History of Paraguay Falls, crossed the Río Paraná and arrived at the site of Asunción, the future capital of the country, thirteen years before it was founded. They tried to cross the Gran Chaco, eventually penetrating the outer defenses of the Inca Empire. After Garcia's murder by his Indian allies, news of the raid reached the Spanish explorers on the coast. The explorer Sebastian Cabot was attracted to the Río Paraguay two years later. Cabot was sailing to the Orient in 1526 when he heard of Garcia's exploits. He decided that Río de Solís might provide easier passage to the Pacific, and, eager
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.