Background:

In the disastrous War of the Triple Alliance (1865-70), Paraguay lost two-thirds of all adult males and much of its territory. It stagnated economically for the next half century. In the Chaco War of 1932-35, large, economically important areas were won from Bolivia. The 35-year military dictatorship of Alfredo STROESSNER was overthrown in 1989, and, despite a marked increase in political infighting in recent years, relatively free and regular presidential elections have been held since then.

Location:

Central South America, northeast of Argentina

Geographic coordinates:

23 00 S, 58 00 W

Map references:

South America

Area:

total:  406,750 sq km

land:  397,300 sq km

water:  9,450 sq km

Area - comparative:

slightly smaller than California

Land boundaries:

total:  3,920 km

border countries:  Argentina 1,880 km, Bolivia 750 km, Brazil 1,290 km

Coastline:

0 km (landlocked)

Maritime claims:

none (landlocked)

Climate:

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

Terrain:

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

Elevation extremes:

lowest point:  junction of Rio Paraguay and Rio Parana 46 m

highest point:  Cerro Pero (Cerro Tres Kandu) 842 m

Natural resources:

hydropower, timber, iron ore, manganese, limestone

Land use:

arable land:  6%

permanent crops:  0%

permanent pastures:  55%

forests and woodland:  32%

other:  7% (1993 est.)

Irrigated land:

670 sq km (1993 est.)

Natural hazards:

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

Environment - current issues:

deforestation (an estimated 2 million hectares of forest land were lost from 1958-85); water pollution; inadequate means for waste disposal present health risks for many urban residents

Environment - international agreements:

party to:  Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands

signed, but not ratified:  Nuclear Test Ban

Geography - note:

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

Population:

5,734,139 (July 2001 est.)

Age structure:

0-14 years:  38.9% (male 1,133,306; female 1,097,360)

15-64 years:  56.39% (male 1,622,743; female 1,610,659)

65 years and over:  4.71% (male 124,321; female 145,750) (2001 est.)

Population growth rate:

2.6% (2001 est.)

Birth rate:

30.88 births/1,000 population (2001 est.)

Death rate:

4.75 deaths/1,000 population (2001 est.)

Net migration rate:

-0.09 migrant(s)/1,000 population (2001 est.)

Sex ratio:

at birth:  1.05 male(s)/female

under 15 years:  1.03 male(s)/female

15-64 years:  1.01 male(s)/female

65 years and over:  0.85 male(s)/female

total population:  1.01 male(s)/female (2001 est.)

Infant mortality rate:

29.78 deaths/1,000 live births (2001 est.)

Life expectancy at birth:

total population:  73.92 years

male:  71.44 years

female:  76.52 years (2001 est.)

Total fertility rate:

4.11 children born/woman (2001 est.)

HIV/AIDS - adult prevalence rate:

0.11% (1999 est.)

HIV/AIDS - people living with HIV/AIDS:

3,000 (1999 est.)

HIV/AIDS - deaths:

220 (1999 est.)

Nationality:

noun:  Paraguayan(s)

adjective:  Paraguayan

Ethnic groups:

mestizo (mixed Spanish and Amerindian) 95%

Religions:

Roman Catholic 90%, Mennonite, and other Protestant

Languages:

Spanish (official), Guarani (official)

Literacy:

definition:  age 15 and over can read and write

total population:  92.1%

male:  93.5%

female:  90.6% (1995 est.)

Country name:

conventional long form:  Republic of Paraguay

conventional short form:  Paraguay

local long form:  Republica del Paraguay

local short form:  Paraguay

Government type:

constitutional republic

Capital:

Asuncion

Administrative divisions:

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

Independence:

14 May 1811 (from Spain)

National holiday:

Independence Day, 14 May (1811)

Constitution:

promulgated 20 June 1992

Legal system:

based on Argentine codes, Roman law, and French codes; judicial review of legislative acts in Supreme Court of Justice

Suffrage:

