URUGUAY

Oriental Republic of Uruguay República Oriental del Uruguay

CAPITAL: Montevideo

FLAG: The flag, approved in 1830, has four azure blue horizontal stripes on a white background; on a white canton is a golden sun, alternately straight and wavy. This "Sun of May" symbolizes Uruguay's independence.

ANTHEM: Himno Nacional, which begins "Orientales, la patria o la tumba" ("Easterners [Uruguayans], our country or death").

MONETARY UNIT: The Uruguayan peso (up), of 100 centésimos replaced the new peso in 1993 at the rate of up1 = 1,000 new pesos. There are coins of 10, 20, and 50 centésimos and 1, 2, 5, and 10 new pesos, and notes of 1, 5, 10, 20, and 50 Uruguayan pesos. up1 = $0.04023 ($1 = up24.86) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard, but some traditional measures also are used.

HOLIDAYS: New Year's Day, 1 January; Epiphany, 6 January; Landing of the 33, 19 April; Labor Day, 1 May; Battle of Las Piedras, 18 May; Birthday of Artigas, 19 June; Constitution Day, 18 July; Independence Day, 25 August; Columbus Day, 12 October; All Souls' Day, 2 November; Blessing of the Waters, 8 December; Christmas Day, 25 December.

TIME: 9 am = noon GMT.

LOCATION, SIZE, AND EXTENT

The second-smallest South American country, Uruguay is situated in the southeastern part of the continent. It has an area of 176,220 sq km (68,039 sq mi), extending 555 km (345 mi) nnw–sse and 504 km (313 mi) ene–wsw. Comparatively, the area occupied by Uruguay is slightly smaller than the state of Washington. Bounded on the n and ne by Brazil, on the se and s by the Atlantic Ocean, and on the w by Argentina, Uruguay has a total land boundary length of 1,564 km (972 mi) and a coastline of 660 km (410 mi). The Uruguay River and the Río de la Plata separate Uruguay from Argentina. The Cuareim and Yaguarón rivers and the Laguna Merín separate it from Brazil.

Uruguay's capital city, Montevideo, is located in the southern part of the country on the Atlantic coast.

TOPOGRAPHY

The general character of the land is undulating hills, with a few forest areas along the banks of the numerous streams. Southern Uruguay consists mostly of rolling plains and is an eastward extension of the Argentine pampas. The Atlantic coastline is fringed with tidal lakes and sand dunes. Low, unbroken stretches of level land line the banks of the two border rivers, the Uruguay and the Plata. The northern section is broken by occasional ridges and low ranges (cuchillas), alternating with broad valleys, and is a southern extension of Brazil. The highest point in the country, Catedral, is 514 m (1,686 ft) above sea level. The most noteworthy feature of the northwest landscape is the Cuchilla de Haedo. The Cuchilla Grande runs northeastward from the southern region to the Brazilian border. The Negro, which rises in Brazil, crosses Uruguayan territory and flows into the Uruguay River, which separates Uruguay from Argentina.

CLIMATE

The climate is temperate; the average temperature in June, the coolest month, is about 15°c (59°f), and the average for January, the warmest month, is 25°c (77°f). The weather is transitional between the weather of the humid Argentine pampas and that of southern Brazil. Rainfall is evenly distributed throughout the year; it averages about 105 cm (41 in), varying from 97 cm (38 in) in Montevideo to nearly 127 cm (50 in) farther north. There are from 120 to 180 sunny days a year. Frost is virtually unknown.

FLORA AND FAUNA

Uruguay is primarily a grass-growing land, with vegetation that is essentially a continuation of the Argentine pampas. Forest areas are relatively small. The most useful hardwoods are algarobo, guayabo, quebracho, and urunday; other hardwoods include arazá, coronilla, espinillo, lapacho, lignum vitae, and nandubay. The acacia, alder, aloe, eucalyptus (imported from Australia), ombú, poplar, and willow are common softwoods. Palms are indigenous to the valleys. Rosemary, myrtle, scarlet-flowered ceibo, and mimosa are common. Most of the valleys are covered with aromatic shrubs while the rolling hills are blanketed with white and scarlet verbena.

Large animals have virtually disappeared from the eastern regions. The carpincho (water hog), fox, deer, nutria, otter, and small armadillo roam the northern foothills. On the pampas are the hornero (ovenbird), quail, partridge, and crow. The avestruz (a small ostrich similar to the Argentine rhea), swan, and royal duck are found at lagoons. Fish include pompano, salmon, and corvina. The principal reptiles are cross vipers and tortoises. Seals are found on Lobos Island, near Punta del Este.

As of 2002, there were at least 81 species of mammals, 115 species of birds, and over 2,200 species of plants throughout the country.

ENVIRONMENT

Air and water pollution are environmental concerns in Uruguay. Air pollution, which is worse in the larger population centers, is caused primarily by Uruguay's own industries and by an energy plant in neighboring Brazil. Water pollution from mining and industrial sources threatens the nation's water supply, especially pollution from the meat packing and tannery industry. Uruguay has 59 cu km of renewable water resources with 91% of annual withdrawals used for farming activity and 3% for industrial purposes. About 98% of the population has access to safe drinking water. Natural hazards to the environment include drought, flooding, and fires.

Erosion of the soil affects the nation's agricultural productivity. The nation's cities produce about 0.5 million tons of solid waste per year. Government agencies with environmental responsibilities include the Division of Environmental Health, within the Ministry of Public Health; the Ministry of Agriculture; and the Interior Ministry.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), 6 types of mammals, 24 species of birds, 3 types of reptiles, 4 species of amphibians, 11 species of fish, 1 species of invertebrate, and 1 species of plant were threatened. Endangered species included the tundra peregrine falcon, two species of turtle (green sea and leatherback), and two species of crocodile (spectacled caiman and broad-nosed caiman). The glaucous macaw has become extinct.

