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Paraguay, officially the Republic of Paraguay (Spanish: República del Paraguay
pronounced [re?puβlika eel pa?a??wai]; Guaraní: Tet? Paraguái), is a landlocked
country in South America. It lies on both banks of the Paraguay River, bordering
Argentina to the south and southwest, Brazil to the east and northeast, and
Bolivia to the northwest, and is located in the very heart of South America. The
name "Paraguay" is derived from the Guaraní word pararaguay meaning "from a
great river". The "great river" is the Paraná River, which produces the greatest
amount of hydroelectric power in the world.
History
History of Paraguay
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. 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 their destruction by
the Spanish crown in 1767. Paraguay declared its independence after overthrowing
the local Spanish authorities on May 14, 1811.
Paraguay's history has been characterized by long periods of authoritarian
governments, political instability and infighting, and devastating wars with its
neighbors. Its post-colonial history can be divided into several distinct
periods:
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
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
In addition to the Declaration of Independence, the War of the Triple Alliance
and the Chaco War are milestones in Paraguay's history. 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
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, and forfeited
additional territorial gains as a price of peace.
The history of Paraguay is fraught with disputes among historians, educators and
politicians. The official version of historical events, wars in particular,
varies depending on whether you read a history book written in Paraguay,
Argentina, Brazil or Bolivia. Even European and North American authors have been
unable to avoid bias. Paraguay's history also has been a matter of dispute among
Paraguay's main political parties, and there is a Colorado Party and Liberal
Party official version of Paraguayan history. Dueling is allowed.
Politics
Politics of Paraguay
Paraguay's politics takes place in a framework of a presidential representative
democratic republic, whereby the President of Paraguay is both head of state and
head of government, and of a pluriform multi-party system. Executive power is
exercised by the government. Legislative power is vested in both the government
and the two chambers of the National Congress. The Judiciary is independent of
the executive and the legislature.
Politics in 1980s
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After World War II, politics became particularly unstable. In the late 1980s,
Paraguay was an authoritarian regime under the control of Stroessner, who
remained in office for more than three decades. Stroessner assumed power
following a more open but highly unstable period in Paraguay's history. The
political instability of the immediate post-war period, culminating in the civil
war in 1947 have taught Paraguayans to equate open politics with weakness and
authoritarian politics with strength.
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.
The PLRA leader Laíno served as the focal point of the opposition in the second
half of the 1980s. The government's effort to isolate Laíno by exiling him in
1982 had backfired. On his fifth attempt, in 1986, Laíno 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 Laíno's return. However, the Stroessner
regime relented in April 1987 and permitted Laíno to arrive in Asunción. Laíno
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.
Obviously stung by 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 PRLA,
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. Forty-eight hours before the elections, Laíno and
several other National Accord members were placed under house arrest.
Despite limited campaign activities, the government reported that 88.7 percent
of the vote went to Stroessner, 7.1 percent to PLR candidate Luis María Vega,
and 3.2 percent to PL candidate Carlos Ferreira Ibarra. The remaining 1 percent
of ballots were blank or annulled. The government also reported that 92.6
percent of all eligible voters cast their ballots. The National Coordinating
Committee rejected the government's figures, contending that abstention was as
high as 50 percent in some areas. In addition, election monitors from twelve
countries, including the United States, France, Spain, Brazil, and Argentina,
reported extensive irregularities.
Shortly after the elections, researchers from the Catholic University of Our
Lady of Asunción and the West German Friedrich Naumann Foundation released the
findings of a public opinion poll that they had conducted several weeks earlier.
The poll, which measured political attitudes of urban Paraguayans - defined as
those living in towns with at least 2,500 residents -suggested that the Colorado
Party had considerable support, although nowhere near the level of official
election statistics. Asked for whom they would vote in an election involving the
free participation of all parties and political movements, 43 percent named the
Colorado Party; the PLRA, which finished second in the poll, was mentioned by
only 13 percent of all respondents. Stroessner's name also topped the list of
those political leaders considered most capable of leading the country.
