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Paraguay was once so isolated it was called an island surrounded by land. But in recent years, this small, landlocked country has opened up to the outside world, albeit slowly. It has adopted democracy and free trade. It's friendly, safer than many of its neighbors and far less commercialized. Still, it's not often given serious consideration by travelers planning South American itineraries. Which is a shame. Paraguay has some of the most intriguing sites on the continent: the evocative ruins of the fabled Jesuit missions of the south; faintly sinister Ciudad del Este, the contraband capital of the world and gateway to the incredible Iguacu Falls; the vast, desolate reaches of the unexplored Gran Chaco; and the world’s only 19th-century train still in operation, which runs for 23 mi/37 km.

Paraguay also has an enormous variety of flora and fauna—and the unspoiled terrain to support it—for bird-watchers, anglers and nature lovers—ranging from savannah and marshland to subtropical farms, ranches and rain forest. Its stark, sparsely settled Chaco region, where most of the country's indigenous Guarani Indians reside along with pristine settlements of German Mennonites, offers good opportunities for trekking. There are several national parks there, many of which are so remote you'll likely be the only person within their boundaries at any given time

The land that became Paraguay was populated predominantly by Guarani Indians when the Spaniards discovered it in 1516. Much of colonial-era Paraguay was part of a Jesuit-Guarani semiutopian theocracy from the late 16th century through much of the 18th century, until the "black robes" were expelled in 1767. Fortunately for all, the two societies blended well, and the current population is a mix that maintains distinct characteristics of each, which is especially evident in the bilingualism of its inhabitants.

Geography

Paraguay, roughly the size of California, is landlocked and divides itself into two broad regions separated by the Paraguay River. To the east are the more heavily populated, fertile lowlands somewhat similar to those of Brazil. There are no mountains, although there is an escarpment and some wooded hills. To the west lies the vast, virtually uninhabited Gran Chaco, a land of thorny brush, sand and sporadically flooded savannahs. Apart from some Mennonite colonies, the area is desolate in the extreme until one reaches the aquatic wonderland of the Pantanal ecoregion.

Eastern Paraguay's rolling hills and well-watered plains provide a home for 95% of the country's population, on less than 40% of the total land mass. There are several rivers—mostly tributaries of the Paraguay and Parana rivers—that water the region, and much of it is forested. It is more arid in the north and more humid toward the south (although all of Paraguay is hot). The world's most powerful lightning storms occur there.

West of the Paraguay River, the terrain quickly turns to scrub, thorn and finally, sand. Little grows there, and few people make the journey (although the Trans-Chaco Highway exists and runs—in the dry season—to Bolivia, one of the last epic journeys on the continent). There are rivers there, too, especially the Pilcomayo, but they are unnavigable and swampy. The Chaco's extremely rare dry forest is largely intact, and the Pantanal (which is shared with Bolivia and Brazil) has incredible displays of wildlife at every turn.

History

Modern-day Paraguay is a vastly reduced shadow of its former territory. Settled by the Spanish in the 16th century, Paraguay developed into a hybrid theocracy, with a colonial administration centered in Asuncion,and the Jesuits running pretty much the rest of the region. After Paraguya was discovered in 1516, Asuncion was settled in 1537, and the Jesuits arrived in 1550. Asuncion quickly became the chief colonial settlement in the region. Thanks to incessant (but inaccurate) rumors of gold, along with the Jesuits' peripatetic evangelizing, Paraguay soon became the dominant Spanish colony, and at its height loosely held sway over much of modern-day Argentina and Bolivia, along with parts of Brazil. It remained a major influence in the region for the next 200 years.

Thanks to its relative isolation, Paraguay also developed a strong independent streak, culminating in its declaration of independence from Spain in 1811. In the following years, the country was "led" first by Jose Gaspar Rodriguez de Francia—known by decree as El Supremo (the Supreme One), who effectively sealed Paraguay's borders from outside influence, and then by the Lopez family, father and son, who ruled in an equally autocratic fashion, although Lopez Sr. at least made an effort to bring Paraguay into the 19th century by establishing a railway and telegraph system.

It was Lopez Jr.—who insisted on being referred to as "Lopez II"—who single-handedly dealt his country a demographic blow from which it has yet to recover. Declaring war on Brazil—a neighbor almost 80 times Paraguay's size—in 1865 over an insult, he decided to up the stakes by also declaring war on Argentina and Uruguay. Needless to say, Paraguay was annihilated in the War of the Triple Alliance, losing 50% of its entire population and close to 90% of its males older than 12, as well as sizeable chunks of territory to Argentina and Brazil, by the time the war ended in 1870. It spent most of the next century in obscurity and poverty. The Chaco War, however, which was waged against Bolivia, wasn't a complete debacle for the nation. Badly outnumbered Paraguay acquired all its current territory north of Filadelfia in the deal and technically won the war.

