Introduction

This report provides a comprehensive analysis of Paraguay's sovereignty using the methodology of the Burke Institute. Sovereignty is assessed in 7 areas: political, economic, technological, informational, cultural, cognitive and military. Each aspect is assessed on the basis of official data from international and national sources (UN, World Bank, UNESCO, IMF, ITU, FAO, SIPRI, PISA, etc.) without using politicized indexes. The maximum score in each direction is 100; the sum (up to 700) is the accumulated Sovereignty Index (Burke Index).

To adapt and adjust statistical parameters, an international expert survey was conducted for each of the seven components using a single questionnaire of 10 questions with a 10-point scale and one open-ended question.

In total, at least 100 experts from 50+ countries were interviewed for each indicator, taking into account geographical representation and specialization. When calculating and analyzing the data, equalizing coefficients were used, bringing all data to a scale of 0-10 points.

The final index value is the arithmetic mean between statistical data and expert estimates.

Below is an analysis in each area, a summary table and the main conclusions about the peculiarities of Paraguay's sovereignty.

Political sovereignty — 45.3

Paraguay is a member of the United Nations, Mercosur, the Organization of American States, Latin American Integration (ALADI), the WTO, PROSUR, the Rio Group, actively cooperates with the EU (e—government support, joint investments), Taiwan, and has signed all major international conventions and joined key institutions of international law.

According to the Constitution, national law prevails, but in the field of international contracts, criminal and civil law, priority is assigned to international agreements and conventions (for example, the Cape Town Convention, the Vienna Convention, and the CISG have been ratified). It is ensured by a strong dominant party (Partido Colorado), a low level of violence compared to its neighbors, and a strong economy (growth of 3-4% in 2025), but there remains a certain institutional crisis of trust due to the internal influence of ex-President Cartes (criticism of the influence on the current president Pena).

In general, the risks of destabilization are considered low. Government Effectiveness according to the World Bank is -0.46 (2023), which is above the South American average, but below the developed countries; there are problems with the effectiveness of institutions, but the quality of public administration remains above the regional average. EGDI 2024-0.725 (80th in the world), one of the leaders in e-gov in South America, the rapid development of digital public services (especially in the capital).

Confidence in President Pena is moderate, stable support comes from economic and macro successes; the risk of falling confidence is associated with the long—term influence of the “old guard” and incidents of corruption, but the level of support is sufficient to govern (the Colorado Party is the majority in parliament).

There are no permanent foreign military bases. In August 2025, the Triple Frontera antiterrorism and monitoring center (USA, supported by the FBI) is being launched, formally a police unit, security training is supported by the USA, but there is no full-fledged military base (there was an idea based on Mariscal Estigarribia Airport, but blocked by Brazil). Paraguay is a full member and consistent participant of the International Criminal Court (ICC, ratification of the Rome Statute, implementation into national legislation in 2017).

A federal centralized system with delegation of authority to 17 departments. Since 2013, financial decentralization and regional budgets have been actively implemented in municipalities. However, key powers and control are concentrated in the presidential vertical and the central office.

Democratic and parliamentary control over the security services is limited: the National Intelligence Secretariat (SINAI) is under the supervision of the Security Council, reporting is opaque, and there is no independent civilian control. The creation of the anti-terrorism center has raised concerns about the expansion of oversight powers, but formally everything is within the framework of the law and with international cooperation.

Data completeness assessment: the main indicators are available from international sources, the coverage is 90%.

Economic sovereignty — 41.8

16,296 USD (PPP 2024), forecast for 2025-16,753 USD; up to 92% of the global average. Gold and foreign exchange reserves — 747 million USD (gold) (February 2025) + foreign exchange portion up to 8.2–9 billion USD (2024, CBP data). National debt — 36.6% of GDP (September 2024, CEIC), forecast for the end of 2025-47% of GDP (Trading Economics).