Although contending that these results reflected the Colorados' virtual monopoly
of the mass media, opposition politicians also saw several encouraging
developments. Some 53 percent of those polled indicated that there was an
"uneasiness" in Paraguayan society. Furthermore, 74 percent believed that the
political situation needed changes, including 45 percent who wanted a
substantial or total change. Finally, 31 percent stated that they planned to
abstain from voting in the February elections.
Relations between militants and traditionalists deteriorated seriously 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.
Law
In recent years, Paraguay has made important progress toward greater fiscal
transparency. The fairly comprehensive financial administration law (1999) has
been complemented by recent legal reforms that eliminated most tax exemptions,
revamped revenue administration procedures and introduced standardized
transparency requirements for public procurement, all of which reduce the scope
for corruption. In addition, efforts are ongoing to clarify the relations
between the government and the nonfinancial public enterprises (NFPEs),
including through tariff adjustments that have reduced quasi-fiscal activities (QFAs)
and the launching of external audits of the enterprises’ financial health
carried out by international firms. However, Paraguay fails to meet several
requirements (at times even basic ones) of the code: (i) the transparency and
credibility of the budget as an expression of the government’s fiscal objectives
and a guide to fiscal policy implementation are severely limited by the lack of
an underlying consistent macroeconomic framework, the limited accountability
imposed on the amendments introduced either by congress or the executive at both
the approval and execution stages, and the lack of a modern framework for civil
service; (ii) relations across different branches of government and between the
latter and the rest of the public sector are not always clear and little
information is provided on QFAs; (iii) few assurances of data quality are
provided, as data reconciliation and assessments by the relevant national body
are weak; and (iv) disclosure of fiscal information is sparse and its coverage
not comprehensive.
Administrative divisions
Departments of Paraguay
Paraguay consists of seventeen departments and one capital district (distrito
capital): These are, with their capitals indicated:
Name Capital
1 Alto Paraguay Fuerte Olimpo
2 Alto Paraná Ciudad del Este
3 Amambay Pedro Juan Caballero
4 Distrito Capital Asunción
5 Boquerón Filadelfia
6 Caaguazú Coronel Oviedo
7 Caazapá Caazapá
8 Canindeyú Salto del Guairá
9 Central Areguá
Name Capital
10 Concepción Concepción
11 Cordillera Caacupé
12 Guairá Villarrica
13 Itapúa Encarnación
14 Misiones San Juan Bautista
15 ?eembucú Pilar
16 Paraguarí Paraguarí
17 Presidente Hayes Pozo Colorado
18 San Pedro San Pedro
Geography
Map of Paraguay Geography of Paraguay
Paraguay is divided by the Rio Paraguay into the eastern region —officially
called Eastern Paraguay (Paraguay Oriental) and known as the Parane?a region —
and the western region — officially Western Paraguay (Paraguay Occidental) and
also known as the Chaco.
The southeastern border is formed by the Paraná River, containing the Itaipu dam
shared with Brazil. It is currently the largest hydroelectric power plant in the
world, generating nearly all the electricity required by Paraguay. Another large
hydroelectric power plant on the Paraná River is Yacyretá, shared by Paraguay
and Argentina. Paraguay is currently the world's largest exporter of
hydroelectric power.
The terrain is made up of grassy plains and wooded hills to 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.
Economy
Economy of Paraguay
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 soybeans, and its beef exports are
substantial for a country of its size. 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 neighbors and major trade partners. Roughly 38 percent
of the GDP derives from trade and exports to Brazil and Argentina.
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 now spans the Paraná River between Ciudad del Este and the Brazilian
city of Foz do Igua?u 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 Igua?u mostly based on
international commerce and shopping trips by Brazilian buyers colloquially
called sacoleiros.
Bilateral 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 total Paraguay’s trade. The EU market represents
13.7% of Paraguay exports and 6.1% of its imports.
While the country’s external debt remains satisfactory (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 very vulnerable to climatic factors and
price volatility. In 2004 its main exports were soybeans (35%) and meat (10%).
Because of the regional crisis, very limited economic growth (2.7% in 2005) and
a population increase, GDP per capita has fallen considerably in the long term,
standing at USD 1 155 in 2005. Combined with inequality, the aforementioned
factors explain why poverty currently affects 40% of the population.
Although only 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.