POPULATION

The population of Uruguay in 2005 was estimated by the United Nations (UN) at 3,419,000, which placed it at number 127 in population among the 193 nations of the world. In 2005, approximately 13% of the population was over 65 years of age, with another 24% of the population under 15 years of age. There were 94 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.6%, a rate the government viewed as too low, presenting challenges for economic development. The projected population for the year 2025 was 3,831,000. The population density was 19 per sq km (50 per sq mi), about double that of South America as a whole.

The UN estimated that 93% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.82%. The capital city, Montevideo, had a population of 1,341,000 in that year.

MIGRATION

The basic sources of immigration to Uruguay were Spain and Italy. English, French, German, Slavic, and Swiss immigrants also settled in various departments (provinces). In the 1930s, restrictions were placed on immigration, and the importation of seasonal farm workers was stopped. There were 103,002 foreign-born people in 1985. Substantial emigration by Uruguayans for political or economic reasons occurred during the mid-1970s and early 1980s. Official figures suggest that about 180,000 Uruguayans left between 1963–75 and an estimated 500,000 between 1975–95. Argentina and Brazil were the main destinations. Nearly 93% live in urban centers, with 42% concentrated around the capital city.

As of 2000, Uruguay had 89,000 migrants, including less than 100 refugees. In 2004, there were 97 refugees and 10 asylum seekers. The net migration rate in 2005 was an estimated -0.28 migrants per 1,000 population. The government views the immigration level as too low and the emigration level as too high. In 2003 worker remittances were $35.3 million.

ETHNIC GROUPS

About 88% of the inhabitants of Uruguay are white and of European origin, mostly Spanish and Italian; a small percentage is descended from Portuguese, English, and other Europeans. Mestizos (those of mixed white and Amerindian lineage) represent 8% of the population and mulattoes and blacks about 4%. The indigenous Charrúa Amerindians were virtually wiped out early in the colonial era.

LANGUAGES

Spanish is the official language. Uruguayan Spanish, like Argentine Spanish, has been somewhat modified by the Italians who migrated in large numbers to both countries. In general, the language of Uruguay is softer than that of Castile and some words are different from those commonly used in Spain. The gauchos have influenced the language, particularly in words dealing with their way of life. Brazilero (Portunol), a Portuguese-Spanish mix, is spoken on the Brazilian frontier.

RELIGIONS

About 58% of Uruguayans identify themselves as Roman Catholic. Approximately 9% of the population are Protestant or other Christian. The primary mainline Protestant denominations include Anglicans, Methodists, Lutherans, and Baptists. Others include Pentecostals, Mennonites, Eastern Orthodox, Mormons, and Jehovah's Witnesses. The Unification Church has a somewhat strong presence within the country. There are small communities of Muslims and Baha'is. About 30,000 Jews reside in the country.

TRANSPORTATION

After World War II, the Uruguayan government purchased the British-owned railroads and nationalized the entire system. The railroads are run by the State Railway Administration. Four main lines connect the western and northern areas with Montevideo. In 2004, there were 2,073 km (1,287 mi) of track, all of it standard gauge and government-owned.

Highways have surpassed railroads as the principal means of conveyance of passengers and freight. In 2002, there were an estimated 8,764 km (5,446 mi) of roads, of which 7,800 km (4,847 mi) were paved. The Investment and Economic Development Commission's 10-year plan (1965-74) provided about $87 million for highway construction and improvement. A five-year plan for transport and public works, covering the years 1983-87 and partly financed by the IBRD and IDB, provided for construction of 10,000 km (6,200 mi) of new roads. In 1986, the IDB approved a loan of $36 million to help finance a highway development project. Two sections of highway (Routes 1 and 5) in addition to a main artery funneling traffic into Montevideo were scheduled for improvement. In 2003, there were 669,700 motor vehicles, of which 547,800 were passenger cars and 121,900 commercial vehicles.

Montevideo is the major Uruguayan port. Colonia and Nueva Palmira are free ports. There are some 1,600 km (994 mi) of inland waterways, of which the most important are the Plata and the Uruguay, the latter having a depth of 4.3 m (14 ft) as far as Paysandú. Uruguay's merchant fleet in 2005, consisted of 11 vessels of 1,000 GRT or more, totaling 10,918 GRT.

There were an estimated 64 airports in 2004, of which 9 had paved runways as of 2005. Carrasco, an airport 19 km (12 mi) from the center of Montevideo, is used by most international carriers between Europe, Brazil, and Argentina. Frequent air service links Buenos Aires with Montevideo. The state-owned Primeras Líneas Uruguayas de Navegación Aérea (PLUNA) offers service to the principal departmental capitals as well as international flights. In 2003, about 464,000 passengers were carried on scheduled domestic and international airline flights.

HISTORY

During the 16th century, only a few Spanish expeditions landed on the Banda Oriental, or east bank of the Uruguay River. Most of them were driven off by the native Charrúa Amerindians. Jesuit and Franciscan missionaries landed in 1624, and formed permanent settlements. By 1680, Portuguese from Brazil had founded Colonia do Sacramento as a rival to Buenos Aires, on the opposite bank of the estuary. Thereafter, the area was a focal point for Spanish-Portuguese rivalry.

Montevideo was founded in 1726, and Uruguay became part of the viceroyalty of La Plata, which the Spaniards established in Buenos Aires in 1776. During the Napoleonic Wars, the British invaded the region of La Plata and captured Buenos Aires and Montevideo (1806–07), but they were forced out in 1807. After Buenos Aires refused to give Uruguay autonomy, the Uruguayan national hero, José Gervasio Artigas, declared Uruguay independent in 1815. A year later, Brazilians attacked Montevideo from the north, but Artigas led a revolutionary movement against them. The struggle continued from 1816 to 1820, when the Portuguese captured Montevideo and Artigas had to flee to Paraguay. Uruguay was annexed to Brazil in 1821 and was known as the Cisplatine Province.

