Paraguay

Area: 406,752 sq. km. (157,047 sq. mi.); about the size of California. Capital:Asuncion (pop. 502,000). Climate: Temperate east of the Paraguay river, semiarid to the west.
 * Geography**

Nationality: Paraguayan(s). Population: 4.8 million. Ethnic groups: Mixed Spanish and Indian descent (mestizo) 95%. Religions: Roman Catholic 90%; Mennonite and other Protestant denominations. Languages: Spanish, Guarani. Education: //Years compulsory//--6. //Attendance//--86.6%. //Literacy//--90.7%. Work force (1995, 1.7 million): //Agriculture//--45%. //Industry and commerce//--31%. //Services//--19%. //Government//--4%.
 * People**

Type: Constitutional republic. Independence: May 1811. Constitution: June 1992. Branches: //Executive//--president. //Legislative//--Senate and Chamber of Deputies. //Judicial//--Supreme Court of Justice. Administrative subdivisions: 17 departments. Political parties: Colorado (National Republican Association), Authentic Radical Liberal, National Encounter, Christian Democratic, and numerous smaller parties not represented in Congress. Suffrage: 18 years of age; universal and compulsory up to age 75.
 * Government**

HISTORY

 * 1811 - 1816: Establishment of Paraguay
 * 1816 - 1840: Governments of José Gaspar Rodríguez de Francia
 * 1840 - 1865: Governments of Carlos Antonio Lopez and Francisco Solano Lopez
 * 1865 - 1870: War of the Triple Alliance (2/3 adult male population killed)
 * 1870 - 1904: Post-war reconstruction and Colorado Party governments
 * 1904 - 1932: Liberal Party governments and prelude to the Chaco War
 * 1932 - 1935: Chaco War
 * 1935 - 1940: Governments of the Revolutionary Febrerista Party and Jose Felix Estigarribia
 * 1940 - 1948: Higinio Morinigo government
 * 1947 - 1954: Paraguayan Civil War(March 1947 until August 1947) and the re-emergence of the Colorado Party
 * 1954 - 1989: Alfredo Stroessner dictatorship
 * 1989 to date: Transition to democracy

Paraguay proclaimed its independence of Spain on May 14, 1811, followed by Chile in 1817 and Peru in 1820. Some years later José Gaspar Rodríguez Francia, the ruling dictator, stated a policy of national isolation. In 1844 after his death, Carlos Antonio López became president, backed by a new constitution. He reversed the isolationist policy, encouraged commerce, instituted many reforms, and founded the first newspaper. Under his rule european experts were hired to aid in the development of industries and communications, and thus the country had in 1861 the first telegraphic and steam locomotive train service in South America. At his death in 1862 López was succeeded by his son, Francisco Solano López. In 1865, influenced by his visits to the british and french empires, he tried to build his own empire, and thus led the nation into a war against Argentina, Brazil, and Uruguay, known as the Triple Alliance War. It devastated Paraguay, and ended with the death of López in 1870. More than half of the population was killed, the economy was destroyed, and territorial losses exceeded 142,500 sq km (55,000 sq mi). The country remained occupied by Brazil until 1876. After the war the country made a large effort to reconstruct its cities and economy. Immigration was encouraged, and subsidized agricultural colonies were established. The country remained neutral and prosperous during World War I (1914-1918). The border with Bolivia in the Chaco, was the scene of many incidents since 1929. In 1932 a full-scale war, known as the Chaco War broke out when Bolivia invaded the area, and it just ended by 1935. By the peace treaty, Paraguay was given about three-fourths of the disputed area in 1938, while Bolivia kept important petroleum deposits. After years on unstable political situation, a relative calm was attained at mid 1950s. Economic treaties were signed with neighboring countries, expecting to improve the economy of the entire region. In the 1970s and early 1980s, [|Itaipú], the most powerful hydroelectric dam in the world, was built on the Paraná River in a joint venture with Brazil. During the 1980s and 1990s, Yacyreta, a second hydroplant on the Paraná River was built with Argentina. In 1991 after servere political and economical changes, Paraguay joined Argentina, Brazil, and Uruguay in creating the Southern Cone Common Market (Spanish acronym MERCOSUR), one of the most important trade agreements of the world.

ECONOMY

Hugely important 'informal sector' - microbusinesses, resale of imported goods to neighboring nations, etc. formal per capita GDP stagnated; roughly $4000 GDP per capita.

From WIKIPEDIA Paraguay is still a poor and unequal society. Various poverty estimates suggest that between **one in every three Paraguayans to half of the population is poor**. In rural areas, 41.20 percent of the people lack a monthly income to cover basic necessities, whereas in urban centers this figure is 27.6 percent. **The top 10 percent of the population holds 43.8% of the national income, while the lowest 10 percent has only 0.5%**. The economic recession has worsened income inequality, notably in the rural areas, where the Gini Index has risen from 0.56 in 1995 to 0.66 in 1999. 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**. This inequality has cause a great deal of tensions between the landless and elites.

International Disputes:
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; corruption and some money-laundering activity, especially in the Tri-Border Area; weak anti-money-laundering laws and enforcement.


 * International organization participation:** CCC, ECLAC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM, ISO (correspondent), ITU, LAES, LAIA, Mercosur, OAS, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WHO, WIPO, WMO, WToO, WTrO

Since gaining independence, Paraguay's fortunes have been largely determined by its relationships with its immediate neighbors. Like Uruguay to the south, it is a buffer state separating Brazil and Argentina--the two largest countries in South America--and, like Bolivia to the west, it is landlocked. The circumstance of being landlocked has historically led the country alternately into __isolationism and expansionism__; its buffer status has underwritten its sovereignty. Paraguay's foreign policy has traditionally aimed at striking a __balance between the influence of its two large neighbors__. Foreign policy under Stroessner was based on two major principles: __nonintervention in the affairs of other countries__ and __no relations with countries under Marxist governments__. The only exception to the second principle was Yugoslavia. Paraguay maintained relations with Taiwan and did not recognize China. It had relations with South Africa but not with Angola or Mozambique. Paraguay broke diplomatic relations with Cuba in 1959 after the Castro government provided support to Paraguayan radicals. It terminated relations with Nicaragua in 1980 after the assassination in Asunción of Anastasio Somoza Debayle, the deposed Nicaraguan dictator. It was a member of the United Nations (UN), the Organization of American States (OAS), and the Latin American Integration Association, and a signatory of the 1947 Inter-American Treaty of Reciprocal Assistance (Rio Treaty).
 * Foreign Relations:**

OTHER
High literacy, birth rates, and a 2% population growth rate. Languages: spanish and guarani HIV/AIDS prevalence among adults: 0.5% Religion: Roman Catholic 89.6%, Protestant 6.2%

=NEWS=

http://www.msnbc.msn.com/id/23058833/ - yellow fever outbreak confirmed, state of emergency declared.

http://www.plenglish.com/Article.asp?ID=%7BD86923E1-8D3D-4674-AC04-701662EFAF8C%7D&language=EN - dengue fever also confirmed

http://www.coha.org/2007/06/29/is-paraguay-set-to-be-the-next-latin-american-country-to-lean-to-the-left/ 2008 president election

http://www.economist.com/world/la/displaystory.cfm?story_id=4462908 paraguay's allies and enemies