Country profile: Paraguay |
The end of the Stroessner dictatorship did not bring political stability. The army remains an influential force. Stroessner's party, the National Republican Association-Colorado Party, continues to rule, and factional splits have resulted in the assassination of a vice-president, the resignation of a president and an attempted coup.
OVERVIEW
Up to 95% of Paraguayans are mestizos - people of mixed Spanish and native American descent - although many of them speak only the language of the indigenous Guarani people. The remainder are either bilingual or speak only Spanish. There is a 200,000-strong Japanese community, the result of post World War II migration.
Lacking significant mineral resources, Paraguay's economy is largely agricultural. The 1990s saw slow but steady growth, but by 2002 the economy was in serious trouble, partly because of the financial crisis in neighbouring Argentina. Emergency loans - conditional on economic reforms being made - were negotiated with the IMF.
Corruption is endemic, and Paraguay has become a regional centre for smuggling, money-laundering and organised crime.
The commercialisation of agriculture, high population growth and forest clearance have led to a dramatic increase in the number of landless families.
This has boosted migration into urban areas, causing a rapid growth in shanty towns. Poverty affects some 60% of the population.
Much of the north-west of the country is taken up by the Chaco, a sprawling and largely-uninhabited plain. Paraguay and Bolivia fought over the territory in the 1930s; the war left 100,000 dead.
FACTS
Population: 6.2 million (UN, 2005)
Capital: Asuncion
Area: 406,752 sq km (157,048 sq miles)
Major languages: Spanish, Guarani
Major religion: Christianity
Life expectancy: 69 years (men), 73 years (women) (UN)
Monetary unit: 1 guarani = 100 centimos
Main exports: Soyabeans, cotton, meat, edible oils, timber
GNI per capita: US $1,100 (World Bank, 2003)
Internet domain: .py
International dialling code: +595
LEADERS
President Nicanor Duarte: A grassroots politician
Nicanor Duarte, from the ruling Colorado Party, won presidential elections in April 2003 with 38% of the vote.
During his campaign he promised to crack down on crime and corruption, to create new jobs through public work programmes and to strive for efficiency in government.
In his first year in office, Mr Duarte won approval for taking steps to reform the Supreme Court and for making changes to his cabinet following a corruption scandal.
But rising crime, including several high-profile kidnappings, have drawn criticism from his opponents and have prompted the president to sack ministers and police officials.
In early 2004 reports of a possible assassination plot against Mr Duarte surfaced. Security was beefed up around the president.
Mr Duarte is a grassroots politician with a populist approach and a fiery public speaking manner. He joined the Colorado Party when he was 14 and served as education minister in the 1990s.
A family man with five children, Mr Duarte was brought up in the agricultural town of Coronel Oviedo. He studied law and political science before embarking on a career as a journalist.
Foreign minister: Leila Rachid
Interior minister: Rogelio Benitez
Finance minister: Ernst Bergen
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