Paraguay

Politics• Triple Alliance and

Chaco Wars • Strong Dictatorship• National Identity• Dominance of

Colorado Party• Fernando Lugo– Religious leader– Cancer issue

Economy• Agricultural / Informal

Economy • Natural Resources

– Soybean, Cotton, Hydroelectricity (Itaipu Dam)

• Partners– Brazil, Uruguay, Argentina,

China, United States• Banking System

– Foreign companies partially and entirely own most banks and financial institutions

Population

6.5 million people concentrated in the

eastern portion

Population and ProjectionsYear 2010

Year 2020 Year 2050

Nationally Homogeneous • Spanish and Guarani Indian descent• Over 90% fluent in Guarani

• 350 to 500,000 Brazilians in East Paraguay

• Paraguayans Demand Land Reform

• Intimidation and Land Invasion

Potential Threat: Brasiguaios/Brasiguayos

#1 Imperative: Protect Its BordersGRAND STRATEGY

Establish/Maintain good relations with bordering countries:

Brazil, Bolivia, and Argentina

STRATEGYManage Brazilian dependency on

the Itaipu DamUse good gelations with Brazil to

dissuade Argentinians colonial ascendancyControl Northern and Northwestern borders

TACTICSecure ownership of Itaipu DamBring in third external party to

counterbalance the two regional powers

#2 Imperative: Secure/Maintain Access to the Atlantic Ocean

GRAND STRATEGYCounterbalance Brazilian

aspirations aver the Atlantic Ocean by maintaining good

relations with the United States

STRATEGYIncrease cooperation with the

United States in regards to security threats

TACTICImprove law enforcement, military, and intelligence

capabilities

#3 Imperative: Maintain Partial Ownership of Itaipu Dam

Grand STRATEGYDiscourage Brazilian expansion

inwards especially East Paraguay to prevent Brazilian

mass immigrationSTRATEGY

Enhance the United States’ presence in the South Atlantic

OceanTACTIC

Maintain decent relations with Brazil while using

economic/diplomatic ties and increase Paraguay populationSimultaneously seek friendly

relations with Argentina

#4 Imperative: Populate and Develop North and Northwestern Frontier Lands

GRAND STRATEGYCreate conditions to develop the underdeveloped regions

by investing in transportation infrastructures (Roads)

STRATEGYAttract foreign investment;

raise funding to aid in developing transportation

infrastructuresTACTIC

Present Paraguay as a relevant player in the efforts to stabilizing South America’s

rivalries and promote hemispheric integration

Net Assessment