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Guide to Paraguay

Introduction

Background: In the disastrous War of the Triple Alliance (1865-70), 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, large, economically important areas were won from Bolivia. The 35-year military dictatorship of Alfredo STROESSNER was overthrown in 1989, and, despite a marked increase in political infighting in recent years, relatively free and regular presidential elections have been held since then.

Geography

Location: Central South America, northeast of Argentina
Geographic coordinates: 23 00 S, 58 00 W
Map references: South America
Area: total
Area - comparative: slightly smaller than California
Land boundaries: total
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
Natural resources: hydropower, timber, iron ore, manganese, limestone
Land use: arable land
Irrigated land: 670 sq km (1998 est.)
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
Geography - note: landlocked; lies between Argentina, Bolivia, and Brazil; population concentrated in southern part of country

People

Population: 6,347,884 (July 2005 est.)
Age structure: 0-14 years
Median age: total
Population growth rate: 2.48% (2005 est.)
Birth rate: 29.43 births/1,000 population (2005 est.)
Death rate: 4.53 deaths/1,000 population (2005 est.)
Net migration rate: -0.08 migrant(s)/1,000 population (2005 est.)
Sex ratio: at birth
Infant mortality rate: total
Life expectancy at birth: total population
Total fertility rate: 3.93 children born/woman (2005 est.)
HIV/AIDS - adult prevalence rate: 0.5% (2003 est.)
HIV/AIDS - people living with HIV/AIDS: 15,000 (1999 est.)
HIV/AIDS - deaths: 600 (2003 est.)
Nationality: noun
Ethnic groups: mestizo (mixed Spanish and Amerindian) 95%, other 5%
Religions: Roman Catholic 90%, Mennonite and other Protestant 10%
Languages: Spanish (official), Guarani (official)
Literacy: definition

Government

Country name: conventional long form
Government type: constitutional republic
Capital: Asuncion
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 annually)
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
Suffrage: 18 years of age; universal and compulsory up to age 75
Executive branch: chief of state
Legislative branch: bicameral Congress or Congreso 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
Judicial branch: Supreme Court of Justice or Corte Suprema de Justicia (judges appointed on the proposal of the Council of Magistrates or Consejo de la Magistratura)
Political parties and leaders: Asociacion Nacional Republicana - Colorado Party or ANR [Herminio CACERES, interim president]; Movimiento Union Nacional de Ciudadanos Eticos or UNACE [Enrique GONZALEZ Quintana, acting chairman]; Patria Querida (Beloved Fatherland Party) or PQ [Pedro Nicolas Maraa FADUL Niella]; Partido Encuentro Nacional or PEN [Luis TORALES Kenney]; Partido Liberal Radical Autentico or PLRA [Julio Cesar FRANCO]; Partido Pais Solidario or PPS [Carlos Alberto FILIZZOLA Pallares] note
Political pressure groups and leaders: Ahorristas Estafados or AE; Coordinating Table of National Campesino Organizations or MCNOC; National Federation of Campesinos or FNC; National Workers Central or CNT; Paraguayan Workers Confederation or CPT; Roman Catholic Church; Unitary Workers Central or CUT
International organization participation: CSN, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICCt, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, ISO (correspondent), ITU, LAES, LAIA, Mercosur, MIGA, MINUSTAH, MONUC, NAM (observer), OAS, ONUB, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UNMEE, UNMIL, UNOCI, UPU, WCL, WCO, WHO, WIPO, WMO, WToO, WTO
Diplomatic representation in the US: chief of mission
Diplomatic representation from the US: chief of mission
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

