Answer:
At the beginning of the 19th century, the economic and social situation of Argentina and Paraguay was different. Argentina was an eminently agricultural nation, which sustained its economy on the production of raw materials by large landowners who owned huge tracts of land; while manufacturing production was practically non-existent, and depended to a great extent on imports from European countries such as Great Britain.
For its part, Paraguay had a smaller territory, and a climate less conducive to agricultural development, which motivated the nation to begin to industrialize from the beginning, thus becoming the most prosperous nation in South America at the time.