Military 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 Bolivian cocaine headed for Southern Cone markets and Europe and a limited amount to the US

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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