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| (Click to enlarge) |
| Paraguay |
| (Mapping Specialists, Ltd.) |

For more information on Paraguay, visit Britannica.com.
Land
The eastern part of the country, between the Paraguay and Paraná rivers, where most of the population lives, is a lowland, rising in the east and north to a plateau region. The region was once heavily forested, but forest land has been steadily depleted. The Paraná, south of the Iguaçu River (with its magnificent falls), separates Paraguay from Argentina. The Paraguay River also forms part of the border with Argentina, from its confluence with the Paraná north to the Pilcomayo River. The section west of the Paraguay River is a dry plain, part of the Chaco (see Gran Chaco). Cattle are raised and quebracho is found in the woodlands of the Chaco Boreal. All the important cities are in the east. Besides Asunción, they are Villarrica, Concepción, and Encarnación.
People
The population is largely mestizo, of mixed Spanish and Guaraní descent. Spanish and Guaraní, which is spoken by most of the population, are the official languages. The Jesuit missions (the reductions, active from the late 16th to the 18th cent.) were instrumental in the blending of Spanish and Guaraní cultures. Later immigrants-German, Italian, and French, and most recently Brazilian and Japanese-added new elements to the distinctive civilization of Paraguay. The country's arts and handicrafts reflect the various strains. A notable musical contribution is the guaranía, a form developed from native melodies by José Asunción Flores during the Chaco War. Nanduti (spider web) lace is the most famous Paraguayan handicraft. The isolated indigenous groups that live in the Chaco and elsewhere have little part in the national life. Roman Catholicism is the established religion; most of the small number of Protestants are Mennonites.
Economy
About half of Paraguay's workers are engaged in agriculture and forestry; a much smaller percentage are employed in industry and mining, and many work outside the formal economy. The principal crops are cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava, fruits, and vegetables; cattle and other livestock raising is also important. Orange groves furnish petitgrain, used in perfumes and flavorings. In addition to quebracho, hardwoods and cedars are commercially exploited. Meatpacking, sugar processing, textile and wood-products manufacturing, and the production of steel and consumer goods are the main industries. The country also has a large underground economy that encompasses smuggling, money laundering, and trafficking Andean cocaine.
Paraguay has minimal road and rail systems, and river transportation is the primary means of moving goods. Hydrovía, a proposed waterway to straighten and deepen the Paraná, was approved by Paraguay, Bolivia, Argentina, Brazil, and Uruguay in 1994, but environmental concerns have slowed implementation of the plan. The Itaipú Dam on the Paraná River, completed in 1991, is one of the world's largest, and the electricity it generates is economically vital to Paraguay as a source of export income and nearly all the nation's electricity. The Yacyretá hydroelectric project, also on the Paraná, was inaugurated in 1998.
The leading exports are soybeans, feed, cotton, meat, edible oils, electricity, wood, and leather. The leading imports are vehicles, consumer goods, tobacco, petroleum products, and electrical machinery. Paraguay is a member of Mercosur; its main trading partners are Brazil, Uruguay, Argentina, and China. Customs duties furnish an important part of the country's revenues, but are significantly undercollected due to smuggling.
Government
Paraguay is governed under the 1992 constitution. The president, who is both head of state and head of government, is popularly elected to a five-year term and cannot be reelected. The legislature has two houses, the 45-seat Chamber of Senators and the 80-seat Chamber of Deputies. Members of both are popularly elected for five-year terms. The two main parties, both conservative, are the Colorado party, which has governed almost exclusively since 1947, and the Authentic Radical Liberal party. Administratively, the country is divided into 17 departments and the capital city.
History
Early History
European influence in Paraguay began with the early explorations of the Río de la Plata. Juan Díaz de Solís was the first to come (1516), and Sebastian Cabot followed him (1527) to the Paraguay River, which was thought to offer access to Peru. One of the main reasons for the voyages (c.1535) of Juan de Ayolas and Domingo Martínez de Irala was to seek a way across the continent. A colony grew up, as Asunción became the nucleus of the La Plata region. Irala dominated the colony until his death (1556 or 1557) and clashed with Álvar Núñez Cabeza de Vaca.
At the end of the 16th cent. Hernando Arias de Saavedra, called Hernandarias, became governor of Río de la Plata prov., of which Paraguay was a part; it was through his efforts that the administrations of present Argentina and Paraguay were separated (1617). The Jesuit missions were founded in the days of Hernandarias (most of them in the trans-Paraná area, now in Argentina). Real independence from Spain was asserted when in 1721 José de Antequera led the comuneros of Asunción in a successful revolt and governed independently for some 10 years. In 1776 the region was made part of the viceroyalty of the Río de la Plata.
Independent Paraguay
Manuel Belgrano was unsuccessful in carrying the Argentinean revolution against Spain into Paraguay in 1810, but the next year the colonial officials there were quietly overthrown. In 1814 the first of the three great dictators who were to mold Paraguay came to power. He was José Gaspar Rodríguez Francia, the incorruptible, harsh, and autocratic dictator known as El Supremo, who kept Paraguay in the palm of his hand until his death in 1840. He was succeeded by another dictator, Carlos Antonio López, who held absolute power from 1844 to 1862. His son, Francisco Solano López, succeeded him and brought on disaster by involving Paraguay in war with Brazil, Argentina, and Uruguay (1865-70; see Triple Alliance, War of the). The Paraguayans fought heroically and sustained the loss of more than half the population.
Recovery from the catastrophic war was slow, and the desperate state of the economy was matched by political confusion, as warring caudillos established short-lived dictatorships. Nevertheless, in the late 19th and early 20th cent. conditions improved. Trade increased as Paraguayan products found markets, immigration was encouraged, and farming and modest little industries prospered fitfully. The unsettled boundary with Bolivia, however, turned from an irritation into a threat, and in 1932 Paraguay plunged into another major war-the Chaco War (see under Gran Chaco), which lasted until 1935. From it the little country emerged victorious but exhausted.
The rapid succession of governments afterward was broken by the years when Higinio Morínigo was in power (1940-48). Signs of recovery from the Chaco War appeared in improvements in education, public health, and roads, but the oppressive dictatorship of Morínigo was challenged by numerous uprisings. He was overthrown in 1948, and the country was again subjected to a series of short-lived governments.
