The second-smallest nation in South America lies just across the Rio de la Plata from Buenos Aires. But while Uruguay is a little place, it certainly makes a big impression. Despite its homogeneous population, Uruguay reveals splendid contrasts. It is a land of dusty colonial towns and sparkling beach resorts, of rough-and-ready gauchos and subtle artists and festive plazas. Uruguay is a place where soccer is worshipped without reserve, where the sun shines brightly and the air stays warm.. And despite the economic troubles of recent years, Uruguay remains a proud and peaceful nation.