A Look At The Past
In 1516, a surprised Spanish sailor discovered the area of what would become Uruguay and was followed by Ferdinand Magellan, who in 1520 anchored outside present-day Montevideo. Despite the Spaniards' success in making the journey from home, they were less successful settling in the area, due to resistance from the Charrúa Indians who inhabited the land. Not until the early 17th century, as Spain competed with Portugal for South American territory, did Spanish colonization begin to take hold. Colonia del Sacramento was founded by the Portuguese in 1680. Not to be outdone, the Spanish responded by establishing Montevideo after the turn of the century.
Uruguay's history until the beginning of the 19th century was marked by colonial struggle for the Argentina-Brazil-Uruguay region. In 1811, José Gervasio Artigas initiated a revolt against Spain. The war lasted until 1828, when Uruguay earned its independence from Brazil, to which it had been annexed by the Portuguese. Argentine troops assisted the Uruguayan fighters in defeating the Brazilians, and Uruguay adopted its first constitution by 1830. Political instability dominated the rest of the century, as large numbers of immigrants arrived from Europe. By 1910, the population reached one million.
Uruguay experienced significant political, economic, and social progress under the two presidencies of José Batlle y Ordoñez, who in the early 20th century created what many considered a model social-welfare state. Life seemed to be getting better and better for Uruguayans, who achieved their first World Cup victory in 1930 and again in 1950. By the 1960s, however, Uruguay's charmed reputation as the "Switzerland of South America" was shattered by corruption, high unemployment, and runaway inflation. The instability of Uruguay's economy paved the way for military government, which seized control in 1973 and was responsible for the detention of more than 60,000 citizens during its time in power.
Civilians resumed control of the government in 1984, when Colorado Party leader Julio María Sanguinetti won the presidency. His tenure in office was focused on national reconciliation, the consolidation of democratic governance, and the stabilization of the economy. Violations under the military regime were controversially pardoned in order to promote reconciliation, and a general amnesty was given to military leaders charged with human rights abuses.
Uruguary Today
The National Party's Luis Alberto Lacalle held the presidency from 1990 to 1995, during which time he reformed the economy in favor of trade liberalization and export promotion. He brought Uruguay into the Southern Cone Common Market (Mercosur) in 1991 and privatized inefficient state industries. Julio María Sanguinetti was reelected in 1995, continuing Uruguay's economic reforms and improving education, public safety, and the electoral system. The economy tripped at the end of the century, and was exacerbated by the Argentine economic meltdown in 2001. Tourism plummeted a staggering 90%. Devaluation followed, and with it a slow recovery. Uruguay's first socialist president, Tabaré Vazquez, took power in March 2005, ushering in what many hope is a more stable and prosperous future.