The Stroessner Regime and Its Aftermath
Gen. Alfredo Stroessner engineered a successful coup in 1954 and stayed in power by repeatedly suppressing opposition. He was elected president in 1958 and 1963; the 1967 constitution permitted him to be reelected numerous times. Under his rule the national economy improved and financial relationships with other countries were strengthened. Although Stroessner was elected in 1988 for an eighth term, Paraguayans wearied of his domineering administrative style. He was overthrown in a coup in Feb., 1989. The coup leader, Gen. Andres Rodríguez, was elected president, and he gradually began moving the country away from its authoritarian past.
In 1993, Juan Carlos Wasmosy of the governing Colorado party won the presidency, but his power was weakened by a divided legislature, labor strikes, and the demands of farmers for more equitable land distribution. In Apr., 1996, an apparent military coup by the army chief, Lino Oviedo, was averted. When Oviedo became the presidential candidate of the Colorado party in 1997, however, Wasmosy had him arrested on charges of insubordination in the 1996 dispute. Oviedo was sentenced to 10 years in prison; his running mate, Raúl Cubas Grau, replaced him and won the 1998 election. Wasmosy was later (2002) convicted of corruption because of his role in a bank scandal during his presidency.
Shortly after taking office Cubas freed Oviedo, and later ignored a supreme court order to return the former general to prison. A bitter power struggle developed between Cubas and his vice president, Luis María Argaña, who was killed in a street ambush in Mar., 1999. Following several days of rioting, Cubas was impeached on charges of misuse of public office; he resigned and fled to Brazil, returning in 2002 to face charges arising from the assassination. Oviedo fled to Argentina but disappeared in December, claiming to have returned to Paraguay. The president of the senate, Luis González Macchi, became president, heading a government of national unity.
An attempted coup by supporters of Oviedo failed in May, 2000, and Oviedo was arrested the following month in Brazil. A special vice presidential election in August was narrowly won by the Liberal party candidate, Julio César Franco; it was the first national election lost by the Colorado party since it came to power in 1947. Franco benefited from the split within the Colorado party and had the de facto support of Oviedo.
González Macchi's coalition subsequently disintegrated as his opponents within the Colorado party and Franco's supporters sought to undermine the president. In 2001, Paraguay's request to extradite Oviedo from Brazil was rejected by the latter country's supreme court. Opposition to the president culminated in 2003 in an impeachment trial for corruption that González Macchi denounced as politically motivated; the president survived when his opponents fell short of the two thirds majority needed to convict him in the Paraguayan senate. In the Apr., 2003, presidential election, Óscar Nicanor Duarte Frutos, the Colorado party candidate, won; Franco placed second. Oviedo returned to Paraguay in June, 2004, and was promptly arrested and jailed, but he was released on parole in Sept., 2007, and his conviction was overturned the next month.
In 2006 former president Macchi was convicted of involvement in the illegal transfer in 2000 of Paraguayan central bank funds to the United States. He denied any involvement and blamed the central bank officials who had been convicted in 2004; his conviction was overturned on appeal. He was later convicted (2006) of fraud and embezzlement. Fernando Lugo Méndez, the former Roman Catholic bishop of San Pedro and a moderate leftist who was the candidate of an opposition coalition, was elected president in Apr., 2008, with about 41% of the vote. His victory ended more than six decades of Colorado party rule, but the Congress remained dominated by conservative parties. In September, Lugo accused his predecessor and former General Oviedo of being involved in a plot to overthrow him; they denied the accusation. In Apr., 2009, Lugo's reputation was damaged when he was forced to acknowledge that he had fathered a child while a bishop; there were accusations that he had additional children with other women. Brazil agreed in 2009 (ratified 2011) to triple payments to Paraguay for exported electricity generated by the Itaipú Dam. In 2010, attacks by leftist guerrillas led in April to the imposition of a 30-day state of emergency and military rule in N Paraguay.
Bibliography
See T. E. Weil et al., Area Handbook for Paraguay (1972); C. J. Kolinski, Independence or Death: The Story of the Paraguayan War (1965) and Historical Dictionary of Paraguay (1973); C. A. Washburn, The History of Paraguay (1871, repr. 1973); P. H. Lewis, Paraguay Under Stroessner (1980) and Socialism, Liberalism, and Dictatorship in Paraguay (1982); R. A. Nickson, Paraguay (1987).
Republic in south-central South America, enclosed by Bolivia on the west and north, Brazil on the northeast, and Argentina on the south and west.
