Paraguay

3.1. Pre-Columbian Era and Early Encounters

The indigenous Guarani people had inhabited eastern Paraguay for at least a millennium before the arrival of Europeans in the 16th century. They were primarily agricultural, living in semi-nomadic communities. Western Paraguay, the Gran Chaco, was inhabited by various nomadic and semi-nomadic groups, among whom the Guaycuru peoples were prominent. The Paraguay River roughly demarcated the agricultural Guarani to the east and the hunter-gatherer groups of the Chaco to the west. The Guaycuru peoples were known for their warrior traditions and resisted European encroachment for centuries. These indigenous tribes belonged to five distinct language families, forming the basis of their major divisions, and were often in competition for resources and territories. Today, 17 distinct ethnolinguistic groups remain. European explorers, primarily Spanish, first arrived in the area in 1516.

3.2. Spanish Colonial Period

Spanish colonization began in earnest in the early 16th century. The Spanish explorer Juan de Salazar de Espinosa founded the settlement of Asunción on August 15, 1537. Asunción was established as part of an expedition from Buenos Aires seeking a land route to Alto Perú and its rumored "silver mountains," as well as to create a defensive outpost against Portuguese expansion. Unlike the nomadic hunter-gatherer tribes of the La Plata region, such as the Charrúa, the Guarani people practiced agriculture and had a relatively developed culture. They chose to ally with the Spanish to confront other hostile indigenous groups, leading to significant interaction and the emergence of a Mestizo (mixed-race) population. Asunción quickly became the center of the Spanish colonial province of Paraguay. In 1617, the Governorate of Paraguay, centered in Asunción, was separated from the Governorate of the Río de la Plata (centered in Buenos Aires) and the Governorate of Tucumán.

3.3. Independence and Nation Building

When the May Revolution occurred in Buenos Aires on May 25, 1810, declaring autonomy from Spain for the Viceroyalty of the Río de la Plata, the province of Paraguay, along with Banda Oriental (present-day Uruguay), Alto Perú (present-day Bolivia), and Córdoba, refused to recognize Buenos Aires' leadership. Paraguayan forces repelled an expedition led by General Manuel Belgrano aimed at enforcing Buenos Aires' authority. Paraguay subsequently overthrew the local Spanish administration and declared its independence on May 14-15, 1811, becoming one of the first Latin American nations to formally do so.
The early years of the republic were marked by political turmoil as various factions vied for power. Efforts were made to establish a national framework amidst internal divisions and external threats from neighboring regions.

3.3.2. Rule of the López Family

Following Francia's death in 1840, a period of political instability ensued, with various military officers ruling under a new junta. In 1841, Carlos Antonio López (allegedly Francia's nephew) came to power, becoming president in 1844. López reversed Francia's isolationist policies, opening Paraguay to foreign commerce and beginning a period of modernization. He signed a non-aggression pact with Argentina and officially declared Paraguay's independence in 1842, which Spain had not yet recognized.
The López family regime was characterized by pervasive and rigid centralism in production and distribution, with little distinction between public and private spheres; they ruled the country as if it were a large private estate. The government controlled all exports, particularly yerba mate and valuable wood products, maintaining a trade balance. Paraguay adopted a protectionist economic policy, avoiding foreign loans and levying high tariffs on imported goods. This fostered self-sufficiency and helped Paraguay avoid the debt incurred by neighboring Argentina and Brazil. Slavery, though not widespread, existed until it was legally abolished in the new constitution of 1844.
Carlos Antonio López modernized and expanded industry and the Paraguayan Army, significantly strengthening the country's strategic defenses, notably the Fortress of Humaitá. The government hired over 200 foreign technicians who installed telegraph lines and railroads to aid the expanding steel, textile, paper, ink, naval construction, weapons, and gunpowder industries. The Ybycuí foundry, completed in 1850, manufactured cannons, mortars, and bullets. River warships were built in Asunción's shipyards, and fortifications were constructed, especially along the Apa River and in the Gran Chaco. These projects continued under his son. Socio-economically, Paraguay was sometimes dubbed "the most advanced Republic in South America."
When Carlos Antonio López died in 1862, power was transferred to his eldest son, Marshal Francisco Solano López. He generally continued his father's political policies, aiming to project an international image of Paraguay as "democratic and republican," while in reality, the ruling family maintained almost total control over all aspects of public life. Military buildup continued, fueled by increasing pressure and interference from Argentina and Brazil. Though avoiding major conflict, Paraguay had engaged in hostilities with Argentine dictator Juan Manuel de Rosas over the blockade of the La Plata River while supporting anti-Rosas movements. This external pressure led to the creation of one of South America's most formidable armies.

