2010 Edition
CIA World Factbook 2010 (Project Gutenberg)
Introduction
Background
Following more than three centuries under Portuguese rule, Brazil gained its independence in 1822, maintaining a monarchical system of government until the abolition of slavery in 1888 and the subsequent proclamation of a republic by the military in 1889. Brazilian coffee exporters politically dominated the country until populist leader Getulio VARGAS rose to power in 1930. By far the largest and most populous country in South America, Brazil underwent more than half a century of populist and military government until 1985, when the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial and agricultural growth and development of its interior. Exploiting vast natural resources and a large labor pool, it is today South America's leading economic power and a regional leader, one of the first in the area to begin an economic recovery. Highly unequal income distribution and crime remain pressing problems. In January 2010, Brazil assumed a nonpermanent seat on the UN Security Council for the 2010-11 term.
Geography
Area
- land
- 8,459,417 sq km
- total
- 8,514,877 sq km
- water
- 55,460 sq km note: includes Arquipelago de Fernando de Noronha, Atol das Rocas, Ilha da Trindade, Ilhas Martin Vaz, and Penedos de Sao Pedro e Sao Paulo
Area - comparative
slightly smaller than the US
Climate
mostly tropical, but temperate in south
Coastline
7,491 km
Elevation extremes
- highest point
- Pico da Neblina 2,994 m
- lowest point
- Atlantic Ocean 0 m
Environment - current issues
deforestation in Amazon Basin destroys the habitat and endangers a multitude of plant and animal species indigenous to the area; there is a lucrative illegal wildlife trade; air and water pollution in Rio de Janeiro, Sao Paulo, and several other large cities; land degradation and water pollution caused by improper mining activities; wetland degradation; severe oil spills
Environment - international agreements
- party to
- Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: none of the selected agreements
Freshwater withdrawal (domestic/industrial/agricultural)
- per capita
- 318 cu m/yr (2000)
- total
- 59.3 cu km/yr (20%/18%/62%)
Geographic coordinates
10 00 S, 55 00 W
Geography - note
largest country in South America; shares common boundaries with every South American country except Chile and Ecuador
Irrigated land
29,200 sq km (2003)
Land boundaries
- border countries
- Argentina 1,261 km, Bolivia 3,423 km, Colombia 1,644 km, French Guiana 730 km, Guyana 1,606 km, Paraguay 1,365 km, Peru 2,995 km, Suriname 593 km, Uruguay 1,068 km, Venezuela 2,200 km
- total
- 16,885 km
Land use
- arable land
- 6.93%
- other
- 92.18% (2005)
- permanent crops
- 0.89%
Location
Eastern South America, bordering the Atlantic Ocean
Map references
South America
Maritime claims
- contiguous zone
- 24 nm
- continental shelf
- 200 nm or to edge of the continental margin
- exclusive economic zone
- 200 nm
- territorial sea
- 12 nm
Natural hazards
recurring droughts in northeast; floods and occasional frost in south
Natural resources
bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, rare earth elements, uranium, petroleum, hydropower, timber
Terrain
mostly flat to rolling lowlands in north; some plains, hills, mountains, and narrow coastal belt
Total renewable water resources
8,233 cu km (2000)
People and Society
Age structure
0-14 years: 26.7% (male 27,092,880/female 26,062,244) 15-64 years: 66.8% (male 65,804,108/female 67,047,725) 65 years and over: 6.4% (male 5,374,230/female 7,358,082) (2010 est.)
Birth rate
18.11 births/1,000 population (2010 est.)
Death rate
6.35 deaths/1,000 population (July 2010 est.)
Education expenditures
5.2% of GDP (2007)
Ethnic groups
white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)
HIV/AIDS - adult prevalence rate
0.6% (2007 est.)
HIV/AIDS - deaths
15,000 (2007 est.)
HIV/AIDS - people living with HIV/AIDS
730,000 (2007 est.)
Infant mortality rate
- female
- 18.15 deaths/1,000 live births (2010 est.)
