Uruguay

Uruguay, officially known as the Oriental Republic of Uruguay, is the second-smallest country in South America, with an area of 68,036 square miles. Brazil forms its eastern and northeastern border, while Argentina bounds it on the west and northwest. In the south, Uruguay possesses slightly over 400 miles of Atlantic coastline. Its population, as estimated in 2008, is 3,477,778 people. The majority, nearly 90 percent, are of European ancestry with the remainder claiming to be of African or Indian descent.

Uruguay was originally occupied by the Spanish early in the first half of the 16th century. Because there were no gold or silver deposits, major settlement would not occur until the beginning of the 18th century. At the beginning of the 17th century, however, the Spanish introduced cattle to the region, beginning what would become and remain an essential part of the Uruguayan economy.

In 1493, the year after Columbus's first landing, Pope Alexander VI divided the New World between Spain and Portugal. The region, although Spanish, [Page 1661]was claimed by the Portuguese in Brazil. That factor would influence Uruguay's history into the 19th century. Even now, there are many speakers of Brazilian Portuguese in Uruguay. In addition, Uruguay found itself dragged into the Napoleonic Wars. As the British were fighting against Spain—then one of Napoleon's allies—they occupied the capital city of Montevideo in 1807 with 10,000 troops before moving on to Rio de Janeiro.

Gauchos herd cattle on an Uruguayan ranch. The Spanish first introduced cattle to the region in the beginning of the 17th century, and livestock ranching still plays a key role in the country's economy.

In 1816, Uruguay declared independence from Spain, and was then promptly invaded by Brazil. That occupation would last until 1825, and full independence, as the result of a deal brokered by the British, would come three years later. Through most of the 19th century, after its revolution and liberation from Spain, Uruguay was engaged in both internal and external conflicts. There was a 12-year civil war, a war with Paraguay in the 1860s, and small-scale border conflicts with Brazil.

Despite the political and military unrest, immigration, mostly from Spain, Italy, France, Germany, and Russia, resulted in a large population growth, accompanied by economic growth, largely based on its agricultural exports. Through the second half of the 19th century, the country's standard of living was high, according to some sources, higher than in the United States. The government from the 19th century, well into the 20th century, focused on creating a welfare state. With a strong economy, Uruguay was able to do this with little difficulty until the middle of the 20th century. That level of support for social programs could not be sustained, however. As the century progressed, an increase in the country's debt and the failure of the economy to keep pace with the requirements of a welfare state caused a decrease in services.

In common with many Latin American nations, Uruguay was, for a time (1973–85), under the rule of a military dictatorship. This era saw severe political repression and many Uruguayans emigrated. An estimated 600,000 left the country for Europe, the United States, Canada, and Australia. With the voluntary departure of the military, a civilian government came [Page 1662]to power in early 1985. From that time until 2005, the governments were mainly dominated by the Red (Colorado) Party, a centrist-rightist party. Since 2005, in common with several South American governments, Uruguay has been governed by a leftist party, who won by a very narrow majority.

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