Paraguay
Paraguay experienced the region's longest dictatorship, under Alfredo Stroessner, who ruled for 35 years until a military coup in 1989. 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.
Nicanor Duarte, from the ruling Colorado Party, won presidential elections in April 2003 with 38% of the vote. He promised to crack down on crime and corruption, to implement public-work programs and to strive for efficiency in government. He has taken steps to curb corruption in the Supreme Court and his own cabinet, but has drawn criticism for rising crime, including several high-profile kidnappings. In early 2004 reports of a possible assassination plot against Duarte surfaced. Security was beefed up around the president.
Paraguay's economy is largely agricultural. The commercialization of agriculture, high population growth and forest clearance have led to a dramatic increase in the number of landless families. The 1990s saw slow but steady growth, but in 1999 there was a banking crisis, followed by the 2002 banking crisis in neighboring Argentina, leaving Paraguay’s economy in serious trouble. The IMF granted emergency loans, conditional on economic reforms. The uncertain political environment has made progress on economic reforms difficult.
Brazil is the country's largest trade partner, and its economic recovery has positive implications for Paraguay – a key re-exporter of goods.
As the number of landless families has grown, people have migrated into urban areas, causing a rapid growth in shanty towns. Poverty affects about 60% of the population.
One of South America's least densely populated countries, Paraguay also has one of the continent’s most racially homogeneous populations. Up to 95% of Paraguayans are mestizos - people of mixed Spanish and native American descent (many of them speak only the language of the indigenous Guarani people). There is a 200,000-strong Japanese community, the result of post-World War II migration.
While there are no known threats to travelers or expatriate personnel in Paraguay, the country has seen ongoing episodes of political uncertainty in recent years. Demonstrations and protests have resulted in intermittent road closures including major routes traveled by tourists and residents. Curfews are occasionally imposed. Roadblocks in the past have been sporadic and of varying duration but generally nonviolent.
Corruption is endemic, and Paraguay has become a regional center for smuggling, money-laundering and organized crime.
