Paraguay, one of Brazil’s neighbors in the Southern Cone, is a landlocked country surrounded by Brazil, Bolivia and Argentina. This geographic reality ended up leading to clashes of interests with neighboring countries in the 19th century and the so-called Paraguayan War, in which Paraguay was defeated by the alliance composed of Brazil, Argentina and Uruguay. The conflict largely defined the future of the country.
Since Paraguay emerged from 35 years of dictatorship under General Alfredo Stroessner in 1989, political crises, corruption and economic problems have marred its fragile democracy.
About a quarter of Paraguayans live below the national poverty line, which causes the country to have major social challenges, including housing – almost half of Paraguayans live in inadequate housing.
Much of the land in Paraguay is owned by a small number of individuals, and successive governments have been slow to implement land reform.
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The city of Asunción is the political and economic center of Paraguay, a country that still has many social problems.
The economy is dependent on agriculture and hydroelectric power. Unlike its neighbors, Paraguay does not have a significant tourist industry, but former Jesuit mission buildings attract visitors interested in the history of the region. Alongside Brazil, Argentina and Uruguay, the country is a founding member of Mercosur, the region’s economic bloc.
The majority of the population is of mestizo descent, mixing Spanish and Guarani origins, and speak both Spanish and Guarani.
The Triple Frontier region, where Paraguay meets Argentina and Brazil, has a long history of drug trafficking and smuggling.
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Capital: Asuncion
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Population7 million
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Area406,752 square kilometers
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main languagesSpanish and Guarani
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main religionChristianity
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Life expectancy71 years old (male), 75 years old (female)
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CoinGuarani
Source: UN, World Bank
President: Mario Abdo Benitez
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President Mario Abdo Benítez is yet another leader of the Colorado Party, which has dominated Paraguayan politics for decades.
Former senator Mario Abdo Benítez of the Colorado Party took over Paraguay’s presidency in August 2018. His narrow election victory came three months earlier, helped by his pledge to keep low-tax policies to attract more foreign investment.
The result meant that the Colorado Party, which has dominated Paraguayan politics for decades, remained in power. Benítez is the son of an adviser to then-military dictator Alfredo Stroessner – and the president’s defense of Stroessner’s legacy has drawn criticism.
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Paraguayan media is marked by the concentration of vehicle ownership in the hands of large groups.
The media in Paraguay is made up of both state and private media outlets. Radio is a key medium for the population. Large business groups dominate the sector – according to Reporters Without Borders, the property is concentrated in the hands of a few. Among the main newspapers in the country are ABC Color and La Nación.
The Paraguayan Constitution guarantees the functioning of a free press, and the media operates with few limitations imposed by the authorities. According to Freedom House, the border between Paraguay, Brazil and Argentina is particularly dangerous for reporters trying to cover matters involving crime and corruption.
As of December 2018, according to InternetWorldStats.com, there are over 6.2 million internet users in Paraguay – almost 90% of the population. Facebook is the most used social network in the country.
Neighbors Brazil and Paraguay, which share a border of 1,339 kilometers and are founding partners of Mercosur, established diplomatic relations in 1844. However, 20 years later, the conflict that would become known in Brazil as the Paraguayan War began. The biggest war ever in South America and the most striking in Brazilian history, it pitted the two countries between 1864 and 1870.
Under the command of Francisco Soláno Lopez since 1862, Paraguay sought more regional influence, particularly with an outlet to the sea. For this, it had an alliance with the then Uruguayan government, the “blancos”, which was fighting an internal dispute with the “colorados”.
Brazilian interests were aligned with those of Colorado, and Brazil intervened militarily in the Uruguayan dispute on the side of the group. Paraguay responded, starting the war, with the country of Soláno Lopez on one side and on the other the so-called Triple Alliance – Brazil, Argentina and Uruguay, now under the command of the Colorados.
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The construction of the Itaipu hydroelectric plant, in the 1970s and 1980s, brought Brazil and Paraguay even closer together
After six years of conflict, in which between 100,000 and 300,000 people were killed, Paraguay was defeated and destroyed, with its economy in ruins. In Brazil, the Army was strengthened and gained prestige, which would lead to the proclamation of the Republic in 1889 – a military coup against Emperor Dom Pedro II.
