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South America and South Atlantic Islands
Uruguay |
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Last reviewed: 20 January 2009 |
Country information
URUGUAY TODAY
Country Facts
Full country name: Oriental Republic of Uruguay
Area: 176,220 sq km (72,930 sq miles)
Population: 3.5 million (July 2008)
Capital city: Montevideo (population: 1.4 million)
People: 88% European descent, 6% African descent, 6% miscellaneous
Language(s): Spanish
Religion(s): Roman Catholic 47.1%, , Non-catholic Christians 11.1%, Afro beliefs 0.6%, Jewish 0.3%, Atheist or Agnostic 17.2%, Non-confessional 23.2%, Others 0.4%.
Currency: Peso Uruguayo ($)
Major political parties: Frente Amplio (FA); Colorado Party; National Party (aka Blanco), Partido Independiente. Other minor parties: Partido Liberal, Unión Cívica, Partido Intransigente, Partido de los Trabajadores.
Government: Constitutional Republic
President: Dr Tabaré Vázquez
Foreign Minister: Dr Gonzalo Fernández
Membership of international groupings/organisations: Antarctic Treaty, Cairns Group, Food and Agriculture Organisation (FAO), G-11, G–20, G-77, International Labour Organisation (ILO), International Maritime Organisation (IMO), International Monetary Fund (IMF), Interpol, Mercosur, Non Aligned Movement (Observer), Organisation of American States (OAS), United Nations (UN), World Bank, World Health Organisation (WHO), World Trade Organisation (WTO), Convention on the Conservation of Living Marine Resources (CCMLAR), ALADI.
HEALTH
Uruguayans are generally healthy and benefit from a well-established and professional public health care system. Life expectancy at birth is 75.2 years (2004) and infant mortality rate is 13.2 (2004). HIV/AIDS is an increasing problem, but the rate of infected people (4 in 1,000 15-49 year olds) is still low. In Uruguay, HIV/AIDS control is the responsibility of the National AIDS Programme of the Ministry of Health. This office has registered a drop in the speed of growth of the disease since 1996 but an increase in the percentage of women infected. Infection through blood transfusion is almost non-existent due to tight controls. In Uruguay blood banks are free of HIV. Pregnancy control (there is a compulsory HIV test for pregnant women) has made infection from mother to child decrease considerably to the extent that no cases were registered in 2004. The first case of autochthonous Dengue Fever was reported in Uruguay on 20 March 2007. The Uruguayan authorities have launched a campaign to fight the mosquito Aedes aegypti and avoid the spread of the disease.
ECONOMY
Basic Economic Facts (2007)
GDP: US$ 30.8 B
GDP per head: US$ 9,200
Annual Growth: 11.5%
Inflation: 9.19%
Major exports: Meat, wool, processed rice, hides and skins
Major trading partners: Brazil, United States, China, Argentina, Venezuela
Exchange rate: £1 = $ 36 (December 2008)
The main five export markets in 2008 were Brazil, USA, Argentina, Mexico and Germany. Imports rose by close to 40% in 2008 almost reaching USD 8 billion while exports grew by around 30% to around USD 6.2 billion. Main imports markets were Argentina, Brazil, USA and China.
The public sector is unusually large, accounting for 20% of the workforce. Privatisation activities in recent years have included concessions for mobile telephone networks, a container terminal at the Port of Montevideo, major private toll roads between Montevideo and other cities including the resort town of Punta del Este, and the privatisation of the Montevideo International airport. However, the possibility that the State owned oil monopoly (ANCAP) might be part privatised was ruled out when a referendum on the subject in 2003 voted 64% to keep ANCAP state owned. In spite of this, the government is considering some form of joint partnership with Venezuela's PDVSA (Venezuelan State Petroleum Company). Simultaneously with the 2004 national elections a referendum (promoted by the National Waterworks Union) to overturn the partial privatisation of the country's waterworks and sewerage systems carried with 63.5%. However, a government decree issued in May 2005 states that private companies will be able to continue their services until their contracts with the state expire.
