Paraguay Overview Country Overview Paraguay is a landlocked country surrounded by Argentina, Bolivia and Brazil, lying some 1440km (900 miles) up the River Paraná from the Atlantic. The River Paraguya, a tributary of the Paraná, divides the country in two widely differing regions. The east, where the Paraná forms a natural border with Brazil, has rolling hills, fertile plains, grasslands and heavily wooded areas. Asunción, the capital, is situated on the Bay of Asunción, an inlet off the Paraguay River in a former estate of the Lopez family on the Paraguay River. Paraguay’s university is in San Lorenzo, founded in 1775. A popular tourist itinerary is the ‘Central Circuit’, a route of some 200km (125 miles) that takes in some of the country’s most interesting sites, including the famous Iguazú and Monday waterfalls located near Paraguay’s fastest developing town, Ciudad del Este on the Brazilian border. In the west, the scarcely populated Chaco area, consisting mainly of empty plains and forests, provides a habitat for hundreds of wildlife and bird species. After the Amazon, this is America’s second largest forest area, whose national parts and biological reserves are popular among enthusiasts of ecotourism. Typical local dishes include chipas (maize bread flavoured with egg and cheese) and palmitos (palm hearts). In Asunción there are numerous bars, casinos and discotheques. The parrilladas or open-air restaurants offer by far the best atmosphere, especially in Asunción. There are casinos in the border towns of Ciudad Del Este and Encarnacion. General Information Area: 406,752 sq km (157,048 sq miles). Population: 5,356,000 (official estimate 1999). Population Density: 13.2 per sq km. Capital: Asunción. Population: 550,060 (1997). GEOGRAPHY: Paraguay is a landlocked country surrounded by Argentina, Bolivia and Brazil, lying some 1440km (900 miles) up the River Paraná from the Atlantic. The River Paraguay, a tributary of the Paraná, divides the country into two sharply contrasting regions. The Oriental zone, which covers 159,800 sq km (61,700 sq miles), consists of undulating country intersected by chains of hills rising to about 600m (2000ft), merging into the Mato Grosso Plateau in the north; the Paraná crosses the area in the east and south. East and southeast of Asunción lie the oldest centres of settlement inhabited by the greater part of the population. This area is bordered to the west by rolling pastures, and to the south by thick primeval forests. The Occidental zone, or Paraguayan Chaco, covers 246,827 sq km (95,300 sq miles). It is a flat alluvial plain, composed mainly of grey clay, which is marked by large areas of permanent swamp in the southern and eastern regions. Apart from a few small settlements, it is sparsely populated. Government: Republic since 1967. Gained independence from Spain in 1811. Head of State and Government: President Luis Ángel González Macchi since 1999. Language: The official languages are Spanish and Guaraní; Guaraní is spoken by most of the rural population. Most Paraguayans are bilingual, but prefer to speak Guaraní outside Asunción. Religion: Mostly Roman Catholic. Time: GMT - 4 (GMT - 3 from October to February). Electricity: 220 volts AC, 50Hz. Communications:   Telephone IDD is available. Country code: 595. Outgoing international code: 002. Moderate internal network apart from the main cities. Mobile Telephone GSM 1900 network coverage is limited to main urban areas. The local network providers are VOX and Hutchison Telecommunications Paraguay SA. Fax Some hotels provide facilities. Internet ISPs include Planet (website: www.pla.net.py). Three Internet cafes are available in main urban areas. Telegram Many hotels have facilities. Services are also available at COPACO (Compañía Paraguayo de Comunicaciones). Post Airmail to Europe takes five days. Press The main newspapers are Noticias, ABC Color, Ultima Hora and la Nación. American newspapers are available. BBC World Service and Voice of America frequencies: From time to time these change. BBC (website: www.bbc.co.uk/worldservice): MHz 17.79 15.19 12.10 5.975 Voice of America (website: www.voa.gov): MHz 13.79 9.455 6.130 5.995 Passport/Visa   Passport Required? Visa Required? Return Ticket Required? British Yes No Yes Australian Yes Yes Yes Canadian Yes Yes Yes USA Yes Yes Yes OtherEU Yes 1 Yes Japanese Yes No Yes PASSPORTS: Passport valid for six months after the intended length