This paper discusses the main political events that took place in Paraguay during the year 2012, focusing primarily on President Fernando Lugo’s dismissal from office in June and exploring both the factors that led to this incident as well as its consequences. Following a commentary about the country’s economic situation, the paper examines the growing conflict over access to arable land in Paraguay and the social background for Lugo’s removal via impeachment. An analysis of the main actors involved in the primary elections, carried out in anticipation of the general elections that will take place in April 2013, is also included. Taking into account the points discussed in this paper and considering their influence on the overall quality of Paraguayan democracy, the conclusion is that its quality remains low and that there are signs that it may be receding rather than consolidating.