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Facts at a Glance Full country name: República Oriental del Uruguay Area: 187,000 sq km (72,930 sq mi) Population: 3.2 million Capital city: Montevideo (pop 1,400,000) People: 88% European descent, 8% Mestizo, 4% Black Language: Spanish Religion: 66% Roman Catholic, 2% Protestant and 2% Jewish Government: Republic President: Julio María Sanguinetti Environment Uruguay - the smallest Hispanic country in America - is boxed into the eastern coast of South America by Brazil to the north and Argentina to the west. To the south is the wide estuary of the Río de la Plata, while the Atlantic Ocean washes its eastern shore. For the most part, the country's undulating topography is an extension of that in southern Brazil, and includes two lowly ranges - the Cuchilla de Haedo and the Cuchilla Grande. The terrain levels out west of Montevideo, while east of the capital are impressive beaches, dunes and headlands. Five rivers flow westward across the country and drain into the Río Uruguay. The country's flora consists mostly of grasslands, with little forest except on the banks of its rivers and streams. In the southeast, along the Brazilian border, are lingering traces of palm savanna. Wild animals are scarce, although rhea (a bird-like ostrich) can still be seen in areas near major tributaries. The climate is temperate, even in winter, and frosts are almost unknown. Winter (June to September) temperatures range from 10 to 16°C (50 to 61°F), while summer (December to March) temperatures are between 21 to 28°C (70 to 82°F). Rainfall, evenly distributed throughout the year, averages about 1m (3ft) over the entire country. History Uruguay's aboriginal inhabitants were the Charrúa Indians, a hunter-gatherer people who cared little for outsiders. They killed the explorer Juan Diaz de Solís and most of his party when the Spaniards encountered them in 1516. By the 17th century, the Charrúa's had prospered and, abandoning hostilities, began trading with the Spanish. In 1680, the Portuguese founded Colonia on the estuary of the Río de la Plata as a rival to Spanish-held Buenos Aires on the opposite shore. Spain responded by building its own citadel at Montevideo. Uruguayan hero José Artigas fought against the Spanish but was unable to prevent a Brazilian takeover of the Banda (the original name of the eastern shore of the Río de la Plata). Exiled to Paraguay, he inspired the `33 Orientales' who, with Argentine support, liberated the area in 1828 and established Uruguay as an independent buffer state between Argentina and Brazil. Uruguay's fragile independence was repeatedly threatened during the 19th century - militarily by Argentina and Brazil, and economically by Britain. Federalist forces in collusion with Argentina besieged Montevideo from 1838-51 and helped create two warring political parties, the Blancos and the Colorados. Around the same time, the British introduced new wool, meat and rail industries. They also replaced the rangy criollo stock with their own cattle, thus commercializing one of the country's few abundant resources. For the remainder of the century, the contest between the Blancos and Colorados continued, immersing the country in civil war, dictatorship and political intrigue. In the early 20th century, the visionary President José Batlle y Ordóñez achieved far-reaching reforms and made Uruguay the only `welfare state' in Latin America. During his two terms as president - 1903-07 and 1911-15 - he implemented a range of free social services, abolished capital punishment and sought to curb the country's legacy of strong-arm rule. Uruguay soon flourished on the back of the rural livestock sector but its failure to grow, coupled with the country's lack of natural resources, meant the welfare state became increasingly fictitious over time. The country's former prosperity had ebbed away by the 1960s as state-supported enterprises became riddled with corruption. The country slid into dictatorship and was thrown into turmoil by the Tupamaros, an urban guerrilla movement which appeared publicly in 1967. In 1971, the military was invited to participate in government, Congress was dissolved, and the Tupamaros were effectively wiped out. The much-hated military continued to hold sway in national politics until 1984 when Julio María Sanguinetti won the presidential election. His government implied a return to democratic traditions and fostered a process of national reconciliation beginning with a widespread political amnesty, but there were no new radical economic policies. In 1990, free-market reformer Luis Alberto Lacalle took office. However, in 1994, considerable opposition to Lacalle's plans for wage restraint, spending cuts and major state sell-offs paved the way for Sanguinetti to once again take control. Economic Profile GDP: US$13.1 billion GDP per head: US$3900 Annual growth: -2.3% Inflation: 15% Major industries: Wool, hides, beef, sugar, fishing, textiles, footwear, tires, cement, tourism Major trading partners: Brazil, Argentina, USA & Germany Culture Uruguay may be a small country