The mission economy supported tens of thousands of Guaraní Indians and made the Jesuit reducciones (1609 to 1767) the most populous and financially prosperous of all the missions among native peoples of the Americas. The communal structure of collective labor, shared ownership, and redistribution of communal property formed the basis of the mission economy and seemed to leave little room for the possession of private property, independent trade, and economic initiative on the part of the resident Guaraní. Late 18th century Jesuit authors reinforced such an understanding in an attempt to defend their order and its actions in Paraguay. They argued that the Guaraní were incapable of managing their own affairs and that Jesuit management of the communally structured economy was indispensible for the wellbeing of both the missions and the Guaraní. Such accounts overlook evidence to the contrary. Mission Guaraní did in fact own private property—yerba mate, horses, clothing, and jewelry—and Jesuit leaders repeatedly issued orders for the missionaries to allow the Guaraní to independently trade yerba mate. Furthermore, although Jesuit authors repeatedly denied that they paid mission Guaraní wages—to do so would go against the communal structure that they so vehemently defended—the missionaries acknowledged that they paid mission Guaraní bonuses as a reward for their skills or extra labor. These bonuses served as a way to motivate individual economic initiative or agency within the framework of the missions’ communal structure. In sum, the communal structure allowed for more flexibility in the ownership of private property, independent commerce, and economic initiative by the Guaraní than has been portrayed in both the 18th century writings of Jesuit authors and much of the current literature.
Bridget María Chesterton
In the period 1870–1936, Paraguay began to redevelop economically after its devastating loss in the War of the Triple Alliance (1864–1870). Turning to a liberal economic model popular in the region at the time, government officials began selling off large tracts of land to foreign investors, in particular Argentine investors. The liberal era in Paraguay was notoriously turbulent as political rivals often relied on Civil War to gain power. Nonetheless, this period was pivotal in helping to shape ideas about the nation. The era ends at the Febrerista Revolution (1936) when returning Chaco War (1932–1935) veterans made their mark on Paraguayan politics and identity.