HISTORY
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 continued into 2003.
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.
The legislative coalition of the Colorado and National parties that held during most of Batlle´s administration ended in November 2002, when the Blancos withdrew their ministers from the cabinet. Throughout most of his administration, President Batlle had to handle Uruguay´s largest economic crisis in recent history, which impacted on poverty and led to increased emigration. Aside from successfully addressing the crisis, Batlle increased international trade, attracted foreign investment and tried to resolve issues related to Uruguayans who disappeared during the military government.
The two traditional political parties, the National ("Blanco") and Colorado parties, which were founded in the early 19th century, in the past garnered about 90% of the vote but have seen their share decline over the past decades. At the same time the share of the Frente Amplio, a coalition of various left-of-center factions that became the largest political force in 1999, was on the rise. In October 2004 presidential elections, Tabare Vazquez ran against the Blanco candidate Jorge Larranaga, a former state governor and senator who got 34.3% of votes, and against the Colorado candidate, former Interior Minister Stirling who got 10.4%. President Vazquez won the elections in the first round, with 50.5% of ballots, and his party achieved parliamentary majority. The Frente Amplio has ruled Montevideo since 1990.
During its first 3 years in power, the Vázquez administration made good on its campaign promise to re-examine the human rights abuses committed during the period of military dictatorship and uncovered important forensic evidence. Bilateral relations with Argentina were strained by an ongoing dispute over the construction in Uruguay of a large wood pulp mill on a shared river. Legislation, including a controversial tax reform bill, tended to pass easily as the Frente Amplio enjoyed majorities in both houses of congress.