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 relatively free and regular presidential elections have been held since then.

Land boundaries: 3,920 km total; Argentina 1,880 km, Bolivia 750 km, Brazil 1,290 km

Coastline: none - landlocked

Maritime claims: none - landlocked

Climate: varies from temperate in east to semiarid in 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

Natural resources: iron ore, manganese, limestone, hydropower, timber

Land use: 20% arable land; 1% permanent crops; 39% meadows and pastures; 35% forest and woodland; 5% other; includes NEGL% irrigated

Geography
Note: landlocked; buffer between Argentina and Brazil

Population: 4,522,172 (July 1989), growth rate 3.0% (1989)

Nationality: noun - Paraguayan(s; adjective - Paraguayan

Ethnic groups: 95% mestizo (Spanish and Indian), 5% white and Indian

Languages: Spanish (official) and Guarani

Religions: 90% Roman Catholic; Mennonite and other Protestant denominations

Birth rate: 36 births/1000 population (1989)

Death rate: 6 deaths/1000 population (1989)

Net migration rate: NEGL migrants/1000 population (1989)

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

Infant mortality rate: 49 deaths/1000 live births (1989)

Life expectancy at birth: 67 years male, 72 years female (1989)

Total fertility rate: 4.9 children born/woman (1989)

Literacy: 81%

Country name: conventional long form: Republic of Paraguay

Government type: republic under authoritarian rule; new government promising democratic reform

Capital: Asuncion

Administrative divisions: 19 departments (departamentos, singular - departamento; Alto Paraguay, Alto Parana, Amambay, Boqueron, Caaguazu, Caazapa, Canendiyu, Central, Chaco, Concepcion, Cordillera, Guaira, Itapua, Misiones, Neembucu, Nueva Asuncion, Paraguari, Presidente Hayes, San Pedro

Independence: 14 May 1811 (from Spain) @m1Constitution 25 August 1967

National holiday: Independence Days, 14-15 May (1811)

Legal system: based on Argentine codes, Roman law, and French codes; judicial review of legislative acts in Supreme Court; does not accept compulsory ICJ jurisdiction

Suffrage: universal; compulsory between ages of 18 and 60

Executive branch: Chief of State and Head of Government President Gen. Andres RODRIGUEZ Pedotti (since 17 May 1989)

Legislative branch: Paraguayan Army, Paraguayan Navy, Paraguayan Air Force

International organization participation: CCC, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICO, IDA, IDB - Inter-American Development Bank, IFAD, IFC, ILO, IMF, INTELSAT, INTERPOL, IPU, IRC, ITU, LAIA, OAS, SELA, UN, UNESCO, UPU, WHO, WMO, WSG

Diplomatic representation
In the us: Ambassador Marcos MARTINEZ MENDIETA; Chancery at 2,400 Massachusetts Avenue NW, Washington DC 20,008; telephone (202) 483-6,960 through 6,962; there are Paraguayan Consulates General in New Orleans and New York, and a Consulate in Houston; US - Ambassador Timothy L. TOWELL; Embassy at 1776 Avenida Mariscal Lopez, Asuncion (mailing address is C. P. 402, Asuncion, or APO Miami 34,036-0001; telephone Õ595å (21) 201-041 or 049

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 Justica (Peace and Justice) capped by the words REPUBLICA DEL PARAGUAY, all within two circles)

Economy overview: The economy is predominantly agricultural. Agriculture, including forestry, accounts for 25% of GNP, employs about 50% of the labor force, and provides the bulk of exports. Paraguay has no known significant mineral or petroleum resources, but does have a large hydropower potential. Since 1981 economic performance has declined compared with the boom period of 1976-81, when real GDP grew at an average annual rate of nearly 11%. During 1982-86 real GDP fell three out of five years, inflation jumped to an annual rate of 32%, and foreign debt rose. Factors responsible for the erratic behavior of the economy were the completion of the Itaipu hydroelectric dam, bad weather for crops, and weak international commodity prices for agricultural exports. In 1987 the economy experienced a modest recovery because of improved weather conditions and stronger international prices for key agricultural exports. The recovery continued through 1988, with a bumper soybean crop and record cotton production. The government, however, must follow through on promises of reforms needed to deal with large fiscal and trade deficits, growing debt arrearages, and falling reserves.

Agriculture products: oilseeds, soybeans, cotton, wheat, manioc, sweet potatoes, tobacco, corn, rice, sugarcane; self-sufficient in most foods; illegal producer of cannabis for international drug trade

Industries: meat packing, oilseed crushing, milling, brewing, textiles, other light consumer goods, cement, construction

Industrial production growth rate: 2% (1987)

Labor force:

Unemployment rate: 11% (1988 est.)

Budget: revenues $1,084 million; expenditures $1,098 million, including capital expenditures of $449 million (1987)

Fiscal year: calendar year

Exports: $380 million (registered f.o.b., 1987)
Commodities: cotton, soybean, timber, vegetable oils, coffee, tung oil, meat products
Partners: EC 37%, Brazil 25%, Argentina 10%, Chile 6%, US 6%

Imports: $620 million (registered c.i.f., 1987)
Commodities: capital goods 35%, consumer goods 20%, fuels and lubricants 19%, raw materials 16%, foodstuffs, beverages, and tobacco 10%
Partners: Brazil 30%, EC 20%, US 18%, Argentina 8%, Japan 7%

Debt external: $2.2 billion (1988)

Exchange rates: guaranies (G) per US$1 - 550.00 (fixed rate since 1986), 339.17 (1986), 306.67 (1985)

Electricity
Capacity: 2,369,000 kW capacity; 1,200 million kWh produced, 275 kWh per capita (1988)

Military expenditures
Dollar figure: NA

Airports: 886 total, 768 usable; 6 with permanent-surface runways; 1 with runways over 3,659 m; 2 with runways 2,440-3,659 m; 50 with runways 1,220-2,439 m

Waterways: 3,100 km

Merchant marine: 17 ships (1,000 GRT or over) totaling 23,966 GRT/30,568 DWT; includes 14 cargo, 3 petroleum, oils, and lubricants (POL) tanker

Disputes international: short section of the boundary with Brazil is in dispute (Guaira Falls sector of the Rio Parana)