
Paraguay
Geography: California-size Paraguay is surrounded by Brazil, Bolivia, and Argentina in south-central South America. Eastern Paraguay, between the Paraná and Paraguay rivers, is upland country with the thickest population settled on the grassy slope that inclines toward the Paraguay River. The greater part of the Chaco region to the west is covered with marshes, lagoons, dense forests, and jungles.
Government: Constitutional republic.
History: Indians speaking Guaraní — the most common language in Paraguay today, after Spanish — were the country’s first inhabitants. In 1526 and again in 1529, Sebastian Cabot explored Paraguay when he sailed up the Paraná and Paraguay rivers. From 1608 until their expulsion from the Spanish dominions in 1767, the Jesuits maintained an extensive establishment in the south and east of Paraguay. In 1811, Paraguay revolted against Spanish rule and became a nominal republic under two consuls.
Paraguay was governed by three dictators during the first 60 years of independence. The third, Francisco López, waged war against Uruguay, Brazil, and Argentina in 1865-1870, a conflict in which half the male population was killed. A new constitution in 1870, designed to prevent dictatorships and internal strife, failed to do so, and not until 1912 did a period of comparative economic and political stability begin. The Chaco War (1932-1935) with Bolivia won Paraguay more western territory.
After World War II, politics became particularly unstable. Alfredo Stroessner was dictator from 1954 until 1989, during which he was accused of the torture and murder of thousands of political opponents. Despite Paraguay’s human rights record, the U.S. continuously supported Stroessner.
Stroessner was overthrown by army leader Gen. Andres Rodriguez in 1989. Rodriguez went on to win Paraguay’s first multicandidate election in decades. Paraguay’s new constitution went into effect in 1992. In 1993, Juan Carlos Wasmosy, a wealthy businessman and the candidate of the governing Colorado Party, won a five-year term in free elections.
Raúl Cubas Grau was elected president in May 1998. In 1999, Cubas was forced from office for his alleged involvement in the assassination of Vice President Luis María Argaña. The vice president had criticized Cubas for refusing to jail his mentor, Gen. Lino Oviedo, who had been convicted of leading a failed 1996 coup against Wasmosy.
Luis Ángel González Macchi, who was appointed caretaker president after Cubas stepped down, undertook a governmental overhaul, and for the first time since Stroessner was overthrown, political and economic power was no longer entirely within the hands of the corrupt and military-backed Colorado Party. The U.S. has accused the Colorado Party of smuggling, money laundering, trafficking Bolivian cocaine, and supporting international terrorist organizations.
In Aug. 2000, the opposition Liberal Party won its first major victory in more than 50 years with the election of Julio Cesar Franco as vice president. He narrowly defeated the son of the previous vice president, Argaña. Paraguay’s government sought to clean up the political system by bringing to trial political and military figures suspected of human rights violations, corruption, or other crimes.
In 2002, antigovernment rioters demanded that President González Macchi resign, blaming him for Paraguay’s protracted recession since the late 1990s. In Dec. 2002, González Macchi was accused of mishandling $16 million in state funds. He was acquitted in an impeachment trial in Feb. 2003. Former journalist Nicanor Duarte Frutos became president on August 15, 2003. He has pledged to clean up the pervasive corruption in his nearly bankrupt country.
Official Website: www.paraguaygobierno.gov.py