Unemployment in 2008 (Q3) ended at 7.7%. Inflation in 2008 was 9.19%, above government predictions of 3-7%. This is the second time in a row the government missed its target. This time around high food and oil prices were the main culprit.
HISTORY
Uruguay's original inhabitants were the Charrúa Indians, a hunter-gatherer people. They killed the explorer Juan Diaz de Solís and most of his party when the Spaniards encountered them in 1516. But by the 17th century, the Charrúas had prospered, abandoned hostilities, and begun trading with the Spanish. During the seventeenth and eighteenth centuries, the territory changed hands between the Spanish and Portuguese several times. By 1832 virtually all Charrúas had been killed or forced to leave, leaving Uruguay with no indigenous people (the only such country in Latin America). Uruguayan independence - finally recognised in 1828 - was repeatedly threatened during the 19th century - militarily by Argentina and Brazil, and economically by Britain. Federalist forces in collusion with Argentina besieged Montevideo from 1838-51 and helped create two warring political parties, the Blancos and the Colorados. For the remainder of the century, the contest between the Blancos and Colorados continued, immersing the country in civil war, dictatorship and political intrigue.
After Uruguay's last civil war ended in 1904 the country entered a period of sustained economic growth. Able to produce first class beef for a growing world meat trade, and good quality wool, Uruguay's exports grew in volume and commanded good prices. The two world wars and the Korean war stimulated exports further. By 1950 Uruguay accounted for 3.5% of all Latin American economic activity. Uruguayans enjoyed the standards of living of a developed country, and their strong currency (the Uruguayan Gold peso) allowed them to take cheap holidays in Europe. For many Uruguayans the first half of the twentieth century – culminating in a glorious victory over Brazil in the 1950 World Cup Final – is their golden age. Throughout this period, except for a short period of military rule under Terra in the early 1930s, Uruguay remained a constitutional democracy.
Uruguay's prosperity had ebbed away by the 1960s as state-supported enterprises became riddled with bureaucratic inefficiency. The Tupamaros, an urban guerrilla movement that appeared publicly in 1967, threw the country into turmoil. In 1973, Congress was dissolved, the military was invited to participate in government, and the Tupamaros were effectively neutralised. The military continued to hold sway in national politics until the return to civilian rule on 1 March 1985 with the inauguration of the democratically elected President Julio Maria Sanguinetti.
At the same time Uruguay's economy began to recover. GDP grew an average of 4.2% from 1992 to 1998 and international ratings agencies awarded Uruguay investment grade. Then two catastrophes struck, both because of problems in Uruguay's neighbouring countries. In 1998 Brazil (which bought a quarter of Uruguay's exports) devalued its currency, plunging Uruguay into recession. Then in 2002, as Argentines withdrew their deposits from Uruguayan banks, the country's private banking sector (a quarter of its economy) collapsed. From its 1998 peak to its 2002 trough Uruguay's economy halved in dollar terms. (See also Economy below).
Presidential and parliamentary elections were held in October 2004. The left wing Frente Amplio (Broad Front) headed by Tabaré Vázquez won in the first round with 50.45% of the vote. In addition to winning the national government, Frente Amplio won a majority in both chambers of Parliament. They beat the two traditional parties: the Colorado Party (centre); and the Blanco Party (centre-right).
President Tabaré Vázquez took office on 1 March 2005 and will remain in power until March 2010. Apart from intervals of unconstitutional rule, this is the first time any party other than the traditional parties has ruled Uruguay. The next presidential and parliamentary elections are scheduled to take place in October 2009.
Mayoral elections took place in May 2005, when the Frente Amplio won in Montevideo for the fourth consecutive time. In addition, they won seats in the interior for the first time ever. Eight leftist mayors took office in July 2005, governing over 75% of Uruguay's inhabitants and over 80% of Uruguay's GDP.
