Mass Immigration and Development

After the Guerra Grande there was a sharp rise in the number of immigrants, primarily from Italy and Spain. By 1879, the total population of the country was over 438,000.

The economy saw a steep upswing, above all in livestock raising and exports. Montevideo became a major economic centre of the region and an entrepôt for goods from Argentina, Brazil and Paraguay.

The Colorado leader José Batlle y Ordóñez was elected president in 1903. The following year the Blancos led a rural revolt and eight bloody months of fighting ensued before their leader, Aparicio Saravia, was killed in battle. Government forces emerged victorious, leading to the end of the co-participation politics that had begun in 1872.

Batlle had two terms (1903–07 and 1911–15) during which, and taking advantage of the nation’s stability and growing economic prosperity, he instituted major reforms such as a welfare program, government participation in many facets of the economy, and a plural executive.

Gabriel Terra became president in March 1931. His inauguration coincided with the effects of the Great Depression. when the social climate became tense as a result of the lack of jobs. There were confrontations in which police and leftists died.

In 1933, Terra organized a coup d’état, dissolving the General Assembly and governing by decree. A new constitution was promulgated in 1934, transferring powers to the president. In general, the Terra government weakened or neutralized economic nationalism and social reform.

In 1938, general elections were held and Terra’s brother-in-law, General Alfredo Baldomir, was elected president. Under pressure from organized labor and the National Party Baldomir advocated free elections, freedom of the press, and a new constitution.

Although Baldomir declared Uruguay neutral in 1939 British warships and the German ship Admiral Graf Spee fought a battle not far off Uruguay’s coast. Admiral Graf Spee took refuge in Montevideo, claiming sanctuary in a neutral port but was later ordered out. In 1945, Uruguay abandoned its policy of neutrality and joined the Allied cause.

In the late 1950s, partly because of a world-wide decrease in demand for agricultural products, Uruguayans suffered from a steep drop in the standard of living which led to student militancy and labor unrest.

An urban guerrilla movement known as the Tupamaros emerged, engaging in activities such as robbing banks and distributing the proceeds to the poor in addition to attempting political dialogue. As the government banned their political activities and the police became more oppressive, the Tupamaros took up an overtly armed struggle.

President Jorge Pacheco declared a state of emergency in 1968, followed by a further suspension of civil liberties in 1972. In 1973, amid increasing economic and political turmoil, the armed forces closed the Congress and established a civilian-military regime.

Around 180 Uruguayans are known to have been killed during the 12-year military rule from 1973–1985. Most were killed in Argentina and other neighbouring countries, with only 36 of them having been killed in Uruguay.