Economy - overview: Landlocked Paraguay has a market economy marked by a large informal sector. This sector features both reexport of imported consumer goods to neighboring countries as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population derives their living from agricultural activity, often on a subsistence basis. The formal economy grew by an average of about 3% annually in 1995-97, but averaged near-zero growth in 1998-2001 and contracted by 2.3 percent in 2002, in response to regional contagion and an outbreak of hoof-and-mouth desease. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, lack of progress on structural reform, substantial internal and external debt, and deficient infrastructure. Aided by a firmer exchange rate and perhaps a greater confidence in the economic policy of the Duarte FRUTOS administration, the economy rebounded in 2003 and 2004, posting modest growth each year.
GDP (purchasing power parity): $29.93 billion (2004 est.)
GDP - real growth rate: 2.8% (2004 est.)
GDP - per capita: purchasing power parity - $4,800 (2004 est.)
GDP - composition by sector: agriculture
Labor force: 2.66 million (2004 est.)
Labor force - by occupation: agriculture 45%
Unemployment rate: 15.1% (2004 est.)
Population below poverty line: 36% (2001 est.)
Household income or consumption by percentage share: lowest 10%
Distribution of family income - Gini index: 57.7 (1998)
Inflation rate (consumer prices): 5.1% (2004 est.)
Investment (gross fixed): 18.1% of GDP (2004 est.)
Budget: revenues
Public debt: 39.2% of GDP (2004 est.)
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: 0% (2000 est.)
Electricity - production: 48.36 billion kWh (2002)
Electricity - production by source: fossil fuel
Electricity - consumption: 2.469 billion kWh (2002)
Electricity - exports: 42.51 billion kWh (2002)
Electricity - imports: 0 kWh (2002)
Oil - production: 0 bbl/day (2001 est.)
Oil - consumption: 25,000 bbl/day (2001 est.)
Oil - exports: NA
Oil - imports: NA
Current account balance: $-36.11 million (2004 est.)
Exports: $2.936 billion f.o.b. (2004 est.)
Exports - commodities: soybeans, feed, cotton, meat, edible oils, electricity, wood, leather
Exports - partners: Uruguay 27.8%, Brazil 19.2%, Argentina 6.3%, Switzerland 4.1% (2004)
Imports: $3.33 billion f.o.b. (2004 est.)
Imports - commodities: road vehicles, consumer goods, tobacco, petroleum products, electrical machinery
Imports - partners: Brazil 30.9%, Argentina 23.3%, China 16.6%, US 4% (2004)
Reserves of foreign exchange and gold: $1.164 billion (2004 est.)
Debt - external: $3.239 billion (2004 est.)
Economic aid - recipient: NA
Currency (code): guarani (PYG)
Currency code: PYG
Exchange rates: guarani per US dollar - 5,974.6 (2004), 6,424.3 (2003), 5,716.3 (2002), 4,105.9 (2001), 3,486.4 (2000)
Fiscal year: calendar year

Communications

Telephones - main lines in use: 273,200 (2002)
Telephones - mobile cellular: 1,770,300 (2003)
Telephone system: general assessment
Radio broadcast stations: AM 46, FM 27, shortwave 6 (three inactive) (1998)
Radios: 925,000 (1997)
Television broadcast stations: 5 (2003)
Televisions: 990,000 (2001)
Internet country code: .py
Internet hosts: 9,243 (2003)
Internet Service Providers (ISPs): 4 (2000)
Internet users: 120,000 (2003)

Transportation

Railways: total
Highways: total
Waterways: 3,100 km (2004)
Ports and harbors: Asuncion, Villeta, San Antonio, Encarnacion
Merchant marine: total
Airports: 878 (2004 est.)
Airports - with paved runways: total
Airports - with unpaved runways: total

Military

Military branches: Army, Navy (includes Naval Aviation, River Defense Corps, Coast Guard), Air Force
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 (2004)
Manpower available for military service: males age 18-49
Manpower fit for military service: males age 18-49
Manpower reaching military service age annually: males
Military expenditures - dollar figure: $53.1 million (2004)
Military expenditures - percent of GDP: 0.9% (2003)

Transnational Issues

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, Europe, and US; corruption and some money-laundering activity, especially in the Tri-Border Area
Last updated: 20 October, 2005

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