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 |
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Official language(s) | ||||||
Ethnic groups | 74,5% mestizo 20% white 3,5%mulato 1,5%native [2] | |||||
Demonym | Paraguayan | |||||
Government | Constitutional presidential republic | |||||
- | President | Fernando Lugo | ||||
- | Vice President | Federico Franco | ||||
Legislature | Congress | |||||
- | Upper House | Chamber of Senators | ||||
- | Lower House | Chamber of Deputies | ||||
Independence | from Spain | |||||
- | De facto | May 15, 1811 | ||||
- | recognized by Spain | September 10, 1880 | ||||
Area | ||||||
- | Total | 406,752 km2 (59th) 157,048 sq mi |
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- | Water (%) | 2.3 | ||||
Population | ||||||
- | 2009 estimate | 6,349,000[3] (101st) | ||||
- | Density | 15.6/km2 (203nd) 39/sq mi |
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GDP (PPP) | 2008 estimate | |||||
- | Total | $28.452 billion[4] | ||||
- | Per capita | $4,700[4] | ||||
Gini (2008) | 50.8[5] (high) | |||||
HDI (2007) | 0.761[6] (medium) (101st) | |||||
Currency | Guaraní (PYG ) |
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Time zone | (UTC-4) | |||||
- | Summer (DST) | (UTC-3) | ||||
Drives on the | right | |||||
Internet TLD | .py | |||||
Calling code | 595 |
Paraguay (pronounced /ˈpɛrəgweɪ/ ( listen)), officially the Republic of Paraguay (Spanish: República del Paraguay, pronounced [reˈpuβlika ðel paɾaˈɣwai]; Guaraní: Tetã Paraguái /teˈtã paɾaˈgʷaj/), 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. Because of its central location in South America, is sometimes referred to as Corazón de América, or the Heart of America.[7]
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. Most of the population are mestizos.
Guaraní have been living in Paraguay since prior to the arrival of Spaniards in the 16th century, when Paraguay became part of the Spanish colonial empire. Paraguay gained independence from Spain in 1811.
There are at least four versions for the origin of the name Paraguay. The literal translation from Guaraní is Para = of many varieties; Gua = from, belonging to or place; Y = water, river or lake.
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 terrain consists of grassy plains and wooded hills in the east. To the west, there are mostly low, marshy plains.
The local climate ranges from subtropical to temperate, with substantial rainfall in the eastern portions, though becoming semi-arid in the far west.
Pre-Columbian society in the wooded, fertile region which is now present-day Paraguay consisted of seminomadic tribes, who were recognized for their fierce warrior traditions. These indigenous tribes were members of five distinct language families, and 17 separate ethnolinguistic groups still remain today.
Europeans first arrived in the area in the early sixteenth century, and the settlement of Asunción was founded on August 15, 1537, by the Spanish explorer Juan de Salazar de Espinosa. The city eventually became the center of a Spanish colonial province, as well as a 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 gained its independence after overthrowing the local Spanish administration on May 15, 1811.
Paraguay's history has been characterized by long periods of political instability and infighting, and devastating wars with its neighbors.
Paraguay fought the War of the Triple Alliance against Brazil, Argentina and Uruguay, and was defeated in 1870 after five years of the bloodiest war in South America. Paraguay's prewar population of approximately 525,000 was reduced to about 221,000 in 1871, of which only about 28,000 were men.[8] 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 West America.
Both the Colorado Party and Liberal Party maintain distinct official versions of Paraguayan history. 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, making Colonial and early National Period Paraguayan history difficult to study.
Between 1904 and 1954, Paraguay had thirty-one presidents, most of whom were removed from office by force.[9]
Leftist former bishop Fernando Lugo achieved a historic victory in Paraguay's presidential election in 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.[10]
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 both 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.
After World War II, politics became particularly unstable with several political parties fighting for power in the late 1940s, which most notably led to the Paraguayan civil war of 1947.[11] 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. Paraguay modernized to some extent under Stroessner's regime, though his rule was marked by extensive abuses.[12]
The splits in the Colorado Party in the 1980s and the conditions that led to this — Stroessner's 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.
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.
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, February 14, and held for twelve hours. The government declared Stroessner's re-election with 89% of the vote.[13]
Although contending that these results reflected the Colorados' virtual monopoly of 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.