18 years of age; universal and compulsory up to age 75

Executive branch:

chief of state:  President Luis GONZALEZ MACCHI (since 28 March 1999); vice president Julio Cesar FRANCO (since NA August 2000); note - the president is both the chief of state and head of government

head of government:  President Luis GONZALEZ MACCHI (since 28 March 1999); vice president Julio Cesar FRANCO (since NA August 2000); note - the president is both the chief of state and head of government

cabinet:  Council of Ministers nominated by the president

elections:  president and vice president elected on the same ticket by popular vote for five-year terms; election last held 10 May 1998 (next to be held NA May 2003)

election results:  Raul CUBAS Grau elected president; percent of vote - 55.3%; resigned 28 March 1999

note:  President Luis GONZALEZ MACCHI, formerly president of the Chamber of Senators, constitutionally succeeded President Raul CUBAS Grau, who resigned after being impeached soon after the assassination of Vice President Luis Maria ARGANA; the successor to ARGANA was decided in an election held in August 2000

Legislative branch:

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

elections:  Chamber of Senators - last held 10 May 1998 (next to be held NA May 2003); Chamber of Deputies - last held 10 May 1998 (next to be held NA May 2003)

election results:  Chamber of Senators - percent of vote by party - NA%; seats by party - Colorado Party 25, PLRA 13, PEN 7; Chamber of Deputies - percent of vote by party - NA%; seats by party - Colorado Party 45, PLRA 26, PEN 9

Judicial branch:

Supreme Court of Justice or Corte Suprema de Justicia (judges appointed on the proposal of the Counsel of Magistrates or Consejo de la Magistratura)

Political parties and leaders:

Authentic Radical Liberal Party or PLRA [Miguel Abdon SAGUIER]; Christian Democratic Party or PDC [Adalina GUITERREZ DE GALEANO]; Febrerista Revolutionary Party or PRF [Carlos Maria LJUBETIC]; National Encounter or PEN [Euclides ACEVEDO]; National Republican Association - Colorado Party [acting president Bader RACHID LICHI]

Political pressure groups and leaders:

Ahorristas Estafados or AE; National Workers Central or CNT; Paraguayan Workers Confederation or CPT; Roman Catholic Church; Unitary Workers Central or CUT

International organization participation:

CCC, ECLAC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM, ISO (correspondent), ITU, LAES, LAIA, Mercosur, NAM (observer), OAS, OPANAL, OPCW, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UNMEE, UPU, WCL, WHO, WIPO, WMO, WToO, WTrO

Diplomatic representation in the US:

chief of mission:  Ambassador Leila RACHID

chancery:  2400 Massachusetts Avenue NW, Washington, DC 20008

telephone:  [1] (202) 483-6960 through 6962

FAX:  [1] (202) 234-4508

consulate(s) general:  Detroit (honorary), Los Angeles, Miami, New Orleans, New York, San Juan (honorary)

Diplomatic representation from the US:

chief of mission:  Ambassador David N. GREENLEE

embassy:  1776 Avenida Mariscal Lopez, Casilla Postal 402, Asuncion

mailing address:  Unit 4711, APO AA 34036-0001

telephone:  [595] (21) 213-715

FAX:  [595] (21) 213-728

Flag description:

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 the seal of the treasury (a yellow lion below a red Cap of Liberty and the words Paz y Justicia (Peace and Justice) capped by the words REPUBLICA DEL PARAGUAY, all within two circles)

Economy - overview:

Paraguay has a market economy marked by a large informal sector. The informal sector features both reexport of imported consumer goods to neighboring countries as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population derives their living from agricultural activity, often on a subsistence basis. The formal economy grew by an average of about 3% annually in 1995-97, but GDP declined slightly in 1998 and 1999. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, lack of progress on structural reform, substantial internal and external debt, and deficient infrastructure. Growth rebounded slightly in 2000.

GDP:

purchasing power parity - $26.2 billion (2000 est.)

GDP - real growth rate:

1% (2000 est.)

GDP - per capita:

purchasing power parity - $4,750 (2000 est.)

GDP - composition by sector:

agriculture:  28%

industry:  21%

services:  51% (1999 est.)

Population below poverty line:

36% (2000 est.)

