Paraguay - Foreign investment
Paraguay's economy historically has been dominated by foreign interests, in particular by those of wealthy Argentines, Britons, and Brazilians. Nevertheless, the Paraguayan government has encouraged foreign investment in recent years, as a means of developing the country. Investors willing to start or to expand needed industries receive highly favorable concessions, including freedom from many import restrictions plus special rights to retain much of the foreign exchange earned. Foreign direct investment (FDI) inflows into Paraguay were approximately $100 million per year in 1993 and 1994. By 1997, FDI inflow had increased to $230 million, peaking at $336 million in 1998. FDI inflows fell sharply in 1999 to only $66 million in the political violence and chaos that ensued from President Cubas's release from prison of General Lino Oviedo. FDI inflows increased to $95 million in 2000, and to $152 million in 2001.