Well, If I were to seek refuge in Paraguay, I wouldn't go to Asunción or any of the other cities. My experience tells me even in the third world, most of the brainwashed and the state apparatus are located in the cities. But I get your point and as far as I know, it's a sort of low intesity warfare, not something like Colombia in the 90s. But still, I wouldn't go there unless I have contacts in the country and a place to live, outside the cities. I hope that Paraguayans can sort out their differences. However the external situation points in the other direction. The international environment in the next months or years might be a catalyst for violent conflict due to impoverishment of the paraguayans, "all done in the name of their health". They are surrounded by a leftist countries (Bolivia, Argentina).
I didn't mean Asuncion by Southern Paraguay (I see it as Central), but more South. There's a lot more European ancestry population in the Southern region than in Eastern where rebels are and more developed even though it's rural. There're secret marijuana plantations in the Eastern region and sometimes that's what rebels are at.
In the region with these plantations, when you hear about kidnapping you have to understand that sometimes all kinds of deals might be involved that we will never know about.
American Bush family owns something like 100K acres in Paraguay. Paraguay is pretty stable country compared to neighbors, their economy is largely agricultural so it's not subject to swings as major as in more financialized economies, even though they don't fly high they have some stability.
There're some Russian/Ukrainians and Germans who moved there to live on land and they have no trouble with any kind of rebels or masks.
Yes, I'd definitely have some contact with expats and get some connections to show around.