Household income or consumption by percentage share:

lowest 10%:  0.7%

highest 10%:  46.6% (1995)

Inflation rate (consumer prices):

8% (2000 est.)

Labor force:

2 million (2000 est.)

Labor force - by occupation:

agriculture 45%

Unemployment rate:

16% (2000 est.)

Budget:

revenues:  $1.3 billion

expenditures:  $2 billion, including capital expenditures of $700 million (1999 est.)

Industries:

sugar, cement, textiles, beverages, wood products

Industrial production growth rate:

0% (2000 est.)

Electricity - production:

51.554 billion kWh (1999)

Electricity - production by source:

fossil fuel:  0.07%

hydro:  99.79%

nuclear:  0%

other:  0.15% (1999)

Electricity - consumption:

1.915 billion kWh (1999)

Electricity - exports:

46.03 billion kWh (1999)

Electricity - imports:

0 kWh (1999)

Agriculture - products:

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

Exports:

$3.5 billion (f.o.b., 2000 est.)

Exports - commodities:

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

Exports - partners:

Brazil, Argentina, EU

Imports:

$3.3 billion (f.o.b., 2000 est.)

Imports - commodities:

road vehicles, consumer goods, tobacco, petroleum products, electrical machinery

Imports - partners:

Brazil, US, Argentina, Uruguay, EU, Hong Kong

Debt - external:

$3 billion (2000 est.)

Economic aid - recipient:

$NA

Currency:

guarani (PYG)

Currency code:

PYG

Exchange rates:

guarani per US dollar - 3,570.0 (January 2001), 3,486.4 (2000), 3,119.1 (1999), 2,726.5 (1998), 2,177.9 (1997), 2,056.8 (1996); note - since early 1998, the exchange rate has operated as a managed float; prior to that, the exchange rate was determined freely in the market

Fiscal year:

calendar year

Telephones - main lines in use:

290,475 (2001)

Telephones - mobile cellular:

510,000 (2001)

Telephone system:

general assessment:  meager telephone service; principal switching center is Asuncion

domestic:  fair microwave radio relay network

international:  satellite earth station - 1 Intelsat (Atlantic Ocean)

Radio broadcast stations:

AM 46, FM 27, shortwave 6 (three inactive) (1998)

Radios:

925,000 (1997)

Television broadcast stations:

4 (2001)

Televisions:

990,000 (2001)

Internet country code:

.py

Internet Service Providers (ISPs):

4 (2000)

Internet users:

20,000 (2000)

Railways:

total:  971 km

standard gauge:  441 km 1.435-m gauge

narrow gauge:  60 km 1.000-m gauge

note:  there are 470 km of various gauges that are privately owned

Highways:

total:  25,901 km

paved:  3,067 km

unpaved:  22,834 km (2001)

Waterways:

3,100 km

Ports and harbors:

Asuncion, Villeta, San Antonio, Encarnacion

Merchant marine:

total:  20 ships (1,000 GRT or over) totaling 31,066 GRT/35,441 DWT

ships by type:  cargo 14, chemical tanker 1, petroleum tanker 3, roll on/roll off 2 (2000 est.)

Airports:

915 (2000 est.)

Airports - with paved runways:

total:  11

over 3,047 m:  3

1,524 to 2,437 m:  4

914 to 1,523 m:  4 (2000 est.)

Airports - with unpaved runways:

total:  904

1,524 to 2,437 m:  29

914 to 1,523 m:  340

under 914 m:  535 (2000 est.)

Military branches:

Army, Navy (includes Naval Air and Marines), Air Force

Military manpower - military age:

17 years of age

Military manpower - availability:

males age 15-49:  1,388,436 (2001 est.)

Military manpower - fit for military service:

males age 15-49:  1,001,516 (2001 est.)

Military manpower - reaching military age annually:

males:  58,359 (2001 est.)

Military expenditures - dollar figure:

$125 million (FY98)

Military expenditures - percent of GDP:

1.4% (FY98)

Illicit drugs:

illicit producer of cannabis, most or all of which is consumed in South America; transshipment country for Andean cocaine headed for Southern Cone markets and Europe