PARAGUAY RIVER

Portuguese Rio Paraguai, Spanish Ro Paraguay, the fifth largest river in South America and the principal tributary of the Paran River (q.v.). Rising in the Mato Grosso region of Brazil at 980 feet (300 m) above sea level, it crosses Paraguay to its confluence with the Paran near the Argentine border. It is 1,584 miles (2,550 km) long. See also Plata, Ro de la. The source and upper course of the Paraguay River are in Brazil, where it demarcates part of the frontier with Paraguay before entering Paraguay itself, which it traverses from north to south. It then forms the frontier between Paraguay and Argentina for the last 150 miles (240 km) of its course before joining the Alto (Upper) Paran River, the combined stream then flowing into Argentina as the lower Paran River. The Paraguay is subject for much of its length to seasonal flooding, which has considerable effect on the flow of the lower Paran. A notable feature of the upper basin is the vast seasonal swamp called the Pantanal; farther downstream, the great alluvial plain of the Gran Chaco extends westward from the river. The Paraguay has varying rates of flow between its source and mouth. Above Corumb, Braz., the highest rate of flow occurs in February and the lowest rate occurs from July to August. Downstream from Corumb the highest rate of flow occurs in July and the lowest from December to January. The upper Paraguay (down to Concepcin, Paraguay) floods from December to March, while the middle Paraguay (from Concepcin to Asuncin) floods from May to June. Flooding on the lower Paraguay takes place in February, and the river's flood area reaches some 38,600 square miles (100,000 square km). The predominant climate of the Paraguay drainage basin, which has an area of 380,000 square miles (980,000 square km), is of the hot and humid savanna type, characterized by dry winters and heavy rains in the summer. Forest and grassland are found along the banks of the Paraguay. In the lowlands of eastern Paraguay, forest cover and savanna grasslands alternate. The river's fish population includes the salmonlike dorado, the piranha, and the basslike pacu. The basin is sparsely populated and largely economically underdeveloped. Livestock raising and subsistence agriculture are the principal modes of livelihood. The river is used mainly for local traffic; steamers from Buenos Aires, Arg., ply upstream as far as Asuncin, Paraguay. The economy Agriculture is the most common economic activity, employing more than two-fifths of the workforce. It also accounts for about one-fourth of the gross domestic product (GDP) and the vast majority of exports. The economy is therefore highly dependent on the vagaries of climate and world commodity prices for its main agricultural products. General Alfredo Stroessner Matiauda (president 195489) encouraged domestic and foreign private investment, particularly in commercial agriculture. Until the mid-1970s, public-sector investment was low by Latin American standards and was concerned mainly with improving roads, telecommunications, and air transport. This changed with the establishment of several state companies, most notably Itaip Binacional, set up in 1973 to build a huge hydroelectric dam on the Paran, and steel, cement, and alcohol-distillation plants. Public-sector employment grew rapidly, making up about one-tenth of the labour force during the late 20th century. Until 1982, when the construction of Itaipu was completed, Paraguay was able to offset its current account and trade deficit with international loans. For the rest of the decade, the country was faced with a growing public-sector deficit, high debt repayments on commercial borrowing, and dwindling international reserves. Impressive economic growth, particularly in the 1970s, was not matched by government efforts to distribute its benefits equitably. Most Paraguayans, particularly in rural areas, remained poor by Latin American standards. Income tax was kept low, partly in order to attract foreign capital, and foreign investors were exempt from many taxes. Farmers growing cash crops for export were given state subsidies. The police and armed forces absorbed a large portion of the budget. The government of General Andres Rodrguez (198993) implemented a number of economic reforms designed to introduce a market-based economy. They included the abolition of a multiple exchange rate, the end of cheap subsidies to state companies, the elimination of export taxes, and plans to privatize several state companies. Under General Stroessner, labour unions were strictly controlled, which helped to keep wage increases low. For most of his rule, the country had one large, government-recognized trade union, the Confederation of Paraguayan Workers (Confederacin Paraguaya de Trabajadores; CPT). After Stroessner's fall, a number of independent union groupings emerged, most notably the Unified Workers Central (Central Unitaria de Trabajadores; CUT). In 1991 the United States government restored Paraguay's trade benefits under the Generalized System of Preferences (GSP), from which it had been suspended in 1987 as a result of the lack of trade union freedom. Resources Mining and quarrying Most mineral deposits are found east of the Paraguay River. Manganese is located near Emboscada; malachite