The leader of
With about 13,000 of 14,000 balloting stations counted, officials said Fernando Lugo, of the Patriotic Front for Change coalition, had 41 per cent of the vote while Blanca Ovelar had 31 per cent.
Lino
Minor candidates accounted for the remaining votes.
Election officials said that the tally accounted for nearly 1.7 million votes.
Ovelar, who would become
The former education minister and protege of Nicanor Duarte, the outgoing president, had promised to lead the nation to "unprecedented economic growth".
Domination ends
Lugo's victory ends more than six decades of domination by the Colorado Party.
"Today we can affirm that the little ones can also win," he said.
Full results could take up to two weeks to be announced but firecrackers resounded in the capital
Thousands of
A nun who supported
"Many things ... jobs, health, education ... not for me but for the future of my three children," he said.
Before voting began,
"The Patriotic Front for Change consists of about 20 Indian, peasant and union organizations - from leftist groups to the conservative Radical Authentic party,
Problems galore
Paraguay has gradually implemented democratic policies since Alfredo Stroessner, an anti-communist general, was removed from power in 1989.
Still, economic and social problems abound.
More than a quarter of Paraguayans have been forced to emigrate to feed their families.
Ninety percent of the nation's land is owned by less than two percent of the population, and about 40 per cent of people live in poverty.
Drug trafficking, crime and black marketeering are rampant.
Landowners worried
Lugo has promised to implement policies designed to improve the lives of ordinary Paraguayans, causing big landowners to be concerned.
"We have 300,000 families without land and they have the constitutional right to own the soil they live on,"
Al Jazeera's Lucia Newman, reporting from
"This is not just about having a new president," she said.
"It is about changing the political culture of a country that has been characterized by corruption and authoritarian rule for more than six decades."
PHOTO CAPTION
Paraguayan presidential candidate speaks during his victory celebration after winning the election in