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The small and landlocked South American country of Paraguay remains one of the poorest in the continent, sharing borders with Brazil, Argentina, and Bolivia. Its capital, Asunción, was one of the earliest Spanish settlements on the South American mainland, but much of the country remains desperately poor, having been ruled by various dictators for most of the 20th century. Little is known about the traditional life of the native Guaraní Indians before the arrival of the Europeans—boys would certainly have practiced at hunting—but some of those who later lived with the Jesuit were encouraged to play music, especially the flute, and also the violin, as depicted in Robert Bolt's film The Mission (1986).

In Spanish society in colonial Paraguay, wealthy boys learned how to ride horses, with girls learning embroidery and lace-making, which remains popular in the township of Itauguá, near Asunción. Both sexes learned music, with the Paraguayan harp becoming one of the national instruments of the country. Dancing involved the polka, gallop, and waltz, as well as the Spanish per icón dance. Tango, so popular in neighboring Argentina, still remains rare in Paraguay. Poor children play with crude dolls and marbles, as well as other universal games such as Hide-and-Seek. Guarani people still make dolls for girls from brightly colored wool.

The country was devastated during the War of the Triple Alliance from 1864 until 1870, and this left the population with a heavy sexual imbalance, with as many as nine women to every one man. As a result, the government encouraged many Europeans and others to come to Paraguay.

Soccer quickly became popular throughout the country, rapidly leading to many towns having their own teams, and to the country's team taking part in many international tournaments. Some French brought boules, and older Italian migrants play bocee; and the Catalan and Basque influences in the country can be seen through the playing of pelota.

Wealthier foreign expatriates as well members of the Paraguayan elite started to frequent country clubs, where they played golf and tennis. Some hotels around San Bernardino offered the opportunity for sailing on Lake Ypacaraí, though sailing is not available elsewhere, as Paraguay has no coastline. In smaller clubs in Asunción and country towns, rooms were established to play billiards, darts, Backgammon, and also ping pong.

Although Chess is relatively popular, especially with people of European ancestry, the Paraguayan team finished last at the Eighth Chess Olympiad held in neighboring Argentina. Zenón Franco Ocampos (b. 1956) remains the only Grandmaster from the country, and is the author of several books on Chess. The Federación Paraguaya de Ajedrez has become increasingly active in schools in the country.

For the elite, model kits by Revell and other companies are for sale, and from the 1990s, Wargame companies have started making Wargame figurines for the War of the Triple Alliance, with rules devised by the United States and Argentine clubs. Computer games have also started to figure in the lives of many school students, and there are also some amusement arcades and bowling alleys in Asunción. There used to be a train network, but only one train remains, operating on Sundays to take day-trippers from Asunción to Areguá and back. Some of the old train engines and carriages, and also tram carriages, have been sold to enthusiasts.

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