| Background: | In the disastrous War of the Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost two-thirds of all adult males and much of its territory. It stagnated economically for the next half century. In the Chaco War of 1932-35, Paraguay won large, economically important areas from Bolivia. The 35-year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a marked increase in political infighting in recent years, Paraguay has held relatively free and regular presidential elections since then. |

| Location: | Central South America, northeast of Argentina |
| Geographic coordinates: | 23 00 S, 58 00 W |
| Map references: | South America |
| Area: | total: 406,750 sq km land: 397,300 sq km water: 9,450 sq km |
| Area - comparative: | slightly smaller than California |
| Land boundaries: | total: 3,995 km border countries: Argentina 1,880 km, Bolivia 750 km, Brazil 1,365 km |
| Coastline: | 0 km (landlocked) |
| Maritime claims: | none (landlocked) |
| Climate: | subtropical to temperate; substantial rainfall in the eastern portions, becoming semiarid in the far west |
| Terrain: | grassy plains and wooded hills east of Rio Paraguay; Gran Chaco region west of Rio Paraguay mostly low, marshy plain near the river, and dry forest and thorny scrub elsewhere |
| Elevation extremes: | lowest point: junction of Rio Paraguay and Rio Parana 46 m highest point: Cerro Pero (Cerro Tres Kandu) 842 m |
| Natural resources: | hydropower, timber, iron ore, manganese, limestone |
| Land use: | arable land: 7.47% permanent crops: 0.24% other: 92.29% (2005) |
| Irrigated land: | 670 sq km (2003) |
| Total renewable water resources: | 336 cu km (2000) |
| Freshwater withdrawal (domestic/industrial/agricultural): | total: 0.49 cu km/yr (20%/8%/71%) per capita: 80 cu m/yr (2000) |
| Natural hazards: | local flooding in southeast (early September to June); poorly drained plains may become boggy (early October to June) |
| Environment - current issues: | deforestation; water pollution; inadequate means for waste disposal pose health risks for many urban residents; loss of wetlands |
| Environment - international agreements: | party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands signed, but not ratified: none of the selected agreements |
| Geography - note: | landlocked; lies between Argentina, Bolivia, and Brazil; population concentrated in southern part of country |
| Population: | 6,995,655 (July 2009 est.) |
| Age structure: | 0-14 years: 36.7% (male 1,304,115/female 1,260,560) 15-64 years: 58.1% (male 2,043,509/female 2,023,317) 65 years and over: 5.2% (male 168,554/female 195,600) (2009 est.) |
| Median age: | total: 21.9 years male: 21.6 years female: 22.2 years (2009 est.) |
| Population growth rate: | 2.364% (2009 est.) |
| Birth rate: | 28.17 births/1,000 population (2009 est.) |
| Death rate: | 4.49 deaths/1,000 population (2008 est.) |
| Net migration rate: | -0.07 migrant(s)/1,000 population (2009 est.) |
| Urbanization: | urban population: 60% of total population (2008) rate of urbanization: 2.8% annual rate of change (2005-10 est.) |
| Sex ratio: | at birth: 1.05 male(s)/female under 15 years: 1.03 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.86 male(s)/female total population: 1.01 male(s)/female (2009 est.) |
| Infant mortality rate: | total: 24.68 deaths/1,000 live births male: 28.77 deaths/1,000 live births female: 20.38 deaths/1,000 live births (2009 est.) |
| Life expectancy at birth: | total population: 75.77 years male: 73.19 years female: 78.49 years (2009 est.) |
| Total fertility rate: | 3.75 children born/woman (2009 est.) |
| HIV/AIDS - adult prevalence rate: | 0.6% (2007 est.) |
| HIV/AIDS - people living with HIV/AIDS: | 21,000 (2007 est.) |
| HIV/AIDS - deaths: | fewer than 1,000 (2007 est.) |
| Major infectious diseases: | degree of risk: intermediate food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever vectorborne disease: dengue fever and malaria (2009) |
| Nationality: | noun: Paraguayan(s) adjective: Paraguayan |
| Ethnic groups: | mestizo (mixed Spanish and Amerindian) 95%, other 5% |
| Religions: | Roman Catholic 89.6%, Protestant 6.2%, other Christian 1.1%, other or unspecified 1.9%, none 1.1% (2002 census) |
| Languages: | Spanish (official), Guarani (official) |
| Literacy: | definition: age 15 and over can read and write total population: 94% male: 94.9% female: 93% (2003 est.) |
| School life expectancy (primary to tertiary education): | total: 12 years male: 12 years female: 12 years (2005) |
| Education expenditures: | 4% of GDP (2004) |
| Country name: | conventional long form: Republic of Paraguay conventional short form: Paraguay local long form: Republica del Paraguay local short form: Paraguay |
| Government type: | constitutional republic |
| Capital: | name: Asuncion geographic coordinates: 25 16 S, 57 40 W time difference: UTC-4 (1 hour ahead of Washington, DC during Standard Time) |
| Administrative divisions: | 17 departments (departamentos, singular - departamento) and 1 capital city*; Alto Paraguay, Alto Parana, Amambay, Asuncion*, Boqueron, Caaguazu, Caazapa, Canindeyu, Central, Concepcion, Cordillera, Guaira, Itapua, Misiones, Neembucu, Paraguari, Presidente Hayes, San Pedro |
| Independence: | 14 May 1811 (from Spain) |
| National holiday: | Independence Day, 14 May 1811 (observed 15 May) |
| Constitution: | promulgated 20 June 1992 |
| Legal system: | based on Argentine codes, Roman law, and French codes; judicial review of legislative acts in Supreme Court of Justice; accepts compulsory ICJ jurisdiction |
| Suffrage: | 18 years of age; universal and compulsory up to age 75 |
| Executive branch: | chief of state: President Fernando Armindo LUGO Mendez (since 15 August 2008); Vice President Federico FRANCO (since 15 August 2008); note - the president is both the chief of state and head of government head of government: President Fernando Armindo LUGO Mendez (since 15 August 2008); Vice President Federico FRANCO (since 15 August 2008) cabinet: Council of Ministers appointed by the president elections: president and vice president elected on the same ticket by popular vote for a single five-year term; election last held 20 April 2008 (next to be held April 2013) election results: Fernando Armindo LUGO Mendez elected president; percent of vote - Fernando Armindo LUGO Mendez 40.8%, Blanca OVELAR 30.6%, Lino OVIEDO 21.9%, Pedro FADUL 2.4%, other 4.3% |