3.4. Paraguayan War (War of the Triple Alliance)

In 1864, Francisco Solano López, concerned about the regional balance of power and Brazilian and Argentine interference in Uruguayan politics, responded to a request for aid from Uruguay's Blanco Party government. On October 12, 1864, despite Paraguayan ultimatums, the Empire of Brazil, allied with the Argentine government under General Bartolomé Mitre and rebellious Uruguayan Colorados led by General Venancio Flores, invaded Uruguay to overthrow the Blanco government. Paraguay retaliated by attacking the Brazilian province of Mato Grosso on December 15, 1864, and later declared war on Argentina on March 23, 1865, after Argentina denied Paraguayan troops passage to Uruguay. The Blanco government in Uruguay was toppled on February 22, 1865. Subsequently, on May 1, 1865, the Argentine Republic, the Empire of Brazil, and the newly installed Colorado government of Uruguay signed the secret Treaty of the Triple Alliance against Paraguay.
The Paraguayan War (1864-1870) was the deadliest international conflict in the history of the Americas. The Battle of Tuyutí on May 24, 1866, resulted in the loss of 6,000 Paraguayan men. Despite a ferocious and prolonged resistance, Paraguay was ultimately defeated. Marshal Solano López, refusing to surrender, was killed in action at the Battle of Cerro Corá on March 1, 1870, ending the war.
The consequences for Paraguay were catastrophic. The country lost 25-33% of its territory to Argentina and Brazil, including significant portions of the Misiones region and areas in the Chaco. It was burdened with an enormous war debt and forced to sell large amounts of national properties, undermining the state-led development model of the López era and leading to the establishment of large landholdings by foreign interests. The most devastating impact was the demographic collapse. Estimates vary, but it is believed that at least 50% of Paraguay's pre-war population of between 450,000 and 900,000 perished. The adult male population was decimated, with some estimates suggesting that only 28,000 adult males survived, a loss of possibly two-thirds to 90%. It took many decades for the country to recover demographically.
During the sacking of Asunción in 1869, the Imperial Brazilian Army seized and transported the Paraguayan National Archives to Rio de Janeiro. While some documents were later returned, many remain classified, complicating historical research on Paraguay's colonial and early national periods. Diverse perspectives on war guilt and national responsibilities continue to be debated, with some historians pointing to López's aggressive policies and others emphasizing the imperial ambitions of Brazil and Argentina, and the influence of British interests in the region.

3.5. Early 20th Century

The early 20th century in Paraguay was characterized by ongoing political instability, recovery efforts from the Paraguayan War, and the pivotal Chaco War against Bolivia, which significantly shaped national territory and identity.
The post-war period was marked by immense challenges in reconstruction, persistent political instability, and economic stagnation. Paraguay effectively became a satellite state of Argentina and Brazil. In 1904, a Liberal revolution overthrew the Colorado Party, which had dominated politics since the war. The Liberal rule, however, ushered in an era of even greater political instability. Between 1904 and 1954, Paraguay had thirty-one presidents, most of whom were removed from office by force. Conflicts between factions within the ruling Liberal Party led to the Paraguayan Civil War of 1922. The Colorado Party and the Liberal Party (later the Authentic Radical Liberal Party) emerged as the country's major political forces, though their early activities were often characterized by factionalism and armed struggle rather than democratic competition. To supplement its depleted population, Paraguay encouraged immigration, with small numbers of agricultural settlers arriving from Switzerland, Germany, and Italy, but far fewer than in neighboring countries.

3.5.1. Chaco War

An unresolved border dispute with Bolivia over the Gran Chaco region, believed to be rich in oil, escalated throughout the early 20th century, finally erupting into the Chaco War (1932-1935). Despite being outnumbered and poorly equipped initially, the Paraguayan army, familiar with the terrain and highly motivated, inflicted a series of defeats on Bolivia. After heavy losses on both sides (around 40,000 Paraguayan deaths), a ceasefire was negotiated in 1935, and the 1938 Buenos Aires Peace Treaty awarded Paraguay sovereignty over most of the disputed Chaco territory.
The victory came at a high economic and social cost, further straining the nation's resources. Post-war, military officers, capitalizing on popular dissatisfaction with Liberal politicians, increasingly intervened in politics. In 1936, Colonel Rafael Franco, a Chaco War hero, led the February Revolution, a military coup that brought him to power. His government, espousing socialist and nationalist ideas, initiated social reforms and officially rehabilitated Francisco Solano López as a national hero. However, Franco's radical reforms alienated the oligarchy, and he was overthrown in 1937.

3.6. Stroessner Dictatorship (1954-1989)

On May 4, 1954, General Alfredo Stroessner, with Brazilian backing, seized power in a military coup, ushering in one of Latin America's longest and most repressive dictatorships. Stroessner consolidated his rule by mastering the military and the Colorado Party, maintaining power for 35 years until 1989.
Under his regime, Paraguay experienced a degree of economic modernization and infrastructure development, notably the construction of the Itaipu Dam in partnership with Brazil. However, this era was characterized by systematic and widespread human rights abuses, including the torture, disappearance, and murder of political opponents, suppression of dissent, and the persecution of indigenous communities. Corruption was rampant, with Stroessner and his cronies amassing vast personal fortunes. Paraguay actively participated in Operation Condor, a U.S.-backed campaign of political repression and state terror involving intelligence operations and assassination of opponents, coordinated among the right-wing dictatorships of the Southern Cone.
Stroessner maintained a façade of democracy through regularly held, but heavily rigged, elections. He ruled under a near-permanent state of siege, curtailing civil liberties and freedom of the press. While the economy saw some expansion, particularly in agriculture and smuggling, the benefits were not widely shared, and social inequality remained entrenched. The regime fostered a climate of fear and enforced loyalty to the Colorado Party. Internationally, Stroessner initially enjoyed support from the United States as an anti-communist ally during the Cold War, but his human rights record led to increasing criticism and eventual isolation.
By the 1980s, splits within the Colorado Party, Stroessner's advanced age, economic downturn, and growing international pressure contributed to rising anti-regime sentiment. Domingo Laíno of the Authentic Radical Liberal Party (PLRA) became a key opposition figure. Despite government efforts to exile him, Laíno managed to return in 1987 and organized demonstrations. The regime responded with crackdowns, arrests, and harassment. In the 1988 general elections, Stroessner was declared re-elected with 89% of the vote, a result widely condemned as fraudulent.