of stay required by all except nationals of Argentina, Bolivia, Brazil, Chile and Uruguay with valid ID cards entering as tourists directly from their own country. VISAS: Required by all except the following entering as tourists for stays of up to 90 days: (a) 1. nationals of EU countries (except nationals of Ireland who do require visas); (b) nationals of Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Israel, Japan, Liechtenstein, Panama, Peru, South Africa, Switzerland, Uruguay and Venezuela; (c) transit passengers continuing their journey by the same or first connecting aircraft within six hours provided holding onward or return documentation and not leaving the airport. Types of visa and cost: Tourist and Business: (Single-entry): £36. (Multiple-entry): £52. Validity: Three months from date of issue. Application to: Consulate (or Consular section at Embassy); see Contact Addresses section. Application requirements: (a) Valid passport. (b) Completed application form. (c) Two passport-size photos. (d) Stamped, self-addressed envelope for postal applications. (e) Fee, payable in cash (or cheque in sterling at the Consulate of Paraguay in London). The following requirements must be presented with two photocopies: (f) Proof of adequate funds (bank statement). (g) Certificates of good health (letter from GP or vaccination card) and of good conduct (letter from police). (h) Travel tickets and copy of itinerary. For business visas: (a)-(h) and (i) A covering letter from employer including name of contact in Paraguay. Note: Postal applications will not be processed until return post is paid or a courier service is arranged. Working days required: 48 hours. Temporary residence: Apply to Consulate (or Consular section at Embassy); see Contact Addresses section. Money Currency: Guaraní (G). Notes are in denominations of G100,000, 50,000, 10,000, 5000 and 1000. Coins are in denominations of G500, 100, 50, 10 and 5. Currency exchange: Paraguay maintains a free monetary exchange policy and the purchase and sale of foreign currencies is not subject to any controls or regulations. There is a bureau de change at the airport. US Dollars, which are more easily negotiable than Sterling, are widely accepted throughout the country. Paraguayan ATMs may not always recognise foreign cards. Credit & debit cards: MasterCard, American Express and Visa are widely accepted (though not in smaller hotels), while Diners Club has more limited use. Check with your credit or debit card company for details of merchant acceptability and other services which may be available. Travellers cheques: US Dollar travellers cheques are widely accepted although cheap hotels usually do not exchange travellers cheques. Currency restrictions: There are no restrictions on the import or export of local or foreign currency. Exchange rate indicators The following figures are included as a guide to the movements of the Guaraní against Sterling and the US Dollar: Date May ’02 Aug ’02 Nov ’02 Feb ’03 £1.00= 7337.51 9604.49 10698.2 11113.90 $1.00= 5035.00 6315.00 6765.00 6980.00 Banking hours: Mon-Fri 0845-1500. Duty Free The following items may be imported into Paraguay without incurring customs duty: A reasonable quantity of tobacco, alcoholic beverages and perfume for personal use; a reasonable quantity of personal and sporting equipment. Public Holidays Dec 8 2002 Immaculate Conception. Dec 25 Christmas Day. Jan 1 2003 New Year’s Day. Mar 1 Cerro Corá Battle. Apr 17 Maundy Thursday. Apr 18 Good Friday. May 1 Labour Day. May 15 Independence Day. Jun 12 Peace of Chaco. Aug 15 Founding of Asunción. Sep 29 Battle of Boqueron. Dec 8 Immaculate Conception. Dec 25 Christmas Day. Jan 1 2004 New Year’s Day. Mar 1 Cerro Corá Battle. Apr 8 Maundy Thursday. Apr 9 Good Friday. May 1 Labour Day. May 15 Independence Day. Jun 12 Peace of Chaco. Aug 15 Founding of Asunción. Sep 29 Battle of Boqueron. Dec 8 Immaculate Conception. Dec 25 Christmas Day. Health   Special Precautions Certificate Required Yellow Fever No 1 Cholera No No Typhoid and Polio 2 N/A Malaria 3 N/A 1: A yellow fever vaccination certificate is required from travellers leaving Paraguay to go to endemic areas. A certificate is also required from travellers coming from endemic areas. 2: Typhoid is a risk in rural areas. 