South America doesn't take off on tech mostly because the talent is poached by other countries.
The recent xenophobia and the whole thing with migrants might actually help South American countries to retain their talent. It takes some time for that talent to do something though, so it's very likely no one will notice (which is great!).
What I wonder is: how is Paraguay perceived by other South Americans? If you're (for example) Argentinian, but someone pitches you on moving to Paraguay for work... does that sound reasonable, or crazy?
Paraguay – The Silicon Valley of South America? · HackerTrans
The recent xenophobia and the whole thing with migrants might actually help South American countries to retain their talent. It takes some time for that talent to do something though, so it's very likely no one will notice (which is great!).