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Uruguay's only land border is with Rio Grande do Sul, Brazil, to the north. To the west lies the Uruguay River and the estuary of the Río de la Plata to the southwest. To the southeast lies the southern part of the Atlantic Ocean. With an area of approximately 176000 km2 (67954 sqmi), Uruguay is the second-smallest nation in South America by area, after Suriname. Colonia del Sacramento, one of the oldest European settlements in the country, was founded by the Portuguese in 1680. Montevideo was founded by the Spanish in the early 18th century as a military stronghold. Uruguay won its independence in 1811 � 28 following a three-way struggle between the claims of Spain, Argentina and Brazil. It is a constitutional democracy, with a president who is both the head of state and the head of government. Uruguay is one of the most economically developed countries in South America, with a high GDP per capita and the 52nd highest Human Development Index in the world as of 2010, and the first by human development in Latin America, when inequality is factored in. Uruguay is also noted for its low levels of corruption, being ranked by Transparency International as the second least corrupt country in Latin America (behind Chile). Its political and labor conditions are among the freest on the continent. It was the highest rated country in Latin America on Legatum's 2010 Prosperity Index. Reader's Digest ranked Uruguay as the ninth "most livable and greenest" country in the world, and first in all the Americas. Uruguay is ranked highest in Latin America on the Global Peace Index. Uruguay was the first South American country to legalize same-sex and different-sex civil unions at a national level, and to allow gay adoption. Uruguay and Bolivia were the only countries in the Americas which did not go into recession (2 consecutive quarters of retraction) as a result of the Late-2000s financial crisis. In 2009, Uruguay became the first nation in the world to provide every school child with a free laptop and internet. It was the first nation in the Americas to test hemp cultivation. Uruguay is reimbursed by the UN for the majority of its military spending, because the majority of its military is deployed as UN peacekeepers. |