| Legislative branch: | bicameral National Congress or Congreso Nacional consists of the Chamber of Senators or Camara de Senadores (45 seats; members are elected by popular vote to serve five-year terms) and the Chamber of Deputies or Camara de Diputados (80 seats; members are elected by popular vote to serve five-year terms) elections: Chamber of Senators - last held 20 April 2008 (next to be held in April 2013); Chamber of Deputies - last held 20 April 2008 (next to be held in April 2013) election results: Chamber of Senators - percent of vote by party - NA; seats by party - ANR 15, PLRA 14, UNACE 9, PPQ 4, other 3; Chamber of Deputies - percent of vote by party - NA; seats by party - ANR 30, PLRA 27, UNACE 15, PPQ 3, APC 2, other 3 |
| Judicial branch: | Supreme Court of Justice or Corte Suprema de Justicia (nine judges appointed on the proposal of the Council of Magistrates or Consejo de la Magistratura) |
| Political parties and leaders: | Alianza Patriotica por el Cambio (Patriotic Alliance for Change) or APC [Fernando LUGO]; Asociacion Nacional Republicana - Colorado Party or ANR [Lilian SAMANIEGO]; Movimiento Union Nacional de Ciudadanos Eticos or UNACE [Lino Cesar OVIEDO Silva]; Patria Querida (Beloved Fatherland Party) or PPQ [Pedro Nicolas Maraa FADUL Niella]; Partido del Movimiento al Socialismo or P-MAS; Partido Encuentro Nacional or PEN [Emilio CAMACHO Paredes]; Partido Liberal Radical Autentico or PLRA [Gustavo CARDOZO]; Partido Pais Solidario or PPS [Carlos Alberto FILIZZOLA Pallares] |
| Political pressure groups and leaders: | Ahorristas Estafados or AE; National Coordinating Board of Campesino Organizations or MCNOC [Luis AGUAYO]; National Federation of Campesinos or FNC [Odilon ESPINOLA]; National Workers Central or CNT [Secretary General Juan TORRALES]; Paraguayan Workers Confederation or CPT; Roman Catholic Church; Unitary Workers Central or CUT [Jorge Guzman ALVARENGA Malgarejo] |
| International organization participation: | CAN (associate), FAO, G-77, IADB, IAEA, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC, LAES, LAIA, Mercosur, MIGA, MINURSO, MINUSTAH, MONUC, NAM (observer), OAS, OPANAL, OPCW, PCA, RG, UN, UNASUR, UNCTAD, UNESCO, UNIDO, Union Latina, UNMIL, UNMIS, UNOCI, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO |
| Diplomatic representation in the US: | chief of mission: Ambassador James SPALDING Hellmers chancery: 2400 Massachusetts Avenue NW, Washington, DC 20008 telephone: [1] (202) 483-6960 through 6962 FAX: [1] (202) 234-4508 consulate(s) general: Los Angeles, Miami, New York |
| Diplomatic representation from the US: | Ambassador Liliana AYALDE embassy: 1776 Avenida Mariscal Lopez, Casilla Postal 402, Asuncion mailing address: Unit 4711, APO AA 34036-0001 telephone: [595] (21) 213-715 FAX: [595] (21) 228-603 |
| Flag description: | three equal, horizontal bands of red (top), white, and blue with an emblem centered in the white band; unusual flag in that the emblem is different on each side; the obverse (hoist side at the left) bears the national coat of arms (a yellow five-pointed star within a green wreath capped by the words REPUBLICA DEL PARAGUAY, all within two circles); the reverse (hoist side at the right) bears the seal of the treasury (a yellow lion below a red Cap of Liberty and the words Paz y Justicia (Peace and Justice) capped by the words REPUBLICA DEL PARAGUAY, all within two circles) |
| Economy - overview: | Landlocked Paraguay has a market economy marked by a large informal sector, featuring reexport of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. 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. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure. The economy rebounded between 2003 and 2008, however, as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion. Paraguay is the sixth largest soy producer in the world. |
| GDP (purchasing power parity): | $28.71 billion (2008 est.) $27.21 billion (2007) $25.57 billion (2006) note: data are in 2008 US dollars |
| GDP (official exchange rate): | $16.36 billion (2008 est.) |
| GDP - real growth rate: | 5.5% (2008 est.) 6.4% (2007 est.) 4.3% (2006 est.) |
| GDP - per capita (PPP): | $4,200 (2008 est.) $4,100 (2007 est.) $3,900 (2006 est.) note: data are in 2008 US dollars |
| GDP - composition by sector: | agriculture: 23.1% industry: 17.2% services: 59.6% (2008 est.) |
| Labor force: | 2.839 million (2008 est.) |
| Labor force - by occupation: | agriculture: 31% industry: 17% services: 52% (2007) |
| Unemployment rate: | 5.4% (2008 est.) |
| Population below poverty line: | 32% (2005 est.) |
| Household income or consumption by percentage share: | lowest 10%: 0.7% highest 10%: 46.1% (2003) |
| Distribution of family income - Gini index: | 56.8 (2008) |
| Investment (gross fixed): | 20.2% of GDP (2008 est.) |
| Budget: | revenues: $2.939 billion expenditures: $2.866 billion (2008 est.) |
| Fiscal year: | calendar year |
| Public debt: | 22.2% of GDP (2008 est.) |
| Inflation rate (consumer prices): | 11% (2008 est.) |
| Central bank discount rate: | 20% (31 December 2007) |
| Commercial bank prime lending rate: | 25.03% (31 December 2007) |
| Stock of money: | $1.943 billion (31 December 2007) |
| Stock of quasi money: | $1.368 billion (31 December 2007) |
| Stock of domestic credit: | $2.457 billion (31 December 2007) |
| Market value of publicly traded shares: | $233.8 million (2005) |
| Agriculture - products: | cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, milk; timber |
| Industries: | sugar, cement, textiles, beverages, wood products, steel, metallurgic, electric power |
| Industrial production growth rate: | 2.5% (2008 est.) |
| Electricity - production: | 70 billion kWh (2007) |
| Electricity - consumption: | 6 billion kWh (2007) |
| Electricity - exports: | 64 billion kWh (2007) |
| Electricity - imports: | 0 kWh (2007) |
| Electricity - production by source: | fossil fuel: 0% hydro: 99.9% nuclear: 0% other: 0.1% (2001) |
| Oil - production: | 0 bbl/day (2007 est.) |
| Oil - consumption: | 27,410 bbl/day (2006 est.) |
| Oil - exports: | 0 bbl/day (2007) |
| Oil - imports: | 25,940 bbl/day (2007) |
| Oil - proved reserves: | 0 bbl (1 January 2006 est.) |
| Natural gas - production: | 0 cu m (2007 est.) |
| Natural gas - consumption: | 0 cu m (2007 est.) |
| Natural gas - exports: | 0 cu m (2007 est.) |
| Natural gas - imports: | 0 cu m (2007 est.) |
| Natural gas - proved reserves: | 0 cu m (1 January 2007 est.) |
| Current account balance: | $178 million (2008 est.) |
| Exports: | $6.901 billion f.o.b. (2008 est.) |
| Exports - commodities: | soybeans, feed, cotton, meat, edible oils, electricity, wood, leather |
| Exports - partners: | Argentina 28.1%, Uruguay 15.2%, Brazil 12.7%, Chile 5.9%, Germany 4.9%, Russia 4.5% (2007) |
| Imports: | $7.351 billion f.o.b. (2008 est.) |
| Imports - commodities: | road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts |
| Imports - partners: | Brazil 30.4%, US 22.8%, Argentina 14.4%, China 8.6% (2007) |
| Reserves of foreign exchange and gold: | $2.629 billion (31 December 2008 est.) |
| Debt - external: | $3.487 billion (31 December 2008 est.) |
| Stock of direct foreign investment - at home: | $2.057 million (2007) |
| Stock of direct foreign investment - abroad: | $NA |
| Currency (code): | guarani (PYG) |
| Currency code: | PYG |
| Exchange rates: | guarani (PYG) per US dollar - 4,337.7 (2008 est.), 5,031 (2007), 5,672.8 (2006), 6,178 (2005), 5,974.6 (2004) |
| Telephones - main lines in use: | 453,800 (2007) |
| Telephones - mobile cellular: | 4.33 million (2007) |
| Telephone system: | general assessment: meager telephone service; principal switching center is in Asuncion domestic: the fixed-line market is a state monopoly; deficiencies in provision of fixed-line service have resulted in a rapid expansion of mobile-cellular services fostered by competition among multiple providers international: country code - 595; satellite earth station - 1 Intelsat (Atlantic Ocean) |
| Radio broadcast stations: | AM 41, FM 121, shortwave 6 (2006) |
| Radios: | 925,000 (1997) |
| Television broadcast stations: | 5 (2007) |
| Televisions: | 990,000 (2001) |
| Internet country code: | .py |
| Internet hosts: | 19,691 (2008) |
| Internet Service Providers (ISPs): | 4 (2000) |
| Internet users: | 280,000 (2007) |
| Airports: | 797 (2008) |
| Airports - with paved runways: | total: 13 over 3,047 m: 3 1,524 to 2,437 m: 5 914 to 1,523 m: 5 (2008) |
| Airports - with unpaved runways: | total: 784 1,524 to 2,437 m: 26 914 to 1,523 m: 288 under 914 m: 470 (2008) |
| Railways: | total: 36 km standard gauge: 36 km 1.435-m gauge (2006) |
| Roadways: | total: 29,500 km paved: 14,986 km unpaved: 14,514 km (2000) |
| Waterways: | 3,100 km (2008) |
| Merchant marine: | total: 23 by type: cargo 18, carrier 1, passenger 1, petroleum tanker 2, roll on/roll off 1 foreign-owned: 6 (Argentina 5, Netherlands 1) (2008) |
| Ports and terminals: | Asuncion, Villeta, San Antonio, Encarnacion |
| Military branches: | Army, National Navy (Armada Nacional, includes Naval Aviation, Marine Corps, General Naval Prefecture), Air Force (Fuerza Aerea Paraguay, FAP) (2008) |
| Military service age and obligation: | 18 years of age for compulsory and voluntary military service; conscript service obligation - 12 months for Army, 24 months for Navy (2007) |
| Manpower available for military service: | males age 16-49: 1,589,873 females age 16-49: 1,585,573 (2008 est.) |
| Manpower fit for military service: | males age 16-49: 1,363,746 females age 16-49: 1,390,799 (2009 est.) |
| Manpower reaching militarily significant age annually: | male: 73,660 female: 72,046 (2009 est.) |
| Military expenditures: | 1% of GDP (2006 est.) |
| Disputes - international: | unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations |
| Illicit drugs: | major illicit producer of cannabis, most or all of which is consumed in Brazil, Argentina, and Chile; transshipment country for Andean cocaine headed for Brazil, other Southern Cone markets, and Europe; weak border controls, extensive corruption and money-laundering activity, especially in the Tri-Border Area; weak anti-money-laundering laws and enforcement |
In currencies, this is the abbreviation for the Paraguay Guarani.
Investopedia Says:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.

| Republic of Paraguay
República del Paraguay (Spanish)
Tetã Paraguái (Guaraní) |
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| Motto: Paz y justicia (Spanish) "Peace and justice" |
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| Anthem: Paraguayos, República o Muerte (Spanish) "Paraguayans, Republic or Death" |
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| Capital (and largest city) |
Asunción 25°16′S 57°40′W / 25.267°S 57.667°W |
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| Official language(s) | Spanish Guaraní[1][2] |
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| Ethnic groups (2000) | Mestizo (mixed European and Amerindian) 80% European 20% unmixed Amerindian 1-3% Asian 1-4% black 1% other 2.3% |
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| Demonym | Paraguayan | |||||
| Government | Unitary presidential Constitutional republic | |||||
| - | President | Fernando Lugo | ||||
| - | Vice President | Federico Franco | ||||
| Legislature | Congress | |||||
| - | Upper house | Chamber of Senators | ||||
| - | Lower house | Chamber of Deputies | ||||
| Independence | from Spain | |||||
| - | Declared | 14 May 1811 | ||||
| - | Recognized | 15 May 1811 | ||||
| Area | ||||||
| - | Total | 406,752 km2 (60th) 157,048 sq mi |
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| - | Water (%) | 2.3 | ||||
| Population | ||||||
| - | 2009 estimate | 6,454,548 [3] (103rd) | ||||
| - | Density | 14.2/km2 (204th) 39/sq mi |
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| GDP (PPP) | 2011 estimate | |||||
| - | Total | $35.346 billion[4] | ||||
| - | Per capita | $5,412[4] | ||||
| GDP (nominal) | 2011 estimate | |||||
| - | Total | $21.236 billion[4] | ||||
| - | Per capita | $3,252[4] | ||||
| Gini (2008) | 50.8[5] (high) | |||||
| HDI (2010) | ||||||
| Currency | Guaraní (PYG) |
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| Time zone | (UTC-4) | |||||
| - | Summer (DST) | (UTC-3) | ||||
| Drives on the | right | |||||
| ISO 3166 code | PY | |||||
| Internet TLD | .py | |||||
| Calling code | 595 | |||||
Paraguay (
i/ˈpɛərəɡwaɪ/, PAIR-ə-gwy), officially the Republic of Paraguay (Spanish: República del Paraguay [reˈpuβlika ðel paɾaˈɣwai], Guaraní: Tetã Paraguái [teˈtã paɾaˈɣwaj]), is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the country from north to south. Due to its central location in South America, it is sometimes referred to as Corazón de América, or the Heart of America.[7]
The Guaraní have been living in Paraguay since before the arrival of Europeans in the 16th century, when Paraguay became part of the Spanish colonial empire. Following independence from Spain in 1811, Paraguay was ruled by a series of dictators who followed isolationist and protectionist policies. This development was truncated by the disastrous Paraguayan War (1864–1870) in which the country lost 60% to 70% of its population and large amounts of territory. During a large part of the 20th century, Paraguay was ruled by Alfredo Stroessner, who led one of South America's longest lived military dictatorships. In 1989 Stroessner was toppled and free elections were celebrated in 1993. In 1994 Paraguay joined Argentina, Brazil and Uruguay to found Mercosur.
