Foreign Capital in the Paraguayan Chaco

Abstract

During the first two decades of the twenty-first century, the Paraguayan Chaco suffered profound social, productive, and ecological transformations due to investments that, through deforestation, expanded the agricultural frontier for the production of livestock and grains. This article analyzes the factors that made the Paraguayan Chaco an attractive location for capitalist expansion as well as the historical characteristics of this passage of land into foreign hands. The major findings demonstrate that this movement of capital is due to the Chaco’s situation as a commodities frontier area with policies favorable to foreign investment in Paraguay, making it a haven for foreign capital.