ABSTRACT
Uruguay and Paraguay, two of the smallest nations of South America, are often confused with each other because their names are so similar. Until 1973, Uruguay was considered one of the most stable democracies of Latin America, a model of freedom and progress. Political parties and activities were banned, the National University closed, and workers' organizations outlawed as the most terrible political persecution in Uruguayan history was unleashed. The three most powerful countries in the area—Brazil, Argentina, and Chile—were also suffering military dictatorships at the time of the military drive in Uruguay. By 1980 total US investment in Latin America was more than $38 billion, but Uruguay, Paraguay, and Bolivia shared less than two percent of that amount. Though there may be room for debate about Uruguay's economic performance during the 1990s, the economic and social indicators during the administration of President Batlle were unequivocally poor.
