Population: a Catholic nation of 5 million people, Paraguay is tucked in between Argentina, Brazil and Bolivia.
Recent history: Ruled for the past 50 years by the Colorado or Coloured Party, which combined outright dictatorship under Alfredo Stroessner (1954-1989) with a series of civilian presidents subject to army approval.
Language: Stroessner banned the native Guarani language as a "language of slaves", but Paraguay is practically bilingual, as children grow up speaking both Guarani and Spanish at home.
Recent wars: Involved in many disastrous wars in the last century, losing 90 per cent of its male population, particularly in the "War of the triple alliance" when a Paraguayan ruler declared war on Brazil, Uruguay and Argentina.
Economy: fuelled by illegal exports, with the city of Ciudad del Este regarded as a liberated zone for contraband commerce, accounting for 40 per cent of gross national income.
Paraguay joined Argentina, Uruguay and Brazil in the regional common market MERCOSUR, in 1991, and has the lowest annual income of all member states, at $1,655 (£1,182) per capita.