Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/paraguay.bkg

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#CARD:Paraguay:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  PARAGUAY

May 1990
Official Name: Republic of Paraguay

PROFILE
Geography
Area:  406,750 sq. km. (157,047 sq. mi.); about the size of California.
Cities:  Capital-Asuncion (pop. 700,000). Other cities-Caaguazu, Coronel
Oviedo, Pedro Juan Caballero, Concepcion, Encarnacion, and Ciudad del
Este.  Terrain:  East of Paraguay River-grassy plains, wooded hills,
tropical forests; west of Paraguay River (Chaco region)-low, flat,
marshy plain. Climate:  Temperate east of the Paraguay River, semiarid
to the west.

People
Nationality:  Noun and adjective-Paraguayan(s).  Population (1988): 4
million.  Annual growth rate:  3.1%.  Ethnic groups:  Mixed Spanish and
Indian descent (mestizo) 95%. Religions:  Roman Catholic 97%, Mennonite,
and other Protestant denominations.  Languages: Spanish, Guarani.
Education:  Years compulsory-7.  Attendance-83%. Literacy-81%.  Health:
 Infant mortality rate-43/1,000.  Life expectancy-66.8 yrs. Work force
(1.6 million):  Agriculture-44%. Industry and commerce-34%.
Service-18%.  Government-4%.

Government
Type:  Constitutional republic with powerful executive branch.
Independence:  May 1811. Constitution: August 1967. Branches:
Executive-president.  Legislative-Senate and Chamber of Deputies.
Judicial-Supreme Court of Justice. Administrative subdivisions:  19
departments. Political parties:  Colorado, Authentic Radical Liberal,
Radical Liberal, Febrerista, and numerous smaller parties not
represented in congress.  Suffrage:  Adults age 18 and older. Central
government budget (1990): $655 million. Defense (1990):  10.7% of
budget.
National holiday:  Independence, May 15; other holidays celebrated Jan.
1, Feb. 3, Mar. 1, Mar. 27-28, May 1, June 12, Aug. 15, Dec. 8 and 25.
Flag:  Horizontal stripes of red, white, and blue; one side bears the
national coat of arms; the other, the treasury seal.

Economy
GDP (1988):  $4 billion.  Annual growth rate (1989):  6.4%.  Per capita
GDP (1988):  $978.  Avg. inflation rate (1988):  25%. Natural resources:
 Hydroelectric sites, forests. Agriculture (1988-27% of GDP):
Products-meat, corn, sugarcane, soybeans, lumber, cotton. Arable land-9
million hectares, of which 30% cultivated. Industry (1988-16% of GDP):
Types-sugar, cement, textiles, beverage, and wood products. Trade
(1988):  Exports-$1.1 billion estimated (of which $506 million is
registered):  meat and meat products, lumber, cotton, soybeans,
vegetable oil, coffee, tobacco, tannin, yerba mate.   Major
markets-Brazil, Argentina, EEC, US (3.4%).  Imports-$1.2 billion
estimated (of which $767 million is registered):  machinery, fuels and
lubricants, transportation equipment.  Major suppliers-Argentina,
Brazil, EEC, US (16.7%), Japan. Official exchange rate (Oct. l989):
1,170 guaranies=US$1. Fiscal year:  Jan. 1 through Dec. 31.

Membership in International Organizations
 UN, Organization of American States (OAS), Latin American Integration
Association (LAIA; formerly LAFTA), INTELSAT, INTERPOL

PEOPLE
 Paraguay's population is distributed unevenly throughout the country.
The vast majority of the people live in the east, most within 160
kilometers (100 mi.) of Asuncion, the capital and largest city. The
Chaco, which accounts for about 60% of the territory, is home for less
than 4% of the population.
 Ethnically, culturally, and socially, Paraguay probably has the most
homogeneous population in South America.  About 95% of the people are of
mixed Spanish and Guarani Indian descent. Little trace is left of the
original Guarani culture except the
language, which is understood by 90% of the population. About 75% of all
Paraguayans speak Spanish. Guarani and Spanish are both official
languages.
 A number of foreign groups, primarily Germans, Japanese, Koreans,
Brazilians, and Argentines, have settled in Paraguay. About 1,500
nonofficial US citizens live there.

