanish settlers and indigenousGuaraníwomen. Their culture is highly influenced by various European countries, including Spain. Therefore, the Paraguayan culture is a fusion of two cultures and traditions; one European, the other, Southern Guaraní. Although this is common throughout the country, it is more visible around the towns ofAtyrá,TobatíandAltos. More than 93% of Paraguayans aremestizos, making Paraguay one of the most homogeneous countries in Latin America. A characteristic of this cultural fusion is the extensive bilingualism present to this day: more than 80% of Paraguayans speak both Spanish and the indigenous language,Guaraní.Jopara, a mixture of Guaraní and Spanish, is also widely spoken.
This cultural fusion is expressed in arts such as embroidery (ao po'í) andlace making(ñandutí). Themusic of Paraguay, which consists of lilting polkas, bouncygalopas,and languidguaraniasis played on the native harp. Paraguay's culinary heritage is also deeply influenced by this cultural fusion. Several popular dishes containmanioc, a local staple crop similar to theyucaalso known as Cassava root found in theSouthwestern United Statesand Mexico, as well as other indigenous ingredients. A popular dish issopa paraguaya, similar to a thickcorn bread. Another notable food ischipa, abagel-like bread made fromcornmeal, manioc, and cheese. Many other dishes consist of different kinds of cheeses, onions, bell peppers, cottage cheese, cornmeal, milk, seasonings, butter, eggs and fresh corn kernels.
The 1950s and 1960s were the time of the birth of a new generation of Paraguayan novelists and poets such asJosé Ricardo Mazó,Roque Vallejos, and Nobel Prize nomineeAugusto Roa Bastos. SeveralParaguayan filmshave been made.
Inside the family, conservative values predominate. In lower classes,godparentshave a special relationship to the family, since they are typically chosen because of their favourable social position, in order to provide extra security for the children. Particular respect is owed them, in return for which the family can expect protection and patronage.
The most popular instruments in Paraguayan music are the harp and the guitar. The native genres are the Paraguayan polka and the guarania, characterised by a slow song that was developed by José Asunción Flores around the 1920s.
Sport in Paraguay is an important part of the country's national culture.Footballis the most popular sport, the main national team is theParaguay national football team.
Basketballis also very popular.Other sports such asvolleyball,handball,futsal,swimmingandtennisare also popular.Additional Paraguayan sports and pastimes includerugby union,chess,motorsport,golfandrowing.
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