3.7. Democratization and Contemporary Era

On February 3, 1989, Alfredo Stroessner was overthrown in a military coup led by his close associate, General Andrés Rodríguez. This event marked the end of the dictatorship and the beginning of Paraguay's transition to democracy. As president, Rodríguez initiated political, legal, and economic reforms and sought rapprochement with the international community. The deep-seated hunger for land among the rural poor led to immediate occupations of unused territories belonging to Stroessner and his associates; by mid-1990, 19,000 families occupied approximately 340 K acre ^{(340.00 K acre)}.
A new constitution was promulgated in June 1992, establishing a democratic system of government and significantly improving the protection of fundamental human rights and civil liberties. In May 1993, Juan Carlos Wasmosy of the Colorado Party was elected as Paraguay's first civilian president in almost forty years, in elections deemed free and fair by international observers. However, the military, particularly General Lino Oviedo, continued to wield significant political influence. An attempted coup by Oviedo in April 1996 to oust President Wasmosy was rejected with support from the United States and the Organization of American States.
Oviedo was nominated as the Colorado candidate for president in 1998, but his conviction related to the 1996 coup attempt barred him from running. His running mate, Raúl Cubas, won the election. One of Cubas's first acts was to commute Oviedo's sentence, a move declared unconstitutional by the Supreme Court. The assassination of Vice President Luis María Argaña, a rival of Oviedo, on March 23, 1999, led to Cubas's impeachment and resignation amidst widespread protests (known as the Marzo paraguayo), during which several student demonstrators were killed. Senate President Luis González Macchi assumed the presidency.
Nicanor Duarte Frutos of the Colorado Party was elected president in 2003. The 2008 general elections marked a historic shift: Fernando Lugo, a former Roman Catholic Bishop representing a center-left coalition (Patriotic Alliance for Change), defeated the Colorado Party candidate Blanca Ovelar, ending 61 years of Colorado rule. Lugo's administration prioritized reducing corruption and economic inequality. However, political instability and internal disputes plagued his presidency.
In June 2012, Lugo was impeached and removed from office by Congress in a rapidly conducted process following a deadly land eviction clash. Vice President Federico Franco assumed the presidency. Many neighboring countries and UNASUR condemned Lugo's ouster as a coup, though the OAS deemed the process constitutional.
Horacio Cartes of the Colorado Party won the 2013 presidential election, returning the party to power. He was succeeded by Mario Abdo Benítez, also of the Colorado Party, in 2018. Abdo Benítez maintained close ties with Brazilian president Jair Bolsonaro and faced criticism for praising Stroessner. In the 2023 general election, Santiago Peña of the Colorado Party was elected president and was sworn in on August 15, 2023.
Contemporary Paraguay continues to grapple with challenges such as poverty, income inequality, corruption, land reform, drug trafficking, and environmental degradation. The development of robust democratic institutions, ensuring the rule of law, and protecting human rights remain ongoing priorities. In 2021, Paraguay became the first country in South America to produce electric energy from a 100% renewable supply.

4.1. Topography and Regions

Paraguay is divided into two main geographic regions by the Paraguay River (Río Paraguay_{Río Paraguay}^Spanish):
1. Eastern Paraguay (Región Oriental or Paraneña): This region, comprising about 40% of the country's land area, is where the vast majority (around 97%) of the population lives. The terrain consists mostly of grassy plains, wooded hills, and fertile lowlands. The Paraná Plateau extends into this region. The Amambay Mountains form part of the border with Brazil.
2. Western Paraguay (Región Occidental or Chaco): Also known as the Gran Chaco, this region covers about 60% of the territory but is home to less than 4% of the population. It is a vast, flat, and largely arid to semi-arid alluvial plain characterized by low, marshy plains, scrub forests, and savannas. The Pilcomayo River forms part of the border with Argentina in this region.

Paraguay contains six terrestrial ecoregions: Alto Paraná Atlantic forests, Chaco, Cerrado, Humid Chaco, Pantanal, and Paraná flooded savanna. The country had a 2019 Forest Landscape Integrity Index mean score of 6.39/10, ranking it 74th globally out of 172 countries. The Guarani Aquifer is an important transboundary groundwater reserve underlying part of Paraguay. Although landlocked, Paraguay has numerous riverside beaches along its major rivers.

4.2. Climate

Paraguay's climate ranges from subtropical in much of the Eastern region to tropical in the north, with semi-arid conditions in the western Chaco. The country generally experiences only two distinct seasons: a wet season (summer, October to March) and a dry season (winter, May to August).
Winds play a significant role in influencing weather patterns. Warm, humid winds from the Amazon Basin prevail during the summer, while colder winds from the Andes can affect the country during winter. The absence of significant mountain ranges to act as natural barriers allows winds to reach high speeds, sometimes up to 100 mph ^{(161 km/h)}, and can lead to rapid temperature changes.
Temperatures in January, the hottest summer month, average around 84.02 °F ^{(28.9 °C)}. Between April and September, temperatures can occasionally drop below freezing, particularly in the south.
Rainfall varies dramatically. The far eastern forest belt receives an average of 67 in ^{(170 cm)} of rain annually. In contrast, the western Chaco region typically averages no more than 20 in ^{(50 cm)} per year. Rainfall in the Chaco tends to be irregular and evaporates quickly, contributing to the aridity of the area.

4.3. Major Rivers and Water Resources

Paraguay is defined by its major rivers, which serve as important transportation routes, sources of water, and international borders.

• The Paraguay River is the country's principal waterway, flowing from north to south and dividing it into its two main geographic regions. It is a major tributary of the Paraná River.
• The Paraná River forms much of Paraguay's eastern and southern borders with Brazil and Argentina. It is the second-longest river in South America.

The Paraná-Paraguay Waterway system provides landlocked Paraguay with access to the Atlantic Ocean.

Paraguay has immense hydroelectric resources, primarily exploited through two massive dams:

• The Itaipu Dam, located on the Paraná River on the border with Brazil, is one of the largest operational hydroelectric power plants in the world in terms of annual energy generation. Paraguay shares the dam's ownership and electricity output with Brazil. As Paraguay consumes only a small portion of its share, it exports a significant amount of electricity to Brazil, making it one of the world's largest net exporters of electric power.
• The Yacyretá Dam, located on the Paraná River on the border with Argentina, is another large hydroelectric facility shared with Argentina.

