litary expenditures - dollar figure: $125 million (FY98)

Military expenditures - percent of GDP: 1.4% (FY98)

Paraguay Transnational Issues

Illicit drugs: illicit producer of cannabis, most or all of which is
consumed in South America; transshipment country for Andean cocaine
headed for Southern Cone markets and Europe

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@Peru

Peru Introduction

Background: After a dozen years of military rule, Peru returned to
democratic leadership in 1980. In recent years, bold reform programs
and significant progress in curtailing guerrilla activity and drug
trafficking have resulted in solid economic growth.

Peru Geography

Location: Western South America, bordering the South Pacific Ocean,
between Chile and Ecuador

Geographic coordinates: 10 00 S, 76 00 W

Map references: South America

Area: total: 1,285,220 sq km

land: 1.28 million sq km

water: 5,220 sq km

Area - comparative: slightly smaller than Alaska

Land boundaries: total: 5,536 km

border countries: Bolivia 900 km, Brazil 1,560 km, Chile 160 km,
Colombia 1,496 km (est.), Ecuador 1,420 km

Coastline: 2,414 km

Maritime claims: continental shelf: 200 NM

territorial sea: 200 NM

Climate: varies from tropical in east to dry desert in west;
temperate to frigid in Andes

Terrain: western coastal plain (costa), high and rugged Andes in
center (sierra), eastern lowland jungle of Amazon Basin (selva)

Elevation extremes: lowest point: Pacific Ocean 0 m

highest point: Nevado Huascaran 6,768 m

Natural resources: copper, silver, gold, petroleum, timber, fish,
iron ore, coal, phosphate, potash, hydropower

Land use: arable land: 3%

permanent crops: 0%

permanent pastures: 21%

forests and woodland: 66%

other: 10% (1993 est.)

Irrigated land: 12,800 sq km (1993 est.)

Natural hazards: earthquakes, tsunamis, flooding, landslides, mild
volcanic activity

Environment - current issues: deforestation (some the result of
illegal logging); overgrazing of the slopes of the costa and sierra
leading to soil erosion; desertification; air pollution in Lima;
pollution of rivers and coastal waters from municipal and mining
wastes

Environment - international agreements: party to:
Antarctic-Environmental Protocol, Antarctic-Marine Living Resources,
Antarctic Treaty, Biodiversity, Climate Change, Desertification,
Endangered Species, Ha