NY Times article suggesting that one fifth of Paraguay’s economy consists of smuggling, including 95% of its domestic cigarette production. (free subscription to nytimes.com required).  I can attest from personal experience that fighting counterfeits in Paraguay is made more difficult by what the article refers to as “the inefficient and corruption-plagued Paraguayan legal system.”

Map of Paraguay (c) copyright 203 Lonely Planet, Publications.  All rights reserved.  Source of fine travel guides here.