HISTORY
 Pre-Columbian civilization in the fertile, wooded region that is now
Paraguay consisted of numerous seminomadic, Guarani-speaking tribes of
Indians, who were recognized for their fierce warrior traditions.  They
practiced a mythical polytheistic religion, which later proved amenable
to blending with Christianity.
 The Spanish explorer, Juan de Salazar founded Asuncion on the Feast Day
of the Assumption, August 15, 1537.  The city eventually became the
center of a Spanish colonial province encompassing most of southern
South America. Paraguay eventually declared its independence by
overthrowing the local Spanish authorities in May 1811.
 The country's formative years were dominated by three strong leaders:
Jose Gaspar Rodriguez de Francia (1814-40), Carlos Antonio Lopez,
(1841-62), and his son, Francisco Solano Lopez.  The latter waged a war
against Argentina, Uruguay, and Brazil (War of the Triple Alliance,
1864-70) in which Paraguay lost half its population, and Brazilian
troops subsequently occupied it until 1874.  From 1880 until 1904, a
succession of presidents governed Paraguay under the banner of the
Colorado Party.  The Liberal Party seized control of the government in
1904 and ruled, with only a brief interruption, until 1940.
 Throughout the 1930s and 1940s, Paraguayan politics were characterized
by the Chaco war, civil war, dictatorships, and periods of extreme
political instability. Gen. Alfredo Stroessner assumed power in May
1954. He was elected to complete the unexpired term of his predecessor
and was subsequently reelected president in 1958, 1963, 1968, 1973,
1978, 1983, and 1988.
 He ruled the country almost continuously under the state-of-siege
provision of the constitution. When invoked, usually in political cases,
state-of-siege measures effectively set aside habeas corpus and other
legal guarantees.
 The Colorado Party, the military, and the government bureaucracy were
the pillars of the Stroessner regime.  The Liberal Party and the
Revolutionary Febrerista Party, officially recognized in 1964,
participated in the nationwide municipal elections in 1965. In 1966,
another group of Liberals, known as the Radical Liberal Party, were
permitted to participate, with other opposition parties, in the
elections for delegates to a constituent constitutional convention. A
new constitution was promulgated on August 25, 1967.
  On February 3, 1989, General Stroessner was overthrown in a military
coup headed by Gen. Andres Rodriguez, who scheduled presidential and
congressional elections for May 1. He was nominated as Colorado Party
candidate and easily won. Seven other political parties ran candidates
even though some of the parties were new to the democratic process and
had little time to organize effective campaigns.  The next general
elections are scheduled for 1993.

GOVERNMENT
 Paraguay's highly centralized government is based on the constitution
promulgated in August 1967. The preponderance of power rests with the
executive branch. The president, popularly elected for a 5-year term, is
assisted by an appointed cabinet.
 The bicameral congress consists of a 36-member Senate and a 72-member
Chamber of Deputies. Deputies and senators are elected concurrently with
the president. Under Paraguayan electoral law, the party polling the
largest number of votes in the congressional elections receives
two-thirds of the seats in each chamber. The remaining seats are divided
proportionately among the other contending parties.
 In the 3-month period when congress is not in session (from December 21
to the end of March), the president may issue decree-laws that must be
submitted to the congress for approval when it reconvenes.  A Council of
State composed of representatives from various sectors of the society
advises the president on the issuance of decree-laws. Paraguay's highest
court is the Supreme Court of Justice. Its five judges are
presidentially appointed. For administrative purposes, Paraguay is
divided into 19 departments, each headed by a government delegate
appointed by the president.

Principal Government Officials
President-Gen. Andres Rodriguez
Ministers Foreign Affairs-Luis Maria Argana
Interior-Gen. Orlando Machuca Vargas
Finance-Enzo DeBernardi
Education and Culture-Dionisio Gonzalez Torres
Agriculture and Livestock-Hernando Bertoni
Public Works and Communications-Porfirio Pereira Ruiz Diaz
National Defense-Gen. Angel Juan Souto Hernandez
Public Health and Social Welfare-Jaun Manuel Cano Melgarejo
Justice and Labor-Alexis Frutos Vaezquen
Industry and Commerce-Antonio Zuccolillo
Minister Without Portfolio-Juan Ramon Chaves
Ambassador to the United States and the Organization of American States
(OAS)-Marcos Martinez
Ambassador to the United Nations-Alfredo Canete

 Paraguay maintains an embassy in the United States at 2400
Massachusetts Avenue NW., Washington, DC. 20008 (tel. [phone]).
Consulates are in Miami, New York, New Orleans, Chicago, Detroit, and
Los Angeles.

POLITICAL CONDITIONS
 Paraguay's two major traditional political parties, the Colorado and
the Liberal Parties, have each ruled the country for prolonged periods.
Fundamentally, little ideological difference exists between the two
parties.
 Following his 1989 coup,  Gen. Rodriguez immediately began implementing
his promises of bringing democracy and a respect for human rights to
Paraguay. Newspapers and radio stations closed by Stroessner were
allowed to reopen and broadcast freely. Previously unrecognized and
newly created political parties were given legal status.  Dozens of
independent labor unions were recognized.  Candidates for congressional
seats and the presidency were allowed to campaign freely. All of the
major opposition parties decided to participate in the May 1 elections.
  The Colorado Party, as the highest vote getter, received two-thirds of
the seats in each house of congress, 24 out of 36 seats in the Senate,
and 48 out of 72 seats in the Chamber of Deputies.  The PLRA received
19% of the ballots cast, thus obtaining 11 seats in the Senate and 21 in
the chamber.  The Febreristas obtained one seat in the Senate and 2
seats in the chamber while the Radical Liberal Party won a single seat
in the chamber.  All other parties were shut out.

