Paraguay, officially the Republic of Paraguay, is a landlocked country in South America. It lies on both banks of the Paraguay River, bordering Argentina to the south and southwest, Brazil to the northeast, and Bolivia to the northwest, and is located in the very heart of South America. 'Paraguay' is derived from the Guaraní word 'Pararaguay', meaning, 'From a Great River'. The 'Great River' is the Paraná River, which produces the greatest amount of hydroelectric power in the world.
The southeastern border is formed by the Parana River, containing the Itaipu dam shared with Brazil. It is currently the largest hydroelectric power plant in the world, generating nearly all of Paraguay's demand for electricity. Another large hydroelectric power plant on the Paraná river is Yacyretá, shared by Paraguay and Argentina. Paraguay is currently the world's largest exporter of hydroelectric power. The local climate ranges from subtropical to temperate, with substantial rainfall in the eastern portions, though becoming semi-arid in the far west.
In addition to the Declaration of Independence, the War of the Triple Alliance and the Chaco War are milestones in Paraguay's history. Paraguay fought the War of the Triple Alliance against Brazil, Argentina and Uruguay, and was defeated in 1870 after five years of the bloodiest war in South America. Paraguay suffered extensive territorial losses to Brazil and Argentina. The Chaco War was fought with Bolivia in the 1930s and Bolivia was defeated. Paraguay re-established sovereignty over the region called the Chaco, and forfeited additional territorial gains as a price of peace. The history of Paraguay is fraught with disputes among historians, educators and politicians. The official version of historical events, wars in particular, varies depending on whether you read a history book written in Paraguay, Argentina, Brazil or Bolivia. Even European and American authors have been unable to avoid bias. Paraguay's history also has been a matter of dispute among Paraguay's main political parties, and there is a Colorado Party and Liberal Party official version of Paraguayan history.
