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Uruguay is home to an estimated 3. Montevideo was founded as a military stronghold by the Spanish in the early 18th century, signifying the competing claims over the region. Uruguay won its independence between and , following a four-way struggle between Portugal and Spain, and later Argentina and Brazil. It remained subject to foreign influence and intervention throughout the 19th century, with the military playing a recurring role in domestic politics.
A series of economic crises put an end to a democratic period that had begun in the early 20th century, culminating in a coup , which established a civic-military dictatorship. The military government persecuted leftists, socialists, and political opponents, resulting in several deaths and numerous instances of torture by the military; the military relinquished power to a civilian government in Uruguay is today a democratic constitutional republic, with a president who serves as both head of state and head of government.
Uruguay is ranked first in Latin America in democracy , peace , low perception of corruption ,  e-government ,  and is first in South America when it comes to press freedom , size of the middle class and prosperity. It ranks second in the region on economic freedom , income equality , per-capita income and inflows of FDI.
Uruguay is regarded as one of the most socially advanced countries in Latin America. Same sex marriage and abortion are also legal. The name of the namesake river comes from the Spanish pronunciation of the regional Guarani word for it. In Spanish colonial times, and for some time thereafter, Uruguay and some neighbouring territories were called the Cisplatina and Banda Oriental [del Uruguay] "East Bank [of the Uruguay River]" , then for a few years the "Eastern Province".
However, it is commonly translated either as the "Oriental Republic of Uruguay"   or the "Eastern Republic of Uruguay". The Portuguese were the first Europeans to enter the region of present-day Uruguay in In , the Spanish began to introduce cattle, which became a source of wealth in the region. In —71, the Portuguese built a fort at Colonia del Sacramento. Montevideo was founded by the Spanish in the early 18th century as a military stronghold in the country.