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1 1 (February 12, 2024)

handle is hein.crs/goveohz0001 and id is 1 raw text is: CongressionaI Research Service Gras informing thei eg iativ debat sic ;1914 Updated February 12, 2024 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 matters of interest to some Members of Congress. Recently, U.S.- imposed sanctions against top Paraguayan leaders have caused some bilateral tensions. Politkcal Environment 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. From 1954 to 1989, General Alfredo Stroessner ruled as an anti-communist military dictator; he ultimately was overthrown by a military coup. A constituent assembly elected in 1991 promulgated a more democratic constitution in 1992 that divides power among the president; a bicameral congress comprising a 45-member Senate and 80-member Chamber of Deputies; and the judiciary, headed by the supreme court. Paraguay has held regular elections since 1993, but the country's citizens continue to face some challenges in exercising their political rights and civil liberties. The conservative Colorado Party (also known as the Asociaci6n Nacional Republicana-Partido Colorado or ANR-PC) has dominated Paraguay's political system. It held power for much of the 20th century, including under the Stroessner dictatorship, and has 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 Aut6ntico (PLRA)-won the presidency. The Colorado-led congress impeached Lugo in 2012, removing him from office in a rapid process condemned by neighboring countries. The ANR-PC regained control of the presidency with the 2013 election of business magnate Horacio Cartes (2013-2018), despite allegations Cartes was involved in money laundering and narcotics trafficking. Cartes's attempt to override Paraguay's prohibition against reelection in 2017 failed but sparked protests, resulting in the partial burning of the capitol in Asunci6n. President Mario Abdo Benitez (2018-2023) extended the ANR-PC's hold on the presidency, although his term was marked by rising intraparty tensions. The ANR-PC divided into competing factions: Honor Colorado, led by former President Cartes, and the smaller Colorado Anetete (renamed Fuerza Republicana in 2023), led by President Abdo Benitez. Although Honor Colorado helped defeat two opposition attempts to impeach President Abdo Benitez in 2019 and 2021, the relationship between the two factions became increasingly combative. Paraguay at a Glance Population: 7.6 million (2023 est., IMF), 95% of whom identify as mestizo (mixed Spanish and Indigenous Guarani descent) Area: 157,047 sq. miles, slightly smaller than California (CIA) GDP: $44.1 billion (2023 est., current prices, IMF) Per Capita GDP: $5,843 (2023 est., current prices, IMF) Top Imports: electrical machinery, mineral fuels, heavy machinery (2023, TDM) Top Exports: soy beans, beef, electrical energy, cereals (2023, TDM) Key Trading Partners: Argentina (25.7%); Brazil (25.1%); United States (1 1.3%) (2023, total trade, TDM) Sources: International Monetary Fund, World Economic Outlook Database (IMF); Central Intelligence Agency, World Factbook (CIA); Trade Data Monitor (TDM). The 2023 general elections resulted in a resounding victory for the ANR-PC, with the party capturing the presidency, majorities in the Chamber of Deputies and Senate, and 15 of 17 state governorships. Paraguay elected Santiago Pena, a former finance minister under Cartes and Honor Colorado's presidential nominee, to a five-year presidential term. Pena obtained 43% of the vote, comfortably defeating Efrain Alegre, the candidate representing the PLRA-led opposition alliance, Concertaci6n Nacional, and Paraguayo Cubas, of the far-right party Partido Cruzada Nacional. International observers commended Paraguay for the election's transparency but noted some irregularities. Following Pena's victory, authorities arrested Cubas and charged him with several crimes, including disturbing the peace, after his allegations of electoral fraud sparked violent protests in Asunci6n. As of February 2024, Cubas is awaiting trial under house arrest. Since his inauguration in August 2023, Pena has largely continued his predecessor's policies. His administration has pursued market-oriented economic policies, supported reforms to increase transparency in the civil service and the public pension system, and increased funding for school lunch programs. A key priority of Pefia's administration in 2024 is renegotiating te financial terms of the binational Itaipd hydroelectric dam with Brazil.

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