More than 90% of the population has access to food; Paraguay is a major exporter of soybeans, maize, beef, rice, wheat; malnutrition rates are less than 7% of the population, a strong food industry sector and export inflows, but crop losses persist due to infrastructural problems in transportation and storage, as well as fierce competition in global markets.

100% of domestic demand is covered by hydroelectric power (Itaipu, Yacyreta, Acaray), the country is completely energy-independent, exports up to 55% of electricity to Brazil and Argentina, and is developing a green hydrogen strategy. The main ones are hydropower resources, fertile lands, forests, iron ore, manganese, limestone, kaolin, extensive sugar cane, soybean and corn fields.

Mineral resources have only been partially explored; coal, timber, beef, and agricultural products are exported. One of the largest reserves in the world: The rivers Paraguay, Paraná, and the world's largest Guaraní Aquifer (together with Brazil and Argentina). In 2025, the National Law on Payments was adopted: BCP (Centro Bancario del Paraguay) is the main regulator, an upgraded electronic payment interoperability system has been introduced, an expanded ecosystem (SIPAP — national interbank clearing), integration of international operators (PayPal, etc.) has been launched since 2025.

About 98% of domestic non-cash and cash transactions are in guarani (PYG); foreign trade settlements are mainly in USD. The national currency fully services domestic debt transactions and budget payments. The Central Bank of Paraguay (BCP) is a fully independent issuing center, conducts monetary policy, targets inflation, deregulates and develops competition in the banking market; credit policy and refinancing are determined at the national level.

Data completeness assessment: the main macroeconomic indicators are available from official sources (World Bank, IMF), coverage is 91% Technological sovereignty is 31.2 0.12% of GDP (2022, latest data), which is significantly lower than the global average and 3 times less than the Mercosur average.

High-tech exports account for 10.5% of exports of manufactured goods (2024), which indicates the presence of minor segments of local assembly and re-export, but import dependence remains high in the high-tech sector (IT, electronics, equipment).

Import substitution measures (taxes, duties) are mainly through Mercosur and local initiatives, but imports dominate in most categories. In 2023, 259,000 students studied at universities (in 2022-258,000); the share of 18-24—year-olds enrolled in higher education is about 35-39%. At the beginning of 2025, 82.9% of the population (5.78 million people) use the Internet, with a median growth rate of +3.2% per year.

Median mobile Internet — 19.2 Mbps, fixed — 94 Mbps. Gosportal is working paraguay.gov.py (more than 200 online public services); the Digital Economy Accelerator Plan, Digital Agenda 2025, and the Mini-Academy for Digital Business project for entrepreneurs and digital skills training are being launched.

Almost all industrial robots, microelectronics, telecommunications, and 70-90% of computing equipment are imported; the share of imports of machinery and components for the mechanical engineering, communications, and IT sectors significantly exceeds local development. EGDI — 0.725 (80th place, UN, 2024); about 200+ online digital services (electronic state registers, documents, identification, payments, tax services, E-invoicing).

The country has a regulatory framework for biotechnology management, scientific groups have been established at the National University of Asuncion (UNSA), and laboratories in medicine, pharmacy, and agriculture.

However, biotechnological products are mostly imported, and commercial autonomy is limited. There are no autonomous domestic industrial robots, independent industrial solutions, or exported platforms; the University of Asuncion and private universities teach robotics, but all large systems are imported.

There is no production of chips, microelectronics, or semiconductor products; components, industrial electronics, and final products are entirely imported from the EU, China, the United States, and South Korea.

Data completeness assessment: key indicators are obtained from WIPO, ITU, UNESCO, which provides 84% coverage.

Information sovereignty — 46.7

In 2025, Paraguay occupies the middle position in the Global Cybersecurity Index (GCI ITU); since 2020, a national CERT-PY has been operating under the Ministry of ICT (MITIC), a cybersecurity strategy and program have been approved until 2028, the country is a member of the Budapest Convention on Cybercrime.

