Governorate of Paraguay Governorate of Paraguay The Governorate of Paraguay (), originally called the Governorate of Guayrá, was a governorate of the Spanish Empire and part of the Viceroyalty of Peru. Its seat was the city of Asunción; its territory roughly encompassed the modern day country of Paraguay. The Governorate was created in December 16, 1617 by the royal decree of King Philip III as a split of the Governorate of the Río de la Plata and of Paraguay into its respective halves. The Governorate lasted until 1782, after which the massive Viceroyalty of Peru was split, and Paraguay became an intendency ("intendencia")
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.