Paraguay
Rule of the López family

After Francia's death in 1840, Paraguay was ruled by various military officers under a new junta, until Carlos Antonio López (allegedly Rodríguez de Francia's nephew) came to power in 1841. López modernized Paraguay and opened it to foreign commerce. He signed a non-aggression pact with Argentina and officially declared independence of Paraguay in 1842. After López's death in 1862, power was transferred to his eldest son, Francisco Solano López.

The regime of the López family was characterized by pervasive and rigid centralism in production and distribution. There was no distinction between the public and the private spheres, and the López family ruled the country as it would a large estate.

The government exerted control on all exports. The export of yerba mate and valuable wood products maintained the balance of trade between Paraguay and the outside world. The Paraguayan government was extremely protectionist, never accepted loans from abroad and levied high tariffs against imported foreign products. This protectionism made the society self-sufficient, and it also avoided the debt suffered by Argentina and Brazil. Slavery existed in Paraguay, although not in great numbers, until 1844, when it was legally abolished in the new constitution.

Francisco Solano López, the son of Carlos Antonio López, replaced his father as the President-Dictator in 1862, and generally continued the political policies of his father. Both wanted to give an international image of Paraguay as "democratic and republican", but in fact, the ruling family had almost total control of all public life in the country, including church and colleges.

Militarily, Carlos Antonio López modernized and expanded industry and the Paraguayan Army and greatly strengthened the strategic defenses of Paraguay by developing the Fortress of Humaitá. The government hired more than 200 foreign technicians, who installed telegraph lines and railroads to aid the expanding steel, textile, paper and ink, naval construction, weapons and gunpowder industries. The Ybycuí foundry, completed in 1850, manufactured cannons, mortars and bullets of all calibers. River warships were built in the shipyards of Asunción. Fortifications were built, especially along the Apa River and in Gran Chaco. Following the death of Carlos Antonio López, these projects continued under his son Francisco Solano.

In terms of socio-economic development, the country was dubbed "the most advanced Republic in South America", notably by the British judge and politician Sir Robert Phillimore.

According to George Thompson, Lieutenant Colonel of Engineers in the Paraguayan Army prior to and during the war, López's government was comparatively a good one for Paraguay:

Probably in no other country in the world has life and property been so secure as all over Paraguay during his (Antonio Lopez's) reign. Crime was almost unknown, and when committed, immediately detected and punished. The mass of the people was, perhaps, the happiest in existence. They had hardly to do any work to gain a livelihood. Each family had its house or hut in its own ground. They planted, in a few days, enough tobacco, maize and mandioca for their own consumption. Having at every hut a grove of oranges and also a few cows, they were almost throughout the year under little necessity. The higher classes, of course, lived more in the European way...
oulipo:avoid_letter[a], keywords:existence, startend:end_checker