The development and operation of these dams have had significant socio-economic impacts, providing revenue and energy, but also environmental consequences, including habitat alteration and displacement of communities.

4.4. Flora and Fauna

Paraguay possesses a diverse range of flora and fauna, reflecting its varied ecosystems. The Eastern region, with its remnants of the Atlantic Forest, supports a rich biodiversity, though much of this forest has been cleared for agriculture. The Chaco region hosts unique wildlife adapted to its drier, harsher conditions.
Representative wildlife includes marsh deer, monkeys, armadillos, anteaters, otters, wild boars, tapirs, jaguars, ocelots, numerous bat species, and the coypu. The country is home to a wide variety of bird species, reptiles, and amphibians.
Major protected areas in Paraguay include Ñacunday National Park, Defensores del Chaco National Park, and Cerro Corá National Park. These areas aim to conserve the country's natural heritage.
Environmental conservation efforts face significant challenges. Deforestation, primarily driven by the expansion of cattle ranching and soybean cultivation, is a major issue, particularly in the Chaco region and the remaining Atlantic Forest. This habitat loss threatens many species and has significant implications for indigenous communities and the overall ecological balance.

5.1. Governmental Structure

• Executive Branch: The President of Paraguay is both the head of state and head of government. The president is elected by popular vote for a single five-year term and cannot be re-elected. The president appoints the Council of Ministers (cabinet). The current president is Santiago Peña, and the Vice President is Pedro Alliana.
• Legislative Branch: The National Congress (Congreso Nacional_{Congreso Nacional}^Spanish) is bicameral.
  • The Senate (Cámara de Senadores_{Cámara de Senadores}^Spanish) has 45 members, elected nationwide by proportional representation for five-year terms. The current President of the Senate is Silvio Ovelar.
  • The Chamber of Deputies (Cámara de Diputados_{Cámara de Diputados}^Spanish) has 80 members, elected by department through proportional representation for five-year terms. The current President of the Chamber of Deputies is Raul Latorre.
• Judicial Branch: The judiciary is independent of the executive and legislative branches. The highest court is the nine-member Supreme Court of Justice (Corte Suprema de Justicia_{Corte Suprema de Justicia}^Spanish). Its members are appointed by the Senate with the agreement of the executive branch, from shortlists proposed by a Magistrates' Council. The current President of the Supreme Court is César Diesel. The judicial system operates under civil law.

Mechanisms for democratic accountability include impeachment processes for high officials and regular elections. However, challenges such as corruption and political influence persist.

5.2. Major Political Parties

Paraguayan politics has historically been dominated by a few major parties.

• The Colorado Party (Asociación Nacional Republicana - Partido Colorado_{Asociación Nacional Republicana - Partido Colorado}^Spanish): One of the oldest and traditionally the most dominant political party in Paraguay. It is generally considered conservative. It ruled for 61 consecutive years, including during the Stroessner dictatorship, until 2008, and returned to power in 2013.
• The Authentic Radical Liberal Party (Partido Liberal Radical Auténtico_{Partido Liberal Radical Auténtico}^Spanish): The main opposition party for much of Paraguay's recent history. It is generally considered a centrist or center-left liberal party. It was the leading party in the coalition that brought Fernando Lugo to power in 2008.

Other smaller parties and political movements also participate in elections and governance, sometimes forming coalitions. The emergence of new political forces reflects the evolving democratic landscape.

5.3. Military

The Armed Forces of Paraguay (Fuerzas Armadas de Paraguay_{Fuerzas Armadas de Paraguay}^Spanish) consist of the Army, Navy (which includes naval aviation and a marine corps, despite Paraguay being landlocked, operating on the country's major rivers), and the Air Force.
The President of Paraguay is the commander-in-chief of the armed forces as established by the constitution. Paraguay has compulsory military service for all 18-year-old males (and 17-year-olds in the year of their 18th birthday), who are liable for one year of active duty. While the constitution allows for conscientious objection, enabling legislation has not been fully implemented.
The primary missions of the Paraguayan Armed Forces include defending the country's sovereignty and territorial integrity, participating in internal security operations when required, and contributing to international peacekeeping operations. The defense budget is relatively modest.
Civilian oversight of the military is a tenet of Paraguay's democratic system, aimed at ensuring the military's subordination to elected civilian authorities and its appropriate role in a democratic society, a significant shift from periods of military dictatorship. Paraguay has partnered with countries like Argentina, Brazil, and the United States in regional security efforts, including counter-terrorism and anti-narcotics initiatives. In July 2005, U.S. special forces arrived at Paraguay's Mariscal Estigarribia air base for joint training and humanitarian operations. In 2019, Asunción hosted the first meeting of the Regional Security Mechanism (RSM), promoting cooperation between Paraguay, Argentina, Brazil, and the U.S. in addressing transnational crime and terrorism in the "triple frontier" region.
According to the 2024 Global Peace Index, Paraguay is the 73rd most peaceful country in the world.

6.1. Major Cities

The primary urban centers of Paraguay are:

• Asunción: The capital and largest city, located on the eastern bank of the Paraguay River. It is the political, economic, and cultural center of the country. Population (2022 census, city proper): 462,241. The Gran Asunción metropolitan area has nearly 2.3 million inhabitants.
• Ciudad del Este: Located in the Alto Paraná Department on the border with Brazil and Argentina (near the Iguazu Falls), it is the second-largest city and a major commercial center, known for its role in international trade and as part of the "Triple Frontier." Population (2022 census): 325,819.
• Encarnación: Situated in the Itapúa Department on the Paraná River, opposite the Argentine city of Posadas. It is an important commercial and tourist hub, known for its carnival celebrations and river beaches. Population (2022 census): 106,842.

Other significant cities include Luque, San Lorenzo, Capiatá, and Lambaré, most of which are part of the Gran Asunción metropolitan area. Pedro Juan Caballero in Amambay Department, on the border with Brazil, is also a notable urban center.

