Republic of Paraguay
PARAGUAY. Republic of Paraguay
A country in the center of South America. Area - 406.8 thousand km². Capital - Asunción (approx. 900 thousand). Administrative division - 19 departments and 1 capital district. Population - 5.4 million (2004), Paraguayans; 95% of Paraguay's population consists of Spanish-Indian mestizos-Guarani, with approximately 250 thousand Brazilians, 200 thousand people of German descent, 100 thousand indigenous people, 100 thousand Argentinians, and 1.5 thousand Russians residing as well.
Official languages - Spanish, Guarani. 45% of the population speaks only Guarani, 49% speak both Guarani and Spanish, and 6% speak only Spanish. The dominant religion is Catholicism (97% of believers). Currency - Guarani = 100 centimos.
Diplomatic relations with the Russian Federation were established on May 14, 1992.
National holiday - May 14 - Independence Day (1811).
Paraguay is a presidential republic. According to the current constitution of 1992, the head of state and government, commander-in-chief of the armed forces, is the president, elected by universal direct voting for a 5-year term without the right to be re-elected for the next term (since August 2003 - Nicanor Duarte Frutos, Colorado Party; vice-president - Luis Castiglione). The highest legislative body is the National Congress, consisting of the Senate (45 senators) and the Chamber of Deputies (80 deputies), elected by universal direct voting for a term of 5 years, senators from nationwide constituencies, deputies from departmental electoral districts.
The last elections in the Republic of Paraguay took place on April 27, 2003. The candidate from the National Republican Association, better known as the Colorado Party, N.D. Frutos, was elected to the presidency. Currently, this party plays a major role in the country. The general elections on April 27 were an important step in advancing Paraguay towards strengthening democratic institutions in its socio-political life.
The main opposition party is the Authentic Radical Liberal Party (ARLP), led by Julio Cesar Franco. In the 2003 elections, it garnered 23.9% of the votes, slightly less than the ruling Colorado Party. Less influential parties include the National Concord Party of Carlos Alberto Filizzola, the Movement for National Union of General Lino Cesar Oviedo, the Movement for the Fatherland of Pedro Nicolas Fadul, and others.
Trade unions: The Unified Workers' Trade Union Center was established in July 1980, incorporating organizations that operated within the framework of the Inter-Union Movement of Workers, along with several peasant federations; the Paraguayan Confederation of Workers was established in 1951 and is a member of the ICFTU and ORIT.
The first Europeans to arrive in Paraguay were the Portuguese in 1524. In the 16th century, it was conquered by Spain and turned into a colony. In May 1811, during the liberation war of the Spanish colonies in America, it was proclaimed an independent state. Paraguay was the only country in Latin America where liberation from colonial oppression was accompanied by significant socio-economic changes. Slavery was abolished in 1842, and in 1848, full equality for indigenous people was declared.
During World War II, the Paraguayan government declared war on the Axis countries but provided assistance to fascist Germany with raw materials and food, and after the war, it sheltered many Nazi criminals. In 1954, a repressive dictatorship was established under General A. Stroessner, who ruled the country for more than 34 years, relying on the military elite and the Colorado Party apparatus. During the years of dictatorship, over 12 thousand people died or went missing, and more than 400 thousand went through prison confinement. In February 1989, as a result of a coup, Stroessner was ousted by General A. Rodriguez. Under pressure from the opposition, the new government made certain concessions: most political parties were legalized, the activities of several banned mass media outlets were resumed, press censorship was eased, and the return of political exiles to the country began.
In 1992, a new constitution was developed at the founding assembly.
Paraguay is a member of the UN (since 1945), OAS (since 1948), LAES (since 1975), LAI (since 1981), MERCOSUR.
Paraguay is a developing, agrarian-industrial country. Over 40% of the economically active population is employed in agriculture, 16% in industry, over 10% in transport and communications, and 30% in trade and other sectors.
The foundation of the economy is agriculture, which accounts for 25% of GDP and over 90% of exports. 56% of the territory is covered by forests rich in valuable tree species, and 34% is occupied by pastures. Livestock farming is mainly extensive, with approximately 8 million heads of cattle. Soybeans, cotton, sugarcane, wheat, coffee, corn, mango, peanuts, tobacco, and citrus fruits are cultivated. Agriculture is characterized by the predominance of large landholding (out of 40 million hectares of land suitable for agricultural production, over 30 million hectares are in the hands of large landowners).
