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Paraguay, inland republic in South America, bounded on the northwest and north by Bolivia, on the east by Brazil, and on the south and southwest by Argentina. The total area of Paraguay is 406,752 sq km (157,048 sq mi). Asuncian is the country's capital and largest city. Paraguay has perhaps the most racially homogenous population in South America. About 95 percent of the people are mestizos (people of mixed Spanish and Native American ancestry). Minority groups include individuals of pure Spanish ancestry, living mainly in Asuncian; unassimilated Guaraní people of the eastern forest region; and small colonies of immigrants from Japan, Italy, Portugal, Canada, and other countries. Some 45 percent of the population lives in rural areas. An estimate for 2001 was 5,734,139, giving the country an overall density of only 14 persons per sq km (37 per sq mi), one of the lowest in South America. Population is densest in the western Oriental and most sparse in the Chaco. The chief cities of Paraguay include Asuncian (1996 urban agglomeration; 1.1 million), the capital and a commercial city and port; Ciudad del Este (133,893), a town near the Itaipu Dam on the Paraguayan-Brazilian border; Encarnacian (58,261), a railroad and agricultural center; Concepcian (35,276), a river port; Coronel Oviedo (38,316); and Caaguaza (38,220).
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