7.1. Relations with Neighboring Countries

Paraguay maintains complex and vital relationships with its neighbors:

• Brazil: Brazil is a major trading partner and investor in Paraguay. The two countries share the Itaipu Dam, a significant source of energy and revenue. Relations are generally close, though issues such as cross-border trade, Brazilian migrant farmers (Brasiguayos) in Paraguay, and security cooperation in the border region (e.g., combating smuggling and organized crime) are ongoing topics of discussion. Historically, Brazil's influence has been strong, particularly following the Paraguayan War.
• Argentina: Argentina is another key neighbor with significant economic, social, and cultural ties. They share the Yacyretá Dam. Border trade, migration, and river navigation are important aspects of the relationship. Similar to Brazil, Argentina has historically exerted influence in Paraguay.
• Bolivia: Relations with Bolivia have been shaped by the Chaco War (1932-1935) over territorial disputes. While the border is now settled, cooperation on issues such as infrastructure development (e.g., the Bioceanic Corridor project aiming to connect Atlantic and Pacific ports through the Chaco), trade, and energy is pursued.

Paraguay strives for balanced relations, ensuring mutual interests are addressed, and cooperation on regional issues like infrastructure, environmental protection, and security is fostered.

7.2. Relations with South Korea

Paraguay and the Republic of Korea (South Korea) established diplomatic relations on June 12, 1962. Since then, the two countries have maintained friendly ties. Cooperation has occurred in various fields, including economic development, technical assistance, and cultural exchange. South Korea has provided development aid to Paraguay, and there is a small but established Korean immigrant community in Paraguay, contributing to the cultural diversity of the country. Political and economic exchanges continue, with potential for further growth in trade and investment.

7.3. Relations with Japan

Diplomatic relations between Paraguay and Japan were established in 1919. The relationship is characterized by economic cooperation, cultural exchange, and a significant history of Japanese immigration. The first Japanese immigrant arrived in 1912. Organized agricultural immigration began in 1936, with notable settlements like La Colmena. The Japanese-Paraguayan community, numbering around 10,000, is well-integrated and has made substantial contributions to Paraguayan agriculture and society. Japan has been a significant provider of development aid to Paraguay, supporting projects in infrastructure, agriculture, health, and education. The Japanese government and Paraguayan authorities often commemorate milestones in their shared history of immigration and cooperation. In 2018, then Prime Minister Shinzo Abe became the first Japanese prime minister to visit Paraguay.

7.4. Relations with Taiwan (Republic of China)

Paraguay is one of the few sovereign states that maintain official diplomatic relations with the Republic of China (ROC), commonly known as Taiwan, rather than the People's Republic of China (PRC). This relationship dates back to 1957, established during the anti-communist Stroessner regime. Paraguay is currently Taiwan's only diplomatic ally in South America.
The relationship involves political and economic cooperation, with Taiwan providing development aid, technical assistance, and investment to Paraguay. Both countries offer mutual support in international forums. The decision to maintain ties with Taiwan despite growing PRC influence globally is a significant aspect of Paraguay's foreign policy, often subject to domestic debate, particularly from agricultural sectors keen to access the mainland Chinese market. President Santiago Peña reaffirmed his commitment to relations with Taiwan upon his election in 2023, and Taiwan's Vice President Lai Ching-te attended his inauguration.

7.5. Relations with the United States

Relations between Paraguay and the United States have evolved significantly over time. During the Cold War, the U.S. supported the Stroessner dictatorship as an anti-communist bulwark, though it later became critical of its human rights record. Since Paraguay's transition to democracy in 1989, the U.S. has supported democratic consolidation, institutional reform, and efforts to combat corruption and transnational crime.
Cooperation exists in areas such as counter-narcotics, counter-terrorism, trade, and investment. The U.S. is an important trading partner and source of foreign investment. Military cooperation includes training and joint exercises. Key bilateral issues include strengthening democratic institutions, improving governance, human rights, and addressing illicit activities.

7.6. Membership in International Organizations

Paraguay is an active member of numerous international organizations, reflecting its commitment to multilateral diplomacy. Key memberships include:

• United Nations (UN): Paraguay is a founding member of the UN (joined October 24, 1945) and participates in its various agencies and programs.
• Organization of American States (OAS): Paraguay is a member of the OAS and engages in regional cooperation on issues of democracy, human rights, security, and development.
• Mercosur (Southern Common Market): Paraguay is a founding member of Mercosur, along with Argentina, Brazil, and Uruguay. This trade bloc is central to Paraguay's economic and foreign policy, aiming to promote free trade and economic integration among its members.

Paraguay also participates in other regional and international forums, such as the Community of Latin American and Caribbean States (CELAC) and the Ibero-American Summit.

8.1. Economic Structure and Characteristics

Paraguay's economy is characterized by its reliance on the primary sector (agriculture and livestock), a significant informal sector, and its status as a major exporter of hydroelectricity. The transition from a predominantly agriculture-based economy to one with a more diversified industrial and service base is ongoing.
The informal sector is large, encompassing re-export activities (triangulation trade, especially with goods from China via Paraguay to Brazil and Argentina), thousands of microenterprises, and urban street vendors. While this sector provides employment, it often operates outside formal regulatory and taxation systems, impacting social development and fiscal revenue. Export-import trends are heavily influenced by commodity prices and demand from major trading partners, primarily Brazil and Argentina within the Mercosur bloc. The country has an economic development policy based on exports, with a notable dependence on the Brazilian market. In recent years, Paraguay has sought to attract foreign investment through incentives like the "Maquila law," which offers favorable tax regimes for assembly plants producing goods for export. The economic growth experienced in the 2010s, averaging around 4%, did not substantially reduce poverty, which in 2018 affected over 26% of the population. The gap between rich and poor has reportedly widened. For many years, the country's image was associated with the illicit trade in electronic products, weapons, and drugs; however, this has been changing since the 2000s with the growth of legalized businesses.