3: Malaria risk, almost exclusively in the benign vivax form, is moderate in certain municipalities of Caaguazú, Alto Paraná and Canendiyú. In the other 13 departments there is a negligible risk. Food & drink: Mains water is normally chlorinated, and whilst relatively safe may cause mild abdominal upsets. Bottled water is available and is advised for the first few weeks of the stay. Drinking water outside main cities and towns is likely to be contaminated and sterilisation is considered essential. Milk may be unpasteurised and, if so, should be boiled. Powdered or tinned milk is also available and is advised, but make sure that it is reconstituted with pure water. Avoid dairy products which are likely to have been made from unboiled milk. Only eat well-cooked meat and fish, preferably served hot. Pork, salad and mayonnaise may carry increased risk. Vegetables should be cooked and fruit peeled. Other risks: Hepatitis B and D are endemic; hepatitis A is common; hepatitis C occurs. There have been large epidemics of dengue fever across the country in the past few years. TB occurs. Rabies is present. For those at high risk, vaccination before arrival should be considered. If you are bitten, seek medical advice without delay. For more information, consult the Health appendix. Health care: Health insurance is essential. There is no reciprocal health agreement with the UK. Travel - International AIR: Paraguay’s national airline is Transportes Aéreos del Mercosur (PZ). Airlines operating direct flights to Asunción include American Airlines (from New York). There are currently no direct flights from London. Most major airlines (including British Airways, Alitalia, Canadian Airlines and Lufthansa) operate connecting flights via Brazil (São Paulo or Rio de Janeiro). There are also a number of scheduled flights to Asunción from other south American cities, notably Buenos Aires, Santa Cruz (Bolivia) and Santiago (Chile). Approximate flight times: From Asunción to London is 15-19 hours, depending on the route taken. International airports: Asunción (ASU) (Silvio Pettirossi) is 16km (10 miles) from the city (travel time – 20 minutes). A coach and taxi service runs to the city. Airport facilities include a bureau de change, duty-free shopping, restaurants and car hire (Hertz). Air passes: The Mercosur Airpass: Valid within Argentina, Brazil, Chile (except Easter Island), Paraguay and Uruguay. Participating airlines include Aerolineas Argentinas (AR) (however, flights on this airline cannot be combined with any others, as it has no agreements and its tickets are not accepted by other airlines), Austral (AU), LAN-Chile (LA), LAPA (MJ), Pluna (PU), Transbrasil Airlines (TR) and VARIG (RG) with the subsidiary airlines of Nordeste (JH) and Rio Sul (SL). The pass can only be purchased by passengers who live outside South America, who have a return ticket. Only eight flight coupons are allowed with a maximum of four coupons for each country and is valid for seven to a maximum of 30 days. At least two countries must be visited (to a maximum of five) and the flight route cannot be changed. A maximum of two stopovers is allowed per country. The Visit South America Pass: Must be bought outside South America in country of residence and allows unlimited travel to 36 cities in the following countries: Argentina, Bolivia, Brazil, Colombia, Chile (except Easter Island), Ecuador, Paraguay, Peru, Uruguay and Venezuela. Participating airlines include LAN-Chile (LA), Aer Lingus (EI), American Airlines (AA), British Airways (BA), Cathay Pacific (CX), Finnair (AY), IBERIA (IB) and Qantas (QF). A minimum of three flights must be booked, with no maximum; the maximum stay is 60 days, with no minimum, and prices depend on the amount of flight zones covered. For both air passes children under 12 years of age are entitled to a 33 per cent discount and infants (under two years old) only pay ten per cent of the adult fare. For further details contact one of the participating airlines. Departure tax: US$18. Transit passengers and children under two years of age are exempt. RIVER: There are 2500km (1563 miles) of navigable rivers in Paraguay and there are ferry links with Argentina, Bolivia and Brazil. Travellers using the river to travel to Argentina should note that the Posadas (Argentina)–Encarnación (Paraguay) route is 321km (200 miles) shorter than the more traditional route to Buenos Aires. It traverses the Argentine provinces of Misiones and Corrientes and then proceeds across a bridge over the Paraná River to Resistencia. Those who prefer to continue along the