Modern Paraguay is largely based upon political uncertainty and economic hardship - Since the early 1980s, Paraguay has been making the difficult transition to a more modern market economy.While Asuncion is filled with new economic prospects and construction, much of the country remains underdeveloped, consisting of deficient infrastructure.As a result, it is very common to see beggars asking for money on Asuncion's corners.
Nowadays, the mestizos (Spanish Amerindian) account for more than 80% of the country's 6 million inhabitants and Guarani is, side by side with Spanish, the country's official language.
In the past, Franciscan and Jesuit missions mingled with the Guaranis' dream of Yvy maraë´y, a land without evil, and produced singular societies.
After World War II Paraguay received many immigrants, who fell in love with the hospitality and decided to stay and call Paraguay their home.
Therefore, is common to find colonies of Germans, Russians, Italians, French and Spanish people in the country areas of Paraguay.
The informal sector features both re-export of imported consumer goods to neighboring countries as well as the activities of thousands of microenterprises and urban street vendors.
Because of the importance of the informal sector, accurate economic measures are difficult to obtain.With an area of about 406,000km² Or 157,048 mi² Paraguay is divided into two regions: Oriental and Occidental by the Paraguay River.Despite being landlocked, the country is bordered and criss-crossed by navigable rivers.On a per capita basis, real income has stagnated at 1980 levels.Most observers attribute Paraguay's poor economic performance to political uncertainty, corruption, lack of progress on structural reform, substantial internal and foreign debt, and deficient infrastructure.Being one of the richest countries in the 1800's (and the only one in America to have railways transportation at that time) before the disastrous War of the Triple Alliance (1865-70).Paraguay, facing the allied forces of Argentina, Brazil, and Uruguay, lost two-thirds of all adult males and much of its territory including their coast with the sea.In the Chaco War of 1932-35, large, economically important areas were won from Bolivia.The 35-year military dictatorship of Alfredo Stroessner was overthrown in 1989, and, despite a marked increase in political infighting in recent years, democratic governors have been in power since then.Corruption here is ubiquitous compared to neighboring Bolivia, Brazil and Argentina.In recent years, though, economic wellbeing has been reported and democratic elections have been taking place with little to no uncertain events.