8.2. Major Sectors

8.2.1. Agriculture and Livestock

Agriculture and livestock remain cornerstones of the Paraguayan economy, contributing significantly to GDP and employment.

• Major Agricultural Products: Paraguay is a major global producer and exporter of soybeans (sixth-largest producer worldwide). Other important crops include maize (corn), sugarcane, cotton, cassava (manioc), rice, wheat, oranges, yerba mate, and sorghum. The country is also the second-largest producer of stevia. In 2018, Paraguay was the 21st largest producer of maize and sugarcane.
• Livestock: Cattle ranching is a vital industry, with beef being a major export product (Paraguay is the ninth-largest beef exporter).

Issues related to this sector include land distribution, as a large percentage of agricultural land is concentrated in the hands of a few landowners (85% of agricultural land owned by 2.6% of owners). This has led to social tensions and conflicts with landless peasants and indigenous communities, who have often been displaced for large-scale agriculture, particularly soy cultivation. Environmental sustainability is also a concern, with deforestation and the heavy use of pesticides in soy farming impacting ecosystems and local populations. Soy farming was largely introduced by Brazilians, and in 2019, almost 70% of soy and rice producers were reported to be Brazilian or of Brazilian descent.

8.3. Infrastructure

Paraguay is working to enhance its transportation and communication infrastructure to foster economic and social progress.

8.3.1. Transportation Network

• Roads: As of 2019, Paraguay had a total of 49 K mile ^{(78.85 K km)} of roads, of which 6.4 K mile ^{(10.37 K km)} were paved. Major recent projects include the Bioceanic Corridor, aiming to connect Brazil with Argentine and Chilean ports across the Paraguayan Chaco, and the duplication of Route 2 between Asunción and Ciudad del Este.
• Railways: The railway system is limited and largely defunct for passenger traffic, though some freight lines exist or are planned for revitalization.
• River Navigation: The Paraguay and Paraná rivers are crucial for transportation, especially for international trade, providing landlocked Paraguay access to the Atlantic Ocean via the Paraná-Paraguay Waterway. Asunción is a major river port.
• Aviation: Silvio Pettirossi International Airport (ASU) in Asunción is the main international airport. Guaraní International Airport (AGT) in Ciudad del Este serves as an important international air cargo hub.

8.4. Trade and Foreign Investment

Paraguay is a member of Mercosur, and its trade is heavily oriented towards its Mercosur partners, particularly Brazil and Argentina.

• Major Trading Partners: Brazil, Argentina, Chile, United States, and countries in the European Union and Asia.
• Major Export Items: Soybeans and soy products, beef, electricity, corn, timber, cotton, and manufactured goods from maquiladoras.
• Major Import Items: Machinery, petroleum products, chemicals, vehicles, and consumer goods.

Ciudad del Este is a major free-trade zone and a hub for re-export activities.
Paraguay actively seeks Foreign Direct Investment (FDI), offering incentives such as the Maquila Law. FDI inflows have targeted sectors like agriculture, manufacturing, and services. The impact of trade and FDI on local employment and economic sovereignty is a subject of ongoing consideration, with aims to ensure benefits are shared broadly and contribute to sustainable development.

8.5. Economic Challenges and Poverty

Despite economic growth, Paraguay faces significant socio-economic challenges:

• Income Inequality: Paraguay has one of the highest levels of income inequality in Latin America. Wealth and land are highly concentrated. In 2022, the Gini coefficient was 45.1.
• Poverty: A substantial portion of the population lives in poverty. In 2018, the poverty rate was over 26%. Rural poverty is particularly acute.
• Unemployment and Underemployment: While official unemployment rates may vary, underemployment and informal employment are widespread.
• Land Tenure: Unequal land distribution remains a critical issue, leading to social conflict and hindering rural development. Large tracts of land, some illegally granted during the Stroessner dictatorship, are owned by a small elite, while many peasant families are landless.

Policy efforts to address these challenges focus on promoting inclusive growth, strengthening social safety nets, improving education and healthcare access, investing in infrastructure, and combating corruption. The focus on social justice and human development aims to ensure that economic progress translates into improved living standards for all Paraguayans.
The International Monetary Fund noted in 2005 that fewer than 10% of workers participated in the pension system.

9.1. Demographics

Paraguay's population was estimated at 6,109,903 according to the 2022 census, with a 2024 estimate of around 6.2 million.

• Population Density: The population is unevenly distributed. The vast majority (around 97%) live in the Eastern Region (Paraneña), particularly around the capital, Asunción. The Western Region (Chaco), covering about 60% of the territory, is sparsely populated, home to less than 4% of the population. Average population density is low.
• Age Structure: Paraguay has a relatively young population.
• Urbanization: About 63% of Paraguayans live in urban areas, making it one of the less urbanized nations in South America. Asunción and its metropolitan area account for nearly 2.3 million people.
• Population Growth Rate: Moderate.

9.2. Ethnicity

Paraguay is considered one of the most ethnically homogeneous countries in Latin America.

• Mestizo: The overwhelming majority of the population (around 95%) is Mestizo, resulting from extensive intermarriage between early male Spanish settlers and indigenous Guarani women. This shared heritage is a defining feature of Paraguayan identity.
• Indigenous Peoples: According to the 2022 census, indigenous people make up 2.3% of the total population (approximately 140,000 individuals). There are 19 distinct ethnolinguistic groups belonging to five language families. The Guarani people are the largest indigenous group.
• Immigrant Communities: Paraguay has received immigrants from various parts of the world, though in smaller numbers compared to its neighbors. Notable communities include those of German (including some 25,000 German-speaking Mennonites primarily in the Chaco region, who founded towns like Filadelfia and Neuland), Italian, Spanish, Japanese, Korean, Chinese, Lebanese, Ukrainian, Polish, Russian, and Brazilian (a large group, estimated around 400,000, many of whom are farmers in border areas, often referred to as Brasiguayos). There are also smaller numbers of Argentines, Bolivians, and people of African descent (Afro-Paraguayans, estimated at around 63,000 or 1%). Many of these communities have preserved their languages and cultures.

