with the invasion of Paraguay and its defeat by the armies of the three countries. Montevideo, which was used as a supply station by the Brazilian navy, experienced a period of prosperity and relative calm during the war.
The constitutional government of General Lorenzo Batlle y Grau (1868–72) was forced to suppress an insurrection led by the National Party. After two years of struggle, a peace agreement was signed in 1872 that gave the Blancos a share in the emoluments and functions of government, through control of four of the departments of Uruguay. This establishment of the policy of co-participation represented the search for a new formula of compromise, based on the coexistence of the party in power and the party in opposition.
Between 1875 and 1886, the military became the center of power. During this authoritarian period, the government took steps toward the organization of the country as a modern state, encouraging its economic and social transformation. Pressure groups (consisting mainly of businessmen, hacendados, and industrialists) were organized and had a strong influence on government. A transition period (1886–90) followed, during which politicians began recovering lost ground and some civilian participation in government occurred.
Mass immigration and development
After the Guerra Grande, there was a sharp rise in the number of immigrants, primarily from Italy and Spain. By 1879, the total population of the country was over 438,000. The economy saw a steep upswing, above all in livestock raising and exports. Montevideo became a major economic centre of the region and an entrepôt for goods from Argentina, Brazil and Paraguay.
20th century
The Colorado leader José Batlle y Ordóñez was elected president in 1903. The following year, the Blancos led a rural revolt and eight bloody months of fighting ensued before their leader, Aparicio Saravia, was killed in battle. Government forces emerged