- male
- 25.39 deaths/1,000 live births
- total
- 21.86 deaths/1,000 live births
Languages
Portuguese (official and most widely spoken language); note - less common languages include Spanish (border areas and schools), German, Italian, Japanese, English, and a large number of minor Amerindian languages
Life expectancy at birth
- female
- 76 years (2010 est.)
- male
- 68.7 years
- total population
- 72.26 years
Literacy
- definition: age 15 and over can read and write
- female
- 88.8% (2004 est.)
- male
- 88.4%
- total population
- 88.6%
Median age
- female
- 29.7 years (2010 est.)
- male
- 28.1 years
- total
- 28.9 years
Nationality
- adjective
- Brazilian
- noun
- Brazilian(s)
Net migration rate
-0.09 migrant(s)/1,000 population (2010 est.)
Population
201,103,330 note: Brazil conducted a census in August 2000, which reported a population of 169,872,855; that figure was about 3.8% lower than projections by the US Census Bureau, and is close to the implied underenumeration of 4.6% for the 1991 census (July 2010 est.)
Population growth rate
1.166% (2010 est.)
Religions
Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census)
School life expectancy (primary to tertiary education)
- female
- 14 years (2008)
- male
- 14 years
- total
- 14 years
Sex ratio
- at birth
- 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 0.98 male(s)/female 65 years and over: 0.73 male(s)/female
- total population
- 0.98 male(s)/female (2010 est.)
Total fertility rate
2.19 children born/woman (2010 est.)
Urbanization
- rate of urbanization
- 1.8% annual rate of change (2005-10 est.)
- urban population
- 86% of total population (2008)
Government
Administrative divisions
26 states (estados, singular - estado) and 1 federal district* (distrito federal); Acre, Alagoas, Amapa, Amazonas, Bahia, Ceara, Distrito Federal*, Espirito Santo, Goias, Maranhao, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Para, Paraiba, Parana, Pernambuco, Piaui, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondonia, Roraima, Santa Catarina, Sao Paulo, Sergipe, Tocantins
Capital
- daylight saving time
- +1hr, begins third Sunday in October; ends third Sunday in February note: Brazil is divided into three time zones, including one for the Fernando de Noronha Islands
- geographic coordinates
- 15 47 S, 47 55 W
- name
- Brasilia
- time difference
- UTC-3 (2 hours ahead of Washington, DC during Standard Time)
Constitution
5 October 1988
Country name
- conventional long form
- Federative Republic of Brazil
- conventional short form
- Brazil
- local long form
- Republica Federativa do Brasil
- local short form
- Brasil
Diplomatic representation from the US
- chief of mission
- Ambassador Thomas A. SHANNON
- consulate(s)
- Recife
- consulate(s) general
- Rio de Janeiro, Sao Paulo
- embassy
- Avenida das Nacoes, Quadra 801, Lote 3, Distrito Federal Cep 70403-900, Brasilia
- FAX
- [55] (61) 3225-9136
- mailing address
- Unit 7500, DPO, AA 34030
- telephone
- [55] (61) 3312-7000
Diplomatic representation in the US
- chancery
- 3006 Massachusetts Avenue NW, Washington, DC 20008 note: temporary address - 1025 Thomas Jefferson St. NW, Suite 300 W, Washington, DC 20007
- chief of mission
- Ambassador Mauro Luiz Iecker VIEIRA
- consulate(s) general
- Boston, Chicago, Houston, Los Angeles, Miami, New York, San Francisco
- FAX
- [1] (202) 238-2827
- telephone
- [1] (202) 238-2805
Executive branch
- cabinet
- Cabinet appointed by the president (For more information visit the World Leaders website )
- chief of state
- President Dilma ROUSSEFF (since 1 January 2011); Vice President Michel TEMER (since 1 January 2011); note - the president is both the chief of state and head of government
- election results
- Dilma ROUSSEFF (PT) elected president in a runoff election; percent of vote - Dilma ROUSSEFF 56.01%, Jose SERRA (PSDB) 43.99%
- elections