Social integration and the protection of cultural rights for all ethnic groups, particularly indigenous peoples and minority immigrant communities, are ongoing societal goals.

9.3. Languages

Paraguay is a remarkably bilingual nation, a rare case in Latin America where an indigenous language holds official status and is widely spoken by the majority of the population.

• Spanish and Guaraní are the official languages.
  • Guaraní is spoken by more than 90% of the population (over 5.8 million speakers). It is a strong marker of Paraguayan national identity and is spoken across different social classes, though it is more prevalent in rural areas. About 52% of rural Paraguayans are bilingual in Guarani.
  • Spanish is spoken by about 87% of the population and is the predominant language in government, business, media, and formal education.
• Jopara: A widely spoken colloquial form that mixes Spanish and Guarani vocabulary and grammar.
• Other Indigenous Languages: Besides Guarani, there are approximately 19 other indigenous languages spoken by various groups. Many of these are endangered. Languages such as Guana, Ayoreo, and Ishir (Chamacoco) are considered particularly at risk.
• Immigrant Languages: Communities of immigrants also maintain their languages, such as German (especially Plautdietsch among Mennonites), Japanese, Korean, Portuguese, etc.

The official recognition and promotion of Guarani are significant, but challenges remain in its use in all official domains and in ensuring quality bilingual education.

9.4. Religion

Christianity is the dominant religion in Paraguay. The constitution guarantees freedom of religion.

• Roman Catholicism: This is the predominant religion. According to a 2020 estimate, 87.4% of the population identifies as Catholic. The Church has historically played an important social and sometimes political role.
• Protestantism: Evangelical and other Protestant denominations constitute a growing minority, estimated at around 8.1% in 2020. This includes Mennonites, Baptists, Pentecostals, and others.
• Other Religions: Small communities of other faiths exist, including Judaism, Islam (mainly among immigrants from the Middle East in Alto Paraná), the Baháʼí Faith, The Church of Jesus Christ of Latter-day Saints (Mormons), and Buddhism.
• Indigenous Religions: Some indigenous people practice traditional spiritual beliefs, sometimes syncretized with Christianity.
• Irreligion: About 4.1% of the population identify as having no religion (2020).

Religious festivals, particularly Catholic ones, are important cultural events.

9.5. Education

Paraguay has made efforts to improve its education system, but challenges regarding equitable access and quality persist.

• School System: Education is compulsory for nine years, from ages 6 to 14 (primary education). Secondary education follows for three years. Public education is officially free.
• Literacy Rate: The adult literacy rate was about 93.6% according to UNESCO's 2008 Educational Development Index.
• Enrollment Rates: Attendance at primary school for children aged 6-12 was about 98% in a study around 2009. The net primary enrollment rate was 88% in 2005. About 87.7% of Paraguayans finish the fifth grade.
• Higher Education: Paraguay has several public and private universities. The National University of Asunción (founded in 1889) is the oldest and largest public university. Other institutions include the Universidad Católica Nuestra Señora de la Asunción (private, Catholic) and the Autonomous University of Asunción (private).
• Challenges: Issues include disparities in educational quality and access between urban and rural areas, and between different socio-economic groups. Teacher training, curriculum relevance, and infrastructure are areas needing improvement. Ensuring bilingual education (Spanish-Guarani) that is effective and respects indigenous languages is also a complex task. Public expenditure on education was about 4.3% of GDP in the early 2000s.

9.6. Health and Welfare

Paraguay has made progress in public health, but significant challenges remain, particularly for vulnerable populations.

• Key Health Indicators:
  • Life Expectancy: As of 2006, average life expectancy was around 75 years. The Human Development Report for 2022 lists it as 70.6 years.
  • Infant Mortality Rate: Was 20 per 1,000 live births in 2005. More recent estimates show improvement.
  • Maternal Mortality Rate: Was 150 per 100,000 live births in 2000. Efforts have been made to reduce this.
• Accessibility of Medical Services: Access to healthcare is uneven, with better services available in urban areas, especially Asunción, compared to rural and remote regions. Public expenditure on health is 2.6% of GDP, while private health expenditure is 5.1%.
• Major Diseases: Communicable diseases remain a concern, alongside a growing burden of non-communicable diseases. Vector-borne diseases like dengue fever are prevalent.
• Social Security System: The social security system provides pensions and health coverage for a portion of the workforce, primarily through the Instituto de Previsión Social (IPS) for private sector employees and a separate system (caja fiscal) for public employees. Coverage is not universal, and the informal sector largely remains outside the system.

Efforts for improvement focus on expanding primary healthcare coverage, improving the quality of services, strengthening public health infrastructure, and addressing health disparities, especially for women, children, and indigenous communities. The World Bank has supported projects like the Mother and Child Basic Health Insurance Program to reduce maternal and infant mortality.

10.1. Traditional Culture

Traditional Paraguayan lifestyles and cultural heritage are expressed in various forms:

• Attire: While modern Western clothing is common, traditional garments are worn for festivals and special occasions. This includes items like the typói (a loose-fitting embroidered blouse for women) and wide-brimmed hats for men.
• Crafts: Paraguay is renowned for its intricate handicrafts.
  • Ñandutí: A delicate, web-like lace, often circular, whose name means "spiderweb" in Guarani. It is used to adorn clothing, tablecloths, and other items.
  • Ao po'í: Finely embroidered cotton garments, often with geometric or floral designs. The name means "fine cloth" in Guarani.
  • Other crafts include leatherwork, wood carving, and pottery.
• Folk Festivals: Numerous festivals, often blending Catholic religious observances with indigenous traditions, are celebrated throughout the year. These typically involve music, dance, traditional food, and religious processions. The festival of the Virgin of Caacupé on December 8th is a major national pilgrimage. The Ovecha Ragué Festival is another example.

