Paraguay: In Brief (CRS Report for Congress)
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| Release Date |
Aug. 31, 2017 |
| Report Number |
R44936 |
| Report Type |
Report |
| Authors |
Beittel, June S. |
| Source Agency |
Congressional Research Service |
Summary:
Paraguay is a South American country wedged between Bolivia, Argentina, and Brazil. It is about
the size of California but has a population of less than 7 million. The country is known for its
rather homogenous culture—a mix of Latin and Guarani influences, with 90% of the population
speaking Guarani, a pre-Columbian language, in addition to Spanish. The Paraguayan economy is
one of the most agriculturally dependent in the hemisphere and is largely shaped by the country’s
production of cattle, soybeans, and other crops. In 2016, Paraguay grew by 4.1%; it is projected
to sustain about 4.3% growth in 2017.
Since his election in 2013, President Horacio Cartes of the long-dominant Colorado Party (also
known as the Asociación Nacional Republicana [ANC]), has moved the country toward a more
open economy, deepening private investment and increasing public-private partnerships to
promote growth. Despite steady growth, Paraguay has a high degree of inequality and, although
poverty levels have declined, rural poverty is severe and widespread.
Following Paraguay’s 35-year military dictatorship in the 20th century (1954-1989), many citizens
remain cautious about the nation’s democracy and fearful of a return of patronage and corruption.
In March 2016, a legislative initiative to allow a referendum to reelect President Cartes
(reelection is forbidden by the 1992 constitution) sparked large protests. Paraguayans rioted, and
the parliament building in the capital city of Asunción was partially burned. In response to the
effort to change the Paraguayan Constitution to allow for presidential reelection, which included a
secret vote in Paraguay’s Senate, the U.S. Embassy in Asunción declared that constitutional
revisions should be done transparently and called on all parties to work together to resolve issues
sparking the disturbances. In April 2017, President Cartes announced that he would not run in the
2018 elections, and subsequently the initiative to enable reelection was withdrawn.
U.S.-Paraguayan relations have been close for decades. The U.S. government has provided
development assistance to Paraguay, and the two governments have collaborated on security,
counternarcotics, and efforts to promote and strengthen democracy. In July 2017, Paraguay
hosted the annual multination special operations competition held in the region, known as Fuerzas
Comando. At the time, Admiral Tidd, commander of the U.S. Southern Command, held meetings
with President Cartes and Paraguay’s military leadership focused on U.S.- Paraguayan bilateral
relations in security cooperation, humanitarian aid, fighting transnational crime, and
counterterrorism. In addition, the Peace Corps has had a significant presence in Paraguay, with
more than 200 volunteers in recent years. In FY2017, the program in Paraguay is estimated at
nearly $5 million and is proposed to remain at the same level in FY2018.
The Trump Administration’s FY2018 foreign aid request for Paraguay would reduce U.S.
assistance to $400,000, a 95% cut compared to FY2016, concentrating on military training and
eliminating traditional development programs. Congress may wish to consider if the long-term
U.S. focus on strengthening democracy and promoting development in Paraguay remains
relevant.