left bank of the Paraná River will have to travel to Paraná, provincial capital of Entre Rios, crossing under the Paraná River in the tunnel between the cities of Paraná and Santa Fé. It is also possible to reach Paraguay by river from Brazil, in boats which connect Asunción with the Brazilian city of Corumba. RAIL: There is no through service to Argentina, but a weekly train from Asunción serves Posadas in Argentina by means of a train-ferry, with connections to Concordia and Buenos Aires. The rail services are very slow. ROAD: The roads from Rio and São Paulo to Asunción (via the Iguazú Falls) are paved and generally good, as is the one from Buenos Aires. Another road link to Argentina is via the San Roque González de Santa Cruz bridge in Encarnación across the Panraná river. Bus: There are daily services from São Paulo and Rio de Janeiro, Santa Fé, Rosario, Córdoba and Buenos Aires (Argentina) and Montevideo (Uruguay). Travel - Internal AIR: Air service is run by TAM (Transportes Aéreos del Mercosur), ARPA (Aero Lineas Paraguayas), LATN (Líneas Aéreas de Transporte Nacional), Aeronorte, LADESA (Líneas Aéreas del Este) and Aerosur. The most popular visitors’ flight is to the Iguazú Falls from Asunción with Varig Airways (RG). Air-taxis are popular with those wishing to discover the Paraguyan Chaco (see Resorts & Excursions section). Travel agencies offer daily city tours, but services suffer from frequent disruption by weather conditions. RIVER: River cruises to the main tourist attractions and throughout the Chaco are available. For further details contact the Dirección de Turismo (see Contact Addresses section). RAIL: A weekly service links Asunción and Encarnación – which are 431km (268 miles) apart – using original steam locomotives. There is also a weekly service from San Salvador to Abay. Services are often unreliable, however, and whole routes may be abandoned for months at a time. ROAD: Traffic drives on the right. Roads serving the main centres are in good condition. However, unsurfaced roads may be closed in bad weather. Approximately ten per cent of roads are surfaced. A highway links Asunción with Iguazú Falls, a drive of up to six hours. Some travellers have reported problems with police checks; it is also advisable to lock doors. Bus: Often the best and cheapest method of transport within Paraguay. For longer distances, advance booking may be necessary. There are express links to major centres. Car hire: Cars can be hired at the airport or through local tourist agencies. Documentation: National driving licence or International Driving Permit are both accepted. URBAN: Bus and minibus services are provided by private companies in Asunción, with two-zone fares collected by conductors. There also remain two routes of the government-operated tramway. TRAVEL TIMES: The following chart gives approximate travel times (in hours and minutes) from Asunción to other major cities in Paraguay.   Air Road Rail River Pedro Juan Caballero 1.15 11.00 - 13.00 Concepción 1.00 12.00 - 14.00 Ciudad del Este 1.05 5.00 - - Valle Mí 1.30 - - 15.00 Encarnación 1.10 5.00 14.00 9.00 Accommodation Outside the capital Asunción, which has approximately ten hotels of good standard, accommodation is fairly limited. Package tours to national parks in the Chaco or the waterfalls near Ciudad del Este along the Brazilian border include lodgings, but for individual travellers all accommodation must be booked in writing well in advance; details of current prices are available from the Embassy (see Contact Addresses section). All hotels in Asunción are likely to be fully booked throughout the tourist season (July and August). Visitors are advised to consult a reputable travel agent for up-to-date information, or to ascertain the rates with hotels when making reservations. For further information contact the Secretaría Nacional de Turismo (see Contact Addresses section). Introduction ASUNCIÓN: The capital city is situated on the Bay of Asunción, an inlet off the Paraguay River. Planned on a colonial Spanish grid system, it has many parks and plazas. On the way to the waterfront the visitor enters the old part of town, an area of architectural diversity. A good view of the city can be had from the Parque Carlos Antonio Lopez high above Asunción. The Botanical Gardens are situated in a former estate of the Lopez family on the Paraguay River. There is also a golf-course and a small zoo. The Lopez