American Colonies

Located in South America, the 'Oriental Republic of Uruguay' borders Brazil to the north, with Argentina filling its entire border to the west, divided from it by the Rio de la Plata (the 'river of silver'). To the east this pocket-sized state (in South American terms, at least) looks out over the South Atlantic. The capital and largest city is Montevideo, which was founded in 1724 as a military stronghold.

The colonial administrator of Rio de la Plata at the time, Bruno Mauricio de Zabala (1717-1734), felt forced to create it in order to hold back Portuguese encroachment from the early 'Terra do Brasil'. The country's name if 'Uruguay' comes from a Guarani word which means 'river where the birds live' (although other interpretations exist). The addition of 'oriental' is due to its eastern location within the Americas, and its position east of the river.

The first Europeans arrived in the region around 1516, when the Spanish navigator, Juan Diaz de Solis, was killed by the indigenous people whilst exploring the Rio de la Plata. That local resistance was strong, so colonisation in the 'Eastern Strip' (the later Uruguay) was limited until the first permanent Spanish Colonial settlement was founded in 1624.

Then a new Portuguese settlement prompted closer Spanish interest as they sought to limit the expansion of Brazil. Uruguay remained part of the Spanish colonies until 1825, administered first from the 'Viceroyalty of Peru' and then from Rio de la Plata. The first efforts towards independence were made as early as 1811, with Spanish power shown to be weakening through the 1807 occupation of Montevideo by Great Britain.

Then, in a period in which Spanish power in the Americas fragmented very rapidly, fighting broke out between Spain, Brazil, and Argentina. The Uruguay section of Rio de la Plata was seized by Brazil and renamed the Cisplatine region, but it was almost immediately lost again.

During further fighting in 1825-1827 the Cisplatine took its chance to break away from the 'United Provinces of South America' on 25 August 1825 (the country's Independence Day). It established itself as the independent republic of Uruguay by 1828 when it was finally recognised with backing from Great Britain. A constitution was established in 1830 under the president, Fructuoso Rivera.

Modern Uruguay has a population of around 3.2 million people, with a little over thirty-four percent of that total living in the capital city. It is reputed to be South America's most honest country, along with Chile, and is fully secular with no official religion. Its stability has earned it the nickname 'the Switzerland of South America'.

A period of economic and political turmoil gripped the country in the 1970s, in particular thanks to left-wing urban guerrilla attacks in the late 1960s and early 1970s. The government of the day suspended the constitution and launch a period of repressive military rule which lasted until 1985.

Since the full restoration of democracy, successive governments have liberalised the economy. Colonial towns, beach resorts, and a year-round mild climate have all contributed to a growing tourist industry.

The economic landscape in the 2020s has witnessed two distinct phases. Firstly there was a rebound in 2021 and the first half of 2022 following a steep decline in 2020 due to pandemic-related shutdowns. This rebound delivered economic growth, a reduction in the fiscal deficit, and improved employment figures, although it later levelled off.

The Americas

South American States

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