PARAGUAY                                                                        
GEOGRAPHY                                                                       
Total area: 406,750 km2; land area: 397,300 km2                                 
                                                                                
Comparative area: slightly smaller than California                              
                                                                                
Land boundaries: 3,920 km total; Argentina 1,880 km, Bolivia                    
750 km, Brazil 1,290 km                                                         
                                                                                
Coastline: none--landlocked                                                     
                                                                                
Maritime claims: none--landlocked                                               
                                                                                
Disputes: short section of the boundary with Brazil (just west of               
Guaira Falls on the Rio Parana) has not been determined                         
                                                                                
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: arable land 20%; permanent crops 1%; meadows and                      
pastures 39%; forest and woodland 35%; other 5%; includes irrigated             
NEGL%                                                                           
                                                                                
Environment: local flooding in southeast (early September to June);             
poorly drained plains may become boggy (early October to June)                  
                                                                                
Note: landlocked; buffer between Argentina and Brazil                           
                                                                                
PEOPLE                                                                          
Population: 4,798,739 (July 1991), growth rate 2.9% (1991)                      
                                                                                
Birth rate: 35 births/1,000 population (1991)                                   
                                                                                
Death rate: 6 deaths/1,000 population (1991)                                    
                                                                                
Net migration rate: 0 migrants/1,000 population (1991)                          
                                                                                
Infant mortality rate: 47 deaths/1,000 live births (1991)                       
                                                                                
Life expectancy at birth: 67 years male, 72 years female (1991)                 
                                                                                
Total fertility rate: 4.7 children born/woman (1991)                            
                                                                                
Nationality: noun--Paraguayan(s); adjective--Paraguayan                         
                                                                                
Ethnic divisions: mestizo (Spanish and Indian) 95%, white and                   
Indian 5%                                                                       
                                                                                
Religion: Roman Catholic 90%; Mennonite and other Protestant                    
denominations                                                                   
                                                                                
Language: Spanish (official) and Guarani                                        
                                                                                
Literacy: 90% (male 92%, female 88%) age 15 and over can                        
read and write (1990 est.)                                                      
                                                                                
Labor force: 1,300,000; agriculture 44%, industry and commerce                  
34%, services 18%, government 4% (1986)                                         
                                                                                
Organized labor: about 2% of labor force                                        
                                                                                
GOVERNMENT                                                                      
Long-form name: Republic of Paraguay                                            
                                                                                
Type: republic                                                                  
                                                                                
Capital: Asuncion                                                               
                                                                                
Administrative divisions: 19 departments (departamentos,                        
singular--departamento); Alto Paraguay, Alto Parana, Amambay,                   
Boqueron, Caaguazu, Caazapa, Canindeyu, Central, Chaco,                         
Concepcion, Cordillera, Guaira, Itapua, Misiones, Neembucu,                     
Nueva Asuncion, Paraguari, Presidente Hayes, San Pedro                          
                                                                                
Independence: 14 May 1811 (from Spain)                                          
                                                                                
Constitution 25 August 1967                                                     
                                                                                
Legal system: based on Argentine codes, Roman law, and French                   
codes; judicial review of legislative acts in Supreme Court of Justice;         
does not accept compulsory ICJ jurisdiction                                     
                                                                                
National holiday: Independence Days, 14-15 May (1811)                           
                                                                                
Executive branch: president, Council of Ministers (cabinet),                    
Council of State                                                                
                                                                                
Legislative branch: bicameral Congress (Congreso)                               
consists of an upper chamber or Chamber of Senators (Camara de                  
Senadores) and a lower chamber or Chamber of Deputies (Camara de                
Diputados)                                                                      
                                                                                
Judicial branch: Supreme Court of Justice (Corte Suprema de                     
Justicia)                                                                       
                                                                                
Leaders:                                                                        
                                                                                
Chief of State and Head of Government--President Gen. Andres                    
RODRIGUEZ Pedotti (since 15 May 1989)                                           
                                                                                
Political parties and leaders:                                                  
Colorado Party, Luis Maria ARGANA, acting president;                            
Authentic Radical Liberal Party (PLRA), Juan Manuel BENITEZ Florentin;          
Christian Democratic Party (PDC), Jorge Dario CRISTALDO;                        
Febrerista Revolutionary Party (PRF), Euclides ACEVEDO;                         
Popular Democratic Party (PDP), Hugo RICHER                                     
                                                                                
Suffrage: universal and compulsory at age 18 and up to age 60                   
                                                                                
Elections:                                                                      
                                                                                
President--last held 1 May 1989 (next to be held February 1993);                
results--Gen. RODRIGUEZ 75.8%, Domingo LAINO 19.4%;                             
                                                                                
Chamber of Senators--last held 1 May 1989 (next to be held by                   
May 1993);                                                                      
results--percent of vote by party NA;                                           
seats--(36 total) Colorado Party 24, PLRA 10, PLR 1, PRF 1;                     
                                                                                
Chamber of Deputies--last held on 1 May 1989 (next to be held by                
May 1994);                                                                      
results--percent of vote by party NA;                                           
seats--(72 total) Colorado Party 48, PLRA 19, PRF 2, PDC 1, PL 1, PLR 1         
                                                                                
Communists: Oscar Creydt faction and Miguel Angel SOLER faction                 
(both illegal); 3,000 to 4,000 (est.) party members and sympathizers in         
Paraguay, very few are hard core; party beginning to return from exile is       
small and deeply divided                                                        
                                                                                
Other political or pressure groups: Confederation of Workers (CUT);             
Roman Catholic Church                                                           
                                                                                