On 25 August 1825, Juan Antonio Lavalleja, at the head of a group of patriots called the "treinta y tres orientales" ("33 Easterners"), issued a declaration of independence. After a three-year fight, a peace treaty signed on 28 August 1828 guaranteed Uruguay's independence. Disappointed in his hopes for the presidency, Lavalleja launched a series of rebellions. During this period of political turmoil and civil war, the two political parties around which Uruguayan history has traditionally revolved, the Colorados (reds) and the Blancos (whites), were founded. Uruguay's first president, Gen. José Fructuoso Rivera, an ally of Artigas, founded the Colorados. The second president, Brig. Gen. Manuel Oribe, a friend of Lavalleja, founded the Blancos.

The 19th century was largely a struggle between the two factions. Some measure of national unity was achieved in the 1860s. In 1865, Uruguay allied with Brazil and Argentina to defeat Paraguay in the Paraguayan War (1865–70), also known as the War of the Triple Alliance and the Triguarantine War. However, it was not until the election of José Batlle y Ordóñez as president in 1903 that Uruguay matured as a nation.

The Batlle administrations (1903–07, 1911–15) marked the period of greatest progress. A distinguished statesman, Batlle initiated the social welfare system codified in the Uruguayan constitution. From then on, Uruguay's social programs, funded primarily by earnings of beef and wool in foreign markets, gave Uruguay the sobriquet "Switzerland of South America."

After World War II, the Colorados ruled, except for an eight-year period from 1958–66. It was during the administration of President Jorge Pacheco Areco (1967–72) that Uruguay entered a political and social crisis. As wool declined in world markets, export earnings no longer kept pace with the need for greater social expenditures. Political instability resulted, most dramatically in the emergence of Uruguay's National Liberation Movement, popularly known as the Tupamaros. This well-organized urban guerrilla movement mounted a campaign of kidnapping, assassination, and bank robbery while espousing Marxist and nationalist ideals.

In November 1971, Colorado candidate Juan María Bordaberry Arocena was elected president, and the Colorados retained control of the Senate and Chamber of Deputies. After Bordaberry assumed office in March 1972, the Tupamaros ended a temporary truce and returned to the offensive. Their activities, coupled with the worsening economic situation, exacerbated Uruguay's political uncertainty. Gradually, the military assumed a greater role in government, and by 1973 was in control of the system. By the end of 1973, the Tupamaros had been crushed.

Military officers were named in 1974 to head all state-run enterprises, including the Central Bank. The 1966 constitution was suspended and political activity was banned. Military leaders ousted Bordaberry from the presidency in 1976, because of his refusal to restore constitutional rule, and they named a new president, Aparicio Méndez Manfredini. The OAS and other international organizations denounced Uruguay for human rights violations. In 1979, Amnesty International estimated the number of political prisoners at 6,000. In mid-1981, the military government began to negotiate with leaders of the traditional parties, and in September 1981, a "transitional" president, Georgio Álvarez Armellino, was installed.

Intraparty elections took place in November 1982, followed by legislative and presidential voting in November 1984. The moderate government of Colorado candidate Julio María Sanguinetti Cairolo took office in March 1985. Lacking a majority in Congress, Sanguinetti worked closely with other political leaders to reach a consensus on major issues.

One of the first acts of the new government was to release all political prisoners. Another was to declare amnesty for former military and police leaders accused of human rights violations. In an attempt to reconcile warring factions, the government initiated a "social dialogue" with employers and union leaders to reduce social tension. However, slow progress on the economic front led to the 1989 election of the Blanco candidate, Luis Alberto Lacalle.

Lacalle engaged in an ambitious attempt to liberalize the Uruguayan economy. He emphasized deficit reduction, reforms in education, labor, and the civil service, as well as the privatization of state enterprises. However, these plans were dealt a serious blow in 1993, when a plebiscite failed to ratify a set of proposals for liberalization. In November 1994, Sanguinetti was returned to office in the closest elections ever recorded in Uruguay's history. The three-way race between the Colorado, Blanco, and Broad Front (a leftist coalition) parties ended in just a slight majority for Sanguinetti and the Colorados. Both the Blanco and Broad Front candidates were only a few votes behind. It was the first time the Broad Front party had come within reach of the presidency. The Broad Front also gained the municipal government of Montevideo, Uruguay's capital, in 1989 and again in 1994. In the 1990s, the left had discarded revolutionary rhetoric and become more moderate and more appealing to centrist voters. At the same time, many Uruguayans had grown more critical of the traditional parties.

Sanguinetti himself immediately embarked on a program of economic reforms, including a long-range plan for cutting back on Uruguay's historically generous social programs and benefits, including 20 days of vacation after a year of work, paid maternity leave, and a generous retirement package. As a member of Mercosur (Mercado Común del Sur—Southern Cone Common Market), Uruguay faced growing pressure to liberalize its economy during the 1990s, as economic giants, and Mercosur partners Brazil and Argentina had done. Yet voters had twice rejected privatization of state-owned companies, some of which were profitable and often even competitive. The economy also had done well, with the GDP averaging 4.2% growth between 1992–98.

By 1999, the country's economic picture had changed. The troubled Argentinean and Brazilian economies affected Uruguay, where the economy contracted by 2%. Instead of panicking and clamoring for a cut in social benefits and privatization of state industries, presidential candidates from the right and left called for a cautious approach to economic reforms as they neared the October 1999 elections. Tabaré Ramón Vázquez, the former socialist mayor of Montevideo and candidate representing the Broad Front, finished first in the presidential election, with 39% of the vote. He had appealed for caution, gaining the largest number of votes for a leftist coalition in the country's history. But Vázquez failed to gain a 51% majority, forcing a presidential runoff. The Colorado candidate, Jorge Batlle Ibáñez, had unsuccessfully run for the presidency four times and finished second with 31% in the October election. The Blanco candidate, Luis Lacalle, had finished third with 21.5%.

