- You are here:
- Home
- › Travel & living abroad
- › Travel advice by country
- › Country profiles
- › South America and South Atlantic Islands
- › Uruguay
South America and South Atlantic Islands
Uruguay |
|
|
Last reviewed: 20 January 2009 |
Country information
HISTORY
Uruguay's original inhabitants were the Charrúa Indians, a hunter-gatherer people. They killed the explorer Juan Diaz de Solís and most of his party when the Spaniards encountered them in 1516. But by the 17th century, the Charrúas had prospered, abandoned hostilities, and begun trading with the Spanish. During the seventeenth and eighteenth centuries, the territory changed hands between the Spanish and Portuguese several times. By 1832 virtually all Charrúas had been killed or forced to leave, leaving Uruguay with no indigenous people (the only such country in Latin America). Uruguayan independence - finally recognised in 1828 - was repeatedly threatened during the 19th century - militarily by Argentina and Brazil, and economically by Britain. Federalist forces in collusion with Argentina besieged Montevideo from 1838-51 and helped create two warring political parties, the Blancos and the Colorados. For the remainder of the century, the contest between the Blancos and Colorados continued, immersing the country in civil war, dictatorship and political intrigue.
After Uruguay's last civil war ended in 1904 the country entered a period of sustained economic growth. Able to produce first class beef for a growing world meat trade, and good quality wool, Uruguay's exports grew in volume and commanded good prices. The two world wars and the Korean war stimulated exports further. By 1950 Uruguay accounted for 3.5% of all Latin American economic activity. Uruguayans enjoyed the standards of living of a developed country, and their strong currency (the Uruguayan Gold peso) allowed them to take cheap holidays in Europe. For many Uruguayans the first half of the twentieth century – culminating in a glorious victory over Brazil in the 1950 World Cup Final – is their golden age. Throughout this period, except for a short period of military rule under Terra in the early 1930s, Uruguay remained a constitutional democracy.
Uruguay's prosperity had ebbed away by the 1960s as state-supported enterprises became riddled with bureaucratic inefficiency. The Tupamaros, an urban guerrilla movement that appeared publicly in 1967, threw the country into turmoil. In 1973, Congress was dissolved, the military was invited to participate in government, and the Tupamaros were effectively neutralised. The military continued to hold sway in national politics until the return to civilian rule on 1 March 1985 with the inauguration of the democratically elected President Julio Maria Sanguinetti.
At the same time Uruguay's economy began to recover. GDP grew an average of 4.2% from 1992 to 1998 and international ratings agencies awarded Uruguay investment grade. Then two catastrophes struck, both because of problems in Uruguay's neighbouring countries. In 1998 Brazil (which bought a quarter of Uruguay's exports) devalued its currency, plunging Uruguay into recession. Then in 2002, as Argentines withdrew their deposits from Uruguayan banks, the country's private banking sector (a quarter of its economy) collapsed. From its 1998 peak to its 2002 trough Uruguay's economy halved in dollar terms. (See also Economy below).
Presidential and parliamentary elections were held in October 2004. The left wing Frente Amplio (Broad Front) headed by Tabaré Vázquez won in the first round with 50.45% of the vote. In addition to winning the national government, Frente Amplio won a majority in both chambers of Parliament. They beat the two traditional parties: the Colorado Party (centre); and the Blanco Party (centre-right).
President Tabaré Vázquez took office on 1 March 2005 and will remain in power until March 2010. Apart from intervals of unconstitutional rule, this is the first time any party other than the traditional parties has ruled Uruguay. The next presidential and parliamentary elections are scheduled to take place in October 2009.
Mayoral elections took place in May 2005, when the Frente Amplio won in Montevideo for the fourth consecutive time. In addition, they won seats in the interior for the first time ever. Eight leftist mayors took office in July 2005, governing over 75% of Uruguay's inhabitants and over 80% of Uruguay's GDP.