- president and vice president elected on the same ticket by popular vote for a single four-year term; election last held on 3 October 2010 with runoff on 31 October 2010 (next to be held on 5 October 2014 and, if necessary, a runoff election on 2 November 2014)
- head of government
- President Dilma ROUSSEFF (since 1 January 2011); Vice President Michel TEMER (since 1 January 2011)
Flag description
green with a large yellow diamond in the center bearing a blue celestial globe with 27 white five-pointed stars; the globe has a white equatorial band with the motto ORDEM E PROGRESSO (Order and Progress); the current flag was inspired by the banner of the former Empire of Brazil (1822-1889); on the imperial flag, the green represented the House of Braganza of Pedro I, the first Emperor of Brazil, while the yellow stood for the Habsburg Family of his wife; on the modern flag the green represents the forests of the country and the yellow rhombus its mineral wealth; the blue circle and stars, which replaced the coat of arms of the original flag, depict the sky over Rio de Janeiro on the morning of 15 November 1889 - the day the Republic of Brazil was declared; the number of stars has changed with the creation of new states and has risen from an original 21 to the current 27 (one for each state and the Federal District)
Government type
federal republic
Independence
7 September 1822 (from Portugal)
International organization participation
AfDB (nonregional member), BIS, CAN (associate), CPLP, FAO, FATF, G-15, G-20, G-24, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA, LAS (observer), Mercosur, MIGA, MINURSO, MINUSTAH, NAM (observer), NSG, OAS, OPANAL, OPCW, Paris Club (associate), PCA, RG, SICA (observer), UN, UN Security Council (temporary), UNASUR, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, Union Latina, UNITAR, UNMIL, UNMIS, UNMIT, UNOCI, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO
Judicial branch
Supreme Federal Tribunal or STF (11 ministers are appointed for life by the president and confirmed by the Senate); Higher Tribunal of Justice; Regional Federal Tribunals (judges are appointed for life); note - though appointed "for life," judges, like all federal employees, have a mandatory retirement age of 70
Legal system
based on Roman codes; has not accepted compulsory ICJ jurisdiction
Legislative branch
- bicameral National Congress or Congresso Nacional consists of the Federal Senate or Senado Federal (81 seats; 3 members from each state and federal district elected according to the principle of majority to serve eight-year terms; one-third and two-thirds of members elected every four years, alternately) and the Chamber of Deputies or Camara dos Deputados (513 seats; members are elected by proportional representation to serve four-year terms)
- election results
- Federal Senate - percent of vote by party - NA; seats by party - PMDB 20, PT 13, PSDB 10, DEM (formerly PFL) 7, PTdoB 6, PP 5, PDT 4, PR 4, PSB 4, PPS 1, PRB 1, other 3; Chamber of Deputies - percent of vote by party - NA; seats by party - PT 87, PMDB 80, PSDB 53, DEM (formerly PFL) 43, PP 41, PR 41, PSB 34, PDT 28, PTdoB 21, PSC 17, PCdoB 15, PV 15, PPS 12, other 18
- elections
- Federal Senate - last held on 3 October 2010 for two-thirds of the Senate (next to be held in October 2014 for one-third of the Senate); Chamber of Deputies - last held on 3 October 2010 (next to be held in October 2014)
National anthem
- lyrics/music
- Joaquim Osorio Duque ESTRADA/Francisco Manoel DA SILVA note: music adopted 1890, lyrics adopted 1922; the anthem's music, composed in 1822, was used unofficially for many years before it was adopted
- name
- "Hino Nacional Brasileiro" (Brazilian National Anthem)
National holiday
Independence Day, 7 September (1822)
Political parties and leaders