Paraguay later had the "distinction" of being run by the longest-serving dictator in the Americas. In 1946, Gen. Alfredo Stroessner became president. He ruled for 34 years, and like Lopez before him, opened Paraguay in a distinctly unorthodox manner, establishing his country as the smuggling epicenter of the Western Hemisphere. (His legacy lives on in Ciudad del Este, the continent's black-market capital.) He finally was overthrown in 1989 in a coup led by Gen. Andreas Rodriguez.

In 1993, Rodriguez was succeeded by Juan Carlos Wasmosy, the first democratically elected president. His successors have been democratically elected, and since then, Paraguay has managed to stick to a mostly democratic course, and has made considerable efforts to integrate itself into the regional and global markets. These results have met with great success, and although Paraguay remains shrouded in mystery as a whole, it is very much one of Latin America's premier success stories. Even so, the Nicanor Duarte administration pursued policies that were somewhat more left-wing than has been the case during the past 60 years. At least in speeches, he opposed free trade and reached out to regional Latin American countries with left-leaning governments.

Fernando Armindo Lugo Mendez is the current Paratguayan president, heading a coalition led by his Christian Democratic Party. He is the former Roman Catholic bishop of the Diocese of San Pedro (now returned to lay status by papal decree) and writes a blog for the Web site of a newspaper in Ascunsion. President Lugo's early backing for greater land distribution among peasants probably indicates a centrist or left-of-center political philosphy.

Snapshot

Riverboat rides, waterfalls, trekking, Jesuit mission ruins, fishing, animal-watching, duty-free shopping and indigenous culture are Paraguay's main attractions.

The country will appeal to travelers who have already been to larger, more varied South American countries but who are now ready to experience the more subtle attractions of the continent. It will appeal to those excited by the idea of hearing Guarani Indians sing, watching nanduti lace being made or taking a riverboat cruise on the chance of seeing alligators and numerous displays of flora and fauna, especially during the rainy season. Paraguay is not a good destination for travelers who cannot tolerate some inconvenience and discomfort or who are unaccustomed to traveling in developing countries.

Potpourri

Since the end of Gen. Alfredo Stroessner's rule in 1989, international adoption of Paraguayan children has risen dramatically. The country has sent more adopted children to the U.S. than to any other nation in South America. Unfortunately, not all of the adoptions are legal, let alone ethical, and the Paraguayan government has suspended adoptions temporarily to examine the problem.

Almost all Paraguayans are bilingual. Outside Asuncion, the capital, where you'll hear mostly Spanish, most people speak Guarani, the language of the indigenous Guarani Indians. It is not uncommon for one person to ask a question in Spanish and the responder to answer in Guarani. In many cases, a sentence will contain both Spanish and Guarani.

Gen. Anastasio Somoza, the deposed dictator of Nicaragua, spent his last days of exile in Asuncion and was assassinated there in 1980. Gen. Stroessner, his Paraguayan counterpart who offered sanctuary to Nazis after World War II, spent his last days in Brasilia, Brazil, but died peacefully there in 2006.

The Jesuits arrived in Paraguay in 1550 to convert the Guarani Indians to Christianity, bringing with them a printing press, a sundial and a harp. The activities of the religious order were not well-received by the colonial government, and the priests were summarily tossed out in 1767. (The movie The Mission, starring Robert De Niro and Jeremy Irons, tells the story.)

When Jose Gaspar Rodriguez de Francia died, the citizens of Asuncion paid him the singular honour of torching all of his belongings and then tossed his body to the alligators in the Río Paraguay.

Paraguay is the world's third-largest producer of soybeans, although they were not introduced until 1967. The millennia-old favorites of the Guarani (cassava, maize, beans and peanuts) remain the country's most important crops.

Gen. Stroessner was in power for so long that his nickname was "The Dinosaur." In Asuncion, one statue of him was too large to demolish, so it was encased in concrete … with Stroessner's head and arms still protruding from it.

The Guayaki or Ache Indians—nearly wiped out by Stroessner—are known as the "white Indians" because of their light skins and beards. No one knows their origin.

Quebracho wood, the world's hardest, is native to Paraguay. It's nickname in Spanish is "axe breaker." It also provides an extract used to tan leather.

Pre-Columbian cave art and writing is found in some rural mountain areas.

In one area of the Chaco desert, an entire battlefield from the Chaco War of 1932-35 remains in almost-untouched condition.