The 72-year-old Batlle, whose great-uncle had built the country's social programs, was not about to dismantle them. He positioned his party as a moderate alternative to Vázquez's leftist coalition. But ultimately, he persevered at the polls by aligning the Colorados with their historic foes: the Blancos. The Blancos aligned themselves with Batlle in exchange for political concessions and ministerial posts. In the November runoff election, Batlle gained 54.1% of the vote to Vázquez's 45.9%. Batlle was inaugurated in March 2000 and named five Blancos to his cabinet. The Blancos and the Colorados also held a slim majority in the Senate, with 17 of 31 seats, and a majority in the lower house, with 54 of 99 seats.

Faced with a shrinking economy and having inherited a country in an economic recession, Batlle faced the economic and political crisis in Argentina, Uruguay's closest and most important ally. The economy remained in a recession in 2000 and 2001, but things got even worse in 2002, when the economy shrunk by 11%. During Batlle's term, the economy shrunk altogether by almost 20%. Though unemployment remained high in recent years, less than 10% of the population lived in poverty by the end of Batlle's term. Yet, Batlle was unsuccessful in adopting a strategy that could generate sustained economic growth and restore dynamism to his country's economy.

In the 2004 elections, the Broad Front capitalized on the discontent with the established traditional Colorado and Blanco parties. Tabaré Vázquez won the presidential election in the first round, with 50.4%. Blanco Party candidate Jorge Larrañaga obtained 34.3% and Guillermo Stirling from the ruling Colorado party won 10.4%. The Broad Front also did extremely well in the parliamentary elections, winning an outright majority of votes and securing control of the Senate (17 of 31 seats) and of the Chamber of Deputies (52 of 99 seats). For the first time in several decades, Uruguay was to be ruled by a party other than the Colorado or Blanco. Vázquez's Broad Front could safely adopt all necessary reforms and implement much needed policies to bring about economic growth and make up for the years of recession and stagnation. The next elections were to be held in October 2009.

Although the economy was a healthy 12.3% in 2004, when Vázquez took office in March of 2005, Uruguay was poorer than in 1998. With a solid 6% growth in his first year, driven by a recovery in Argentina and Brazil, Vázquez was able to increase social spending and help boost employment. Yet, Uruguay's long-term structural deficiencies remained and opportunities for the private sector remained scant. In spite of being a committed leftist, President Vázquez adopted a pragmatic approach to government. He sought to attract foreign investors and made significant efforts to liberalize the economy. Tensions with Argentina, over the construction of a cellulose plant on a river both countries share, underlined President Vázquez's intention to make his country more competitive. Because Uruguay enjoys one of the most stable democracies in the region and boosts one of the lowest levels of inequality and the best-educated workforce in Latin America, the potential for economic growth associated with economic liberalization seemed promising. Yet, the government will need to work hard to liberalize the economy and protect its wide and comprehensive social spending safety net that has helped make Uruguay one of the countries with the lowest levels of poverty in the region. Although he was inaugurated in early 2005, Vázquez showed strong leadership and an ability to bring together Uruguayans in a way that made observers optimistic about the future of the country.

GOVERNMENT

The constitution of 1830 underwent numerous revisions, notably in 1917, 1934, 1952, and 1966. This constitution provided for a republican government, divided into three branches: executive, legislative, and judicial. From 1951 to 1966, the executive consisted of a colegiado, or council, of nine ministers, six from the majority party and three from the minority. In the 1966 elections, however, the electorate reinstated the positions of president and a vice president, popularly elected for a five-year term, together with a council of ministers.

According to the constitutional revision of 1966, the congress (or General Assembly) consisted of the Senate and the Chamber of Deputies. The Senate had 30 popularly elected senators, plus the vice president of the republic as the thirty-first voting member. The Chamber of Deputies had 99 deputies, popularly elected by departments (provinces). The right to vote was extended to all citizens 18 years of age or older, with female suffrage in local elections as early as 1919 and in national elections in 1934.

From June 1973, when President Bordaberry dissolved the Assembly and suspended the constitution, until March 1985, Uruguay was ruled by executive decree, subject to veto by the military, with legislative functions carried out by the 25-member Council of State, appointed by the executive. A new constitution, providing for the permanent participation of the armed forces in government by means of a National Security Council, was drafted by the Council of State but rejected by 57.2% of the voters in a referendum on 30 November 1980.

In March 1985, democracy was restored under President Sanguinetti; in July, the government set up a National Constituent Assembly to devise constitutional reforms that would be submitted to the electorate for ratification. In the elections of November 1994, the proposed reform of 14 articles of the constitution was again rejected, this time by 63% of Uruguayan voters.

Direct democracy provisions, in the form of referendums and legislative proposals initiated by citizens, are widely practiced in Uruguay. Although electoral participation has fallen in recent years, Uruguay remained as one of the most democratically participatory countries in the western hemisphere.

POLITICAL PARTIES

Uruguay has Latin America's oldest two-party system. The Colorados (reds) and Blancos (whites), formed during the conflicts of the 1830s and 1840s, persisted into the 1990s. The Colorados are traditional Latin American liberals, representing urban business interests, and favoring limitation on the power of the Catholic Church. The Blancos (officially called the National Party) are conservatives, defenders of large landowners and the Church.

For more than 90 years, until the 1958 elections, the executive power was controlled by the Colorados. Under such leaders as Batlle, the party promulgated a progressive program advocating public education, advanced labor laws, government ownership of public utilities, and separation of church and state. After eight years of Blanco government, the Colorado party regained power in the 1966 election.

The results of the November 1971 balloting were so close that the final tabulation took more than two months to ascertain; the Colorados won 36.3% of the vote; the Blancos, 35.7%; and the Broad Front (Frente Amplio, a left-wing coalition that included the Tupamaros), 16.6%. These three groups, plus the Christian Democratic Party (Partido Democrático Cristiano—PDC), formed in 1962 from the former Catholic Civic Union, made up the Uruguayan party system at the time of the military takeover.