and azurite (copper ores) near Caapuc, Encarnacin, and San Miguel; feldspar and mica near Concepcin; and talc and piroflita (hard, iron-bearing flagstone) near Caapuc and San Miguel. Ochre is found in the Cordillera region, and gypsum and limestone near the Paraguay River; there is some peat near Pilar. Marble, clay (kaolin), and salt are quarried. Copper, bauxite, iron, and uranium ores have been reported. Extensive drilling in the Paraguayan Chaco has failed to find any hydrocarbons. Despite the varied mineral resources, mining and quarrying are the least-developed economic activities. The land Relief The Paraguay River, which runs from north to south, divides Paraguay into two distinct geographic regionsthe Regin Oriental (Eastern Region), also known as the Paranea region, and the Regin Occidental (Western Region), also known as the Chaco Boreal (Northern Chaco). The Regin Oriental, with an area of about 61,700 square miles, is an extension of the Brazilian Plateau and varies in elevation from about 165 feet (50 metres) above sea level in the southwest to a few hills that rise to 2,500 feet in the east. The Cordillera de Amambay (in Brazil called Serra de Amambai) runs approximately north to south along part of the border with Brazil and then runs eastward as the Cordillera de Mbaracay (in Brazil called Serra de Maracaju). From the northeast, other ranges extend southward toward Encarnacin, diminishing to hills in the south. The highest peak is Mount San Rafael at 2,789 feet (850 metres), in the Cordillera de San Rafael in southeastern Paraguay. To the east of these mountains lies the Paran (Alto Paran) River valley. To the west lies the broad valley of the Paraguay River. The area from Encarnacin northward to the Brazilian border, comprising one-third of eastern Paraguay, is called the Paran Plateau. The western part of the Regin Oriental and the Paran valley north and east of Encarnacin are the areas most favourable to human settlement. The Chaco Boreal, which covers more than 95,000 square miles, about two-thirds of the country, forms the northeastern part of the Gran Chaco, a flat and largely featureless tropical region that extends into Bolivia and Argentina. Drainage Four-fifths of the country's perimeter is traced by the Paraguay, Apa, Paran, and Pilcomayo rivers. The Paran forms both the eastern and southern borders of the country. Multiple tributaries of the Paraguay and Paran cross the eastern and central regions. The mountain ranges of Amambay and Mbaracay form the watershed between the Paraguay and the Paran rivers. Important eastern tributaries of the Paraguay River include, from north to south, the Apa, Aquidabn, Ypan, Jeju Guaz, and Tebicuary. Except for the Acaray and Ytambey rivers, the streams that flow into the Paran have little economic significance. The Paran joins the Paraguay River at the country's southwestern corner. The only important tributary flowing from the west is the sluggish Pilcomayo, which joins the Paraguay near Asuncin. Rising to the northwest in Bolivia, the Pilcomayo forms the southern border of the Chaco Boreal and is navigable in its lower reaches by small boats. Other Chaco rivers, including the Verde and Monte Lindo, are slow, sluggish, intermittent streams that drain into swamps or disappear during dry periods. Paraguay has only two lakes of consequence. The largest, Lake Ypo, about 40 miles (65 kilometres) south of Asuncin, merges into Lake Ver; it is drained by channels of the Tebicuary and feeds the marshes of the eembuc plain. Lake Ypacara, about 30 miles east of Asuncin, has a favourite summer resort at San Bernardino. The people Ethnic composition Paraguay has the most homogeneous population of any South American country. The vast majority of inhabitants are native Paraguayans, who are almost all mestizo (a mixture of Spanish and Indian). They pride themselves on their Guaran descent, although the admixture of European strains is prominent. About 300,000 Brazilians, many of them small farmers, arrived in eastern Paraguay in the 1970s, because land in Paraguay was cheaper than in Brazil. Other immigrants have come from western Europe, particularly Germany, Italy, and Spain, and from Japan, Korea, China (Hong Kong), and Taiwan. Estimates of the number of Indians in the country range from 40,000 to 70,000. They comprise six linguistic groups, five in the Chaco and one in the east. The 17 ethnically distinct Indian groups include the Pai-Tavyter, Mbya, Ach, and Chirip (in the east) and the Toba, Mascoy, Lengua, Chulup, Tapiet, Ayoreo, and Chamacoco (in the Chaco). Some are threatened with extinction through forced assimilation and the destruction of their traditional habitat. The welfare of the Indians is the official responsibility of the Paraguayan Indian Institute. Many Indians receive support from missionary groups. Language groups Until 1992 Spanish was the official language, although Guaran was spoken by nearly 90 percent of the population. But the 1992 constitution recognizes both Spanish and Guaran as official languages. Spanish is used predominantly in government and business, but both Spanish and Guaran are used as media of instruction. At least half of the population is bilingual. The constitution also recognizes Indian languages as part of the country's heritage.