Paraguay achieved its independence from Spain in 1811. In the disastrous War of the Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost two-thirds of all adult males and much of its territory. The country stagnated economically for the next half century. Following the Chaco War of 1932-35 with Bolivia, Paraguay gained a large part of the Chaco lowland region. The 35-year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a marked increase in political infighting in recent years, Paraguay has held relatively free and regular presidential elections since then.

Central South America, northeast of Argentina, southwest of Brazil

slightly smaller than California

subtropical to temperate; substantial rainfall in the eastern portions, becoming semiarid in the far west

grassy plains and wooded hills east of Rio Paraguay; Gran Chaco region west of Rio Paraguay mostly low, marshy plain near the river, and dry forest and thorny scrub elsewhere

hydropower, timber, iron ore, manganese, limestone

local flooding in southeast (early September to June); poorly drained plains may become boggy (early October to June)

deforestation; water pollution; inadequate means for waste disposal pose health risks for many urban residents; loss of wetlands

landlocked; lies between Argentina, Bolivia, and Brazil; population concentrated in southern part of country

mestizo (mixed Spanish and Amerindian) 95%, other 5%

Spanish (official), Guarani (official)

Roman Catholic 89.6%, Protestant 6.2%, other Christian 1.1%, other or unspecified 1.9%, none 1.1% (2002 census)

6,541,591 (July 2012 est.)

17.22 births/1,000 population (2012 est.)

4.59 deaths/1,000 population (July 2012 est.)

-0.08 migrant(s)/1,000 population (2012 est.)

ASUNCION (capital) 1.977 million (2009)

99 deaths/100,000 live births (2010)

2.06 children born/woman (2012 est.)

1.11 physicians/1,000 population (2002)

1.3 beds/1,000 population (2009)

fewer than 500 (2009 est.)

constitutional republic

17 departments (departamentos, singular - departamento) and 1 capital city*; Alto Paraguay, Alto Parana, Amambay, Asuncion*, Boqueron, Caaguazu, Caazapa, Canindeyu, Central, Concepcion, Cordillera, Guaira, Itapua, Misiones, Neembucu, Paraguari, Presidente Hayes, San Pedro

14 May 1811 (from Spain)

Independence Day, 14 May 1811 (observed 15 May)

promulgated 20 June 1992

civil law system with influences from Argentine, Spanish, Roman, and French civil law models; judicial review of legislative acts in Supreme Court of Justice

accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction

18 years of age; universal and compulsory until the age of 75

bicameral National Congress or Congreso Nacional consists of the Chamber of Senators or Camara de Senadores (45 seats; members elected by popular vote to serve five-year terms) and the Chamber of Deputies or Camara de Diputados (80 seats; members elected by popular vote to serve five-year terms)

Supreme Court of Justice or Corte Suprema de Justicia (nine judges proposed by the Council of Magistrates or Consejo de la Magistratura, and approved by the Senate and president)

Alianza Patriotica por el Cambio (Patriotic Alliance for Change) or APC [Fernando LUGO]; Asociacion Nacional Republicana - Colorado Party or ANR [Lilian SAMANIEGO]; Movimiento Popolar Tekojoja or Tekojoja [Sixto PEREIRA]; Movimiento Union Nacional de Ciudadanos Eticos or UNACE [Lino Cesar OVIEDO Silva]; Patria Querida (Beloved Fatherland Party) or PPQ [Pedro Nicolas Maraa FADUL Niella]; Partido del Movimiento al Socialismo or P-MAS [Camilo Ernesto SOARES Machado]; Partido Democratica Progresista or PDP [Rafael Augusto FILIZZOLA Serra]; Partido Encuentro Nacional or PEN [Fernando CAMACHO Paredes]; Partido Liberal Radical Autentico or PLRA [Amanda NUNEZ]; Partido Pais Solidario or PPS [Carlos Alberto FILIZZOLA Pallares]

Ahorristas Estafados or AE; National Coordinating Board of Campesino Organizations or MCNOC [Luis AGUAYO]; National Federation of Campesinos or FNC [Odilon ESPINOLA]; National Workers Central or CNT [Secretary General Juan TORRALES]; Paraguayan Workers Confederation or CPT; Roman Catholic Church; Unitary Workers Central or CUT [Jorge Guzman ALVARENGA Malgarejo]

