Independence of Paraguay Plata with a capital city in Buenos Aires. It included parts of modern-day Argentina, Bolivia, Uruguay and Rio Grande do Sul. In 1782 a system of municipalities was introduced. The municipality of Paraguay had only one town with city status – Asuncion. During the era of the Napoleonic Peninsula War, when mainland Spain was allied with and later occupied by the French, The British Empire attempted to take control of the Viceroyalty by launching the River Plate invasions, occupying Buenos Aires and neighbouring parts of the Río de la Plata in 1806 and 1807. Paraguayan units led by Governor Velasco
Economy of Paraguay Foreign investment in Paraguay nearly disappeared in 2002. After direct foreign investment of US$84 million in 2001, only US$9 million in investment came from abroad in 2002. This drop was largely the result of the financial crisis in Argentina and the banking collapse in Paraguay. Direct foreign investment rebounded in 2003, reaching US$90.8 million for the year. Paraguay has depended on the International Monetary Fund (IMF) and World Bank for economic development assistance. The World Bank has promised Paraguay assistance totaling US$325 million between 2003 and 2007. Projects currently underway in Paraguay aim to improve education, transportation, and rural development.