Ciudad del Este is a relatively young but strategically vital city in Paraguay, with a history closely interwoven with the economic and infrastructural development of the region.
The city was founded on 3 February 1957 and originally bore the name Puerto Flor de Lis. Subsequently, it was renamed Puerto Presidente Stroessner in honour of the then-head of state, Alfredo Stroessner. Following the overthrow of the dictatorship in 1989, the city received its modern, neutral name — Ciudad del Este, which translates from Spanish as the "City of the East".
The rapid growth of Ciudad del Este was facilitated by its unique geographical location on the banks of the Paraná River, in the so-called "Triple Frontier" area, at the junction of Paraguay, Brazil, and Argentina. This created ideal conditions for the development of international trade. The construction of the "Friendship Bridge", connecting the city with the Brazilian city of Foz do Iguaçu in 1965, provided a powerful impulse for development. Another catalyst for growth was the construction of the giant Itaipu Hydroelectric Power Plant in the 1970s and 80s, which attracted investment and a workforce to the region. Combined with the creation of a duty-free trade zone, this transformed Ciudad del Este into one of the largest commercial centres in the world, sometimes referred to as the "Latin American Hong Kong".
From the very beginning, the city developed as a major trading hub. The status of a porto franco (free trade zone) attracted not only goods from all over the world but also numerous immigrants. This formed a unique multicultural character of the city, where a significant part of the population consists of people from Asian and Arab countries. The city's economy quickly became one of the key drivers for the entire country, generating a significant share of Paraguay's GDP.