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 Economy of Paraguay Paraguay has a market economy highly dependent on agriculture products. In recent years, the economy has grown as a result of increased agricultural exports, especially soybeans. Paraguay has the economic advantages of a young population and vast hydroelectric power but has few mineral resources, and political instability has undercut some of the economic advantages present. The government welcomes foreign investment. Paraguay is a middle-income country that changed rapidly in the 1970s and 1980s as a result of hydroelectric development, agricultural colonization, construction, and cash crop exports. Nevertheless, the country's gross domestic product (GDP) in 1986 was approximately