Political activities were suspended following the constitutional crisis of June 1973, and in December 1973 the Communist and Socialist parties were outlawed. In June 1980, the military began to liberalize, as they permitted political meetings of nonleftist groups. In November 1982, they allowed for intraparty elections in each of three parties: the Colorados, the National Party (Blancos), and the small Civic Union (an outgrowth of the Christian Democrats). In the voting, party candidates who had campaigned against the military's proposed constitution in 1980 took more than 60% of the vote.

Neither Blanco leader Wilson Ferreira Aldunate nor Broad Front leader Líber Seregni Mosquera was allowed to participate in the elections, but both retained their party posts. In the November 1984 elections, Colorado candidate Julio María Sanguinetti Cairolo won the presidency with 38.6% of the vote. The Colorados also won pluralities in the Chamber of Deputies and the Senate. Aldunate and Seregni frequently consulted with President Sanguinetti, and previously outlawed parties were legalized. In 1985, the PDC and FIDEL belonged to the Broad Front, and the National Liberation Movement (Movimiento de Liberación Nacional—MLN), also known as the Tupamaros, reconstituted years after their destruction in 1973, announced their intention to give up violence and join the Broad Front as a legal party.

In 1989, Blanco candidate Lacalle took 37% of the vote. Jorge Batlle, of the Colorado party, unable to capitalize on name recognition, received 29%, while Líber Seregni Mosquera of the Broad Front received 20%. The Blancos also carried a plurality in each house of the legislature, followed respectively by the Colorados, the Broad Front, and the "New Space (or Sector)" Coalition, which consists of the PDC and the Civic Union.

As more people grow disenchanted with market reforms in Latin America, leftist coalitions have become more palatable to voters. In Uruguay, the Broad Coalition candidate Tabaré Vázquez made an impressive show at the polls, finishing first with 39% of the vote in the October 1999 presidential election. His success forced historic foes Blancos and Colorados to back Jorge Batlle in the November runoff election. While Batlle persevered, the leftist coalition managed to increase its total vote behind Vázquez (45.9%). The Batlle presidency was characterized by a further weakening of the traditional parties. Faced by the opposition of the Broad Front, Batlle was forced to rely on the 22 deputies and 7 senators from the National Party that, together with the 33 deputies and 10 senators from the Colorado party, comprised a majority in the 99-seat Chamber of Deputies and 31-seat Senate.

After the 2004 presidential and legislative election, the strength of the Colorado and National (Blanco) party was further diminished. The leftist Broad Front commands a majority control of both chambers. Although the Colorado and National parties have remained formally separated, they have constituted a center-right allied opposition against the Vázquez Broad Front government. The Broad Front, as of 2005, was the largest and most powerful party in Uruguay.

LOCAL GOVERNMENT

Uruguay territorially is divided into 19 departments (provinces). Under the 1966 constitutional revision, each department had a unicameral legislature, but all 19 legislatures were dissolved by President Bordaberry on 28 June 1973. Following the installation of the democratic government in 1985, the departments returned to their pre-1973 status of limited autonomy under the central government.

JUDICIAL SYSTEM

Most of the nation's legal system was suspended in 1973, but in 1981, the military government restored the independence of the civilian judiciary. In that year, a Supreme Judicial Council was empowered to name Supreme Court justices and supervise the judiciary. Below the Supreme Court are appellate courts and lower civil and criminal courts, justices of the peace, electoral and administrative courts, and an accounts court. A parallel military court system operates under its own procedure. When the Supreme Court hears cases involving the military, two military justices join the court. Civilians are tried in the military court only in time of war or insurrection. The judiciary is structurally independent of the executive and this separation of powers is respected in practice.

The constitution prohibits the arbitrary interference with privacy, family, home, or correspondence, and the government authorities respect these provisions in practice.

The legal system is based on Spanish civil law. Uruguay accepts the compulsory jurisdiction of the international court of justice.

ARMED FORCES

The armed forces of Uruguay had 24,000 active personnel in 2005. The Army numbered 15,200, organized into four regional divisions. Equipment included 15 main battle tanks and 68 light tanks. The Navy (including the naval aviation arm and a naval infantry force) numbered 5,700 members. Major naval units included three frigates and nine patrol/coastal vessels. The Air Force had 3,100 personnel and 31 combat capable aircraft, including 18 fighter ground attack aircraft. There was a 920-member paramilitary guard in two units. The defense budget in 2005 totaled $163 million. Uruguay participated in UN peacekeeping and had troops and observers stationed in 12 countries or regions.

INTERNATIONAL COOPERATION

Uruguay is a charter member of the United Nations, having joined 18 December 1945, and belongs to ECLAC and several nonregional specialized agencies, such as the FAO, the World Bank, ILO, UNCTAD, UNESCO, UNIDO, IAEA, and the WHO. Uruguay is also a member of the South American Community of Nations (CSN), the Inter-American Development Bank, G-77, the Latin American Economic System (LAES), the Latin American Integration Association (LAIA), the WTO, the OAS, and the Río Group. In 1995, Uruguay became a founding member (with Brazil, Argentina, and Paraguay) of the Southern Cone Common Market, known as Mercosur (Mercado Comun del Sur).

Uruguay is a guest in the Nonaligned Movement and a member of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL). The country has supported UN missions and operations in India and Pakistan (est. 1949), Western Sahara (est. 1991), Ethiopia and Eritrea (est. 2000), Sierra Leone (est. 1999, Burundi (est. 2004), Cyprus (est. 1964), and Georgia (est. 1993), among others. The country is a signatory of the 1947 Río Treaty, an inter-American security agreement.

In environmental cooperation, Uruguay is part of the Antarctic Treaty, the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Uruguay's economy remains dependent on agriculture. Agricultural production, combined with the industrial sector based on the transformation of agricultural products, makes up more than half of the country's exports. However, the service sector, especially tourism and financial services, was growing quickly in the early 2000s. In 2005 the service sector was estimated to be over 65% of GDP and employed about 70% of the labor force. Agriculture, however, was still important, particularly livestock production for export and consumption, as well as for inputs for other sectors of the economy. Agriculture accounts for 7% of GDP but employs 14% of the labor force. Industry (agro-industry, chemicals, and consumer goods for local consumption) declined in recent years as the service sector expanded, particularly in terms of employment. Industry employs 16% of the work force, but accounts for 28% of GDP. There is a mixture of private and state enterprises with the economy generally open to foreign trade and investment.