10.2. Cuisine

Paraguayan cuisine reflects the cultural fusion, with dishes often featuring manioc (cassava), corn, cheese, beef, and local fruits.

• Sopa paraguaya: Despite its name ("Paraguayan soup"), it is a savory, spongy cornbread-like cake made with corn flour, cheese, milk, eggs, and onions. It is a national dish.
• Chipa: A type of bread made from manioc starch, cornmeal, cheese (often Paraguayan cheese), and anise. There are many varieties, and it is especially popular during Holy Week.
• Tereré: An infusion of yerba mate with cold water, often mixed with medicinal herbs (yuyos). It is a highly popular social beverage, consumed throughout the day, especially in warmer weather. Hot mate is also consumed.
• Other notable dishes include vori vori (a thick soup with small cornmeal and cheese dumplings), mbeyú (a flatbread made from manioc starch and cheese), and various preparations of beef, river fish, and chicken. Mandi'o chyryry (fried manioc) is also common.

10.3. Music and Arts

Paraguayan music and arts have distinctive characteristics:

• Music:
  • Paraguayan harp (arpa paraguaya_{Paraguayan harp}^Spanish): This is the national instrument, a diatonic harp known for its unique sound.
  • Guarania: A slow, melancholic musical genre created by José Asunción Flores in the 1920s, characterized by its lyrical melodies.
  • Paraguayan polka (polca paraguaya_{Paraguayan polka}^Spanish): A lively, rhythmic folk music genre, distinct from European polka. It often features harp and guitar.
  • Notable musicians include harpist Félix Pérez Cardozo and Aparicio González.
• Dance: Traditional dances often accompany polcas and guaranias, featuring colorful costumes.
• Contemporary Art: Paraguay has a growing contemporary art scene, with painters, sculptors, and other artists exploring both traditional themes and modern expressions.

10.4. Literature

Paraguayan literature, written primarily in Spanish, includes notable authors and works.

• Augusto Roa Bastos (1917-2005): Paraguay's most celebrated novelist, he won the Cervantes Prize in 1989. His major works include Hijo de Hombre (Son of Man, 1960) and I, the Supreme (Yo el Supremo, 1974), a historical novel about the dictator José Gaspar Rodríguez de Francia.
• Other important writers include Josefina Plá, Gabriel Casaccia, and Roque Vallejos. The 1950s and 1960s saw the emergence of a new generation of Paraguayan novelists and poets.

10.5. Media

Paraguay has a range of media outlets:

• Newspapers: Major daily newspapers include ABC Color, Última Hora, and La Nación.
• Broadcasting: Radio is a widely accessible medium, with numerous national and local stations. Television broadcasting includes several national channels and cable services.
• Online Media: The use of internet-based news and social media is growing.

Freedom of the press is constitutionally guaranteed, but challenges related to political influence, intimidation of journalists, and concentration of media ownership have been reported.

10.6. Sports

Sports are an important part of Paraguayan national culture.

• Football (Soccer): This is by far the most popular sport. The Paraguay national football team (nicknamed Los Guaraníes or La Albirroja) has competed in multiple FIFA World Cup tournaments, reaching the quarterfinals in 2010. The main domestic league is the Paraguayan Primera División. Prominent clubs include Olimpia, Cerro Porteño, and Libertad. Notable Paraguayan footballers include José Luis Chilavert, Roque Santa Cruz, Carlos Gamarra, and Miguel Almirón.
• Other Sports: Basketball is also quite popular. Other sports enjoyed in Paraguay include volleyball, handball, futsal, swimming, tennis, rugby union, chess, motorsport, golf, and rowing.

10.7. Public Holidays

Paraguay observes a number of national, religious, and culturally significant public holidays. These include:

• January 1: New Year's Day (Año Nuevo_{New Year's Day}^Spanish)
• March 1: Heroes' Day (Día de los Héroes_{Heroes' Day}^Spanish), commemorating the end of the Paraguayan War and the death of Francisco Solano López.
• Moveable: Holy Thursday (Jueves Santo_{Holy Thursday}^Spanish)
• Moveable: Good Friday (Viernes Santo_{Good Friday}^Spanish)
• May 1: Labour Day (Día del Trabajador_{Labour Day}^Spanish)
• May 14/15: Independence Day (Día de la Independencia_{Independence Day}^Spanish)
• June 12: Chaco Armistice Day (Día de la Paz del Chaco_{Chaco Armistice Day}^Spanish), commemorating the end of the Chaco War.
• August 15: Founding of Asunción (Fundación de Asunción_{Founding of Asunción}^Spanish)
• September 29: Battle of Boquerón Victory Day (Día de la Batalla de Boquerón_{Battle of Boquerón Victory Day}^Spanish), a key victory in the Chaco War.
• December 8: Virgin of Caacupé Day (Día de la Virgen de Caacupé_{Virgin of Caacupé Day}^Spanish), a major religious festival.
• December 25: Christmas Day (Navidad_{Christmas Day}^Spanish)

10.8. World Heritage Sites

Paraguay has one UNESCO World Heritage Site:

• Jesuit Missions of La Santísima Trinidad de Paraná and Jesús de Tavarangue: Inscribed in 1993, these are the ruins of two 18th-century Jesuit reducciones. They represent the unique social, cultural, and religious experiment of the Jesuit missions among the Guarani people. These sites are significant for their architectural remains and for the history of cultural encounter and Jesuit activity in South America.