What I read in that is that we can say Argentinians are privileged vs Paraguayans, because due to circumstance beyond anyone's control, Argentines are better off than Paraguayans. Same for Greeks vs Swedes?
Fair assessment, I think. I don't know anything about the specific situations in those countries, but privilege is very frequently used in referring to say, coming from the U.S. vs. the rest of the world, or developed nations rather than developing nations.