1. Paraguay

2. Politics Triple Alliance and Chaco Wars Strong Dictatorship National Identity Dominance of Colorado Party Fernando Lugo – Religious leader – Cancer Issue

3. 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

4. Populatio n 6.5 million people concentrated in the eastern portion

5. Population and Projections Year 2010 Year 2020Year 2030

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

7. 350 to 500,000 Brazilians in East Paraguay Paraguayans Demand Land Reform Intimidation and Land Invasion PotentionalThreat: Brasiguaios/Brasiguayos

8. #1 Imperative: Protect Its Borders GRAND STRATEGY Establish/Maintain Good Relations with Bordering Countries: Brazil, Bolivia, and Argentina STRATEGY Manage Brazilian Dependency on the Itaipu Dam Use Good Relations with Brazil to Dissuade Argentinians Colonial –Ascendancy Control Northern and Northwestern Borders TACTIC Secure Ownership of Itaipu Dam Bring in Third External Party to Counterbalance the Two Regional Powers

9. #2 Imperative: Secure/Maintain Access to the Atlantic Ocean GRAND STRATEGY Counterbalance Brazilian Aspirations Over the Atlantic Ocean By Maintaining Good Relations with the United States STRATEGY Increase Cooperation with the United States in Regards to Security Threats TACTIC Improve Law Enforcement, Military, and Intelligence Capabilities

10. #3 Imperative: Maintain Partial Ownership of Itaipu Dam Grand STRATEGY Discourage Brazilian Expansion Inwards Especially East Paraguay to Prevent Brazilian Mass Immigration STRATEGY Enhance the United States’ Presence in the South Atlantic Ocean TACTIC Maintain Decent Relations with Brazil While Using Economic/Diplomatic Ties and Increase Paraguay Population Simultaneously Seek Friendly Relations with Argentina

11. #4 Imperative: Populate and Develop North and Northwestern Frontier Lands GRAND STRATEGY Create Ideal Conditions to Develop the Underdeveloped Regions by Investing in Transportation Infrastructures (Roads) STRATEGY Attack Foreign Investment; Raise Funding to Aid in Developing Transportation Infrastructures TACTIC Present Paraguay as a Relevant Player in the Efforts to Stabilizing South America’s Rivalries and Promote Hemispheric Integration

12. Net Assessment