Due partly to the demand generated by World War II and the Korean War for industrial products and also to government efforts to attain a fair degree of economic self-sufficiency and to improve foreign trade, the value of Uruguay's industrial output doubled between 1936 and 1960. Between 1960 and 1970, the industrial growth rate leveled off as the limitations of an import-substitution strategy became apparent. Encouragement of nontraditional manufactured exports led to industrial production increases averaging 6% annually during 1973–79. The lack of natural resources obliged Uruguay to import most raw materials needed by its industries.

In the early 1980s, in the wake of the second oil shock, the economic situation was characterized by an uninterrupted fall in real output, low levels of investment, high unemployment, mounting inflation, a severe imbalance in public finance, and a massive accumulation of arrears in private-sector debt to the domestic banking system, which in turn caused a potentially critical situation in the country's financial institutions. In mid-1985, the government negotiated agreements with the IMF and creditor banks that produced a standby credit from the Fund, a renegotiation of debt with foreign banks, and an economic-financial program with the IMF intended to reduce the public-sector deficit, inflation and the money supply, and to remedy the balance-of-payments disequilibrium.

Since 1990, the government has pursued a program of economic liberalization, which has included lowering of tariffs, Southern Common Market (Mercosur) integration, reducing deficit spending, controlling inflation, and downsizing government. Growth in GDP averaged 3.7% between 1988 and 1998, with an average 4.75% between 1997 and 1998. However, from 1999 to 2003 the economy experienced an uninterrupted series of contractions. Real GDP contracted 3.2% mainly due to the Brazilian currency devaluation of January 1999, which hurt both Uruguay's exports and its tourist receipts. The government entered into a precautionary standby arrangement with the IMF, but in 2000, the recession eased to 1% of GDP as the government pursued neo-liberal reforms supported by one-year standby agreements with the IMF.

In 2001, a local outbreak of hoof-and-mouth disease that hurt meat exports and the Argentine financial crisis combined with the global economic slowdown and the after-effects of the terrorist attacks on 11 September 2001 to produce a contraction of 2.5%. In 2002, the real decline in GDP reached 10.8%. Attempts were made to prevent the spread of the Argentinean meltdown to Uruguay through extended and enhanced standby agreements. These set a target of 1.7% contraction for 2002, one-tenth of what actually took place. In August 2002, the US government announced it was providing $1.5 billion in short-term loans to Uruguay. That year unemployment reached a high of 19.4%, up from 10.3% in 1997; by 2005, unemployment was up slightly, to 12%.

Contributing to the improved economy were increased exports to North America, especially of meat. Foreign investment has also been encouraged, and new economic sectors have developed, notably a software industry. Furthermore, a successful debt swap helped restore confidence and significantly reduced risk. Uruguay's economy resumed growth in 2003, with a 2.5% rise in GDP. GDP grew about 12% in 2004 and 6.2% in 2005.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Uruguay's gross domestic product (GDP) was estimated at $32.9 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $10,000. The annual growth rate of GDP was estimated at 6.2%. The average inflation rate in 2005 was 4.9%. It was estimated that agriculture accounted for 7.1% of GDP, industry 27.7%, and services 65.2%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $32 million or about $9 per capita and accounted for approximately 0.3% of GDP. Foreign aid receipts amounted to $17 million or about $5 per capita and accounted for approximately 0.2% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Uruguay totaled $8.15 billion or about $2,411 per capita based on a GDP of $11.2 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 2.4%. In 2001 it was estimated that approximately 22% of household consumption was spent on food, 14% on fuel, 11% on health care, and 30% on education. It was estimated that in 2003 about 21% of the population had incomes below the poverty line.

LABOR

Uruguay's labor force in 2005 was estimated at 1.52 million. In 2003, the services sector accounted for 73.9% of the workforce, with industry at 21.5%, agriculture at 4.5%, with the remainder in undefined occupations. The unemployment rate in 2005 was estimated at 12%.

In 1943, industrial wage boards with seven members (three for the government, two for the employers, and two for the employees) were established to fix minimum wages and settle wage disputes. Because the wage boards (consejos de salarios) were slow in reaching decisions, the Uruguayan labor force tended to use the strike as a first resort to force the initiation of negotiations. Since 1968, wages and prices have been controlled by the Price and Wage Commission. In July 1973, the National Workers' Convention, which claimed 400,000 members, was declared illegal. Laws enacted in August 1974 restricted trade-union membership to "free and nonpolitical" trade unions. Political activity by union officials was banned, as were strikes in the public sector, health, and commerce. Labor conditions returned to pre-1973 conditions with the 1985 government changeover. The sudden release of years of frustration triggered some 250 strikes in the ensuing year. Uruguay's sole labor confederation is the Inter-Union Workers Assembly-National Federation of Workers (PIT-CNT). In 2002, over 80% of the public sector workforce was unionized, with the number of union members in private industry at around 5%.

The eight-hour day and 48-hour week were instituted in 1915 and remained the standard in 2002. The law provides for one day of rest after every six days of work and grants holidays with pay, plus an annual vacation bonus. The minimum wage was $80 per month in 2002, but it functions in practice as an index for calculating wage rates rather than a measure of a minimum subsistence wage. Most workers earn more than this minimum. The minimum working age is 15, and it is generally enforced although the number of children working in the informal economy is increasing.

