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
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