Brazilian Democratic Movement Party or PMDB [Federal Deputy Michel TEMER]; Brazilian Labor Party or PTB [Roberto JEFFERSON]; Brazilian Renewal Labor Party or PRTB [Jose Levy FIDELIX da Cruz]; Brazilian Republican Party or PRB [Vitor Paulo Araujo DOS SANTOS]; Brazilian Social Democracy Party or PSDB [Senator Sergio GUERRA]; Brazilian Socialist Party or PSB [Governor Eduardo Henrique Accioly CAMPOS]; Christian Labor Party or PTC [Daniel TOURINHO]; Communist Party of Brazil or PCdoB [Jose Renato RABELO]; Democratic Labor Party or PDT [Carlos Roberto LUPI]; the Democrats or DEM [Federal Deputy Rodrigo MAIA] (formerly Liberal Front Party or PFL); Freedom and Socialism Party or PSOL [Heloisa HELENA]; Green Party or PV [Jose Luiz de Franca PENNA]; Humanist Party of Solidarity or PHS [Paulo Roberto MATOS]; Labor Party of Brazil or PTdoB [Luis Henrique de Oliveira RESENDE]; Liberal Front Party or PFL (now known as the Democrats or DEM); National Mobilization Party or PMN [Oscar Noronha FILHO]; Party of the Republic or PR [Sergio TAMER]; Popular Socialist Party or PPS [Federal Deputy Fernando CORUJA]; Progressive Party or PP [Francisco DORNELLES]; Social Christian Party or PSC [Vitor Jorge Abdala NOSSEIS]; Workers' Party or PT [Jose Eduardo DUTRA]
Political pressure groups and leaders
- Landless Workers' Movement or MST
- other
- labor unions and federations; large farmers' associations; religious groups including evangelical Christian churches and the Catholic Church
Suffrage
voluntary between 16 and 18 years of age and over 70; compulsory over 18 and under 70 years of age; note - military conscripts do not vote
Economy
Agriculture - products
coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Central bank discount rate
15.17% (31 December 2009) 20.48% (31 December 2008)
Commercial bank prime lending rate
44.65% (31 December 2009 est.) 47.25% (31 December 2008 est.)
Current account balance
-$52.73 billion (2010 est.) -$24.3 billion (2009 est.)
Debt - external
$310.8 billion (31 December 2010 est.) $273.7 billion (31 December 2009 est.)
Distribution of family income - Gini index
56.7 (2005) 60.7 (1998)
Economy - overview
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in 2010, boosted by an export recovery. Brazil's strong growth and high interest rates make it an attractive destination for foreign investors. Large capital inflows over the past year have contributed to the rapid appreciation of its currency and led the government to raise taxes on some foreign investments. President Dilma ROUSSEFF has pledged to retain the previous administration's commitment to inflation targeting by the Central Bank, a floating exchange rate, and fiscal restraint.
Electricity - consumption
404.3 billion kWh (2007 est.)
Electricity - exports
2.034 billion kWh (2007 est.)
Electricity - imports
42.06 billion kWh; note - supplied by Paraguay (2008 est.)
Electricity - production
438.8 billion kWh (2007 est.)
Exchange rates
reals (BRL) per US dollar - 1.77 (2010), 1.9976 (2009), 1.8644 (2008), 1.85 (2007), 2.1761 (2006)
Exports
$199.7 billion (2010 est.) $153 billion (2009 est.)
Exports - commodities
transport equipment, iron ore, soybeans, footwear, coffee, autos
Exports - partners
China 12.49%, US 10.5%, Argentina 8.4%, Netherlands 5.39%, Germany 4.05% (2009)
GDP - composition by sector
- agriculture
- 6.1%
- industry
- 26.4%
- services
- 67.5% (2010 est.)
GDP - per capita (PPP)
$10,900 (2010 est.) $10,300 (2009 est.) $10,400 (2008 est.) note: data are in 2010 US dollars
GDP - real growth rate
7.5% (2010 est.) -0.2% (2009 est.) 5.1% (2008 est.)
GDP (official exchange rate)
$2.024 trillion (2010 est.)
GDP (purchasing power parity)
$2.194 trillion (2010 est.) $2.041 trillion (2009 est.) $2.045 trillion (2008 est.) note: data are in 2010 US dollars
Household income or consumption by percentage share
lowest 10%: 1.1% highest 10%: 43% (2007)
Imports
$187.7 billion (2010 est.) $127.7 billion (2009 est.)