Residence has been converted into a natural history museum and library. Package trips can be booked to see the Iguazú Falls and the Salto Crystal Falls, and river trips to Villeta or up the Pilcomayo River to the Chaco. Luque, near the capital, is the home of the famous Paraguayan harps. THE CENTRAL CIRCUIT: A popular tourist itinerary is the ‘Central Circuit’, a route of some 200km (125 miles) that takes in some of the country’s most interesting sites clustered around the capital. San Lorenzo dates from 1775 and is the site of the university halls of residence and an interesting Gothic-style church. Founded in 1539 by Domingo Martinez, Ita's main speciality is handpainted black clay Gallinita hens. Yaguarón is set in an orange-growing district 48km (29 miles) from the capital and played a part during the Spanish conquest as a base for the Franciscan missions. Their churches date back to 1775. Situated in the foothills of the Cordillera des Altos, the historic village of Paraguarí has several old buildings in colonial style. The holiday centre of Chololo, 87km (54 miles) from the capital, has tourist facilities that include bars, restaurants and bungalows for rent. Piribebuy was the scene of bloody fighting during the war of the triple alliance. The Encaje-yú spindle lace, the ‘sixty-stripe’ Paraní poncho and other handmade goods are produced here. It is also famous as a place of worship of the ‘Virgin of Miracles’. Situated on Lake Ypacarai, 47km (29 miles) from the capital, San Bernadino is a holiday resort and, owing to its beaches and lake shores, very popular during the summer months. It also has a camping ground, ‘Camping 19’. ALONG THE PARANÁ: On the border with Brazil and Argentina in the north-east of the Chaco, the spectacular Iguazú Falls are a major tourist attraction. Ciudad del Este, 326km (204 miles) east of the capital, is the fastest-growing town in the country and has a cosmopolitan atmosphere. Situated close to the border with Brazil, the town is also a good starting point for a visit to the majestic Monday Falls and Iguazú Falls, which are a 15-30 minute drive from the city. Also nearby is the Italpú Dam, the largest hydroelectric complex in the world. Stretching over 180km (112 miles), the water reservoir provides a unique ecosystem for wildlife and birds as well as providing tourists with a number of activities, including fishing, watersports, sailing, camping and walking tours. Well to the south, Encarnación has many colonial buildings and a sleepy waterfront area with gauchos and sandy streets. Nearby is the Roque González de Santa Cruz bridge linking Paraguay with Posadas in Argentina across the river Paraná. THE CHACO: This vast, scarcely populated area, consisting mainly of empty plains and forests, covers 61 per cent of the country’s total surface, but is inhabited by only three per cent of Paraguay’s population. The drive from Asunción leads through the Low Chaco, a land of palm forests and marshes, and reaches the Middle Chaco with its capital Filadelfia. Here Mennonites of German descent have set up farms and other agricultural outlets as well as their own schools and are considered to be the only organised community in the whole of the Chaco region. The Chaco is home to Paraguay’s major national parks including the Defensores del Chaco, Tifunque, Enciso and Cerro Cora. Wildlife and nature enthusiasts can also visit the area’s beautiful biological reserves (in Limoy, Itabo, Tati Yupi) or the protected forests in Nacunday and Mbaracayu, where over 600 species of birds, 200 species of mammals and numerous kinds of reptiles and amphibians live in a natural habitat. The Chaco is, after the Amazon rain forest, the world’s second biggest forest area and is a popular location for pursuers of ecotourism. JESUIT MISSIONS: In the 16th century, the Company of Jesus started the process of converting the Guaraní people to Christianity. As a result, the native Indians eventually agreed to live in reducciones, large villages with a fairly rigid socioeconomic structure based on Jesuit principles and values. Skilled in construction and artistic techniques, the Guaraníes left behind a heritage of churches, religious sculptures and paintings scattered throughout Paraguay, Brazil, Bolivia and Argentina. Seven of the largest Jesuit missions remain in Paraguay, and those in Jesus de Taravangue and Triniad del Paraná have been declared World Heritage Site by UNESCO. They