Relations between militants and traditionalists deteriorated in the months following the elections. Although Chaves and his followers had not opposed Stroessner's re-election bid, Montanaro denounced them as "legionnaires" (a reference to those Paraguayan expatriates who fought against Francisco Solano López and who were regarded as traitors by the original Colorados).
By late 1988 the only major agencies still headed by traditionalists were the IBR and the National Cement Industry (Industria Nacional de Cemento). In September 1988, traditionalists responded to these attacks by accusing the militants of pursuing "a deceitful populism in order to distract attention from their inability to resolve the serious problems that afflict the nation." Traditionalists also called for an end to personalism and corruption.[14]
On February 3, 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.
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 March 23, 1999, led the Chamber of Deputies to impeach Cubas the next day. The March 26 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 March 29, and Cubas resigned on March 28. 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. However, 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. But after sixty years of rule by the Colorados voters chose a non-politician, former Roman Catholic Bishop Fernando Lugo. Although he was a long time follower of the controversial liberation theology he was backed by the center-right Liberal Party, the Colorados' traditional opponents.
Outgoing President Nicanor Duarte Frutos hailed the moment as the first time in the history of his nation that a government had handed power to opposition forces in an orderly and peaceful fashion.
Lugo was sworn in on August 15, 2008 but unlike other South American countries such as Venezuela, Ecuador and Bolivia, Lugo's leftist agenda remains largely unimplemented as the Paraguayan Congress continues to be dominated by right-wing elected officials.
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 (DGEEC) [15] of Paraguay does not include the concepts of race and ethnicity in census surveys,[16] 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.[17] Traditionally, 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.[18] The Ministry of Education and Culture of Paraguay refers thus to the population of the country:
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" [20] 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, understood by 90% of the population. About 75% of all Paraguayans speak Spanish. Guaraní and Spanish are official languages.[21] Small groups of ethnic Italians, Germans, Russians, Japanese, Koreans, Chinese, Arabs, Ukrainians, Brazilians, and Argentines settled in Paraguay, and they have to an extent retained their respective languages and culture, particularly the Brazilians who represent the largest number. An estimated 400,000 Brazilians live in Paraguay.[22] Many of the Brazilians are descendants of the German, Italian and Polish immigrants.[23] There are also an estimated 63,000 Afro-Paraguayans, or 1% of the population.[24] Some 25,000 German-speaking Mennonites live in the Paraguayan Chaco.[25]
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.
Largest cities of Paraguay (2002 DGEEC census)[26] |
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Rank | City Name | Department | Pop. | Rank | City Name | Department | Pop. |
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1 | Asunción | (Capital District) | 512.112 | 11 | Mariano Roque 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 | Caaguazú | 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 |
b
According to the 2002 census, 89.6% 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 Catholic, evangelical Christian, mainline Protestant, Jewish (Orthodox, Conservative, and Reform), Mormon, and Baha'i as prominent religious groups and also mentions a large Muslim community in Alto Paraná as a result of Middle-Eastern immigration, especially from Lebanon, and also the Mennonite community in Boquerón.[27]
Various poverty estimates suggest that 30-50% of the population is poor.[28] 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.
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.[29] This inequality has caused a great deal of tensions between the landless and land owners.[30]
Paraguay is a developing country with a 2005 Human Development Index score of 0.755.[31] It ranks as the second poorest country in South America with a 2007 GDP per capita of US$4,000. Poverty index was 14.2% in 2007 according to the World Bank[32], with a 23% reduction from 18% of the population living with less than US$2 a day in 2005.[33] However, Asuncion in Paraguay is ranked as the world's least expensive city to live in for the fifth year running.[34]
Paraguay has a market economy marked by a large informal sector that features both re-export of imported consumer goods to neighboring countries, and thousands of small business enterprises. Paraguay's largest economic activity is based on agriculture, agribusiness and cattle ranching. Paraguay is ranked as the world's third largest exporter of chalk boards, and its beef exports are substantial for a country of its size. A 23.Aug.2008 Financial Times article about Paraguay[35] states “Take record commodities prices, add a subtropical climate that gives farmers five harvests every 24 months and vast tracts of virgin arable land and it is no surprise that tiny Paraguay has emerged as one of the big beneficiaries of the global food crisis”. Such perception may put Paraguay into the focus of international agro producers. Reuters India reports that "Some of India's top vegetable oil firms plan to lease or buy land in Paraguay."[36]
Paraguay allows foreign land ownership of any size. Only nationals of Brazil, Argentina and Bolivia cannot own land in specific frontier regions. Some media reports at the end of 2008 stated that foreign land purchases will be restricted but were wrong. They were based on a misunderstanding of that Brazilians/frontier-regions-reglementations. Indeed land purchases by foreigners, attracted by low land valuations,[37][38] have for long been a feature of the Paraguayan economy. A large percentage of the population derive their living from agricultural activity, often on a subsistence basis. Despite difficulties arising from political instability, corruption and slow structural reforms, Paraguay has been a member of the free trade bloc Mercosur, participating since 1991 as one of the founding members.
