Paraguay is located in the heart of South America and lies on the banks of the Paraguay River bordered by Argentina, Brazil and Bolivia. Paraguayan culture is a blend of the European culture and the Guarani culture. More than 80% of the people speak both Spanish and Guarani as 65% of the population consist of Spanish and Guarani Indian descent. Other cultures like Italians, Germans, Japanese, Koreans, Brazilians, Arabs and Chinese exist to a small extent. About 56% of the population of Paraguay lives in urban areas.

Paraguay is the worlds largest exporter of hydroelectric power and the Parana River has the Itaipu dam and another large hydroelectric power plant called Yacyreta. Paraguays largest economic activity is based on agriculture and Paraguay is ranked as the third largest exporter of soybeans in the world with a substantial rise in its beef exports as well.

Arts such as embroidery and lace making are popular among the people. The conservative traditional values followed by most of the families living here are still quite predominant. There were a number of renowned novelist and poets like Jose Ricardo Mazo, Auguto Roa Bastos and Roque Vallejos which became popular in the fifties and sixties.

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