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How Did The Paraguayan War Affect The Paraguay Economy

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The Paraguayan War, one of the significant historical events in South America. It was the crucible in which the modern nations of Brazil, Argentina, Uruguay and Paraguay were formed. This was the longest conflict between independent nations of Latin America, lasting from November 1864 to March 1870. The war was the result of Paraguay's desire to parlay its riches from the mate tea industry into a transformation from its status as a buffer state between Brazil and Argentina into a full-fledged regional power. This required dominating Uruguay to secure access to the sea, leading to ill-considered invasions of that country as well as the vastly larger Argentina and Brazil. I think the weakest level would be …… because…… Solano López feared that the Empire of Brazil and Argentina were threatening to dismantle the smaller countries of Southern Cone. To confront the perceived threat, Solano Lopez hoped to have the support of the Blancos, Uruguay, and warlords of northern Argentina. Before the Brazilian …show more content…

Economic resources were employed in and destroyed by the war effort. Paraguay was occupied by its enemies in the 1870’s. The countryside was in virtual ruin, the labor force was decimated, peasants were pushed into the environs of Asuncion from the east and south, and the modernization of the preceding three decades was undone. Paraguay who advances in agriculture and quality of life had been the envy of many in the Southern Cone, became the most backward nation in that subregion. To pay its substantial war debt, Paraguay sold large tracts of land to foreigners, mostly Argentina. These large land sales established the base of the present- day land tenure system. Unlike most of its neighbors Paraguay's economy was controlled not by a traditional, landed elite, but by foreign companies. Many Paraguayans grew crops and worked as wage laborers on Latifundios, typically owned by

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Consequently, the Atlantic coast began to develop as ports popped up for the booming banana trade. Foreign companies stepped in and took over local ones. The foreign countries taking over the smaller one is economic imperialism and helped the country to grow and develop. These foreign companies then helped to modernize the country by building railroads and modern building essentially creating new towns and cities. The country continued to develop until 1932 when it was stalled due to another civil war due to political uproars involving the conservative and liberal ideas from the previous Federal Republic of Central America.

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The war exposed the inefficiency of the transportation and financial systems. It also caused the growth of manufacturing by cutting off imports, producing chaos in shipping and banking. The war also emphasized the nation’s need for another national

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The country's industry and agriculture, which had benefited from the sale of products to the allies, now halt civilian production to focus on civilian production to focus on war production: cannons, airplanes, and leftover foods for the European front (Document

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Soon after, the war ended ( page 194). Demand fell, and loans were piled high, with farmers unable to repay them. This money crisis proved to be inevitable, and brought to the conclusion that the factors of barricading through their debt to be implausible, and only the

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This demonstrates how the country’s economy suffered. It lost the territories where the sea ports stood. They were no longer able to trade as much as they did before. Because they couldn’t trade, they didn’t make money enough to keep its economy stable and

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