CAN (associate), CELAC, FAO, G-11, G-77, IADB, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC, LAES, LAIA, Mercosur (suspended), MIGA, MINURSO, MINUSTAH, MONUSCO, NAM (observer), OAS, OPANAL, OPCW, PCA, UN, UNASUR, UNCTAD, UNESCO, UNFICYP, UNIDO, Union Latina, UNMIL, UNMISS, UNOCI, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Ambassador James H. THESSIN

three equal, horizontal bands of red (top), white, and blue with an emblem centered in the white band; unusual flag in that the emblem is different on each side; the obverse (hoist side at the left) bears the national coat of arms (a yellow five-pointed star within a green wreath capped by the words REPUBLICA DEL PARAGUAY, all within two circles); the reverse (hoist side at the right) bears a circular seal of the treasury (a yellow lion below a red Cap of Liberty and the words PAZ Y JUSTICIA (Peace and Justice)); red symbolizes bravery and patriotism, white represents integrity and peace, and blue denotes liberty and generosity

Landlocked Paraguay has a market economy distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. On a per capita basis, real income has stagnated at 1980 levels. The economy grew rapidly between 2003 and 2008 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay's commodity-based export expansion. Paraguay is the sixth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession. The economy fell 3.8% in 2009, as lower world demand and commodity prices caused exports to contract. The government reacted by introducing fiscal and monetary stimulus packages. Growth resumed at a 15% level in 2010, the highest in South America, but slowed to 6.4% in 2011 as the stimulus subsided. Political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to growth.

$35.8 billion (2011 est.)

$34.49 billion (2010 est.)

$29.98 billion (2009 est.)

$21.24 billion (2011 est.)

3.085 million (2011 est.)

17% of GDP (2011 est.)

21.3% of GDP (2011 est.)

0.5% of GDP (2011 est.)

13.7% of GDP (2011 est.)

16.5% of GDP (2010 est.)

6% (31 December 2010 est.)

20% (31 December 2009 est.)

28.94% (31 December 2011 est.)

26.04% (31 December 2010 est.)

$4.758 billion (31 December 2011 est.)

$3.151 billion (31 December 2010 est.)

$10.11 billion (31 December 2011 est.)

$6.377 billion (31 December 2009 est.)

$8.129 billion (31 December 2011 est.)

$6.165 billion (31 December 2010 est.)

$958.1 million (31 December 2011)

$42 million (31 December 2010)

$409.1 million (31 December 2006)

cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, milk; timber

sugar, cement, textiles, beverages, wood products, steel, metallurgic, electric power

-$544.6 million (2011 est.)

-$641.3 million (2010 est.)

$10.28 billion (2011 est.)

$8.52 billion (2010 est.)

soybeans, feed, cotton, meat, edible oils, electricity, wood, leather

Uruguay 15.4%, Brazil 11.7%, Argentina 10.4%, Chile 8.5%, Russia 6.7%, Netherlands 5.6%, Germany 4.4%, Italy 4% (2009 est.)

$12.06 billion (2011 est.)

$9.916 billion (2010 est.)

road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts

Brazil 27.4%, China 16.9%, US 15%, Argentina 14.8%, Chile 4.4% (2009 est.)

$5.096 billion (31 December 2011 est.)

$4.167 billion (31 December 2010 est.)

$5.33 billion (31 December 2011 est.)

$4.938 billion (31 December 2010 est.)

$3.393 million (31 December 2010)

$3.053 million (31 December 2009)

guarani (PYG) per US dollar -

54.41 billion kWh (2009 est.)

6.237 billion kWh (2009 est.)

43.38 billion kWh (2010 est.)

8.816 million kW (2009 est.)

0.1% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

99.9% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

0 bbl/day (2011 est.)

0 bbl/day (2009 est.)

0.01 bbl/day (2009 est.)

0 bbl (1 January 2012 est.)

0 bbl/day (2008 est.)

26,820 bbl/day (2011 est.)

0 bbl/day (2009 est.)

23,810 bbl/day (2008 est.)

0 cu m (1 January 2012 est.)

4.394 million Mt (2010 est.)

6.529 million (2011)

6 privately-owned TV stations; about 75 commercial and community radio stations; 1 state-owned radio network (2010)

1.105 million (2009)

3,100 km (primarily on the Paraguay and Paraná river systems) (2012)

Asuncion, Villeta, San Antonio, Encarnacion

Armed Forces Command (Commando de las Fuerzas Militares): Army, National Navy (Armada Nacional, includes Marine Corps, Naval Aviation, and Coast Guard), Paraguayan Air Force (Fuerza Aerea Paraguay, FAP), Logistics Command, War Materiel Directorate (2012)

18 years of age for compulsory and voluntary military service; conscript service obligation - 12 months for Army, 24 months for Navy; volunteers for the Air Force must be younger than 22 years of age with a secondary school diploma (2010)

1% of GDP (2006 est.)

unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations

major illicit producer of cannabis, most or all of which is consumed in Brazil, Argentina, and Chile; transshipment country for Andean cocaine headed for Brazil, other Southern Cone markets, and Europe; weak border controls, extensive corruption and money-laundering activity, especially in the Tri-Border Area; weak anti-money-laundering laws and enforcement