There are 3 active IXPs in the country: IXpy (San Lorenzo, NIC Paraguay), IX CDE (Ciudad del Este), SOCIEDAD ANONIMA; the share of traffic localized through IXP has increased to 31% (2025). The main media outlets are television, radio, Spanish and Guarani newspapers, government and commercial. According to the law on languages, all public services are required to be duplicated in two languages, and media outlets produce content in Spanish and Guarani (70% of the population speaks Guarani).

Public services are based on national platforms, the IDC center, and legislatively stimulated local-cloud initiatives; at the same time, the banking sector, media, and social networks (Facebook, YouTube, WhatsApp) are completely dependent on BigTech, there are no major national alternatives for storage or communication, and most of the commercial cloud is in Brazil and Argentina.

More than 62% of TV and radio are produced locally (TV: the largest increase in the Canal 13 program and government projects), up to 70% of local content on news portals (Statista 2025), and foreign products predominate in streaming services. More than 50-70 companies are developing software (fintech, agrotech, e-health, local SaaS, ERP, logistics solutions).

Leaders: Rare Crew, Know How, Sekiura SACEI. The local market is small, focused on internal tasks and outsourcing, and large export ecosystems are not developed. At the beginning of 2025, 82.9% of the population (5.78 million people) uses the Internet; 9.8 million (133% of the population) use mobile lines; digital public services (paraguay.gov.py) and e-payments are available from rural to metropolitan levels.

The state data center (SENATICs) in Asuncion is under development (the first stage is 1 MW), private centers (Tigo Business, IPXON) are additionally operating, but a significant part of the infrastructure is still deployed abroad due to weak local capacity; ~2 MW is available for 2025, the required minimum is 5 MW. 100% of the infrastructure is managed by national operators (Tigo, Claro, Personal, Vox); full state and industry data control.

Most of the imported equipment (Huawei, ZTE, Ericsson), payment and SIM systems comply with the standards of ENACOM and Mercosur. In 2021, the Law on Personal Data Protection was adopted (Ley 6866/21, expanded in 2023-2024); registration of operators is mandatory, the principle of equivalent coverage for international companies, the regulator (SENATICs) is working; there is no full GDPR analogue, but significant integration with Mercosur and the European Union.

Data completeness assessment: infrastructure indicators are available from ITU, CIRA, OECD, and specialized sources, with 85% coverage.

Cultural sovereignty — 73.6

There is 1 UNESCO site in the country: Jesuit Missions of La Santisima Trinidad de Paraná and Jesús de Tavarangue (Jesuit Missions of La Santísima Trinidad de Paraná and Jesús de Tavarangue, 1993). Paraguay is the world center of Creole-Guarana culture, the integration of Spanish, indigenous and European traditions: unique musical styles (Guarania, polka, galapas), literature (Augusto Roa Bastos), lace art, needlework, hunting for “living treasures" (UNESCO recognition and the status of masters of national importance).

National titles (“Living Cultural Treasure” for outstanding artisans and artists), the INAP National Audiovisual Research Award (2025), state competitions for musicians and writers, state recognition of clay artisans and national festivals. Paraguay is the most bilingual Latin American country (Spanish and Guarani are the official languages).

It is characterized by a strong family and religious tradition, national holidays (Trinity, Candelaria), the monthly “Naoquis del 29”, community dinners, and the flourishing of folk applied art. 140,000 indigenous people of 19 ethnic groups are recognized.

Guarani has a constitutional and educational status, campaigns for inclusion, media support, and education are underway, and the protection of the rights of small nations is included in the constitution, but the problem remains land alienation and recognition of other minorities (for example, Afro-Paraguayans).

More than 60 museums, national and ethnic exhibitions, craft and art collections (Museo Nacional de Bellas Artes, Museo del Barro, ethnographic museums), the largest collections of folk art in the Southern Hemisphere, up to 10 thousand exhibits only in Museo del Barro.

