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Paraguay

Stroessner and the Colorado party ruled the country from 1954 to 1989. The dictator oversaw an era of economic expansion, but also had a poor human rights and environmental record. Paraguay actively participated in Operation Condor. Torture and death for political opponents was routine. After his overthrow, the Colorado continued to dominate national politics until 2008.

Stroessner’s Overthrow, Post-1989:

On 3 February 1989, Stroessner was overthrown in a military coup headed by General Andrés Rodríguez. As president, Rodríguez instituted political, legal, and economic reforms and initiated a rapprochement with the international community. Reflecting the deep hunger of the rural poor for land, hundreds immediately occupied thousands of acres of unused territories belonging to Stroessner and his associates; by mid-1990, 19,000 families occupied 340,000 acres (138,000 ha). At the time, 2.06 million people lived in rural areas, more than half of the 4.1 million total population, and most were landless.

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Juan Carlos Wasmosy

The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental human rights. In May 1993, Colorado Party candidate Juan Carlos Wasmosy was elected as Paraguay’s first civilian president in almost forty years, in what international observers deemed free and fair elections.

Geography:

Paraguay is divided by the Río Paraguay into two well differentiated geographic regions. The eastern region (Región Oriental); and the western region, officially called Western Paraguay (Región Occidental) and also known as the Chaco, which is part of the Gran Chaco.

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Topographic Map of Paraguay

The terrain consists mostly of grassy plains and wooded hills in the eastern region. To the west are mostly low, marshy plains.

Economy:

Between 1970 and 2013, the country had the highest economic growth of South America, with an average rate of 7.2% per year. In 2010 and 2013, Paraguay experienced the greatest economic expansion of South America, with a GDP growth rate of 14.5% and 13.6% respectively.

All of Paraguay’s electricity is generated by hydropower, making it one of the cleanest in the world. Paraguay has an installed electrical production capacity of 8,110 MW, producing 63 billion kWh/year in 2016; with domestic consumption of just 15 billion kWh, the excess production is sold to Brazil, Argentina, and Uruguay, making Paraguay the world’s largest exporter of electric power. This production is from two large hydroelectric power projects along its borders, including the Itaipu Dam, the world’s second largest generating station.

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Itaipu Dam

Paraguay is the fifth-largest soybean producer in the world and second-largest producer of stevia.

The market economy is distinguished by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. Nonetheless, over the last 10 years the Paraguayan economy diversified dramatically, with the energy, auto parts and clothing industries leading the way.

The country also boasts the third most important free commercial zone in the world: Ciudad del Este, trailing behind Miami and Hong Kong. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. The economy grew rapidly between 2003 and 2013 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay’s commodity-based export expansion.

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