Paraguay, officially the Republic of Paraguay (Spanish: República del Paraguay IPAes: reˈpuβlika ðel paɾaˈɣwai; Guaraní: Tetã Paraguái), is one of the only two landlocked countries in South America (along with Bolivia). It lies on both banks of the Paraguay River and is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Because of its central location in South America, the country is sometimes referred to as Corazón de América — Heart of America.

Name

The country is named after the Paraguay River that runs through the center of the country, from north to south. There are at least four versions for the origin of the river's name. The literal translation from Guaraní is Para = of many colors; Gua = from or belonging to or place; Y = water or river or lake.

Geography

main: Geography of Paraguay

The southeastern border is formed by the Paraná River, containing the Itaipu dam shared with Brazil. It is currently the largest hydroelectric power plant in the world, generating almost all the electricity consumed by Paraguay. As co-owner of the Itaipu Binacional company, Paraguay has the right to use its 50% share of the electricity generated. However, under the terms of the 1973 Itaipú Treaty signed by the military governments of Paraguay and Brazil, Paraguay is forced to sell all of its unused share to Brazil at a price that is far below the international market price. The terms of the treaty, which expires in 2023, are the subject of widespread discontent in Paraguay. The government of President Lugo has vowed to renegotiate the terms of the treaty with Brazil, which remains hostile to any renegotiation. Another large hydroelectric power plant on the Paraná River is Yacyretá, co-owned by Paraguay and Argentina.

The terrain is made up of grassy plains and wooded hills to the east. To the west, there are mostly low, marshy plains.

The local climate ranges from subtropical to temperate, with substantial rainfall in the eastern portions, though becoming semi-arid in the far west.

History

main: History of Paraguay Pre-Columbian society in the wooded, fertile region which is now present-day Paraguay consisted of seminomadic, Guarani-speaking tribes, who were recognized for their fierce warrior traditions. Europeans first arrived in the area in the early sixteenth century, and the settlement of Asunción was founded on August 15, 1537, by the Spanish explorer Juan de Salazar y Espinoza. The city eventually became the center of a Spanish colonial province, as well as a primary site of the Jesuit missions and settlements in South America in the eighteenth century. Jesuit Reductions were founded and flourished in eastern Paraguay for about 150 years until the expulsion of the Jesuits by the Spanish crown in 1767. Paraguay declared its independence after overthrowing the local Spanish administration on May 14, 1811.