Long-term cooperation with UNESCO on intangible heritage, major joint initiatives with Argentina and Uruguay, regular promotion of applications for new sites on the UNESCO list (example: “Poncho Para'i de 60 Listas”), recognition of Guarania as an intangible heritage, active participation in UNESCO Creative Cities, Paraguayan Coalition for Cultural Diversity.

The law on the special IP protection regime for mass cultural events and brands (2025), automatic recognition of well-known signs, the fight against ambush marketing, official national registers of folk techniques (nandutí, etc.) have been agreed with UNESCO and WIPO. The cuisine is a fusion of Spanish-Guarana and Latin American roots: Paraguayan soups, chips, mandioc, hearty meat dishes and pies, national drinks (terere, mate), ceremonial pastries (for example, loaves for religious holidays), the huge role of family traditions in food.

Participation in cultural events, festivals, folk and ceremonial rituals — 38-45% of the population (data for the capital is higher, rural regions are lower), an essential role in the formation of national identity through music, crafts, folklore, language and family traditions.

Data completeness assessment: basic indicators are available in UNESCO and national statistics, coverage is 87%.

Cognitive sovereignty — 52.8

HDI — 0.756 (2023), 99th place in the world, category "high level" of human development (above the global average of 0.744). 3.4% of GDP (2023), which is about 21.3% of all government spending. An additional 8.3% of the educational budget is allocated to school meals for the neediest children.

95.1% (2015, latest available data); youth literacy (15-24 years old) — 99.08% (2022). PISA 2022: mathematics — 338 points (OECD average - 472), reading — 373 points (OECD average — 476), natural sciences — 368 points (OECD average — 485). Only 15% of the students achieved the basic level (Level 2) in mathematics.

According to the UNDP regional studies, the proportion of women among STEM graduates in Latin America is about 41%, and Paraguay is close to this indicator. The total share of STEM graduates among all university graduates is ~25-30%. 41 universities in the country have international exchange programs, joint diplomas, and cooperation programs with the United States, the EU, and neighboring countries; the share of students in such programs is ~3-5%. Guarani is the second official language (along with Spanish), spoken by the majority of the population; it is one of the best-preserved indigenous languages of America.

Guarani is studied in schools and used in official documents. The main center is the NIDTEC (Research and Technology Development Center) at the National University of Asuncion, specializing in energy, ecology and industry. There are a total of 6-8 large government research centers in the country.

Most universities use national educational portals and distance learning platforms; national platforms cover ~15-20% of all educational content. Government scholarship and talent support programs cover ~5-7% of students annually, including school nutrition programs (they cover 3.2% of schoolchildren), special scholarships for STEM fields, and Girls Code programs for girls from rural areas.

Data completeness assessment: education indicators are available in the UNDP, UNESCO, OECD, coverage is 88%.

Military sovereignty — 38.4

Military spending is 0.91% of GDP (2023-2024, World Bank/SIPRI), which is about 414 million USD, one of the lowest rates in South America. Active personnel — 13,950 (2025), reserve — 164,500 (maximum mobilization), paramilitary formations (police, gendarmerie) — 14,800. It is based on outdated tanks (M3 Stuart), armored cars, as well as upgraded vehicles (32 EE-11 Urutu from Brazil, updated in 2024-2025). In 2025, 6 new A-29 Super Tucano (Embraer) and Oshkosh M-ATV were received under the EDA program (USA).

Modern equipment occupies a small proportion of the fleet, most of the weapons are from the 70s and 90s, and almost all aircraft have been purchased in the last 5 years. There is no own production of equipment; only repair, maintenance, minor assembly of small arms. Almost all heavy and aviation weapons are imported.