can be reached either by plane, car/bus or via light river transport. Sport & Activities Ecotourism: There are 11 national parks and protected areas, the largest of which are in the Chaco region in the north of the country. Birdlife is particularly abundant, and there is also a wide variety of animals, including the Chacoan peccary, once thought to be extinct. Visitors should take plenty of insect repellent with them when visiting remote areas. A good way to view flora and fauna is from boats which run along some of Paraguay’s rivers. Trips can sometimes be arranged on cargo vessels if there are no passenger services. The trip along the fast-flowing River Paraguay from Asunción via Concepción passes through fascinating landscapes, eventually leading as far as the huge marshlands in the north and over the Brazilian border. For more information on Paraguayan national parks, contact the Dirección de Parques Nacionales y Vida Silvestre, Madame Lynch 2500, casi Primer Presidente, Asunción (tel/fax: (21) 615 812; e-mail: biodiversidad@seam.gov.py). Fishing: The dorado, found in the Paraguay, Paraná and Tebicuary rivers, can weigh up to 29kg (65Ib). International fishing contests are held near Asunción. There are many other smaller fish that are peculiar to Paraguay such as the surubí, pati, pacu, manguruyus, armados, moncholos and bagres. Other: The national sport is Football. There are tennis facilities at hotels and in Asunción. The Asunción Golf Club has an 18-hole golf course. Water-skiing facilities are available in some places. Some large hotels have swimming pools. Social Profile Food & Drink: Typical local dishes include chipas (maize bread flavoured with egg and cheese), sopa paraguaya (soup of mashed corn, cheese, milk and onions), soo-yosopy (a soup of cornmeal and ground beef), albondiga (meatball soup) and boríborí (soup of diced meat, vegetables and small maize dumplings mixed with cheese). Palmitos (palm hearts), surubí (a fish found in the Paraná) and the local beef are excellent. There is a wide choice of restaurants in Asunción, most with table service. The national drink is caña, distilled from sugar cane and honey. Sugar cane juice, known as mosto, and the national red wine are worth trying, as is yerba maté, a refreshing drink popular with nearly all Paraguayans. There are no strict licensing hours and alcohol is widely available. Nightlife: In Asunción there are numerous bars, casinos and discotheques. The parrilladas or open-air restaurants offer by far the best atmosphere, especially in Asunción. There is a casino at the border towns of Ciudad Del Este and Encarnación. The most popular traditional music in Paraguay is polcas and guaranías which have slow and romantic rhythms and which are used as serenades. Shopping: Special purchases include ñandutí lace, made by the women of Itagua, and aopoí sports shirts, made in a variety of colours and designs. Other items include leather goods, wood handicrafts, silver yerba maté cups and native jewellery. Shopping hours: Mon-Fri 0800-1200 and 1500-1900, Sat 0730-1300. Special Events: The following is a selection of special events and festivals celebrated annually in Paraguay. Contact the Embassy or Dirección de Turismo for exact dates (see Contact Addresses section). Feb San Blás Fiestas. Apr Semana Santa (Holy Week festival). Mid-May Día de la Independencia (Independence day parades and festivities). Jun Verbena de San Juan (traditional fiesta, including walking on hot embers). Jul Expo Feria de la Industria; Nanduti Festival (traditional folk festival with arts and crafts), Itaugua. Mid-Aug Día de la Virgen de la Asunción and Aniversario de la Fundación de Asunción (religious and cultural celebrations). Sep Festival de la Alfalfa, Sapucai. Oct Encuentro Internacional de Coros (choir festival), Encarnación. Nov Festival del Poyvi (arts, crafts and music fair), Carapeguá. Dec Apertura de Temporada (opening of the tourism season), San Bernadino. Social Conventions: Shaking hands is the usual form of greeting. Smoking is not allowed in cinemas and theatres. Dress tends to be informal and sportswear is popular. Photography: Avoid sensitive subjects such as military installations. Tipping: Ten to 15 per cent is normally included in hotel, restaurant and bar bills. Business Profile Economy: Paraguay’s agriculture plays an important part in its economy, supplying a quarter of GNP and almost all the country’s export