As of 2009 the population was estimated at 6.3 million. The capital and largest city is Asunción. The official languages are Spanish and Guaraní, both being widely spoken in the country, with around 92% of the general population speaking Spanish and 98% speaking Guaraní.
Though it remains one of region's poorest and least-developed countries, in 2010, Paraguay's economy grew by 14.5%, the largest economic expansion in Latin America, and the third fastest in the world after Qatar and Singapore.[8] By 2011, economic growth slowed but remained healthy, at 6.4%.[9]
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The name of the river, Paraguay, is thought to come from Guaraní para, "of many varieties", and gua, "riverine".
There is no conclusive explanation for the origin of the name Paraguay, however. The most common interpretations that have been suggested include:
Paraguay is divided by the Río Paraguay into the eastern region, called Eastern Paraguay (Paraguay Oriental) and known as the Paraná region; and the western region, officially called Western Paraguay (Paraguay Occidental) and also known as the Chaco. The country lies between latitudes 19° and 28°S, and longitudes 54° and 63°W. The terrain consists of grassy plains and wooded hills in the east. To the west, there are mostly low, marshy plains.
The overall climate ranges from subtropical to temperate, and like most lands in the region, Paraguay has only a wet and dry period. 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 lack of mountain ranges to provide a natural wind barrier allows winds to develop speeds as high as 100 miles per hour (161km/h). This also leads to significant changes in temperate 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 84 degrees.
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 67 inches (170 cm) of rain annually, while the western Chaco region typically averages no more than 20 inches (50 cm) a year. Furthermore, the rains in the west tend to be irregular and evaporate more quickly, contributing to the aridity of the area.
Pre-Columbian society in the wooded, fertile region which is now Paraguay consisted of semi-nomadic tribes, who were recognized for their fierce warrior traditions. These indigenous tribes were members of five distinct language families, and 17 separate ethnolinguistic groups remain today.
Europeans first arrived in the area in the early sixteenth century, and the settlement of Asunción was founded on 15 August 1537, by the Spanish explorer Juan de Salazar de Espinosa. The city eventually became the center of a Spanish colonial province, as well as the primary site of the Jesuit missions and settlements in South America in the eighteenth century. Jesuit Reductions were founded, and flourished in Eastern Paraguay for about 150 years, until the expulsion of the Jesuits by the Spanish crown in 1767. Paraguay overthrew the local Spanish administration on 15 May 1811. Paraguay's first ruler was the dictator Jose Gaspar Rodriguez de Francia. He ruled Paraguay from 1814, until his death in 1840, with very little outside contact or influence, creating a utopian society based on Rousseau's Social Contract.[10] After his death, Paraguay went through the very brief ownership of various military officers under a new junta, until the secretary Carlos Antonio Lopez, Francia's nephew, declared himself dictator. Lopez modernized Paraguay, and opened it up to foreign commerce. The relationship with Buenos Aires was limited to a non-aggression pact; Paraguayan independence from Argentina was declared in 1842. After Lopez's death, power was transferred to his eldest son, Francisco Solano López in 1862. Lopez's expansionist aims lead to the Paraguayan War in 1864. Paraguay fought against Brazil, Argentina and Uruguay, and was defeated in 1870 after five years of the bloodiest war in South America. William D. Rubinstein wrote: "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."[11] Paraguay also suffered extensive territorial losses to Brazil and Argentina.
The Chaco War was fought with Bolivia in the 1930s, and Bolivia was defeated. Paraguay re-established sovereignty over the region called the Chaco, but forfeited additional territorial gains as a price of peace.
The official narrative of Paraguay's history is fraught with disputes among historians, educators and politicians. The "authentic" version of historical events, wars in particular, varies depending on whether it was written in Paraguay, Argentina, Uruguay, Brazil, Bolivia, Europe, or North America.
Both the Colorado Party and Liberal Party maintain distinct official versions of Paraguayan history[citation needed]. During the pillaging of Asuncion (Saqueo de Asunción) in 1869, the Brazilian Imperial Army ransacked and relocated the Paraguayan National Archives to Rio de Janeiro where they have been kept in secrecy,[12] making Paraguayan history in the Colonial and early National periods difficult to study.
Between 1904 and 1954, Paraguay had thirty-one presidents, most of whom were removed from office by force.[13]
From 1954 to 1989, the country was ruled by Alfredo Stroessner and the Colorado party. The dictator oversaw an era of economic expansion, but also had a poor human rights and environmental record (see "Political History"). Torture and death for political opponents was routine.[14] After his overthrow, the Colorado continued to dominate national politics until 2008.
Leftist former bishop Fernando Lugo achieved a historic victory in Paraguay's presidential election of April 2008, 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.[15] The Lugo administration has highlighted the reduction of corruption and economic inequality as two major priorities.[9]
Paraguay is a representative democratic republic, with a multi-party system and separation of powers in three branches. Executive power is exercised solely by the President, who is head of state and head of government. Legislative power is vested in the two chambers of the National Congress. The judiciary is vested on tribunals and Courts of Civil Law and a nine-member Supreme Court of Justice, all of them independent of the executive and the legislature.
Paraguay gained its independence from Spain in 1811, and its first president was Jose Gaspar Rodriguez de Francia, who was originally appointed with Fulgencio Yegros as alternative consul, but in 1814, de Francia was appointed president. He established new laws that more or less completely removed the powers of the church and the cabinet, forbade colonial citizens from marrying one other, being allowed to marry only blacks, mulattoes or natives, and cut off Paraguay from the rest of South America. Because of de Francia's abolition of freedom, and his drive for complete power, Yegros and several other ex-politicians attempted to host a coup-d'etat against him, which failed, and they were imprisoned for life.