The Army and the border Guard Service are actively monitoring the borders with Brazil, Argentina and Bolivia, cooperation with neighbors has been developed, unified control systems are being implemented, a 24/7 pilot mode with Bolivia and advanced digital protocols with Argentina (Encarnación-Posadas). The priority is the fight against drug trafficking, smuggling, and organized crime. Reserve — 164,500 people (mobilization), operational reserve — up to 25,000 (deployment — 30-45 days).

The policy of neutrality, decisions are made by the national command, supported by the U.S. Southern Command, joint exercise programs with Brazil and Argentina are being implemented, integration into regional structures (Mercosur, UNASUR). The military—industrial complex is practically absent, and the local base includes service, repair, production of small arms, uniforms, and automotive service parts.

There are no nuclear weapons or missile technologies; the country is a signatory to the Non-Proliferation Treaty, and warheads are “0". There are no space and satellite programs of their own; intelligence is based on the army and departmental structures (Dirección Nacional de Inteligencia), cooperation through the U.S., Mercosur, and neighbors.

All parameters are reflected in the annual reports of SIPRI, UNODA, the Ministry of Defense, the official portals of state-owned companies (Embraer, IMBEL) and industry databases of UN/NGO - 92% coverage

Final Summary Table

The main conclusions

Strengths. Economic stability and energy independence: High GDP per capita (16,000+ USD), low government debt, stable foreign exchange reserves, unique position as the largest exporter of electricity in the region (hydropower fully covers domestic needs and generates export income). This provides a powerful platform for fiscal and economic sovereignty.

High level of literacy and education: 95% of adults are literate, almost 99% of young people — one of the best indicators in Latin America; high enrollment in higher education (up to 39% of young people). Cultural and linguistic identity: The only country where Guarani is the official language along with Spanish, 70% of the population; strong traditional and religious identity, rich and unique cuisine, national style of art, stable traditions of crafts and participation in cultural life (40% of the population).

Efficiency of e-government and digital services: EGDI - 0.72; rapid growth of online services, launch of state portals and interbank platforms, high level of Internet penetration (83% of the population). Sovereign monetary policy and national issuing center: Banco Central's full responsibility for money supply, credit, inflation and payment infrastructure.

Involvement in international partnerships: Participation in Mercosur, the UN, UNASUR, agreements with the EU, the USA, Taiwan — without military dependence and foreign military presence.

Weaknesses. Technological dependence and import dependence: The cost of R&D is 0.12% of GDP (very low); for most high-tech solutions, full or absolute import dependence.

The limited IT market and innovation infrastructure: there are no own production lines for microelectronics, industrial robots, no export IT software; high-tech exports account for only 10% of industrial exports. Limited contribution to global culture compared to its neighbors: only one UNESCO site, rare major international cultural projects, a low number of state awards and iconic cultural brands.

Weak military-industrial complex, low share of own weapons: there is no own military industry, all significant weapons are imported; absolute dependence on external suppliers for strategic equipment. Uneven access to infrastructure and water resources: despite large reserves, infrastructural losses, and problems with food transportation, 7% of the population is vulnerable to food insecurity.

Corruption and institutional risks: The leadership of one party, the average level of transparency of institutions, limited civilian and parliamentary control over the security services.

Overall assessment. The cumulative sovereignty index of Paraguay is 329.8 out of 700 possible points (average — 47.1%), which places the country in the top 150 in the world top. Paraguay is a stable, economically stable, culturally identical country with a developed digital and energy infrastructure, but technologically dependent and innovatively poorly integrated, retaining risks in infrastructure, institutional transparency and internal distribution of benefits.

In the long term, sovereignty is based on the ability to modernize industry, increase innovative independence, and expand the country's cultural and scientific scene. The sovereignty profile indicates that Paraguay is a free sovereign state with a stable economy, highly developed digital and energy infrastructure, preservation of cultural identity and an active political position in global initiatives. The main challenges are technological dependence, weak investment in innovation and scientific research, as well as limited diversification of the military and high-tech industries. The increasing role of cultural, personnel and digital independence creates the basis for further sovereign development of the country.