earnings. Production of Paraguay’s principal cash crops, cotton and soya, expanded rapidly during the late 1980s and continues to grow annually. Other crops such as sugar cane, maize and wheat are also grown on a commercial scale. Paraguay also has large timber reserves which feed the country’s rapidly expanding wood-based industries. Wood and soya oil are the main export products. The main manufacturing industries are textiles, chemicals, and the production of metal goods and machinery. Recently completed hydroelectric projects, undertaken as joint projects with Brazil and including the world’s largest hydroelectric dam at Itaipu, have made Paraguay self-sufficient in energy. Although since the early 1990s Paraguay has implemented major economic reforms centred on liberalisation and deregulation of the public sector and large private monopolies, as required by its principal external creditors and donors, the economy has performed poorly in recent years. The main reason is persistently low commodity prices, exacerbated by large-scale corruption and structural weaknesses in the banking sector. External factors, notably the economic crises in Argentina and Brazil, have also played an important role. The economy is still in recession – growth is very low while high unemployment (officially 17 per cent but almost certainly much higher) has forced much of the workforce into the unregulated, ‘black’ parts of the economy. In July 2002, the IMF offered a US$200 million support package for the Paraguayan economy in exchange for the usual austerity measures. Paraguay is a member of the 11-strong Latin American Integration Association (Asociación Latinoamericana de Integración, ALADI), which seeks to promote free trade and economic development within Latin America, and under which Paraguay, alongside Bolivia, enjoys special tariff concessions. Paraguay is also a founding member to the Mercosur trade bloc of southern Latin American countries. Brazil is Paraguay’s largest trading partner, followed by the USA and Argentina. Business: For formal occasions or business affairs men should wear lightweight suits and ties or a dinner jacket in the evening; women a lightweight two-piece suit or equivalent. Most business people are able to conduct a conversation in English, but a knowledge of Spanish will be useful. Appointments and normal business courtesies apply. Best time to visit is from May to September. Office hours: Mon-Fri 0800-1200 and 1430-1900, Sat 0800-1200. Commercial Information: The following organisation can offer advice: Cámara y Bolsa de Comercio, Estrella 540, Asunción (tel: (21) 493 321; fax: (21) 440 817; e-mail: secretaria@ccparaguay.com.py; website: www.ccparaguay.com.py) or PROPARAGUAY (Trade & Investment Promotion Agency), Edificio Ayfra, 12th Floor, Asunció (tel: (21) 444 113 or 493 625; fax: (21) 493 862; website: www.proparaguay.gov.py) or British Paraguayan Chamber of Commerce, Gral Diaz 521, Edificio Internacional Faro, Second Floor, Oficina 2a, Asunción (tel/fax: (21) 498 274). Climate Subtropical with rapid changes in temperature throughout the year. Summer (December to March) can be very hot. Winter (June to September) is mild with few cold days. Rainfall is heaviest from December to March. Required clothing: Lightweight cottons and linens are worn in warmer months, with some warm clothes for spring and autumn. Mediumweights are best for winter. Rainwear is advisable throughout the year. History and Government History: The recorded history of Paraguay starts from the first encounters between European explorers and the Guarani tribes populating the upper reaches of what are now the Parana and Paraguay rivers. These took place in the early 16th century; the first European settlement, established in 1537, later became the Paraguayan capital, Asuncion. During the rest of the century, Asuncion was a key staging post for Spanish conquests of the south-central part of the continent – present day Bolivia, Paraguay and parts of Argentina. The territory of Paraguay was then governed as a subsidiary of the Vice-Royalty of Peru and later of Buenos Aires. Remote and far from the main decision-making centres, Paraguay was largely neglected by the Spanish colonial authorities, who noted only the poor tax return and lack of resources. The territory was largely left to the devices of the mestizo (mixed European-Indian) elite and the Catholic Church, which busily proselytised