Nueva Italia, Paraguay Nueva Italia, Paraguay Nueva Italia (Spanish for "New Italy") is a town in the Central Department of Paraguay. Nueva Italia was created in 1904 by the Paraguay government in order to establish some colonists from Italy and their 18 families in a farming area 40 km south of the capital Asunción. However also some German and Ucranian emigrants moved to live there. The first manager-administrator of this "Colonia Nueva Italia" (as was officially named) was the Italian count Enrico Statella. After WW1 many Italians returned to Italy or moved to the capital Asuncion, but the settlement -after an initial crisis-
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.