In 1965, the Friendship Bridge was inaugurated between Brazil and Paraguay, a work that gave Paraguay a road leading directly to the Atlantic Ocean, facilitating its exports.
The joint construction of the Itaipu hydroelectric plant – Itaipu Binacional -, completed in 1984, brought Brazil and Paraguay closer together and became a symbol of the relations between the two countries. The plant is responsible for generating about 86% of the energy consumed in Paraguay – in the case of Brazil, the share is 15%.
Despite consuming less than 20% of the energy generated by Itaipu, Paraguay is very dependent on the hydroelectric plant.
A negotiation about the amount to be paid by each country per kilowatt consumed almost led to the impeachment of President Abdo Benítez in 2019. The terms of the agreement negotiated by the Paraguayan government were considered disadvantageous as they entailed an increase in energy tariffs paid by the population. The agreement was eventually renegotiated, which ensured that Benítez remained in power.
While the energy generated by the plant accounted for 14.6% of the Brazilian market in 2018, 90.7% of Paraguayan demand for energy is met by Itaipu.
If the conflicts between the nations of the region were in the past, the border between Brazil and Paraguay started to be marked by the action of criminal groups, with intense trafficking of arms and drugs. The problem has worsened in the 21st century and worries the authorities of both countries.
Brazil authorized the exile in its territory of former Paraguayan dictator Alfredo Stroessner, who died in the country, and allowed the permanence of former general Lino Oviedo, who was fleeing Paraguayan justice.
Important dates in the history of Paraguay:
16th century – Future Paraguayan territory is originally occupied by the indigenous Guarani people, before the arrival of the first Spanish settlers.
1811 – Paraguay declares independence from Spain and becomes a republic.
1862 – Francisco Solano López assumes the Presidency of Paraguay and seeks more regional influence for his country.
1865-70 – War of Paraguay – also known as War of the Triple Alliance. The conflict pits the country against Brazil, Argentina and Uruguay. Paraguay is defeated, with Solano López killed in combat, and loses two thirds of its male population, in addition to part of its territory. The government begins to sell land to pay the war debt, which leads to a large part of the national territory belonging to a small elite.
1932-35 – After decades of economic stagnation, Paraguay obtains territories from Bolivia in the Chaco War.
1947 – After a brief civil war, the right-wing Colorado-Republican National Party rules Paraguay as a one-party regime and dominates national politics for the next 60 years.
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General Alfredo Stroessner ruled Paraguay for 35 years and died in exile in Brazil
1954 – Army chief Alfredo Stroessner seizes power in a military coup – and would rule the country for 35 years.
1984 – Inauguration of the Itaipu binational hydroelectric plant, a major project carried out in partnership with Brazil.
1989 – Alfredo Stroessner is overthrown by General Andrés Rodriguez, with the support of General Lino Oviedo. Stroessner receives political asylum in Brazil – where he would die in 2006, aged 93.
1992 – A new Constitution paves the way for free elections.
1996 – Coup attempt, led by General Lino Oviedo, fails.
1998 – Raúl Cubas, from the Colorado Party, wins the presidential race amid accusations of electoral fraud.
1999 – Violent street protests after the assassination of Vice-President Luis Maria Argaña, when President Cubas resigned. Accused of keeping killing Argaña, Oviedo fire of Paraguay and bad for Argentina.
2000 – A new military coup attempt fails, and the government blames “anti-democratic forces” that supported former general Oviedo, at the time exiled in Brazil.
2004 – Former general Oviedo returns from Brazil and is arrested.
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Former General Oviedo, a controversial figure in Paraguayan politics, was arrested after returning from exile in Brazil
2008 – A six-decade run for the Colorado Party in power comes to an end when former Catholic bishop Fernando Lugo is elected president.
2013 – Presidential candidate Lino Oviedo dies in a helicopter crash during his campaign. The Colorado Party returns to power with the victory of newcomer Horacio Cartes in the presidential election.
2017 – President Cartes gives up trying to seek the right to run for re-election after his proposal to amend the constitution provokes violent protests.
2018 – Paraguay follows the United States and opens its embassy in Israel in the city of Jerusalem – the third country to take the controversial measure, after the United States and Guatemala.
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