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Compared with its gigantic South American neighbors, Argentina and Brazil, Uruguay may lack size, dramatic landscapes, and cultural and natural diversity. Still, it's found a niche on the international tourist circuit with its beaches—inundated by Argentine celebrities and fashion shows in the summer months of January and February.
Uruguay also has subtler attractions such as the 17th-century colonial town of Colonia del Sacramento and the underrated capital city of Montevideo. Its rolling interior, dotted with estancias (cattle ranches), many of which house guests in stylish comfort, is still gaucho country.
Uruguay's people, almost entirely of Spanish and Italian ancestry, are, along with Chile, unique in South America in that they are mostly middle class—there aren't the extremes of wealth and poverty that plague much of the rest of the continent (a legacy of the country's progressive social services). As a result, the nation enjoys a relatively high standard of living and literacy, though Argentina's economic turbulence and continued uncertainty have impacted the tourist economy when Argentines, with their devalued pesos, have been unable to travel across the Rio de la Plata.
Today, however, Uruguay is very much a touted destination among in-the-know travelers. Tourist arrivals have been growing, and tourism is now the largest sector of the country's economy. Travelers are also extending their previously brief visits to the country in order to savor its sublime beaches, art-deco architecture and genuine old-world charm.
Remnants of Uruguay's pre-Columbian history are scarce. Disease and violence more than decimated the ancient Charrua population after Europeans began to settle the area in 1624. For the next two centuries, it was a battleground, as well as a prize, in struggles between Portugal and Spain and, later, between Brazil and Argentina. Possession of La Banda Oriental (or the "East Shore" of the Rio de la Plata, as the territory was then called) passed back and forth several times. Finally, in 1828, the region was declared an independent republic, which would act as a buffer state between South America's countries.
By 1900, Uruguay had developed into a model social-welfare state. This lasted until the late 1960s, when political and economic turmoil—combined with an empty national treasury—led to fierce inflation, high unemployment and, by 1973, an urban guerrilla movement. The military stepped in and ruled with a heavy hand for the next decade-plus, detaining more than 60,000 citizens and conspiring with similar dictatorships in Brazil, Argentina and Chile.
Elections in 1984 and the reestablishment of a civilian government allowed the country to resume its economic, political and social progress, and in 2005 the country elected its first left-of-center president, socialist Tabare Vasquez of the Frente Amplio (Broad Front) coalition. Vasquez was succeeded in 2010 by Jose Mujica, also of the Frente Amplio, whose ascetic lifestyle and pragmatic politics have endeared him to many Uruguayans. In 2015, Tabare Vazquez was elected president.
The 1990s brought economic liberalization, including privatization in many sectors, reduction of inflation and membership in Mercosur (the Common Market of the South, an economic-integration agreement that also includes Argentina, Brazil and Paraguay).
In 2002, Argentina's fiscal crisis leapt the Rio de la Plata to cause a run on Uruguayan banks and a severe recession that reduced a third of the population to poverty. Since bottoming out in 2003, the economy has rebounded. As Argentines, who make up more than two-thirds of all visitors to the country, return for vacations in Uruguay, and other foreigners discover the country's charm, the tourism sector is leading the way.
According to the International Monetary Fund, inflation is on the upswing in the country putting a damper on current economy growth again. Luckily, tourism from outside helps to buoy the fluctuating industrial sector.
The tango is nearly as popular as in Argentina, and Uruguayans claim tango legend Carlos Gardel as one of their own (though consensus says he was born in France before migrating to Buenos Aires).
In 2005, Uruguayan composer Jorge Drexler won an Oscar for Best Song, "The Other Side of the River," from The Motorcycle Diaries. Spanish actor Antonio Banderas was chosen to perform the song at the Academy Awards, to Drexler's displeasure.
Montevideo's latitude is about the same as that of Sydney and Cape Town.
Uruguay is South America's smallest Spanish-speaking country.
For a nontouristy night out on the town, seek out the small candombe clubs in Montevideo's largely black Barrio Sur neighborhoods. The African-based rhythm music, played with both hand and stick on a drum, is the basis for much competition between groups of musicians and dancers during Carnival.
Warm but not polar clothes are advisable for the winter months, June-August.
Every year, Uruguayans consume more than 200 lb/90,718 g of meat per capita (more even than Argentines).
Uruguay is famous for its lovingly maintained antique automobiles, known as cachilas, that are still a daily presence on the country's streets and highways, though foreign collectors are buying them up fast.
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