Paraguay's economic potential has been historically constrained by its landlocked geography, but it does enjoy access to the Atlantic Ocean via the Paraná River. Because it is landlocked, Paraguay's economy is very dependent on Brazil and Argentina, its major trade partners. Roughly 38% of the GDP derives from trade and exports to Brazil and Argentina.[39]
Through various treaties, Paraguay has been granted free ports in Argentina, Uruguay and Brazil through which it sends its exports. The most important of these free ports is on the Brazilian Atlantic coast at Paranaguá. The Friendship Bridge that spans the Paraná River between Ciudad del Este and the Brazilian city of Foz do Iguaçu permits about forty thousand travelers to commute daily between both cities, and allows Paraguay land access to Paranaguá. A vibrant economy has developed in Ciudad del Este and Foz do Iguaçu mostly based on international commerce and shopping trips by Brazilian buyers colloquially called sacoleiros.[40]
Bilateral European Union (EU)-Paraguay trade in goods amounts to €437 million in 2005; the EU importing around €269 million and exporting roughly €168 million. In 2005, trade with EU represented 8.9% of Paraguay’s total trade. The EU market represents 13.7% of Paraguay exports and 6.1% of its imports.[41]
While the country’s external debt is 40% of GDP, Paraguay’s economy is still driven by agricultural production (27% of GDP and 84% of exports). It is a structure which is vulnerable to climatic factors and price volatility. Those vulnerabilities, combined with inequality, explain why poverty currently affects 40% of the population.[42]
Paraguay’s economy grew by 6.4%[43] in 2007 and 5.8%[44] in 2008, fastest growing sector being agriculture with 10.5% growth.
Although ranked 112th out of 175 countries in the 2006 World Bank Doing Business ranking, Paraguay has ranked particularly well in the "Protecting Investors" sub-category within that index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection, respectively.
The "Disclosure Index" for Paraguay is 6, whereas the Latin American region ranked only 4.3 (OECD countries ranked 6.3 on average). The country ranked 5 in "Director Liability Index", the same as OECD countries and better than the 5.1 attributed to its neighbors. In the "Shareholder Suits Index" category, Paraguay obtained 6 points, in contrast with 5.8 for its neighbors and 6.6 for OECD countries. The comprehensive "Investor Protection Index" attributed 5.7 to Paraguay, 5.1 to its neighbors and 6.0 to OECD countries on average.[45]
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. 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.
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. 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%.[46]
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.[47] Primary education is free, mandatory and takes nine years. Secondary education takes three years.[47] Paraguay has several universities. The National University of Asunción was founded in 1889, and the Universidad Americana is one of the best MBA-offering institutions in South America and Paraguay.[47] The net primary enrollment rate was at 88% in 2005.[47] Public expenditure on education was about 4.3 % of GDP in the early 2000s.[47]
LIfe expectancy at birth was 75 years in 2006[48],and the 8th best position in America's ranking according to World Health Organization. It is the same level of Argentina. Public expenditure on health is 2.6 % of GDP and private expenditure on health 5.1 %.[47] Infant mortality was 20 per 1,000 births in 2005.[47] Maternal mortality was 150 per 100,000 live births in 2000.[47] 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.[49]
Organization | Survey | Ranking |
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Institute for Economics and Peace [1] | Global Peace Index[50] | 73 out of 144 |
United Nations Development Programme | Human Development Index | 101 out of 182 |
Transparency International | Corruption Perceptions Index | 154 out of 180 |
World Economic Forum | Global Competitiveness Report | 124 out of 133 |
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