Changes

==Government and Political Conditions==

==Government and Political Conditions==

Paraguay's highly centralized government was fundamentally changed by the 1992 constitution, which provides for a division of powers. The president, popularly elected for a 5-year term, appoints a cabinet. The bicameral Congress consists of an 80-member Chamber of Deputies and a 45-member Senate, elected concurrently with the president through a proportional representation system. Deputies are elected by department and senators are elected nationwide. Paraguay's highest judicial body is the Supreme Court. A popularly elected governor heads each of Paraguay’s 17 departments.  

Paraguay's highly centralized government was fundamentally changed by the 1992 constitution, which provides for a division of powers. The president, popularly elected for a 5-year term, appoints a cabinet. The bicameral Congress consists of an 80-member Chamber of Deputies and a 45-member Senate, elected concurrently with the president through a proportional representation system. Deputies are elected by department and senators are elected nationwide. Paraguay's highest judicial body is the Supreme Court. A popularly elected governor heads each of Paraguay's 17 departments.  

===Principal Government Officials===

===Principal Government Officials===

===Foreign Relations===

===Foreign Relations===

[[File:Evo Morales C Fernandez y F Lugo.jpg|thumb|Former president Fernando Lugo with national leaders.]]

[[File:Evo Morales C Fernandez y F Lugo.jpg|thumb|Former president Fernando Lugo with national leaders.]]

Paraguay is a member of the United Nations and several of its specialized agencies. It also belongs to the Organization of American States, the Latin American Integration Association (ALADI), the Rio Group, INTERPOL, and MERCOSUR (the Southern Cone Common Market). Paraguay is closely aligned with its MERCOSUR partners on many political, economic, and social issues. It is the only country in South American that recognizes Taiwan and not the People’s Republic of China.

Paraguay is a member of the United Nations and several of its specialized agencies. It also belongs to the Organization of American States, the Latin American Integration Association (ALADI), the Rio Group, INTERPOL, and MERCOSUR (the Southern Cone Common Market). Paraguay is closely aligned with its MERCOSUR partners on many political, economic, and social issues. It is the only country in South American that recognizes Taiwan and not the People's Republic of China.

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Paraguay has a predominantly agricultural economy, with a struggling commercial sector. There is a large subsistence sector, including sizable urban unemployment and underemployment, and a large underground re-export sector. The country has vast hydroelectric resources, including the world's largest hydroelectric generation facility built and operated jointly with Brazil (Itaipú Dam), but it lacks significant mineral or petroleum resources. The government welcomes foreign investment in principle and accords national treatment to foreign investors, but widespread corruption is a deterrent. The economy is dependent on exports of soybeans, cotton, grains, cattle, timber, and sugar; electricity generation, and to a decreasing degree on re-exporting to Brazil and Argentina products made elsewhere. It is, therefore, vulnerable to the vagaries of weather and to the fortunes of the Argentine and Brazilian economies.  

Paraguay has a predominantly agricultural economy, with a struggling commercial sector. There is a large subsistence sector, including sizable urban unemployment and underemployment, and a large underground re-export sector. The country has vast hydroelectric resources, including the world's largest hydroelectric generation facility built and operated jointly with Brazil (Itaipú Dam), but it lacks significant mineral or petroleum resources. The government welcomes foreign investment in principle and accords national treatment to foreign investors, but widespread corruption is a deterrent. The economy is dependent on exports of soybeans, cotton, grains, cattle, timber, and sugar; electricity generation, and to a decreasing degree on re-exporting to Brazil and Argentina products made elsewhere. It is, therefore, vulnerable to the vagaries of weather and to the fortunes of the Argentine and Brazilian economies.  

According to International Monetary Fund (IMF) data, Paraguay's real GDP in 2005 of $8.06 billion (in 2000 dollars) represented an increase of 2.9% from 2004. The per capita GDP rose 1.02% to $1,288 in current U.S. dollar terms in 2005, but it is still below the peak of $1,793 in 1996. Given the importance of the informal sector, accurate economic measures are difficult to obtain. In 2005, Paraguay had a current account deficit of $190 million, with a large deficit in the trade of goods, but with a surplus in services, reflecting exports of electricity from Paraguay’s two large hydroelectric dams shared with Brazil and Argentina. In 2005, official foreign exchange reserves rose to $1.29 billion, an increase of 10.8% over 2004, and an increase of more than 100% from 2002 ($582.8 million). Foreign official debt rose slightly to $2.73 billion. Inflation in 2005 rose to 9.9%, up from 2.8% in 2004 which was the lowest rate since 1970.

According to International Monetary Fund (IMF) data, Paraguay's real GDP in 2005 of $8.06 billion (in 2000 dollars) represented an increase of 2.9% from 2004. The per capita GDP rose 1.02% to $1,288 in current U.S. dollar terms in 2005, but it is still below the peak of $1,793 in 1996. Given the importance of the informal sector, accurate economic measures are difficult to obtain. In 2005, Paraguay had a current account deficit of $190 million, with a large deficit in the trade of goods, but with a surplus in services, reflecting exports of electricity from Paraguay's two large hydroelectric dams shared with Brazil and Argentina. In 2005, official foreign exchange reserves rose to $1.29 billion, an increase of 10.8% over 2004, and an increase of more than 100% from 2002 ($582.8 million). Foreign official debt rose slightly to $2.73 billion. Inflation in 2005 rose to 9.9%, up from 2.8% in 2004 which was the lowest rate since 1970.

