Uruguay

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

339

Uruguay

Sandra González Vila

Ferrere

COUNTRY OVERVIEW

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

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

American countr ies to adopt a democratic regime, which h as remained one of the

strongholds of the Uruguayan politic al system to this day.

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

country located in S outh America, lying on t he Atlantic coast bet ween Brazil and

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

rently estimated at 3.3 mi llion, of which some 1.3 mil lion live in Montevideo (the

capital and only large city) and neighbor ing areas, while t he rest is distributed

between the smal ler cities and rural a reas. Uruguay’s population growth is 0. 6 per-

cent per year, one of the lowest in Latin A merica, simila r to that of the majority of

developed countries. The economically active population totals 1.6 m illion people.

The average life expecta ncy is 76 years.

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

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

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

CHAPTER 9

340 Chapter 9

received a strong influx of Eu ropean immig ration between 1860 and 1920, mostly

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

which accounts for the countr y’s current population composition.

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

conducting business, a nd 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 m ainly on agri-

culture and the pri mary sector exports but with a rapidly growing predomi nance

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

offshore banking and ot her services. Le ading economic sectors include meat pro-

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

chemicals, together w ith a swiftly developing sof tware industry.

Strategically located b etween the major consumer centers in Latin America,

Uruguay is a member of MERCOS UR, an inter national trade zone. In 2013 the

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

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

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

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

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

USD 10.056 million), mainly direc ted to the major markets of Brazil, A rgentina,

China, Russia, Venezuela, t he European Union, and t he United States.1

The country is als o well known for its advanced education standa rds. The lit-

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

highest in Lati n America.

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

and reliable institutions th at create an environment of stability a nd overall confi-

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

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

Table 9.1 presents the governance ind icators of different countries i ncluding

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

Since its inception, the country has been polit ically organiz ed as a democratic

republic under a presidential system of government with t hree traditional branche s

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

are carried out by a president and a cabinet of 13 mi nisters, while the le gislative

power is represented by a General Assembly composed of t he Chamber of Senators

and the Lower Chamber of Represent atives. Both the president and Parliam ent are

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

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

lower courts, and judges on a nationwide basis. T he 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 Lat in America as one of the ma in regional

ports, its politica l stability and democratic t radition, its high educationa l and living

Uruguay 3 41

Country Voice and

Accountability

Political

Stability, No

Violence

Government

Effectiveness

Regulatory

Quality

Rule of Law Control of

Corruption

New Zealand 98 .1 98.6 96. 2 98 .1 9 8 .1 99.5

Chile 84.4 60.2 8 6 .1 91.9 8 7. 7 90.4

Uruguay 83.4 71.1 66 .0 68.4 66.4 88.5

Brazil 58.8 3 7.0 51. 2 54.5 5 2 .1 55.0

Mexico 53.6 22.7 63.2 6 7. 0 3 5.1 3 9.2

Argentina 56.4 48.8 44.5 1 7.7 28.4 4 0.7

Belgium 92.9 75.4 93.3 87.6 89.1 9 1.9

Australia 94.3 83.4 94 .7 97.1 9 5.7 93.8

Table 9.1