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Country Guide > South America > Paraguay | |
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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. In 2002 there were riots and incidences of civil disorder as the government split over revelations of corruption and the implementation of austerity measures – demanded as part of an IMF financial package. Although selected as Colorado candidate at the 1998 presidential election, Oviedo was jailed for sedition and thus disbarred, but a close ally, Raul Cubas Grau, stood in his place and won. Cubas released Oviedo, precipitating a major political crisis. This was resolved when Congress, backed by most of the army, impeached Cubas and forced him to resign. Oviedo left the country, but he still retains significant support within the army and controls a political party, UNACE. The extent of Oviedo’s continuing influence became apparent after the 2000 election when the new president, former senate leader Luis Gonzales Macchi, was almost overthrown in a coup launched by Oviedo supporters. Macchi’s term of office was characterised by regular outbreaks of civil disorder, especially over the IMF economic austerity programme, which the government tried to introduce. Macchi himself was embroiled in a corruption scandal and unable to run for office at the most recent presidential poll in April 2003, which was won by the Colorado candidate, Nicanor Duarte Frutos. Although democratic politics in Paraguay have more or less survived, the population is deeply disillusioned and there are signs that the rural peasantry, after decades of impoverishment, are now organising to challenge the established order. 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. |