After World War II, politics became particularly unstable, with several political parties fighting for power in the late 1940s, which most notably brought about the Paraguayan civil war of 1947.[16] A series of unstable governments ensued until the establishment, in 1954, of the stable regime of dictator Alfredo 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 abuses.[17]
The splits in the Colorado Party in the 1980s, and the conditions that led to this — Stroessner's advanced age, the character of the regime, the economic downturn, and international isolation — provided an opportunity for demonstrations and statements by the opposition prior to the 1988 general elections.[citation needed]
PLRA leader Domingo Laino served as the focal point of the opposition in the second half of the 1980s. The government's effort to isolate Laino by exiling him in 1982 had backfired. On his sixth attempt, in 1986, Laino 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 Laino's return.[citation needed]
However, the Stroessner regime relented in April 1987, and permitted Laino to arrive in Asunción. Laino took the lead in organizing demonstrations and diminishing somewhat the normal opposition party infighting. 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. Nonetheless, the parties did cooperate in holding numerous 'lightning demonstrations' (mítines relámpagos), especially in rural areas. Such demonstrations were held and disbanded quickly before the arrival of the police.
In response to the upsurge in opposition activities, Stroessner condemned the Accord for advocating "sabotage of the general elections and disrespect of the law", and used the national police and civilian vigilantes of the Colorado Party to break up demonstrations. A number of opposition leaders were imprisoned or otherwise harassed. Hermes Rafael Saguier, another key leader of the PLRA, 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 in Coronel Oviedo. Laino 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.[18]
While contending that these results reflected the virtual Colorado monopoly on the mass media, opposition politicians also saw several encouraging developments. Some 53% of those polled indicated that there was an "uneasiness" in Paraguayan society. Furthermore, 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.[citation needed]
On 3 February 1989, Stroessner was overthrown in a military coup headed by General Andrés Rodríguez. As president, Rodríguez instituted political, legal, and economic reforms and initiated a rapprochement with the international community.
The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental rights. In May 1993, Colorado Party candidate Juan Carlos Wasmosy was elected as Paraguay's first civilian president in almost 40 years, in what international observers deemed fair and free 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 General Lino Oviedo to oust President Wasmosy, taking an important step to strengthen democracy.[citation needed]
Oviedo became the Colorado candidate for president in the 1998 election, but when the Supreme Court upheld in April his conviction on charges related to the 1996 coup attempt, he was not allowed to run and remained in confinement. 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 from confinement. In December 1998, Paraguay's Supreme Court declared these actions unconstitutional. In this tense atmosphere, the murder of Vice President and long-time Oviedo rival Luis María Argaña on 23 March 1999, led the Chamber of Deputies to impeach Cubas the next day.[citation needed] The 26 March murder of eight student antigovernment demonstrators, widely believed to have been carried out by Oviedo supporters, made it clear that the Senate would vote to remove Cubas on 29 March, and Cubas resigned on 28 March.[citation needed] Senate President Luis González Macchi, a Cubas opponent, was peacefully sworn in as president the same day.
In 2003, Nicanor Duarte Frutos was elected and sworn in as president.
For the 2008 general elections, the Colorado Party was once again a favorite. This time, their candidate was not an internal opponent to the President and self-proclaimed reformer, as in the two previous elections, but Minister of Education Blanca Ovelar, the first woman to appear as a candidate for a major party in Paraguayan history. However after sixty years of Colorado rule, voters chose a non-politician, former Roman Catholic Bishop Fernando Lugo. Although he was a longtime follower of the controversial liberation theology he was backed by the center-right Liberal Party, the Colorado Party's traditional opponents.
Outgoing President Nicanor Duarte Frutos hailed the moment as the first time in the history of this nation that a government had handed power to opposition forces in an orderly and peaceful fashion.
Lugo was sworn in on 15 August 2008, but unlike other South American countries such as Venezuela, Ecuador and Bolivia, Lugo's leftist agenda remains largely unimplemented[citation needed] as the Paraguayan Congress continues to be dominated by right-wing elected officials.[citation needed]
Political instability in the past year, fueled by disputes within Fernando Lugo's cabinet, has led the right wing Colorado Party to regain popularity. Reports suggest that the businessman Horacio Cartes is the new political figure amid disputes. Despite the DEA's strong accusations against Cartes involving him in drug trafficking, he continues to amass followers in the political arena.
On 14 January 2011, the Colorado Party convention enabled Horacio Cartes to run as the presidential candidate for the party, even though, as reports suggest, the party's constitution didn't allow it.[clarification needed]
Paraguay consists of seventeen departments and one capital district (distrito capital). These are, with their capitals indicated:
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The departments are further divided into districts (distritos).
There is no official data on the ethnic composition of the Paraguayan population, because the Department of Statistics, Surveys and Censuses[19] of Paraguay does not include the concepts of race and ethnicity in census surveys,[20] although it does inquire about the indigenous population. According to the census of 2002, the indigenous population was 1.7% of Paraguay's total population.[21]
Traditionally, the majority of the Paraguayan population is considered mixed (mestizo in Spanish), because of the widespread offspring of Guaraní women and Spanish settlers during Spain's domination of the country.[22] Other demographers contend the total "mostly white" percentage has grown in the last century as a result of European immigration and "whites" are now estimated at 20% or one-fifth of the country's population.[citation needed]
According to the CIA World Factbook, Paraguay has a population of 6,669,086, 95% of which are mestizo (mixed European and Amerindian) and 5% are labelled as "other" [23] and are members of indigenous tribal groups. They are divided into 17 distinct ethnolinguistic groupings, many of which are poorly documented.
One remarkable trace of the indigenous Guaraní culture that has endured in Paraguay is the Guaraní language, generally understoood by about 90% of the population. However, nearly all Paraguayans speak Spanish, which alongside Guaraní is an official language.[24] Small groups of ethnic Italians, Germans, Russians, Japanese, Koreans, Chinese, Arabs, Ukrainians, Brazilians, and Argentines had also settled in Paraguay, and they have to an extent retained their languages and culture, particularly the Brazilians, who represent the largest number at around 400,000.[25] Many of the Brazilians are descendants of German, Italian and Polish immigrants.[26] There are an estimated 63,000 Afro-Paraguayans, or 1% of the population.[27] Some 25,000 German-speaking Mennonites live in the Paraguayan Chaco.[28]
Paraguay has one of the more important German communities in South America. German settlers founded several towns as Hohenau, Filadelfia, Neuland, Obligado, Nueva Germania, etc. Some specialized German sites that promote German immigration to Paraguay refers to 5–7% of German-descent Paraguayan population and 150,000 German-Brazilian-descent population[29][30][31][32]
Paraguay's population is distributed unevenly through the country. About 56% of Paraguayans live in urban areas. The vast majority of the people live in the eastern region near the capital and largest city, Asunción, accounting for 10% of the country's population. The Gran Chaco region, which includes the Alto Paraguay, Boquerón and Presidente Hayes Department, and accounts for about 60% of the territory, is home to less than 2% of the population.