among the Indian tribes. Throughout the 17th and 18th century, the economic fortunes of Paraguay declined through neglect and the depredations of the widely unpopular encomienda system of land distribution, which was tantamount to slavery for most workers. Troops sent from Buenos Aires, to put down a series of uprising at the turn of the 19th century, were pushed back and, with the Spanish empire throughout the continent now in a state of terminal decline, the Paraguayans realised that independence was theirs for the taking. It was declared in May 1811. Since then, the country has been governed mainly by dictatorships and has endured a number of costly wars against neighbouring countries. Of particular importance was the 1865 conflict against Uruguay, Brazil and Argentina, as a result of which Paraguay lost much of its territory and roughly half of its population. Since the 1940s, Paraguay has been under military rule for most of the time, interspersed with periods of crisis and internal conflict. A period of intense instability in the late 1940s and early 1950s was brought to an end in 1954, with a military coup by the Commander-in-Chief of the armed forces, General Alfredo Stroessner. Backed by the military, the business community and the main right-wing grouping, the Partido Colorado, Stroessner retained power for over 32 years. He was finally deposed in a military coup led by his former deputy, General Andrés Rodriguez, in February 1989. As Stroessner retired into Brazilian exile, a presidential election organised by the new regime and backed by the Parti Colorado gave a large vote to Rodriguez. With firm prodding from Brazil and the USA, Rodriguez then spent the following two years attempting to drag Paraguay out of the political and economic torpor created by the Stroessner regime. Liberalising measures were introduced, coupled with strict fiscal and budgetary control. Public monopolies were sold. The Government also cracked down on rampant smuggling, drug trafficking and tax evasion. The political system opened up, as the stranglehold of the Colorados gradually weakened. Led by the Partido Liberal Radical Autentico (PLRA), a vigorous opposition emerged along with a new business-backed party, Encuentro Nacional (EN). In 1993, following the introduction of a new constitution, a coalition of opposition parties took control of both houses of the legislature. However, they failed to win the simultaneous election for the presidency, which was won by the poll Colorado candidate, Juan Carlos Wasmosy. The army, long the dominant force in Paraguayan politics, was largely but not entirely content to accept its loss of influence. During 1996, growing disaffection against the deteriorating economic situation and revelations of corruption in the Wasmosy government caused a major split within the Colorado party. Anti-Wasmosy elements lent their support to an influential and controversial former army commander, General Lino Cesar Oviedo. Despite being suspected of organising a coup against Wasmosy in 1996, Oviedo was provisionally selected as the Colorado candidate at the forthcoming 1998 presidential poll. In the event, Oviedo was barred from standing and jailed for sedition but a close ally, Raul Cubas Grau, stood in his place and won. Cubas released Oviedo, precipitating a major political crisis in which the intervention of the army was narrowly averted. The situation was brought under control when Cubas was impeached by Congress and resigned; Oviedo was exiled to Argentina (later Brazil). However, the rogue general retains a strong body of support within the army and controls a political party, UNACE. In 2000, the new president, former senate leader, Luis Gonzales Macchi, was almost overthrown in a coup launched by Oviedo supporters. Democratic politics in Paraguay have survived but the situation – especially given the country’s difficult economic situation – is still febrile. Late 2002 saw riots and civil disorder, as the government split over revelations of corruption and the implementation of austerity measures – demanded as part of an IMF financial package. Government: Paraguay’s new constitution, introduced in 1992, allows for a bicameral legislature with a 45-member Senate and 80-member Chamber of Deputies. Executive power rests with the president who is, like both houses of the legislature, elected for a five-year term. 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