History of Uruguay

The only inhabitants of Uruguay before European colonization of the area were the Charrua Indians[?], a small tribe driven south by the Guarani Indians[?] of Paraguay. The Spanish discovered the territory of present-day Uruguay in 1516, but the Indians' fierce resistance to conquest, combined with the absence of gold and silver, limited settlement in the region during the 16th and 17th centuries. The Spanish introduced cattle, which became a source of wealth in the region. Spanish colonization increased as Spain sought to limit Portugal's expansion of Brazil's frontiers.

Montevideo was founded by the Spanish in the early 18th century as a military stronghold; its natural harbor soon developed into a commercial center competing with Argentina's capital, Buenos Aires. Uruguay's early 19th century history was shaped by ongoing fights between the British, Spanish, Portuguese, and colonial forces for dominance in the Argentina-Brazil-Uruguay region. In 1811, Jose Gervasio Artigas[?], who became the Uruguay´s hero, launched a successful revolt against Spain. In 1821, the Provincia Oriental del Rio de la Plata[?], present-day Uruguay, was annexed to Brazil by Portugal. The Provincia declared independence from Brazil in August 25, 1825 (after numerous revolts in 1821, 1823, and 1825) but decided to adhere to a regional federation with Argentina.

The regional federation defeated Brazil after 3-year fight. The 1828 Treaty of Montevideo[?], fostered by the United Kingdom, gave birth to Uruguay as an independent state. The nation's first constitution was adopted in 1830. The remainder of the 19th century under a series of elected and appointed presidents saw interventions by--and conflicts with--neighboring states, political and economic fluctuations, and large inflows of immigrants, mostly from Europe. Jose Batlle y Ordoñez[?], president from 1903 to 1907 and again from 1911 to 1915, set the pattern for Uruguay's modern political development. He established widespread political, social, and economic reforms such as a welfare program, government participation in many facets of the economy, and a plural executive. Some of these reforms were continued by his successors.

By 1966, economic, political, and social difficulties led to constitutional amendments, and a new constitution was adopted in 1967. In 1973, amid increasing economic and political turmoil, the armed forces closed the Congress and established a civilian-military regime. A new constitution drafted by the military was rejected in a November 1980 plebiscite. Following the plebiscite, the armed forces announced a plan for return to civilian rule. National elections were held in 1984; Colorado Party[?] leader Julio Maria Sanguinetti[?] won the presidency and served from 1985 to 1990. The first Sanguinetti administration implemented economic reforms and consolidated democratization following the country's years under military rule.

Sanguinetti's economic reforms, focusing on the attraction of foreign trade and capital, achieved some success and stabilized the economy. In order to promote national reconciliation and facilitate the return of democratic civilian rule, Sanguinetti secured public approval by plebiscite of a controversial general amnesty for military leaders accused of committing human rights violations under the military regime and sped the release of former guerrillas.

The National Party's Luis Alberto Lacalle[?] won the 1989 presidential election and served from 1990 to 1995. President Lacalle executed major economic structural reforms and pursued further liberalization of trade regimes, including Uruguay's inclusion in the Southern Cone Common Market[?] (MERCOSUR[?]) in 1991. Despite economic growth during Lacalle's term, adjustment and privatization efforts provoked political opposition, and some reforms were overturned by referendum.

In the 1994 elections, former President Sanguinetti won a new term, which ran from 1995 until March 2000. As no single party had a majority in the General Assembly, the National Party joined with Sanguinetti's Colorado Party in a coalition government. The Sanguinetti government continued Uruguay's economic reforms and integration into MERCOSUR. Other important reforms were aimed at improving the electoral system, social security, education, and public safety. The economy grew steadily for most of Sanguinetti's term until low commodity prices and economic difficulties in its main export markets caused a recession in 1999, which has continued into 2002.

The 1999 national elections were held under a new electoral system established by a 1996 constitutional amendment. Primaries in April decided single presidential candidates for each party, and national elections on October 31 determined representation in the legislature. As no presidential candidate received a majority in the October election, a runoff was held in November. In the runoff, Colorado Party candidate Jorge Batlle[?], aided by the support of the National Party, defeated Broad Front candidate Tabare Vazquez[?].

Batlle's 5-year term began on March 1, 2000. The Colorado and National Parties continued their legislative coalition, as neither party by itself won as many seats as the 40% of each house won by the Broad Front coalition.

President Batlle's priorities have included promoting economic growth, increasing international trade, attracting foreign investment, reducing the size of government, and resolving issues related to Uruguayans who disappeared during the military government. His coalition government also has passed legislation authorizing the initial demonopolization of the state-owned telephone and gas distribution companies, moves which have been characterized by the left as "selling the state's heritage." These laws have been the targets of calls for referenda to block their implementation, in a populist tool used increasingly by the Frente Amplio[?] to halt action by the government on various issues.

Batlle's term has been marked by economic recession and uncertainty, first with the 1999 devaluation of the Brazilian real[?], then with the outbreaks of foot-and-mouth disease (aftosa) in Uruguay's key beef sector in 2001, and finally with the political and economic collapse of Argentina in late 2001.

See also : Uruguay