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Largest cities or towns of Paraguay (2002 DGEEC census)[33] |
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| Rank | City name | Department | Pop. | Rank | City name | Department | Pop. | ||
Asunción |
1 | Asunción | Capital District | 512,112 | 11 | Alonso | Central | 65,229 | |
| 2 | Ciudad del Este | Alto Paraná | 222,274 | 12 | Pedro Juan Caballero | Amambay | 64,592 | ||
| 3 | San Lorenzo | Central | 204,356 | 13 | Villa Elisa | Central | 53,166 | ||
| 4 | Luque | Central | 170,986 | 14 | Caaguaz | Caaguazú | 48,941 | ||
| 5 | Capiatá | Central | 154,274 | 15 | Coronel Oviedo | Caaguazú | 48,773 | ||
| 6 | Lambaré | Central | 119,795 | 16 | Hernandarias | Alto Paraná | 47,266 | ||
| 7 | Fernando de la Mora | Central | 113,560 | 17 | Presidente Franco | Alto Paraná | 47,246 | ||
| 8 | Limpio | Central | 73,158 | 18 | Itauguá | Central | 45,577 | ||
| 9 | Ñemby | Central | 71,909 | 19 | Concepción | Concepción | 44,070 | ||
| 10 | Encarnación | Itapúa | 67,173 | 20 | Villarrica | Guairá | 38,961 | ||
According to the 2002 census, 89.9% of the population is Roman Catholic, 6.2% is evangelical Christian, 1.1% is other Christian, 0.6% practice indigenous religions.
A U.S. State Department report on Religious Freedom names Roman Catholicism, Evangelical Christianity, mainline Protestantism, Judaism (Orthodox, Conservative, and Reform), Mormonism, and the Baha'i Faith as prominent religious groups. It also mentions a large Muslim community in Alto Paraná (as a result of Middle-Eastern immigration, especially from Lebanon) and the Mennonite community in Boquerón.[34]
Various poverty estimates suggest that 30–50% of the population is poor.[35] In rural areas, 41.20% of the people lack a monthly income to cover basic necessities, whereas in urban centers this figure is 27.6%. The top 10% of the population holds 43.8% of the national income, while the lowest 10% has 0.5%. The economic recession has worsened income inequality, notably in the rural areas, where the Gini coefficient has risen from 0.56 in 1995 to 0.66 in 1999.
More recent data (2009)[36] show that 35% of the Paraguayan population is poor, 19% of which live in extreme poverty. Moreover, 71% of the later live in rural areas of the country.
Similarly, land concentration in the Paraguayan countryside is one of the highest in the globe: 10% of the population controls 66% of the land, while 30% of the rural people are landless.[37] This inequality has caused a great deal of tensions between the landless and land owners.[38]
Landlocked Paraguay has a market economy 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. Between 1970 and 2009 the country had the highest economic growth of South America, with an average rate of 7.2% per year and the prospect of 9% annual growth from 2010, being the highest in South America.
The country also boasts the third most important free commercial zone in the world: Ciudad del Este, trailing behind Miami and Hong 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. On a per capita basis, real income has stagnated at 1980 levels. The economy grew rapidly between 2003 and 2008 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion. Paraguay is the sixth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession.
In 2010, Paraguay experienced the greatest economic expansion of the zone and the highest of South America, with a GDP growth rate of 14.5% by the end of the year.[39] The following year, Paraguay's growth rate remained a relatively high 6.4%;
The industrial sector produces about 25% of Paraguay's gross domestic product (GDP) and employs about 31% of the labor force. Output grew by 2.9% in 2004, after five years of declining production. Traditionally an agricultural economy, Paraguay is showing some signs of long-term industrial growth.
The pharmaceutical industry is quickly supplanting foreign suppliers in meeting the country's drug needs.[citation needed] Paraguayan companies now meet 70% of domestic consumption and have begun to export drugs. Strong growth also is evident in the production of edible oils, garments, organic sugar, meat processing, and steel.[citation needed]
Nevertheless, capital for further investment in the industrial sector of the economy is scarce. Following the revelation of widespread financial corruption in the 1990s, the government is still working to improve credit options for Paraguayan businesses.[citation needed]
In 2003, manufacturing made up 13.6% of the GDP, and the sector 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%.[40]
Literacy was about 93.6% and 87.7% of Paraguayans finish the 5th grade according to UNESCO's last Educational Development Index 2008. Literacy does not differ much by gender.[41] A more recent study[36] reveals that the assistance to primary school of children between 6 and 12 years old is about 98%. Primary education is free, mandatory and takes nine years. Secondary education takes three years.[41] Paraguay's universities include:
The net primary enrollment rate was at 88% in 2005.[41] Public expenditure on education was about 4.3 % of GDP in the early 2000s.[41]
LIfe expectancy at birth was 75 years in 2006,[42] and the 8th best position in America's ranking according to World Health Organization. It is the same level as Argentina. Public expenditure on health is 2.6 % of GDP and private expenditure on health 5.1 %.[41] Infant mortality was 20 per 1,000 births in 2005.[41] Maternal mortality was 150 per 100,000 live births in 2000.[41] The World Bank has helped the Paraguayan government reduce Paraguay's maternal and infant mortality. The Mother and Child Basic Health Insurance Project aimed 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 (MSPBS) management.[43]
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Français (French)
n. - Paraguay
Deutsch (German)
n. - Paraguay
Português (Portuguese)
n. - Paraguai
Español (Spanish)
n. - Paraguay
中文(简体)(Chinese (Simplified))
巴拉圭
中文(繁體)(Chinese (Traditional))
n. - 巴拉圭
한국어 (Korean)
파라과이 (남아메리카의 공화국; 수도 Asuncion; (약) Para.), 마테차
עברית (Hebrew)
n. - פראגוויי
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