Member of: AG (observer), CCC, ECLAC, FAO, G-77, IADB, IAEA, IBRD,              
ICAO, IDA, IFAD, IFC, ILO, IMF, INTELSAT, INTERPOL, IOC, IOM, ITU, LAES,        
LAIA, LORCS, OAS, OPANAL, PCA, RG, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL,         
WHO, WIPO, WMO                                                                  
                                                                                
Diplomatic representation: Ambassador Marcos MARTINEZ MENDIETA;                 
Chancery at 2400 Massachusetts Avenue NW, Washington DC 20008; telephone        
(202) 483-6960 through 6962; there are Paraguayan Consulates General in         
New Orleans and New York, and a Consulate in Houston;                           
                                                                                
US--Ambassador Jon GLASSMAN; Embassy at 1776 Avenida Mariscal                   
Lopez, Asuncion (mailing address is C. P. 402, Asuncion, or APO Miami           
34036-0001); telephone  595  (21) 213-715                                       
                                                                                
Flag: 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: The economy is predominantly agricultural. Agriculture,               
including forestry, accounts for about 25% of GNP, employs about 45% 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 in three       
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 minor recovery because of            
improved weather conditions and stronger international prices for key           
agricultural exports. The recovery continued through 1990, on the               
strength of bumper crops in 1988-89. The government, however, must              
follow through on promises of reforms needed to deal with escalating            
inflation, large fiscal deficits, growing debt arrearages, and falling          
reserves.                                                                       
                                                                                
GDP: $4.6 billion, per capita $1,000; real growth rate 3.5%                     
(1990 est.)                                                                     
                                                                                
Inflation rate (consumer prices): 44% (1990 est.)                               
                                                                                
Unemployment rate: 12% (1989 est.)                                              
                                                                                
Budget: revenues $1.2 billion; expenditures $1.2 billion,                       
including capital expenditures of $487 million (1991)                           
                                                                                
Exports: $980 million (registered f.o.b., 1990 est.);                           
                                                                                
commodities--cotton, soybean, timber, vegetable oils, coffee,                   
tung oil, meat products;                                                        
                                                                                
partners--EC 37%, Brazil 25%, Argentina 10%, Chile 6%, US 6%                    
                                                                                
Imports: $1.4 billion (registered c.i.f., 1990 est.);                           
                                                                                
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%                    
                                                                                
External debt: $1.7 billion (1989 est.)                                         
                                                                                
Industrial production: growth rate 5.9% (1989 est.); accounts                   
for 16% of GDP                                                                  
                                                                                
Electricity: 5,169,000 kW capacity; 15,144 million kWh produced,                
3,250 kWh per capita (1990)                                                     
                                                                                
Industries: meat packing, oilseed crushing, milling, brewing,                   
textiles, other light consumer goods, cement, construction                      
                                                                                
Agriculture: accounts for 25% of GDP and 44% of labor force; cash               
crops--cotton, sugarcane; other crops--corn, wheat, tobacco, soybeans,          
cassava, fruits, and vegetables; animal products--beef, pork, eggs,             
milk; surplus producer of timber; self-sufficient in most foods                 
                                                                                
Illicit drugs: illicit producer of cannabis for the international               
drug trade; important transshipment point for Bolivian cocaine headed           
for the US and Europe                                                           
                                                                                
Economic aid: US commitments, including Ex-Im (FY70-89), $172                   
million; Western (non-US) countries, ODA and OOF bilateral commitments          
(1970-88), $1.05 billion                                                        
                                                                                
Currency: guarani (plural--guaranies);                                          
1 guarani (G) = 100 centimos                                                    
                                                                                
Exchange rates: guaranies (G) per US$1--1,204.5 (October 1989),                 
1,056.2 (1989), 550.00 (fixed rate 1986-February 1989), 339.17 (1986),          
306.67 (1985)                                                                   
                                                                                
Fiscal year: calendar year                                                      
                                                                                
COMMUNICATIONS                                                                  
Railroads: 970 km total; 440 km 1.435-meter standard gauge, 60 km               
1.000-meter gauge, 470 km various narrow gauge (privately owned)                
                                                                                
Highways: 21,960 km total; 1,788 km paved, 474 km gravel, and                   
19,698 km earth                                                                 
                                                                                
Inland waterways: 3,100 km                                                      
                                                                                
Ports: Asuncion                                                                 
                                                                                
Merchant marine: 14 ships (1,000 GRT or over) totaling 18,743                   
GRT/22,954 DWT; includes 12 cargo, 2 petroleum, oils, and lubricants            
(POL) tanker; note--1 naval cargo ship is sometimes used commercially           
                                                                                
Civil air: 4 major transport aircraft                                           
                                                                                
Airports: 851 total, 738 usable; 6 with permanent-surface runways;              
1 with runways over 3,659 m; 2 with runways 2,440-3,659 m; 60 with              
runways 1,220-2,439 m                                                           
                                                                                
Telecommunications: principal center in Asuncion; fair intercity                
microwave net; 78,300 telephones; stations--40 AM, no FM, 5 TV, 7               
shortwave; 1 Atlantic Ocean INTELSAT earth station                              
                                                                                
DEFENSE FORCES                                                                  
Branches: Army, Navy (including Naval Air and Marines), Air Force               
                                                                                
Manpower availability: males 15-49, 1,130,690; 823,136 fit for                  
military service; 51,415 reach military age (17) annually                       
                                                                                
Defense expenditures: $84 million, 1.4% of GDP (1988 est.)                      
                                                                                