The share of industry in GDP is 25%, and the service sector accounts for 48%. In 2004, GDP growth rates increased to 2.8% (compared to 2% in 2003). These results were achieved not only due to agriculture but also thanks to positive dynamics in all sectors of the economy. The greatest increase was recorded in livestock farming - 8%. After several years of decline, industrial production increased by 2%.
Among the extracted minerals, salt and limestone are of the greatest significance. There are also deposits of iron, copper, and manganese ores. Foreign companies are exploring oil and uranium ore deposits.
Industry is mainly represented by small factories processing agricultural raw materials. The food processing industry is the most developed, particularly meat processing, which has export significance. Paraguay holds a leading position in the world in the production of tung oil. Due to the presence of large forest resources, woodworking and the production of tanning extract from quebracho wood have developed. There are textile, cement, and tobacco enterprises.
Paraguay is rich in energy resources. Since the mid-1970s, the country not only meets its own electricity needs but also exports it to Brazil and Argentina. The installed capacity of power plants is over 400 thousand kW. The construction of the largest hydroelectric complex in the world on the Paraná River has been completed. Its construction took 16 years and cost $18 billion. The projected capacity is 12.6 million kW. Paraguay consumes 2% of the total amount of electricity generated, while the rest is sold to Brazilian state enterprises. Together with Argentina, the Yacyretá-Apipé hydroelectric power station (with a capacity of 3.7 million kW) has been built on the Paraná River.
All foreign trade and a significant part of domestic transportation are carried out by river transport. The length of river routes is 3.5 thousand km (the Paraguay and Paraná rivers). The main port is Asunción. The role of rail transport in cargo and passenger transportation is insignificant. The length of railways is 1.3 thousand km. The total length of roads is over 11 thousand km, of which 2 thousand km are paved. The Pan-American Highway runs through Paraguay for about 700 km. The Trans-Chaco Highway connects Asunción with the territory of Bolivia. The capital has an international-class airport capable of receiving modern airliners.
In 2004, foreign trade turnover increased significantly. Exports amounted to $1.5 billion, and imports to $2.4 billion. The main export items are soybeans, cotton (cotton fiber - over 7% of export value) and cotton fabrics, meat, leather, wool, tobacco, and sugar. The share of non-traditional goods and electricity in exports has increased. Paraguay imports oil and petroleum products, machinery and equipment, and consumer goods. Main trading partners: Brazil, Argentina, the USA, EU countries, Japan.
In 2004, there was a significant increase in tax collection - by 36%. At the same time, budget expenditures grew slightly - by 8%, which allowed ending 2004 with a surplus of $58 million. Gold and foreign currency reserves increased by 17% and reached $1.17 billion. Financial stabilization allowed for the restructuring of part of the domestic government debt amounting to $109 million (90% of the total amount). Certain macroeconomic stabilization has been achieved in accordance with the objectives set out in the agreement with the IMF, which the government signed in 2003. The inflation rate in 2004 was the lowest in recent decades - 2.8%.
In the social sphere, significant income inequality among the population is still observed.
Unemployment in 2004 was 15%, 40% of the population lives in poverty, and 45% are illiterate.
Foreign capital holds strong positions in the Paraguayan economy, controlling 85% of foreign trade and 95% of private banks, as well as major enterprises in the food, milling, chemical, and textile industries, and river transport. Economic reforms, including agrarian reform and privatization, continue to be implemented; measures are being taken in anticipation of the full engagement of the mechanism of the Common Market of the Southern Cone (MERCOSUR). The main task is to structurally and qualitatively adapt the economy to market requirements (including with the help of an active state investment policy) and achieve balance in trade with Brazil, Argentina, and Uruguay.
The government has developed long-term measures for the structural restructuring of the economy, increasing employment, and electrification of underdeveloped areas, which include directing state loans to the private sector to create new jobs, privatizing state enterprises, and reducing government spending, among others. The National Congress has adopted a number of key laws: on tax system reform and tax authorities, a customs code, a law on the creation of a deposit guarantee fund, and a law on the restructuring of domestic and external debt.
Mass public movements have emerged and rapidly spread. Alongside economic demands, there are increasingly calls for the complete dismantling of the power structures inherited from Stroessner and further democratization of public life. There have been intensified calls for holding accountable those responsible for human rights violations during the dictatorship.
There are 2 universities (public and private).
The largest daily newspapers are: "ABC Color" (75 thousand copies), "Diario Noticias" (55 thousand), "Popular" (125 thousand), "Ultima Hora" (45 thousand). The state communication service controls broadcasting and television. There are about 60 radio stations and 4 television stations operating.
