Uruguay Country Profile

Uruguay has the most highly educated population, the least economic disparity, the lowest crime rate, and the second lowest level of government corruption in Latin America. The water is safe to drink, and average citizens have access to higher education, good public transportation, and quality medical care.

Uruguay is located in South America between Argentina and Brazil. With a population of 3,432,000 (1.16% of U.S.A. and 58% of Washington State).  It is 68,036 square miles; slightly smaller that the state of Washington.  The capitol is Montevideo, with a population of 1.4 million. It is the capital city, chief port, and the country's economic center. 

Most of the country is rolling grassy plains, ideal for raising cattle. There are no real mountains, but there are areas of hills. Some parts of the interior have wooded valleys with slow moving rivers. The coastline has wide sandy beaches interspersed with picturesque rocky points, which provide an attractive natural setting for vacation resorts.

The climate is mild throughout the year. Temperatures average 70°F to 80°F in summer and 50°F to 60°F in the winter. Rain occurs in all seasons but is generally heavier in fall. There are occasional droughts. Uruguay has almost no regional climate variations. There are periods of “cold” (relative term) weather, but freezing temperatures are almost unknown. On occasion, there are strong southwest winds that come from the Argentine pampas called the Pampero. There are no earthquakes or hurricanes.

Uruguay is ranked 6th out of 142 countries for environmental sustainability in a study conducted by Yale and Columbia Universities in 2002.

88% of the people are European descent (mostly Spanish and Italian) 8% Mestizo (mixed European and American-Indian), mostly in northern Uruguay, 4% African descent.  The native language is Spanish (with unique regional variations).

Uruguay has the lowest poverty level in Latin America, and does not have the great extremes between rich and poor found in other Latin American countries.
 

Uruguay has the lowest crime rate of the Latin American Republics. There is pick-pocketing and purse snatching in Montevideo. Violent crime rates are about the same as in the U.S. The resort of Punta del Este is reputed to have one of the lowest crime rates in the world.

Uruguay General economic philosophy and policy

●  Freedom to enter and exit the country (no visa required for citizens of U.S.A.).   ●  Equal treatment of nationals and foreign nationals. ●  Freedom to own property or conduct business for foreign nationals or companies. ●  No restrictions on movement of capitol.                                                                       ●  Clear laws and constitutional rights protect property rights. ●  Copyright and patent laws. ●  No history of expropriations. ●  Independent and reputable courts. ●  Clear regulations of rights and judicial procedures. ●  Strong reputation for respect of contracts. ●  Admission of alternate dispute resolution

Monetary policy

• Uruguay has never expropriated, frozen, or forced exchange of deposits
• Maintains strict banking privacy

• Lets depositors hold their account in the currency of their choice (Uruguayan Pesos, U.S. Dollars, or Euros).

Many Argentines as well as Uruguayans choose to keep their money in U.S. Dollar accounts, which are available in Uruguayan banks. These depositors choose to hold their savings in dollars to avoid local currency fluctuations.  

Uruguay Government  

●  Uruguay’s political system is a democratic republic with executive, legislative, and judicial branches, much like  

   the U.S.A.
●  Uruguay’s political and labor conditions are the freest on the continent.
●  Uruguay is a strong advocate of constitutional democracy, political pluralism, and individual liberties, yet also

   has a soft spot for socialistic ideals.
●  Uruguay’s international relations have been guided by the principles of non-intervention, multilateralism,

   respect for national sovereignty, and the reliance on the rule of law to settle disputes.
●  A left-of-center President, Tabaré Vázquez, took office in 2005, ending 170 years of a two-party system.
●  2007 tax reform will introduce personal income taxes, which are new in Uruguay.
●  The government is increasing social spending, but is doing so within a budget framework.
● Uruguay has traditionally had strong political and cultural links with its neighbors and Europe.
●  With globalization and regional economic problems, Uruguay’s links to North America have strengthened with

   the U.S.A. becoming its largest trade partner.
●  By diversifying its trade partners and domestic industrial development, Uruguay is becoming more

   autonomous and less susceptible to regional recessions. 

Government Transparency

Transparency International ranks and scores countries by their levels of perceived corruption (the abuse of public office for private gain). The scores range from 10(squeaky clean) to 0 (very corrupt). A score of 5.0 is the number Transparency International considers the borderline figure distinguishing countries that do and do not have a serious corruption problem. Uruguay is the second least corrupt country in Latin America after Chile. For comparison, here is the South American ranking:
 

Chile ranked 20th with a score of 7.3, the least corrupt in Latin America
Uruguay ranked 28th with a score of 6.4  
Brazil shared in a 9-way tie (which included Mexico) for 70th with a score of 3.3
Argentina ranked 93rd with a score of 2.9
 

Uruguay Economy

• Uruguay has a market-oriented economy in which the State still plays a certain role.

• Uruguay’s economy is characterized by an export-oriented agricultural sector, a well-educated workforce, high levels of social spending, a developed industrial sector, a thriving tourism industry, and a fast growing software industry.
• Uruguay has Free Trade Zones, where businesses can operate with no tax liability except for employee benefits.
• The investment climate is generally positive. Investments are allowed without prior authorization, foreign and national investors are treated alike, and there is fully free remittance of capital and profits.
• Uruguay suffered from a regional financial crisis that hit its low point in 2002. Though the impact was painful, appropriate actions have led to economic recovery.

Infrastructure

• Uruguay has several ports and airports, and has a good road system to accommodate commerce.
• Uruguay’s electrical power is provided from hydroelectric plants.
• Uruguay has no oil or natural gas of its own, but does have an oil refinery to process imported crude oil and a pipeline from Argentina that provides natural gas.
• Uruguay has broad cell phone reception and widespread availability of high speed Internet service

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