INTERNATIONAL RELATIONS
Uruaguay's Relations with Neighbours
Uruguay is a founder member of Mercosur, the Southern Cone Common Market, along with Paraguay, Brazil and Argentina. Mercosur, founded in 1991, is intended to promote increased trade among its members and the outside world. Montevideo is the site of the Administrative Secretariat. Although Uruguay invested great hopes in Mercosur in the early 1990s these have not been fulfilled and the government continues to seek to diversify Uruguay's markets outside Mercosur.Following much discussion the Uruguayan Government has decided not to negotiate a Free Trade Agreement with the US for the time being, but a Trade and Investment Framework Agreement was negotiated instead.
Uruguay is also a member of the recently created Union of South American Nations (UNASUR), an intergovernmental union integrating Mercosur and the Andean Community, as part of a continuing process of South American integration. Still in its infancy, UNASUR has suffered various teething problems, including lack of agreement over the appointment of Secretary General (Uruguay vetoed Nestor Kirchner’s candidacy as a protest over Argentine actions in the bilateral paper-mill dispute).
Uruguay's Relations with the International Community
Uruguay is an active player in the United Nations and is a significant contributor to UN Peacekeeping operations. Current deployments include the Democratic Republic of Congo and Haiti: a third of Uruguay's Army staff is currently involved in peacekeeping activities. As a member of the Cairns Group, Uruguay is very active in promoting the liberalisation of international trade, especially agriculture, and is critical of the EU's common agricultural policy.
Uruguay's Relations with the UK
We enjoy good bilateral relations with Uruguay and see eye-to-eye on a range of international issues. The UK played a significant part in Uruguay's history in the period immediately before and after independence (1825), being heavily involved in the railways and public utilities. These and many other British assets were transferred to the Uruguayan government after World War Two, mostly in payment of debts incurred with Uruguay for food shipments during that war. The UK no longer has the predominant role in Uruguay that it once held. However, because of our long and close involvement with the creation and growth of their country Uruguayans view us with some affection and we work well with Uruguay on many international issues (including peacekeeping).
Military Relations
In recent years the UK has operated a varied programme of military training with Uruguay, sending students to British organised courses in the UK and around the world. These have included the MOD funded 'Managing Defence in the Wider Security Context' course, a Military Observers course (Kenya 2006), and peacekeeping training. Uruguayan Chiefs of Staff are regular visitors to the UK. In December 2008 Phil Jones (Deputy Director, Directorate for Policy and Defence Relations (South), MOD) visited Uruguay to discuss defence reform, peacekeeping and reinforce the bilateral relationship – meetings included the Minister of Defence and the Chiefs of Staff. In 2009, various defence exchanges are planned, including at Chief of Staff level.
Cultural Relations with the UK
Due to our close historical links, the UK also has strong cultural links with Uruguay and there have been numerous visits by orchestras and soloists, playing classical, jazz and popular music. Local dramatists often use British theatre, playwrights and directors as a point of reference. In 2006, 2007 and 2008, the Embassy supported a number of cultural activities, including performances by the Manchester Hallé Orchestra, the BBC Symphony Orchestra and the Soloists of the London Philarmonia and various theatre plays, concerts and arts exhibitions on the UK. The English language is widely taught in schools and institutes throughout the country and there is a healthy interest in British affairs. There are also good sporting links with Uruguay. We have a small, though successful Chevening programme with Uruguay. The Embassy organised a series of events in 2006 and 2007 to commemorate the bi-centenary of the British presence in the country. Activities included Public Diplomacy work to showcase the excellence of UK media, the sports tradition, Corporate Social Responsibility and the creative industries.
Recent Inward Visits
2008Minister for Housing and Environment Carlos Colacce visited the UK privately in August. The FCO organised a one day official programme for him including a visit to carbon neutral urbanisation BedZed.
