country located on the southeastern coast ofSouth America. The second smallest nation on the continent, Uruguay has long been overshadowed politically and economically by the adjacent republics of Brazil and Argentina, with both of which it shares many cultural and historical similarities. “On the map, surrounded by its large neighbors, Uruguay seems tiny,” writes contemporary Uruguayan historian and novelist Eduardo Galeano. “But not really. We have five times more land than Holland and five times fewer inhabitants. We have more cultivable land than Japan, and a population forty times smaller.”

This combination of open space and low population density has afforded Uruguay many opportunities for economic development. An independent country since 1828, with strong ties to the United Kingdom, France, and Italy, Uruguay developed throughout much of the 20th century as one of Latin America’s more progressive societies, notable for its political stability, advanced social legislation, and a relatively large middle class. A period of repressive military rule (1973–85) has cast a long shadow over national life, and, like other countries in the region, Uruguay has been troubled by economic decline and factional struggles in the decades since civilian democratic rule was restored. Such adversities have caused many Uruguayans to emigrate to Europe and North America; as Galeano has remarked, “We export our young.”

Almost half the people are concentrated in the metropolitan area ofMontevideo, the capital; the second and third largest cities,Salto andPaysandú, are small by comparison. Facing a deep bay at the mouth of the Río de la Plata, Montevideo blends historic areas with tall office towers and well-appointed shopping centres. The old city, with its many museums, open-air markets, and restaurants, remains the heart of Montevideo and sees thousands of international visitors each year. Popular as tourist destinations, too, are beach resorts such as Piriápolis and Punta del Este, as well as the colonial masterpiece Colonia del Sacramento.

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