Country Portfolio: Paraguay

Country Portfolio: Paraguay

Introduction

Paraguay is a landlocked country in South America. It lies on both banks of the Paraguay River, bordering Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest, and is located in the very heart of South America. The name "Paraguay" is derived from the Guarani word pararaguay meaning "from a great river". The "great river" is the Parana River, which produces the greatest amount of hydroelectric power in the world. Paraguay's capital is Asuncion.

Culture

Paraguayan culture is a blend chiefly of Guaranian and Spanish elements, supplemented by more recent Argentine, German, and Italian influences. The culture of Paraguay has remained isolated and therefore has retained many features introduced in the 16th and 17th centuries by the Spanish conquerors, artisans, and Jesuit missionaries.

Language

Paraguay has two official languages: Spanish and Guarani. The majority of the people speak an indigenous language - Guarani, although they do not self-identify ethnically as indigenous. Spanish is the language of business and government, and Guarani is spoken in everyday life. According to the 1992 census, nearly half the population speaks both Guarani and Spanish in the home and 39 percent speaks only Guarani. In rural areas and among the lower social classes, Guarani is the dominant language. Although most schooling is conducted in Spanish, children are required to study Guarani as well. There is considerable lexical borrowing and linguistic code switching in informal conversation.

Religion

Religious Beliefs. Paraguay is overwhelmingly Roman Catholic. There are also several Protestant sects and small groups of the Baha'i, Buddhist, and Jewish faiths.

Rituals and Holy Places. In addition to Roman Catholic holy days and rituals, Paraguay honors the Virgin of the Immaculate Conception on 8 December. This day is celebrated with a pilgrimage led by religious and government officials to the holy shrine in Caacupe.

Death and the Afterlife. Beliefs and practices concerning death follow Roman Catholic tradition. The dead are interred in mausoleums, and the novena is traditionally observed, although this practice is declining in urban areas. Traditionally, All Saints' Day is celebrated on 1 November by decorating deceased family members' tombs and gathering in cemeteries to honor the dead.

Social Stratification

Classes and Castes. Wealth and income distribution are extremely unequal. A small elite owns most of the land and the commercial wealth and reaped most of the benefits of economic growth in recent decades. Recent surveys indicate that 20 percent of the population of the greater Asunción metropolitan area and 60 percent of the population in rural areas live in poverty. Indigenous peoples are the most impoverished. Mennonite and Japanese immigrants have established thriving agricultural colonies, while the more recent Korean, Chinese, and Arab immigrant groups are concentrated in urban commercial activities and reexportation. Brazilian immigrants are disproportionately concentrated in midsize commercial farming enterprises but also include extremely impoverished small farmers and labourers as well as wealthy landowners and middle-class entrepreneurs.

Symbols of Social Stratification. Language is an important marker of social status. Members of the upper classes primarily speak Spanish in public and in private, although they may understand Guarani. Members of the poorer social groups speak Guarani primarily or exclusively, and may have only a limited understanding of Spanish. The social distance between classes has traditionally been extreme, and peasants or workers were expected to show deference toward members of the political and landowning elite.

Business Environment

Industrial climate. The economic system in force in Paraguay favors free enterprise. The majority of business is directly related to agriculture, cattle raising and forestry. There is a notable tendency toward industrialization of the primary sector, based on the abundance of electrical energy