Minister for Industry, Energy and Mining Daniel Martínez: 1 to 3 October 2008, a visit including calls on Ministers, industry and a talk at Canning House.
2006
Deputy Foreign Minister Prof Belela Herrera attended a Wilton Park Conference on "Political Change in Latin America: implications for the region, US, EU and Asia-Pacific": 15-17 June.
Minister of Economy and Finance Cr Danilo Astori: 19-25 March.
2004 and 2005
President of Central Bank, Walter Cancela: 11-15 October 2005
Frente Amplio Senator Margarita Percovich: 27 June-1 July 2005
Senator (and leader of opposition Blanco Party) Jorge Larrañaga, President of the Blanco Board: 14-19 March 2005
Recent Outward Visits
Dr Kim Howells MP, Minister of State, FCO visited Uruguay on 12-13 March 2008. He met the Vice-President Rodolfo Nin Novoa, the PUS equivalent at the Foreign Ministry, the Defence Minister and MPs of the International Affairs Committees.
A British delegation of the Inter Parliamentary Union: 20–23 November 2005. Engagements included meetings with Vice President Rodolfo Nin Novoa, Defence Minister José Bayardi and then Foreign Minister Reinaldo Gargano
HRH Prince Edward, Earl of Wessex: February-March 2005. During his three–day visit for the Presidential inauguration HRH met former President Batlle and the current President Tabaré Vázquez, as well as senior government officials of the outgoing and the incoming government
Bill Rammell, former FCO Minister for Latin America: February 2004
GEOGRAPHY
Uruguay is located in southern South America, bordering the South Atlantic Ocean. The second smallest country in South America, Uruguay borders two giants, Brazil and Argentina. Just under half the population lives in Greater Montevideo. Uruguayans are virtually all of European descent, mostly of Spanish and Italian stock.
TRADE AND INVESTMENT
Trade and Investment with the UK
|
|
UK exports (£ Millions) |
UK imports (£ Millions) |
Balance (£ Millions) |
|
2004 |
30.81 |
43.93 |
-13.12 |
|
2005 |
37.50 |
59.39 |
-21.89 |
|
2006 |
40.11 |
65.24 |
-25.13 |
|
2007 |
35.13 |
70.23 |
-35.10 |
Although Uruguay's population is small (3.5 million) it still offers worthwhile business opportunities for UK companies; the UK share of the market is approximately 2%.
Scotch whisky accounts for approximately 20% of British exports to Uruguay, followed by hides, medicinal & pharmaceutical products, telecommunications equipment & chemicals, and machinery & transport equipment. The UK's principal imports are meat, fruit & vegetables, textile fibres, fish and derived products.
POLITICS
HUMAN RIGHTS
Human rights in Uruguay have improved significantly since the end of the military dictatorship in 1985 and Uruguay currently has a good human rights record. A Peace Commission was established in 2000 to investigate the whereabouts of the people who 'disappeared' during the military dictatorship and published its findings in late April 2003. It made substantial progress on 26 of the disappearances in Uruguay during military rule, as well as five cases of Uruguayans who disappeared in Argentina and one in Bolivia. The human rights issue (with emphasis on the sensitive issue of those people who 'disappeared' during the dictatorship) is at the centre of the government's policies, and it has made progress in finding some corpses. The first corpse (a Communist militant killed in 1976) was recognised following a DNA test in early 2006. As a sign of the Government's interest in the area, a bill for the creation of a new Human Rights body called "National HR Institute" has been passed in Parliament. The government has given a new interpretation to the amnesty law of 1986, which ruled out prosecutions of security force members for disappearances that took place before 27 June 1973 (when the military seized power). Some military officers and politicians (including de-facto former President Juan María Bordaberry) are currently in custody awaiting trial in Uruguay or extradition to Argentina for having been allegedly involved in human rights violations.
The major current human rights concern is the state of inmates in Uruguayan prisons, with high overcrowding, bad sanitary conditions and abuse.