In a subcontinent currently largely ruled by various shades of left, it might seem strange that the second poorest country, and one in which land disputes are rife, would elect as president a millionaire tobacco and soft drinks magnate. And one, at that, who is head of a centre-right party with its roots in corruption and dictatorship.
After five years out of power, the Colorado Party, which ruled Paraguay for 60 years, and whose long period in power included General Alfredo Stroessner's 1954-1989 dictatorship, has returned to office courtesy of its successful presidential candidate, Horacio Cartes (57).
Cartes, a relative political novice who only joined Colorado in 2009, also faced questions during the campaign about his own background: a jailing in 1989 on currency fraud charges, a matter in which he was eventually cleared by the courts; the arrest of a plane carrying cocaine on his ranch in 2000; money laundering and the smuggling of cigarettes into neighbouring Brazil. . . Cartes denies it all and says they are political smears.
He won 46 per cent of the vote against 37 per cent for his main opponent, Efrain Alegre of the ruling, also conservative, Liberal Party.
The country of 6.6 million people, which has a reputation as a haven for smugglers, has been performing well economically, registering 13 per cent growth last year off the back of soybean and beef exports. Cartes has promised a business agenda, modernisation and slimming down of the large state, and privatisation of state assets, although political commentators say that he may find his party obstructive to his privatisation agenda.
The country's last elected president, Fernando Lugo, a former Catholic bishop elected amid hopes that he would reduce inequality, was impeached by parliament last year in circumstances that prompted fellow Mercosur states to expel Paraguay. Cartes's election, although out of sync politically with most of its members, will allow Paraguay to rejoin the bloc.