but it has impressive artistic and literary traditions. International acclaim has greeted artists such as Pedro Figari, a painter of bucolic scenes, and José Enrique Rodó, arguably the nation's greatest writer. Theater is popular and playwrights such as Mauricio Rosencof - a former Tupamaros founder tortured by the military government in the 1970s - are prominent in cultural life. Most of the country's musical and dance traditions (folk songs, polkas, waltzes, etc) came from Europe but developed local hybrids. Football is a national obsession. Uruguayans who profess a religion are almost exclusively Roman Catholic, but the Church and state are officially separate. Other religions have made small inroads: there is a small Jewish community in Montevideo, several evangelical Protestant groups and traces of Sun Myung Moon's Unification Church. Uruguayans are voracious meat eaters and the parrillada (beef platter) is a national standard. Another standard is chivito, a tasty and substantial steak sandwich with all the trimmings. Typical snacks include olímpicos (club sandwiches) and húngaros (spicy sausage wrapped in a hot dog roll). Tea or mate is quaffed in enormous quantities. Clericó, a mixture of white wine and fruit juice, and medio y medio, part sparkling wine and part white wine, are popular, and the beer is pretty good. Events The country's show-stopper is the annual Carnaval, which takes place on the Monday and Tuesday immediately preceding Ash Wednesday. Montevideo's staid reputation takes a battering during this time as a brace of drummers and costumed revelers advance along its streets. Holy Week (Easter) or La Semana Criolla offers trADDITIONAL activities like asados (barbecues), horse-breaking, cowboy stunt riding and folk music. Facts for the Traveler Visas: Most foreigners require a visa, except nationals from neighboring countries, Western Europe, Israel, Japan and the USA. All visitors need a tourist card, which is valid for 90 days and extendable for a similar period. Health risks: Hepatitis Time: GMT/UTC minus 3 hours Electricity: 220V, 50 Hz Weights & measures: Metric (see the conversion table.) Money & Costs Currency: Peso Uruguayo (U$) Relative costs: Budget room: US$5-15 Moderate hotel: US$15-20 Top-end hotel: US$20 and upward Budget meal: US$2-8 Moderate restaurant meal: US$8-15 Top-end restaurant meal: US$15 and upward Annual inflation in Uruguay is about 15%, but steady devaluations keep prices from rising rapidly in dollar terms.Costs are slightly lower than in Argentina, especially with respect to accommodation and transportation. Budget travelers can get by on US$15 a day; those looking for a bit more comfort and nutrition should expect to spend closer to US$30 a day. Cambios in Montevideo, Colonia and Atlantic beach resorts change US dollars cash and travelers' checks (the latter at slightly lower rates or modest commissions). Banks are the rule in the interior. Better hotels, restaurants and shops accept credit cards, but Uruguayan ATMs reject North American or European credit cards. There is no black market. In restaurants, it's customary to tip about 10% of the bill. Taxi drivers do not require tips, although you may round off the fare for convenience. When to Go Uruguay's main attraction is its beaches, so most visitors come in summer. Along the littoral, summer temperatures are smotheringly hot, but the hilly interior is cooler, especially at night. Attractions Montevideo The capital and only large city sprawls along the banks of the Río de la Plata, almost directly opposite Buenos Aires. It's a picturesque place of colonial Spanish, Italian and Art Deco styles. Most attention is focused on the Ciudad Vieja, the old city built on a peninsula close to the port and harbor, and the commercial center, located around Plaza Independencia to the east. To get your bearings in the city center, take a walk from Plaza Independencia, the grandest of Montevideo's squares, through the Ciudad Vieja to the port. On the plaza is the black-marbled Mauseleo de Artigas, topped by an enormous statue of the national hero, and the 26-story Palacio Salvo, the tallest building in South America when built in 1927 and still the tallest in the city today. The Plaza Constitución, neoclassical Cabildo and the Iglesia Matriz, the oldest public building (1799) in the city, are further west. Other important sights in the area include the Museo Histórico Nacional, which consists of four different homes filled with historical effects, and the Museo del Gaucho y de la Moneda, which houses an impressive display of artefacts from Uruguay's gaucho (cowboy) past. Also, don't miss the Mercado del Puerto, once the finest port in South America, and now a colorful, lively center filled with markets, restaurants, artists and street musicians. The Feria de Tristán Narvaja is an outdoor market peddling groceries, antiques and souvenirs. A handful of sandy beaches stretch along the metropolitan waterfront and are popular excursions for the city's residents on summer weekends. Inexpensive accommodation, eateries, nightclubs and theaters are found in the