AGRICULTURE

Uruguay has a primarily agricultural and pastoral economy, but the importance of these sectors has been declining. The formation of the Mercosur common market in 1995 had a significant effect on Uruguayan agriculture by providing preferential access to neighboring countries, particularly Brazil. Agriculture and animal husbandry together contributed 13% of the GDP in 2003. About 40% of the agriculture's contribution to GDP comes from crops and the rest is from animal husbandry. About 77% of Uruguay's land area is devoted to stock raising and 7.4% to the cultivation of crops. In pasturage, large farms predominate, with farms of more than 1,000 hectares (2,500 acres) accounting for two-thirds of all farmland. Crops are grown mainly on small farms of less than 100 hectares (250 acres).

The principal crops harvested (in thousands of tons) in 2004 were rice, 1,262; wheat, 532; barley, 406; corn, 223; sorghum, 70; soybeans, 377; sunflower seeds, 177; oats, 26; apples, 72; and peaches, 14.

ANIMAL HUSBANDRY

Livestock is the basis of the economy. The production costs of stock raising are low, and the quality of the product is generally high. Hereford, Shorthorn, and Aberdeen Angus breeds account for 90% of all beef cattle, with Hereford the most numerous. Corriedale represents about 70% of the sheep stock, followed by Ideal (11%).

Uruguay is especially suited to the raising of sheep and cattle. In 2005, Uruguay had 9,712,000 sheep, second in South America after Brazil. There were also 11,700,000 head of cattle, 380,000 horses, 240,000 pigs, 16,000 goats, and 13,300,300 chickens in 2005. Milk production has expanded, reaching 1.5 million tons in 2005. The preferential duties provided under Mercosur have given Uruguay a great advantage in selling its dairy products to Brazil. The main products exported are cheese, whole and nonfat dry milk, and butter. Meat production in 2005 included 496,000 tons of beef and 26,500 tons of mutton. Beef consumption in Uruguay was about 60 kg per person in 1998, one of highest rates in the world. Leading exports of animals and animal products by value (in millions of dollars) in 2004 were: meat products, $670.9 million; dairy and eggs, $174.9 million; and wool, $17.5 million.

The Ministry of Agriculture and Fisheries is responsible for stock raising and breeding, control of animal diseases, and improvement of existing grassland and arable resources. The National Meat Board acts as consultant to the government. The meat-packing industry, taken over by the government in 1958, has been restored to the private sector. The government encourages local production through a system of special licenses or customs documents for imported meat and livestock. Furthermore, imports of bull semen and embryos are numerically restricted and must comply with animal health requirements.

FISHING

Fishing underwent rapid growth in the 1970s. The government-promoted fishing industry made an average annual catch of about 6,000 tons in the 1960s; the catch increased to 20,600 tons in 1972 and, despite temporary setbacks, to 143,170 tons by 1991. In 2003, the total catch was 116,935 tons. Fish exports in 2003 amounted to $108 million.

There are three fishing zones on the southern coast: the low zone, from Colonia to Piriápolis; the middle zone, from Piriápolis to Punta del Este, which is considered one of the finest fishing areas in the world; and the high zone, from Punta del Este to the Brazilian border. Principal commercial species include Argentine hake, whitemouth croaker, and striped weakfish. Other important sea fish are corvina negra (a kind of bass), mullet, sole, anchovy, mackerel, whiting, and shark. The finest freshwater fish is the dorado, a type of salmon.

FORESTRY

Uruguay has some 1,292,000 hectares (3,193,000 acres) of forestland. About 50,000 hectares (124,000 acres) were reforested annually from 1990 to 2000. The principal species cultivated are eucalyptus and pine; domestic woods are used primarily for windbreaks, fence posts, and firewood. Lumber suitable for building and construction is imported. Roundwood removals totaled 6,399,000 cu m (225.9 million cu ft) in 2004, with 67% used as fuel wood.

MINING

Uruguay's mining sector has traditionally been based on the economically significant exploitation of nonmetallic minerals for the construction, glass, and ceramics industries. The most important commodities were clays, bentonite, dolomite, feldspar, granite, gravel, gypsum, limestone, pebbles, quartz, sand, and talc. There was also minor production of semiprecious stones and ornamental rocks. Various types of clay were mined for producing brick, pipe, tile, and whiteware. Talc was mined for use in the paper industry and in ceramics, cosmetics, insecticides, and pharmaceuticals. Feldspar was mined for the ceramics industry and glass. Estimated production in tons (except where noted) for 2003 included: common sand, 2.7 million tons; limestone, 1.3 million tons; clays, 24,900 metric tons; gypsum, 1.130 million tons; agate, 420 metric tons; and amethyst, 170 metric tons. Also produced in 2003 were barite, bentonite, hydraulic cement, dolomite, feldspar, flagstone, gold, granite, gravel, iron ore, lime, marble, marl, onyx, quartz, stone (including ballast), sulfur, pryophyllite soap-stone talc, traventine, and tufa tuff. Sand, common stone, and talcum were exported, although no minerals ranked among leading export commodities. Limestone had significant potential for export growth.

All products of the subsoil belonged to the state. There were more than 350 ongoing extraction projects; most were small scale. The past few years have seen a revival of minerals prospecting and exploitation, which had been idle for many years. Changes in national legislation have improved the business environment and opened the country to foreign investment, resulting in mining output growth of almost 4% per year in 1997–2001 and the implementation of gold and cement projects. There were deposits of manganese, iron, lead, and copper, and commercial gold mining was begun in 1997 at the San Gregorio mine, Rivera Department, and at the Santa Teresa deposit in 2001. Agates, opals, and onyx were found in Salto and Artigas. In 2001, diamond exploration was begun, although there was been no recorded diamond output in 2003 or 2002. Drilling began in 2001 on the Paso del Lugo nickel project.

ENERGY AND POWER

Uruguay, with no proven hydrocarbon resources, is heavily dependent upon hydropower and imports of oil, natural gas, and coal to meet its energy requirements.