ECONOMY
 Paraguay is predominantly an agricultural country with no known
significant mineral or petroleum resource. Agricultural commodities
account for a major share of the country's exports.
 Particular obstacles to Paraguay's development include fluctuating
prices for major export items, the long and expensive river or land
routes that foreign trade must traverse, a small domestic market, and
internal- and external-trade barriers.
 Despite these limitations, agricultural production has grown rapidly,
especially cotton and soybeans for export. The economy has enjoyed
relative price stability (inflation was held at 2%-3% in the 1960s), but
the cost of living has begun to rise.  During 1988, the inflation rate
was 27.3% and the rate for 1989 was higher.
 Construction of the massive Itaipu hydroelectric project with Brazil
greatly accelerated Paraguay's economic development. Work on the
Yacyreta hydroelectric project with Argentina should further spur the
economy and make Paraguay the world's largest exporter of hydroelectric
energy.
 Per capita GDP declined in the early 1980s before rising to $978 in
1988. Paraguay's economy, while still heavily dependent on agricultural
output, has grown steadily during the last several years and registered
a solid 6.4% growth in 1988.  Inflation accelerated in 1989, partially
from some of the economic reforms undertaken by the Rodriguez
government.  The most dramatic reform taken in February was to eliminate
the multiple exchange rate system and to adopt a floating, free market
rate.    With the elimination of this hidden subsidy to the parastatal
corporations, the government has been forced to raise prices for
gasoline, water, electricity, telephone service, and bus fares.
 Paraguay's external debt reached $2.4 billion by the end of 1988,
equivalent to 56% of GDP. Debt service payments by the government during
1988 totaled $341 million, equivalent to 69% of recorded merchandise
exports.  Registered exports are expected to surge in 1989 as a result
of record harvest of cotton and soybean and the elimination of the
multiple exchange rate system that provoked exporters to smuggle their
products out of Paraguay in previous years.  Still, the debt service
ratio (scheduled debt service to registered exports) in 1989 was about
50%.
 The Government of Paraguay  negotiated in early 1989 a rescheduling of
the $436 million it owed the Brazilian Government to stretch payments
over 20 years with an 8-year grace period. It hopes to reschedule an
additional $811 million of debt, of which $602 million was owed to other
governments, mainly the Federal Republic of Germany and Japan, and $209
million was owed to foreign commercial banks. The balance of the
government debt, $771 million, is owed to the World Bank, the IMF, and
the Inter-American Development Bank. Paraguay also is interested in
negotiating an IMF Standby program and a debt reduction or rescheduling
agreement.

DEFENSE
 The military comprises three branches: army, navy, and air force, with
the army having the majority of personnel, resources, and influence. The
army (about 15,000 personnel) is organized into three corps areas with
six infantry divisions and three cavalry divisions. The navy's 4,000
personnel are divided among three service branches. The air force, the
newest and smallest of the services, has approximately 2,000 personnel.
Military service is compulsory.

FOREIGN RELATIONS
 Paraguay is a member of the United Nations and several of its
specialized agencies, the Organization of American States, and the Latin
American Integration Association. Its foreign policy has been strongly
pro-Western and anticommunist. Located between two larger powers,
Argentina and Brazil, Paraguay strives to maintain a balanced and
positive relationship with each.

US-PARAGUAY RELATIONS
 The US Government, through the Agency for International Development
(AID) and its predecessor agencies, has assisted Paraguayan development
since 1946. Because of Paraguay's rapid economic development, the AID
bilateral assistance program has been phased out.  Modest funding for US
training, however, has been retained.  Peace Corps and US Information
Service programs are active in Paraguay. Cooperation between Paraguay
and the United States in international organizations traditionally has
been good.  Paraguay has made substantial progress in the three areas of
most concern to the United States:  democracy, human rights and
narcotics.  Consequently,  US-Paraguay  relations have improved
considerably.

Principal US Officials
Ambassador-Timothy L. Towell
Deputy Chief of Mission-Michael Ranneberger
Economic/Commercial Officer-Jonathan Ferrar
Political Officer-Rose M. Likins
Consul-Clarence A. Hudson, Jr.
Administrative Officer-Francine L. Bowman
Development Liaison Officer (AID)-Peter R. Orr

Public Affairs Officer-Alan A. Rogers
Defense Attache-Lt. Col. Douglas McCary, USA

 The US Embassy in Paraguay is located at 1776 Avenida Mariscal Lopez,
Asuncion.  Tel.:  [phone].

TRAVEL NOTES
  Clothing: Dress is similar to that worn in the US. Customs:  US
citizens do not require a visa for a  30-day stay, but they must possess
a valid passport.  No inoculations are required for entry.
  Health:  Medical services in Asuncion generally are good, but no
adequate health facilities are available in the interior.
 Telecommunications:  Long-distance telephone service is available
almost worldwide.  Telegraph service is not always reliable. Asuncion is
1 hour ahead of eastern standard time.
 Transportation:  Regular air service connects Asuncion to the US. In
the capital, metered taxis are available at stands.

 Published by the United States Department of State --  Bureau of Public
Affairs  -- Office of  Public Communication -- Washington, DC -- May
1990 --  Editor:  Peter A. Knecht
 Department of State Publication 8098 -- Background Notes Series  --
This material is in the public domain and may  be reprinted without
permission; citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office, Washington,
DC  20402.(###)


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