Paraguay has a Constitutional republic form of government. The country’s constitution was adopted in June 1992. The government system in Paraguay includes legislative, executive and judicial powers.
The Executive branch consists of the President and Vice President. The President and Vice President are directly elected by people for the term of five years. The legislative branch is exercised through the parliament. The parliament is bicameral and comprises the Senate and the Chamber of Deputies. The members of the Senate and the Chamber of Deputies are elected directly for a term of five years.
The President has the authority to form laws and to put them into effect and also to disapprove the laws passed by parliament. The president has the authority to appoint and dismiss cabinet ministers and is the commander in chief of the armed forces.
Mr. Fernando Lugo is the current president of the country and Mr. Federico Franco is the current Vice President.
(Source: State.gov, ICL, President Office)
The major political parties in the country are:
- National Republican Association/Colorado Party (ANR)
- Authentic Radical Liberal Party (PLRA)
- Beloved Fatherland (PPQ)
- National Union of Ethical Citizens (UNACE)
- National Encounter Party (PEN)
(Source: State.gov)
Regulatory environment in Paraguay

(Source:Heritage.org)
The country’s economic freedom score is 62.3, making its economy the 77th freest in the 2011 Index of Economic Freedom. Paraguay ranks 16th out of 29 regional countries in the South and Central America/Caribbean region.
Corruption perception
Paraguay was ranked in 146th place with a score of 2.2 on the Corruption Perceptions Index 2010. The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide.
(Source:transparency.org)
Freedom of information
Media in Paraguay is restricted. Journalists investigating corruption, or covering strikes and protests often face legal harassment.
Major newspapers in the country include:
- ABC Color
- La Nacion
- Ultima Hora
(Source: BBC)
The country was ranked 54th with a score of 16.25 on the World Press Freedom Index 2010.
(Source: rsf.org)
Judicial system
The judiciary in Paraguay consists of
- Supreme Court of Justice
- Appellate Courts
- Lower Courts
The Supreme Court is the highest court of justice. The Supreme Court has the right to supervise every judicial branch organisation.
(Source: ICL)