Due to its strategic position near the mouth of the Río de la Plata, Uruguay's territory was hotly contested from the arrival of the first Europeans. The Spanish established Montevideo in 1726 but continued to battle with the Portuguese for control of the 'Banda Oriental' (the eastern shore of the river, which would eventually become Uruguay). In 1828, a scrappy band of patriots led by General Juan Lavalleja and inspired by nationalist hero José Artigas finally won independence for Uruguay, establishing it as a buffer between the newly formed nations of Brazil and Argentina.
Regional strife continued for several decades, as Uruguay's two major political parties emerged. The liberally inclined Colorado Party, associated with Montevideo's business owners, and the right-wing National Party, representing rural interests, came to be known as Colorados ('Reds') and Blancos ('Whites') – terms that survive to this day. The Great War of 1843-52 and the War of the Triple Alliance (1864-1870) pitted the two parties against one another, prompting continued interventions by Argentina and Brazil until the Blancos and Colorados finally reached a stable power-sharing agreement in 1872.
In the late 19th century, an influx of immigrants helped transform Uruguay into an agricultural powerhouse. Under the progressive Colorado administrations of José Batlle y Ordonez between 1903 and 1915, Uruguay established Latin America's first welfare state, gave women the vote and abolished both the death penalty and the link between church and state.
As the 20th century progressed, Uruguay's economic fortunes deteriorated, sparking student and labour unrest followed by a suspension of civil liberties and a period of military rule in the 1970s and 1980s. Civilian rule resumed in 1985, accompanied by the ascendancy of the Frente Amplio, a leftist coalition that since 2005 has become Uruguay's first successful third party under Presidents Tabaré Vazquez and José Mujica.
Roman Catholic is the predominant religion (47%), followed by Protestantism (11%). Other religious minorities, including Judaism, account for less than 2% of the population. 40% of Uruguayans claim no religious affiliation.
Social conventions:Shaking hands is the normal form of greeting. Uruguayans are very hospitable and like to entertain both at home and in restaurants. Normal courtesies should be observed. Smoking is not allowed in public spaces, including restaurants, cinemas, theatres and public transport.
The official language is Spanish. Along the northern border with Brazil, many residents also speak a hybrid of Spanish and Portuguese known as Portuñol. English is widely spoken in tourist resorts.