Imports - commodities
machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Imports - partners
US 16.12%, China 12.61%, Argentina 8.77%, Germany 7.65%, Japan 4.3% (2009)
Industrial production growth rate
11.5% (2010 est.)
Industries
textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Inflation rate (consumer prices)
4.9% (2010 est.) 4.9% (2009 est.)
Investment (gross fixed)
18.5% of GDP (2010 est.)
Labor force
103.6 million (2010 est.)
Labor force - by occupation
- agriculture
- 20%
- industry
- 14%
- services
- 66% (2003 est.)
Market value of publicly traded shares
$1.167 trillion (31 December 2009) $589.4 billion (31 December 2008) $1.37 trillion (31 December 2007)
Natural gas - consumption
18.72 billion cu m (2009 est.)
Natural gas - exports
NA (2009 est.)
Natural gas - imports
8.44 billion cu m (2009 est.)
Natural gas - production
10.28 billion cu m (2009 est.)
Natural gas - proved reserves
364.2 billion cu m (1 January 2010 est.)
Oil - consumption
2.46 million bbl/day (2009 est.)
Oil - exports
570,100 bbl/day (2007 est.)
Oil - imports
632,900 bbl/day (2007 est.)
Oil - production
2.572 million bbl/day (2009 est.)
Oil - proved reserves
13.2 billion bbl (1 January 2010 est.)
Population below poverty line
26% (2008)
Public debt
60.8% of GDP (2010 est.) 59.5% of GDP (2009 est.)
Reserves of foreign exchange and gold
$290.9 billion (31 December 2010 est.) $238.5 billion (31 December 2009 est.)
Stock of broad money
$1.522 trillion (31 December 2009) $972.8 billion (31 December 2008)
Stock of direct foreign investment - abroad
$131 billion (31 December 2010 est.) $117.4 billion (31 December 2009 est.)
Stock of direct foreign investment - at home
$349.2 billion (31 December 2010 est.) $319.9 billion (31 December 2009 est.)
Stock of domestic credit
$2.104 trillion (31 December 2010 est.) $1.542 trillion (31 December 2009 est.)
Stock of narrow money
$165.8 billion (31 December 2010 est) $125.3 billion (31 December 2009 est)
Unemployment rate
7% (2010 est.) 8.1% (2009 est.)
Communications
Broadcast media
state-run Radiobras operates a radio and a television network; more than 1,000 radio stations and more than 100 TV channels operating - mostly privately owned; private media ownership highly concentrated (2007)
Internet country code
.br
Internet hosts
19.316 million (2010)
Internet users
75.982 million (2009)
Telephone system
- domestic
- fixed-line connections have remained relatively stable in recent years and stand at about 20 per 100 persons; less expensive mobile-cellular technology has been a major driver in expanding telephone service to the lower-income segments of the population with mobile-cellular teledensity approaching 90 per 100 persons in 2009
- general assessment
- good working system including an extensive microwave radio relay system and a domestic satellite system with 64 earth stations; mobile-cellular usage has more than tripled in the past 5 years
- international
- country code - 55; landing point for a number of submarine cables, including Americas-1, Americas-2, Atlantis-2, GlobeNet, South Amrica-1, South American Crossing/Latin American Nautilius, and UNISUR that provide direct connectivity to South and Central America, the Caribbean, the US, Africa, and Europe; satellite earth stations - 3 Intelsat (Atlantic Ocean), 1 Inmarsat (Atlantic Ocean region east), connected by microwave relay system to Mercosur Brazilsat B3 satellite earth station (2009)
Telephones - main lines in use
41.497 million (2009)
Telephones - mobile cellular
173.959 million (2009)
Transportation
Airports
4,072 (2010)
Airports - with paved runways
- total
- 726 over 3,047 m: 7 2,438 to 3,047 m: 28 1,524 to 2,437 m: 176 914 to 1,523 m: 460 under 914 m: 55 (2010)
Airports - with unpaved runways
- total
- 3,346 1,524 to 2,437 m: 87 914 to 1,523 m: 1,617 under 914 m: 1,642 (2010)
Heliports
13 (2010)
Merchant marine
- by type
