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Updated May  26, 2023


Paraguay: An Overview


Paraguay is a landlocked country in South America
bordered by Argentina, Bolivia, and Brazil. The United
States has had close relations with Paraguay for decades,
providing assistance to counter corruption and spur trade
and economic development. The  United States and
Paraguay also work together closely on counterterrorism
and counternarcotics, among other security issues of
interest to some Members of Congress. Recently, State
Department-imposed  visa sanctions against top Paraguayan
leaders have caused some bilateral tensions.

Political   Background
Paraguay had a turbulent political history in the 19th and
20th centuries. In the War of the Triple Alliance (1864-
1870), Paraguay lost one-quarter of its original territory to
its opponents-Argentina, Brazil, and Uruguay-and  more
than half of its population died. Political instability
followed for several decades, including three civil wars in
the first half of the 20th century. For 35 years, from 1954
until 1989, General Alfredo Stroessner ruled as an anti-
communist  military dictator; he ultimately was overthrown
by a military coup. Paraguay's next government enacted a
more democratic constitution in 1992, and the country has
held competitive elections since 1993.
The conservative Colorado Party (Partido Colorado, also
known  as the National Republican Association-Colorado
Party or ANR-PC)  has dominated Paraguay's political
system. It held power for much of the 20th century,
including under the Stroessner dictatorship, and won nearly
every election held since the democratic transition. The
only exception was in 2008, when former Catholic bishop
Fernando Lugo, affiliated with the main opposition party,
the Partido Liberal Radical Autentico (PLRA), won the
presidency. The Colorado-led congress impeached Lugo in
2012, removing him from office in a rapid process that was
condemned  by neighboring countries. The 2013 election of
Horacio Cartes returned governmental control to the ANR-
PC despite allegations of Cartes's involvement in money
laundering and narcotics trafficking. His attempt to override
the prohibition against reelection in 2017 failed but sparked
protests, including the partial burning of the capitol in
Asunci6n.
President Mario Abdo Benftez of the Colorado Party was
elected in April 2018, defeating an opposition alliance by a
margin of less than 4%. He was inaugurated in August 2018
for a five-year term. The Colorado Party won a majority of
the seats in the Chamber of Deputies and a plurality in the
Senate. The party divided into competing factions: Honor
Colorado, led by former President Cartes, and the smaller
Colorado Aietete, led by President Abdo Benftez. Although
former President Cartes helped defeat two opposition
attempts to impeach President Abdo Benftez in 2019 and


2021, intraparty tensions continued to grow during Abdo
Benitez's term in office.

               Paraguay at a Glance
  Population: 7.6 million (2023 est, IMF), 95% of whom
  identify as mestizo, a mix of Spanish and Indigenous Guarani
  descent.
  Area: 157,047 sq. miles, slightly smaller than California (CIA)
  GDP: $42.8 billion (2022 est., current prices, IMF)
  Per Capita GDP: $5,670 (2023 est., current prices, IMF)
  Top imports: mineral fuels (16.5%), electrical machinery
  (15.6%), nuclear reactors and machinery (1 1.6%) (2022, TDM)
  Top exports: meat (18.4%), mineral fuels (15.6%), cereal
  15% (2022, TDM)
  Key trading partners: Brazil (29.5%); Argentina (20.6%);
  China (9.6%) (2022, total trade, TDM)
  Legislature: Bicameral Congress, with 45-member Senate
  and 80-member Chamber of Deputies
  Sources: International Monetary Fund's World Economic
  Outlook Database (IMF); Central Intelligence Agency's World
  Factbook (CIA); World Bank (WB); and Trade Data Monitor
  (TDM).

2023  Elections
Santiago Pena, a former finance minister under Cartes, was
Honor  Colorado's presidential nominee in the April 30,
2023, general elections. Several opposition parties from
center right to the left formed an alliance, the Concertacion
Nacional, and selected Efrafn Alegre as their presidential
candidate. Colorado candidate Pena won a comfortable
victory, with 43% of the vote to Alegre's 27.5%, belying
pre-electoral polls suggesting Alegre's growing support
might present a strong challenge to the Colorado Party. The
most surprising result was the third-place finish of right-
leaning, independent candidate Paraguayo Cubas, with 23%
of the vote. Pena is scheduled to be sworn in as president on
August 15, 2023. His party won majorities in both the
Senate and lower chamber and 15 of 17 contested state
governorships.
Economic and Social Conditions
Paraguay's economy  is driven largely by agricultural
exports-primarily soybeans and beef-and  electricity
generated by the binational Itaipd Dam. Its dependence on
commodities exports and informal labor, which exceeds
60%  of the workforce (per U.N. Development Programme
statistics), has perpetuated social and economic inequities,
according to some analysts.

Although Paraguay initially appeared to be coping well
with the Coronavirus Disease 2019 (COVID-19) pandemic,
deaths surged in 2021. As of March 2023 (latest data

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