The myth of the good neighbour: Paraguay’s uneasy relationship with Brazil

Throughout much of its history and especially over the past 60 years, Paraguay's domestic and foreign policies have been heavily influenced by Brazil. Through analysis of three key issues: (a) Itaipú, (b) Brazilian migration, and (c) Mercosur, this article argues that contrary to the image cultivated by Itamaraty, relations of hegemony and dependency continue to characterise important aspects of the relationship between the two countries. An analysis of Paraguay's troubled relationship with Brazil, offers a fascinating insight into the workings of asymmetrical relations of power from the often overlooked perspective of the smaller nation.