History of Uruguay - Social and Economic Developments Up To 1890

Social and Economic Developments Up To 1890

After the "Guerra Grande" there was a steady rise in the number of immigrants, above all from Italy and Spain. The number of immigrants had risen from 48% of the population in 1860 to 68% in 1868. In the 1870s, a further 100,000 Europeans arrived, so that by 1879 about 438,000 people were living in Uruguay, a quarter of them in Montevideo.

In 1857, the first bank was opened; three years later a canal system was begun, the first telegraph line was set up, and rail links were built between the capital and the countryside. The Italians set up the Camera di Commercio Italiana di Montevideo (Italian Chamber of Commerce of Montevideo) which played a strategic role in trade with Italy and building up the Italian middle class in the city.

The economy saw a steep upswing after the "Guerra Grande", above all in livestock raising and export. Between 1860 and 1868, the number of sheep rose from three to seventeen million. The reason for this increase lay above all in the improved methods of husbandry introduced by European immigrants.

Montevideo became a major economic centre of the region. Thanks to its natural harbour, it became an entrepot for goods from Argentina, Brazil and Paraguay. The towns of Paysandú and Salto, both on the River Uruguay, also experienced similar development.