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Situated in southeastern South America, Uruguay consists mostly of low, rolling grasslands. Ranchers raise cattle and sheep on the well-watered pastures. It has one of the highest urbanization and literacy rates in South America as well as the lowest poverty and population growth rates. About 93 percent of Uruguayans—most of Spanish or Italian descent—live in cities, with Montevideo home to one-third. Education is compulsory and free, but many Uruguayans emigrate to places like Spain for better job opportunities.

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