Paraguay Río de la Plata to the Paraná River, and finally up the Paraguay River. In 1537, they established the city of Asunción, which was the first capital of the Governorate of Paraguay and Río de la Plata. Paraguay was the epicenter of the Jesuit Missions, where the Guaraní people were educated and introduced to Christianity and European culture under the direction of the Society of Jesus in Jesuit reductions, mainly during the 17th century. However, after the expulsion of the Jesuits from Spanish territories in 1767, Paraguay increasingly became a peripheral colony, with few urban centers and settlers. Following independence
Economy of Paraguay Most of Paraguay's trade takes place with Uruguay, Brazil and Argentina. In 2002 Paraguay conducted more than US$400 million in trade with Argentina and nearly US$800 million with Brazil. Paraguay is also a member of the Inter-American Development Bank, Latin American Integration Association, and Latin American Economic System and a signatory to the agreement creating the South American Community of Nations. In 2004 Paraguay signed an energy cooperation agreement with Venezuela to purchase oil and petroleum. Venezuela agreed to concessional financing that allowed Paraguay to pay over a 15-year period at a nominal interest rate. Imports totaled US$3.3 billion in