Demographics
Asunción, the capital of ParaguayDemographics of Paraguay
Ethnically, culturally, and socially, Paraguay has one of the most homogeneous
populations in Latin America. About 65% of the people are mestizos of mixed
Spanish and Guaraní Indian descent. White 31%, unmixed Amerindian 1%, Asian
(Chinese, Taiwanese and Japanese Okinawan) 2%.One trace of the original Guaraní
culture that still endures nowadays is the Guaraní language, spoken by 94% of
the population in the country . About 75% of all Paraguayans can speak Spanish.
Guaraní and Spanish are both official languages. Small groups of ethnic
Italians, Germans, Japanese, Koreans, Chinese, Arabs, Brazilians, and Argentines
settled in Paraguay and they have to an extent retained their respective
languages and culture, particularly the Brazilians.
Paraguay's population is distributed unevenly throughout 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, Asuncion, that accounts for
10% of the country's population. The Chaco, which accounts for about 60% of the
territory, is home to less than 2% of the population.
The country is predominantly Roman Catholic, with some Mennonite, Latter-Day
Saint (Mormon), and other Protestant minorities. The Church of Jesus Christ of
Latter-Day Saints claims over 66,000 members organized in 145 congregations.
Culture
Culture of Paraguay
Paraguayans' cultural ancestry can be traced to the extensive intermarriage
among the original male Spanish settlers and female indigenous, Guaraní, brides.
Paraguayan culture therefore is a fusion of two cultures and traditions: one
European, the other Guaraní. More than 90% of Paraguayans are mestizos, and this
makes Paraguay one of the most homogeneous countries in Latin America. A
characteristic of this cultural fusion is the extensive bilingualism present to
this day: more than 80% of Paraguayans speak both Spanish and the indigenous
language, Guaraní. Jopara, the mixture of Guaraní and Spanish, is also widely
spoken.
Landscape in the Gran Chaco, ParaguayThis cultural fusion is expressed in arts
such as embroidery (ao po'í) and lace making (?andutí). The music, which
consists of lilting polkas, bouncy galopas, and languid guaranías is played on
the native harp. Paraguay's culinary heritage is also deeply influenced by this
cultural fusion. Several popular dishes contain mandioca, a local staple crop
similar to the yuca root found in the Southwestern United States and Mexico, and
other indigenous ingredients. A popular dish is sopa paraguaya, similar to a
thick corn bread. Another notable food is chipa, a bagel-like bread made from
cornmeal, mandioca and cheese. Many other dishes consists of different kinds of
cheeses, onions, bell peppers, cottage cheese, yellow cornmeal, milk,
seasonings, butter, eggs and fresh corn kernels.
Main Catholic chapel in ConcepciónThe 1950s and 1960s saw the flowering of a new
generation of Paraguayan novelists and poets such as José Ricardo Mazó, Roque
Vallejos, and Nobel Prize nominee Augusto Roa Bastos. Several Paraguayan films
have been made.
There is a fairly high degree of mobility between classes, and even the poorest
peasant displays a strong degree of personal pride.[citations needed] Social
life revolves largely around an extended family of parents, children and blood
relations as well as godparents. The Paraguayans' chief loyalty is to their
family, and it, in turn, is their haven and support. Family interests determine
to a large extent which political party they will join, to whom they will marry,
what sort of job they will get, whether they will win a lawsuit, and—in some
cases—whether they would be wise to emigrate for a time. Even so, they are very
heart warming and open to tourists and foreigners.
Inside the family, conservative values predominate. In lower classes, godparents
have a special relationship to the family, since usually they are chosen because
of their favorable social position, in order to provide extra security for the
children. Particular respect is owed them, in return for which the family can
expect protection and patronage. In higher classes, however, godparents are
usually family members or family friends, thus being chosen is more of an honor
than a serious commitment.[citations needed]
Social issues
Paraguay is still a poor and unequal society. Various poverty estimates suggest
that between one in every three Paraguayans (World Bank Poverty Assessment ) to
half of the population is poor (2003 Census Bureau Household Survey). In rural
areas, 41.2 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.
The World Bank has helped the Paraguayan government in tackling overall
reduction of Paraguay's maternal and infant mortality. The Mother and Child
Basic Health Insurance Project aimed at contributing 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 at 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.[
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