- bulk carrier 19, cargo 18, chemical tanker 6, container 12, liquefied gas 12, passenger/cargo 10, petroleum tanker 42, roll on/roll off 7
- foreign-owned
- 26 (Chile 1, Denmark 3, Germany 6, Greece 1, Norway 3, Spain 12)
- registered in other countries
- 27 (Argentina 1, Bahamas 1, Ghana 1, Liberia 20, Marshall Islands 1, Panama 3) (2010)
- total
- 126
Pipelines
condensate/gas 62 km; gas 9,989 km; liquid petroleum gas 353 km; oil 4,517 km; refined products 4,465 km (2009)
Ports and terminals
- cargo ports (tonnage)
- Ilha Grande (Gebig), Paranagua, Rio Grande, Santos, Sao Sebastiao, Tubarao
- container ports (TEUs)
- Santos (2,677,839), Itajai (693,580)
Railways
- broad gauge
- 5,709 km 1.600-m gauge (459 km electrified)
- narrow gauge
- 22,954 km 1.000-m gauge (2008)
- standard gauge
- 194 km 1.440-m gauge
- total
- 28,857 km
Roadways
- paved
- 96,353 km
- total
- 1,751,868 km
- unpaved
- 1,655,515 km (2004)
Transportation - note
the International Maritime Bureau reports the territorial and offshore waters in the Atlantic Ocean as a significant risk for piracy and armed robbery against ships; numerous commercial vessels have been attacked and hijacked both at anchor and while underway; crews have been robbed and stores or cargoes stolen
Waterways
50,000 km (most in areas remote from industry and population) (2010)
Military and Security
Manpower available for military service
males age 16-49: 52,942,805 females age 16-49: 53,038,688 (2010 est.)
Manpower fit for military service
males age 16-49: 38,518,822 females age 16-49: 44,560,717 (2010 est.)
Manpower reaching militarily significant age annually
- female
- 1,652,491 (2010 est.)
- male
- 1,712,427
Military branches
Brazilian Army (Exercito Brasileiro, EB), Brazilian Navy (Marinha do Brasil (MB), includes Naval Air and Marine Corps (Corpo de Fuzileiros Navais)), Brazilian Air Force (Forca Aerea Brasileira, FAB) (2010)
Military expenditures
1.7% of GDP (2009)
Military service age and obligation
21-45 years of age for compulsory military service; conscript service obligation - 9 to 12 months; 17-45 years of age for voluntary service; an increasing percentage of the ranks are "long-service" volunteer professionals; women were allowed to serve in the armed forces beginning in early 1980s when the Brazilian Army became the first army in South America to accept women into career ranks; women serve in Navy and Air Force only in Women's Reserve Corps (2001)
Transnational Issues
Disputes - international
unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations; two uncontested boundary disputes with Uruguay over Isla Brasilera at the tripoint with Argentina at the confluence of the Quarai/Cuareim and Uruguay rivers, and in the 235 square kilometer Invernada River region over which tributary represents the legitimate source of the Quarai/Cuareim River; the Itaipu Dam reservoir covers over a once contested section of Brazil-Paraguay boundary west of Guaira Falls on the Rio Parana; an accord placed the long-disputed Isla Suarez/Ilha de Guajara-Mirim, a fluvial island on the Rio Mamore, under Bolivian administration in 1958, but sovereignty remains in dispute
Illicit drugs
second-largest consumer of cocaine in the world; illicit producer of cannabis; trace amounts of coca cultivation in the Amazon region, used for domestic consumption; government has a large-scale eradication program to control cannabis; important transshipment country for Bolivian, Colombian, and Peruvian cocaine headed for Europe; also used by traffickers as a way station for narcotics air transshipments between Peru and Colombia; upsurge in drug-related violence and weapons smuggling; important market for Colombian, Bolivian, and Peruvian cocaine; illicit narcotics proceeds are often laundered through the financial system; significant illicit financial activity in the Tri-Border Area (2008) page last updated on January 20, 2011 ======================================================================