Uruguay

• Author: Sandra González Vila
• Pages: 339-374

339

Uruguay

Sandra González Vila

Ferrere

COUNTRY OVERVIEW

Formerly a Spanish colony, Uruguay acquired an early independence in 1825 and

quickly established a constitutional republic in 1830, being one of the first Latin

American countries to adopt a democratic regime, which has remained one of the

strongholds of the Uruguayan political system to this day.

With an area of approximately 68,00 0 square miles, Uruguay is a small coasta l

country located in South America, lying on the Atlantic coast between Brazil and

Argentina, its only two neighboring countries. The population of Uruguay is cur-

rently estimated at 3.3 million, of which some 1.3 million live in Montevideo (the

capital and only large city) and neighboring areas, while the rest is distributed

between the smaller cities and rural areas. Uruguay’s population growth is 0.6 per-

cent per year, one of the lowest in Latin America, similar to that of the majority of

developed countries. The economically active population totals 1.6 million people.

The average life expectancy is 76 years.

Being a former Spanish colony, and having received a strong influx of European

immigrants, Uruguay’s population is largely of European descent (93 percent), with

other ethnic groups of Af rican descent (5.9 percent) and indigenous descent. Uruguay

CHAPTER9

340 Chapter 9

received a strong influx of European immigration between 1860 and 1920, mostly

from Spain and Italy, and again af ter World War II from central and eastern Europe,

which accounts for the country’s current population composition.

Uruguay’s official langu age is Spanish; however, English is widely spoken when

conducting business, and other languages—such as French, Portuguese, German,

and Italian— are also taught at primary, secondary, and university levels.

Traditionally, Uruguay has sustained a strong economy based mainly on agri-

culture and the primary sector exports but with a rapidly growing predominance

of the services sector, as shown by a thriving tourism industry and development of

offshore banking and other services. Leading economic sectors include meat pro-

cessing, agribusiness, wood, wool, leather production and apparel, textiles, and

chemicals, together with a swiftly developing software industry.

Strategically located between the major consumer centers in Latin America,

Uruguay is a member of MERCOSUR, an international trade zone. In 2013 the

country’s gross domestic product (GDP) was USD 55.7 billion, with a per capita

GDP of over USD 16.6 billion. The GDP annual growth rate was 4.40 percent in

2013. The annual inflation rate is currently 7.43 percent, and the unemployment

level is currently 6.5 percent. Exports for 2013 totaled USD 9.178 million (if goods

exported from free-trade zones are taken into consideration, this amount rises to

USD 10.056 million), mainly directed to the major markets of Brazil, Argentina,

China, Russia, Venezuela, the European Union, and the United States.1

The country is also well known for its advanced education standards. The lit-

eracy rate is 98 percent, and the seconda ry school attendance rate is 85 percent, the

highest in Latin America.

Uruguay has a long-standing reputation for political stability, low corruption,

and reliable institutions that create an environment of stability and overall confi-

dence for investors. According to the World Bank, Uruguay leads in safety, trans-

parency, government effectiveness, and control of corruption in Latin America.2

Table 9.1 presents the governance indicators of different countries including

Uruguay. The index goes from 0 to 100, 100 being the best score and 0 the worst.3

Since its inception, the country has been politically organized as a democratic

republic under a presidential system of government with three traditional branches

of power: executive, legislative, and judiciary. The duties of the executive branch

are carried out by a president and a cabinet of 13 ministers, while the legislative

power is represented by a General Assembly composed of the Chamber of Senators

and the Lower Chamber of Representatives. Both the president and Parliament are

elected for a fixed term during the national elections, which take place every five

years in October. The judiciary power is vested in the Supreme Court of Justice,

lower courts, and judges on a nationwide basis. The decisions rendered by such

courts do not constitute judicia l precedent, although they may provide guidance for

future cases, being the main source of law that courts will apply.

Uruguay’s strategic location in Latin America as one of the main regional

ports, its political stability and democratic tradition, its high educational and living

Uruguay 341

CountryVoice and

Accountability

Political

Stability, No

Violence

Government

Effectiveness

Regulatory

Quality

Rule of LawControl of

Corruption

New Zealand98.1 98.6 96.2 98.1 98.1 99.5

Chile 84.4 60.2 86.1 91.9 87.7 90.4

Uruguay 83.4 71.1 66.0 68.4 66.4 88.5

Brazil 58.8 37.0 51.2 54.5 52.1 55.0

Mexico 53.6 22.7 63.2 67.0 35.1 39.2

Argentina 56.4 48.8 44.5 17.7 28.4 40.7

Belgium 92.9 75.4 93.3 87.6 89.1 91.9

Australia 94.3 83.4 94.7 97.1 95.7 93.8

Table 9.1