===Agriculture and Commerce===

===Agriculture and Commerce===

The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental rights. In May 1993, Colorado Party candidate Juan Carlos Wasmosy was elected as Paraguay's first civilian president in almost 40 years in what international observers deemed fair and free elections. The newly elected majority-opposition Congress quickly demonstrated its independence from the executive by rescinding legislation passed by the previous Colorado-dominated Congress. With support from the United States, the Organization of American States, and other countries in the region, the Paraguayan people rejected an April 1996 attempt by then-Army Chief Gen. Lino Oviedo to oust President Wasmosy, taking an important step to strengthen democracy.  

The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental rights. In May 1993, Colorado Party candidate Juan Carlos Wasmosy was elected as Paraguay's first civilian president in almost 40 years in what international observers deemed fair and free elections. The newly elected majority-opposition Congress quickly demonstrated its independence from the executive by rescinding legislation passed by the previous Colorado-dominated Congress. With support from the United States, the Organization of American States, and other countries in the region, the Paraguayan people rejected an April 1996 attempt by then-Army Chief Gen. Lino Oviedo to oust President Wasmosy, taking an important step to strengthen democracy.  

Oviedo became the Colorado candidate for president in the 1998 election, but when the Supreme Court upheld in April his conviction on charges related to the 1996 coup attempt, he was not allowed to run and remained in confinement. His running mate, Raul Cubas Grau, became the Colorado Party's candidate and was elected in May. The assassination of Vice-President Luis Maria Argana and the killing of eight student anti-government demonstrators, allegedly carried out by Oviedo supporters, led to Cubas’ resignation in March 1999. The President of the Senate, Luis Gonzalez Macchi, assumed the presidency and completed Cubas’ term. Gonzalez Macchi offered cabinet positions in his government to senior representatives of all three political parties in an attempt to create a coalition government that proved short-lived. Gonzalez Macchi’s government suffered many allegations of corruption, and Gonzalez himself was found not guilty in a Senate impeachment trial involving corruption and mismanagement charges in February 2003.  

Oviedo became the Colorado candidate for president in the 1998 election, but when the Supreme Court upheld in April his conviction on charges related to the 1996 coup attempt, he was not allowed to run and remained in confinement. His running mate, Raul Cubas Grau, became the Colorado Party's candidate and was elected in May. The assassination of Vice-President Luis Maria Argana and the killing of eight student anti-government demonstrators, allegedly carried out by Oviedo supporters, led to Cubas’ resignation in March 1999. The President of the Senate, Luis Gonzalez Macchi, assumed the presidency and completed Cubas’ term. Gonzalez Macchi offered cabinet positions in his government to senior representatives of all three political parties in an attempt to create a coalition government that proved short-lived. Gonzalez Macchi's government suffered many allegations of corruption, and Gonzalez himself was found not guilty in a Senate impeachment trial involving corruption and mismanagement charges in February 2003.  

[[File:Chiperas Paraguay.jpg|thumb|left|180px|Paraguayan traditional costumes.]]

[[File:Chiperas Paraguay.jpg|thumb|left|180px|Paraguayan traditional costumes.]]

In April 2003, Colorado candidate Nicanor Duarte Frutos was elected president. He was inaugurated on August 15. Duarte’s administration has established a mixed record on attacking corruption and improving the quality of management. In his first year, Duarte worked constructively with an opposition-controlled Congress, removing six Supreme Court justices suspected of corruption from office and enacting major tax reforms. While Duarte remains the most dominant political figure, he faced stiff opposition mid-term from the opposition strongly opposed to his efforts to amend the Constitution to allow him to run for reelection. Macroeconomic performance has improved significantly under the Duarte administration, with inflation falling significantly, and the government clearing its arrears with international creditors. Unemployment remains stubbornly high and the living standard of most households has not improved. The administration has placed a strong emphasis on participating in international institutions and has used diplomacy to promote the opening of international markets to Paraguayan products. In June 2004, Oviedo returned to Paraguay from exile in Brazil and was imprisoned for his 1996 coup-plotting conviction.

In April 2003, Colorado candidate Nicanor Duarte Frutos was elected president. He was inaugurated on August 15. Duarte's administration has established a mixed record on attacking corruption and improving the quality of management. In his first year, Duarte worked constructively with an opposition-controlled Congress, removing six Supreme Court justices suspected of corruption from office and enacting major tax reforms. While Duarte remains the most dominant political figure, he faced stiff opposition mid-term from the opposition strongly opposed to his efforts to amend the Constitution to allow him to run for reelection. Macroeconomic performance has improved significantly under the Duarte administration, with inflation falling significantly, and the government clearing its arrears with international creditors. Unemployment remains stubbornly high and the living standard of most households has not improved. The administration has placed a strong emphasis on participating in international institutions and has used diplomacy to promote the opening of international markets to Paraguayan products. In June 2004, Oviedo returned to Paraguay from exile in Brazil and was imprisoned for his 1996 coup-plotting conviction.

In 2019, Paraguay's government was socially conservative.<ref>Smits, Jeanne (March 29, 2019). [https://www.lifesitenews.com/news/paraguay-education-minister-bans-libertine-gender-ideology-course-in-public-schools Paraguay education minister bans ‘libertine’ gender ideology course in public schools]. ''LifeSiteNews''. Retrieved March 29, 2019.</ref>

In 2019, Paraguay's government was socially conservative.<ref>Smits, Jeanne (March 29, 2019). [https://www.lifesitenews.com/news/paraguay-education-minister-bans-libertine-gender-ideology-course-in-public-schools Paraguay education minister bans ‘libertine’ gender ideology course in public schools]. ''LifeSiteNews''. Retrieved March 29, 2019.</ref>