Uruguay, officially the Eastern Republic of Uruguay or the Republic East of the Uruguay (River) (Spanish: República Oriental del Uruguay; pron. IPA ), is a country located in southern South America. It is bordered by Brazil to the north, the Uruguay River to the west, the estuary of the Río de la Plata (literally "River of Silver", but commonly known in English as "River Plate") to the southwest, with Argentina on the other bank of both, and finally the South Atlantic Ocean to the southeast. About half of its people live in the capital and largest city, Montevideo. The nation is the second smallest independent country in South America, larger than only Suriname (it is also larger than French Guiana, which is not independent), and is one of the most politically and economically stable.
The first Europeans arrived in the area in the early 16th century. Both Spain and Portugal pursued the colonization of Uruguay, with the Spanish eventually gaining control. The future capital, Montevideo, was founded in the early 18th century and became a rival to Buenos Aires across the Río de la Plata. Montevideo, however, was thought of as a military center for the Spanish empire, while Buenos Aires was a commercial center.
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