Ciudad Vieja, while the best shopping is along Avenida 18 de Julio, which runs eastwards from the old city. The Uruguayan Littoral West of Montevideo, and covering the portion of Uruguay which fronts the Río de la Plata and the Río Uruguay, is the country's most important agricultural area. Its outstanding attraction is the lively colonial city of Colonia (del Sacramento), an under-appreciated gem of narrow cobbled streets flanked by whitewashed buildings. The boating, fishing and swimming are good along the beaches of Mercedes, and there are many excellent museums in Paysandú, Uruguay's second largest city. The Uruguayan Riviera The area east of Montevideo is one of the most Westernized places in Uruguay with innumerable beach resorts, plenty of water activities and lots of well-groomed, narcissistic tourists sporting hibiscus shirts. Immediately east of the capital is the major resort of Atlántida, and Piriápolis is a mere flick of the towel away. From here, you can venture into the surrounding countryside and climb the 493m (1617ft) Cerro Pan de Azúcar or visit Minas, a lovely town set in wooded hills. The largest and best known of the resorts is Punta del Este, one of South America's most glamourous and exclusive destinations. The place is awash with yacht and fishing clubs, golf courses, casinos and beautiful holiday homes. If that's not enough, there are excellent bathing beaches, perfect for swimming and sunbathing. Just offshore are Isla Gorriti, which has more superb beaches and the ruins of an 18th-century fortress, and Isla de Lobos, a nature reserve that is home to a large sea-lion colony. Off the Beaten Track Colonia Suiza About 120km (74mi) west of Montevideo dozes the quiet destination of Colonia Suiza. Founded in 1862 by Swiss settlers, it became Uruguay's first interior agricultural colony, churning out wheat for the mills in Montevideo. It still retains a distinctive European ambience today and produces the bulk of the country's dairy products. Tacuarembó Tacuarembó, in the department of the same name, is an agreeable town of sycamore-lined streets and shady plazas. Since its founding in 1832, local authorities have kept sculptors busy fashioning busts, statues and monuments commemorating military figures as well as writers, clergy members and educators. In late March, a three-day gaucho festival features exhibitions, riding skills, music and other activities. Aguas Dulces If you're hankering for a really peaceful seaside holiday, visit Aguas Dulces in the department of Rocha. It's a quaint, unprepossessing fishing village with modest facilities, great seafood and a local speciality - the messy but flavorful fruit of the butía palm. Activities Yachting, boating, fishing and watersports are excellent at Carmelo and Mercedes. There are also sandy beaches and pellucid waters at the resort of Punta del Este, and thermal baths at Termas de Guaviyú. Short walks abound around Piriápolis, while dune walking is a popular pastime in the remote Cabo Polonia. Getting There & Away Montevideo is the main gateway for flights to and from the country. The international departure tax is US$2.50 to Argentina, US$6 to other South American countries and US$7 to elsewhere. For domestic flights the departure tax is about US$1. Road and bus services across the borders with Brazil and Argentina are good. Unfortunately, there are no rail services linking these countries. A ferry and hydrofoil service runs between Colonia and Buenos Aires. Ferry passengers embarking at Montevideo pay a US$5 port terminal and departure tax, while those at Colonia pay US$3. Getting Around Domestic flights are absurdly cheap but somewhat limited. PLUNA flies to Punta del Este, and the military airline TAMU serves the majority of interior cities. Buses are reasonably priced and there are frequent services to all sizeable destinations. Traveling by car poses few problems once outside hazardous Montevideo, although the country's winding roads and hilly terrain require some care. Local transport is predominantly by bus and metered taxi. Recommended Reading Don't leave home without reading No Man's Land, The Shipyard or A Brief Life by Juan Carlos Onetti, or anything from the pen of Mario Benedetti, two of Uruguay's best known contemporary writers. Much the same could be said of Ariel by José Enrique Rodó, a turn-of-the-century essay contrasting North American and Latin American civilization that has been hailed as a classic. For a discussion of the rise of the country's social welfare policies, try George Pendle's Uruguay, South America's First Welfare State and Milton Vanger's The Model Country: Jose Battle y Ordóñez of Uruguay, 1907-1915. A sympathetic portrayal of the 1960s insurgency movements can be found in María Esther Gilio's The Tupamaros Guerillas, while the engrossing Costa-Gavras film State of Siege deals with the Tupamaros' kidnapping and execution of a suspected CIA agent. Political trends in contemporary Uruguay are explored in Political Parties and Redemocratization in Uruguay by Luis González and Uruguay, Democracy at the Crossroads by Martin Weinstein.