Uruguay (yʊ'rəgwā, gwī, Span. ūrūgwi', ūrūwī') , officially Oriental Republic of Uruguay, republic (2005 est. pop. 3,416,000), 68,536 sq mi (177,508 sq km), SE South America. The second smallest country (after Suriname) in South America, Uruguay extends from a short Atlantic coastline along the north bank of the Río de la Plata to the Uruguay River, which separates it on the west from Argentina. To the north is Brazil. The capital and largest city is Montevideo.

Land and People

The land is an area of topographical transition from the humid Argentine Pampa to the uplands of S Brazil. North of the alluvial plain, known as the Banda Oriental [Span.,=east bank, i.e., of the Uruguay and the Río de la Plata], Uruguay generally has long, sweeping slopes and grasslands, wooded valleys with slow-moving rivers, and long ranges of low hills, with some huge granite blocks that stand out against the horizon. Although Uruguay is within the temperate zone, climatic variations are moderate; generally the climate is warm, with rainfall evenly distributed through the seasons, but in some years there are severe droughts.
Most of the population is concentrated in the south; over 40% live in Montevideo. Almost 90% of Uruguay's people are of European descent, Spanish and Italian predominating; there are few pure indigenous Uruguayans. The original inhabitants, the Charrúa, were absorbed into the Spanish and Portuguese populations after long resistance; today the mestizo element (less than 10% of the total population) is found principally in N Uruguay. Spanish is the official language, but a dialect containing elements of Spanish and Portuguese is spoken along the Brazilian frontier. The majority of the population is nominally Roman Catholic. The nation has long been remarkable for its contributions to literature and the arts (see Spanish American literature). The Univ. of the Republic is in Montevideo.

Economy

Uruguay's greatest natural resource is its rich agricultural land, almost 90% of which is devoted to livestock raising. Cattle, sheep, horses, and pigs are the major livestock animals. Grains for cattle fattening and human consumption make up the bulk of the harvested crops. Rice is the major food crop, followed by wheat and sugarcane. Corn is the principal feed concentrate. Oats, barley, and grain sorghums are also grown, and oil crops (flaxseed and sunflower seed) and sugar beets are important. In the vicinity of Salto there are many orchards and vineyards.
Despite Uruguay's basically agricultural-pastoral economy, its dependence upon imports for most raw materials, and its lack of fuel resources, there is considerable industrialization. The processing of agricultural and animal products accounts for about half of the manufacturing activity; Fray Bentos and Paysandú are noted for their meat-freezing and canning plants. Meat, wool, and hides and skins constitute the majority of Uruguay's exports. Other manufactures include beverages, textiles, construction and building materials, chemicals, and petroleum and coal derivatives. A large refinery near Montevideo processes imported crude oil. Marble, stone, and granite were long thought to be the only important mineral resources, but bauxite has become a significant resource. There are important hydroelectric plants on the Uruguay and Negro rivers. Fishing and forestry add to the country's economy.
Uruguay's magnificent beaches, such as those at Punta del Este, are great economic assets; tourists, chiefly vacationing Argentines, contribute much to the national income. The country's transportation facilities are extensively developed. The state owns the railroad, as well as the power, telephone, oil refining, and other industries; about 20% of the workers are on the government payroll. Brazil, Argentina, the United States, and the European Union nations are the main trading partners. Uruguay is a member of Mercosur.

Government

Uruguay is a republic with a president who is elected for a five-year term and serves both as chief of state and head of government. The bicameral legislature consists of an upper chamber of senators and a lower chamber of representatives; its members are also elected for five-year terms. Administratively, Uruguay is divided into 19 departments.

History

European Involvement and the Struggle for Independence
Although the Río de la Plata was explored as early as 1515, it was not until 1624 that the Spanish established the first permanent settlement, at Soriano in SW Uruguay. The Portuguese founded (1680) a short-lived settlement at Colonia, and in 1717 they fortified a hill on the site of Montevideo. Fearing encroachment and competition, the Spanish drove them out (1724) and from then until the wars of independence controlled the Banda Oriental. Uruguay's position between Spanish and Portuguese settlements, and later between Argentina and Brazil, helped determine the emergence of Uruguay as an independent state. On the pampas stock raising spread; gradually the unbounded range gave way to huge estancias (cattle ranches) and small settlements concentrated about the ranch buildings.
It was the rough and hardy gaucho who fought for independence, and the traditions, personal loyalties, and rivalries of the gauchos helped to keep the nation in almost continual strife for three quarters of a century after independence was won. When the revolutionary banner was raised in the Argentine in 1810, the leaders of the Banda Oriental, notably Artigas, accepted the cause, but in 1814 Artigas broke with the military junta of Buenos Aires and began a struggle for Uruguayan independence that lasted until the Brazilian occupation of Montevideo in 1820. Five years later a small group, known as the Thirty-three Immortals, under the guidance of Lavalleja, declared Uruguay independent.