Page "Economy of Paraguay" Paragraph 10

To pay its substantial war debt, Paraguay sold large tracts of land to foreigners, mostly Argentines.

These large land sales established the base of the present-day land tenure system, which is characterized by a skewed distribution of land.

Unlike most of its neighbors, however, 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 ( large landholdings ) typically owned by foreigners.