In 2004, Uruguay's demand for oil averaged an estimated 31,000 barrels per day, all of it imported. The country however, does possess a crude oil refining capacity represented by the single La Teja facility, which as of 1 January 2004 had an estimated capacity of 50,000 barrels per day. As with oil, Uruguay imported all the natural gas it consumed. In 2002, Uruguay's demand for natural gas totaled an estimated 0.7 billion cu ft. Although Argentina has been Uruguay's chief supplier of natural gas, an energy crisis has forced Argentina to limit its exports of natural gas. To make up the shortfall, Uruguay, in September 2004, signed a natural gas supply contract with Bolivia. In 2002, Uruguay's demand for coal was met entirely by imports. In 2002, coal imports totaled an estimated 2,600 short tons.

Uruguay's electric power is provided by hydroelectric and diesel generating plants. In 2002, Uruguay's electric power generating capacity was estimated at 2.1 GW, of which conventional thermal plants accounted for 29% of capacity, and hydroelectric 71%. In that year, electric power output totaled 9.508 billion kWh, of which 9.442 billion kWh came from hydroelectric sources, followed by geothermal/other at 0.034 billion kWh and conventional thermal fueled plants at 0.032 billion kWh. Uruguay has one of Latin America's highest rates of electrification (95% as of 2002).

INDUSTRY

Although foreign trade depends mainly on agriculture, the production of industrial goods for domestic consumption is increasing, primarily in the fields of textiles, tires, shoes, leather apparel, cement, petroleum refining, and wine. World War II spurred the industrial growth of Uruguay, and now local industry supplies most of the manufactured products used. Most industry is concentrated in and around Montevideo.

Manufacturing output declined by an average of 1.3% annually between 1977 and 1987, and declined by an average of 0.10% per year during 1988–98. In 1998, manufacturing improved with 2.3% growth, accounting for 18% of GDP. Growth was led by oil refining, car production, and food production. However, in the first half of 1999 the manufacturing sector suffered a setback, declining by 6.1%. Reduction of domestic demand and a decrease in exports to Brazil and Argentina contributed to the overall decline. A recession that began in 1999 and continued into 2002 further hampered industrial growth. Sectors showing overall production decreases included textiles, vehicles, machinery, chemicals, paper, processed meat, and sugar. By 2004, industry as a whole accounted for 31.7% of GDP, a small increase over 2001 (29%).

The manufacturing sector still has severe structural problems as a legacy of the protectionist policies that stressed import substitution during the 1970s. With the Mercosur trade bloc, the domestic market for manufactured goods has opened to strong competition from Argentina and Brazil. The automotive, electronic, and machinery sectors will probably continue to decline because of competition among Mercosur partners. Uruguay produced 10,530 automobiles in 2001, down 27% from the 14,404 units produced in 2000; however, the government has prioritized the recovery of the automobile industry, considering it to be one of the possible pillars for the country's creation of new jobs.

With no proven hydrocarbon resources, Uruguay is wholly dependent on imports for oil, natural gas, and coal. The country's sole refinery is the 50,000-bbl/d La Teja facility. The state-owned oil company, Administración Nacional de Combustibles Alcohol y Portland (ANCAP), controls Uruguay's entire oil sector. Relying on imported oil and natural gas, as well as on domestic hydropower, has, at times, jeopardized Uruguay's energy supply. Since spring 2004, for instance, Uruguay dealt with a number of energy supply challenges—higher global oil prices, lower water levels in domestic hydropower facilities, and decreased power imports (including both electricity and natural gas) from Argentina. Hydropower remains Uruguay's main energy source, but a drought has left Uruguay's hydropower plants operating well below capacity in 2004–06, forcing the government to resort to running more expensive oil-fired power plants. Meanwhile, reduced imports of electricity and natural gas from Argentina, which has been experiencing its own energy crisis, have prompted the Uruguayan government to sign power supply contracts with Brazil (electricity) and Bolivia (natural gas) to make up for shortfalls.

SCIENCE AND TECHNOLOGY

The UNESCO Regional Office for Science and Technology in Latin America and the Caribbean is located in Montevideo. Learned societies include the Pediatrics Society, the Association of Uruguayan Engineers, the Chemical and Pharmaceutical Association, the Odontological Association, and the Surgical Society, all headquartered in Montevideo. The University of the Republic, founded in 1849 at Montevideo, has faculties of agronomy, sciences, engineering, medicine, dentistry, chemistry, and veterinary medicine. The Institute of Higher Studies, founded in 1928 at Montevideo, offers courses in biological climatology, geomorphology, paleontology, and mathematics. The Higher Institute of Electrical Engineering, Electronics, and Computing was founded in 1922 at Montevideo.

In 1987–97, science and engineering students accounted for 32% of college and university enrollments. In 2002, spending on research and development (R&D) totaled $69.232 million, or 0.26% of GDP, Of that amount, the business sector accounted for the largest portion, 46.7%, followed by higher education at 31.4%. Government R&D spending accounted for 17.1%, with 4.7% coming from foreign sources. In that same year, there were 370 scientists and engineers, and 51 technicians per million people, engaged in R&D. High technology exports in 2002 totaled $19 million, or 3% of all the country's manufactured exports.

DOMESTIC TRADE

Although the Uruguayan population is small, it has a relatively high purchasing power. Wholesale and retail trade accounted for 12.4% of GDP in 1996. The reasonably good transportation system allows easy shipment of agricultural products to the capital. Chambers of commerce and other trade associations play an active role in interpreting local market demands. Overland trade has increased markedly since the Mercosur (Southern Common Market) pact was formed in the 1990s.

The labor market improved in 2004 with the average unemployment rate dropping from 17.1% in 2003 to 13.4%, and real average wages were starting to stabilize.

FOREIGN TRADE

Uruguay traditionally relied on foreign sales of wool, hides, and meat products for its export revenues, which increased steadily until 1998, and then dropped off slightly. Export revenues from goods and services annually increased by an average of 3.3% during 1977–87, and by 8.2% between 1988 and 1998. The value of imports fell by an average 1.7% per year during the 1980s, but has increased by an average of 17.1% annually during 1990–95. In 2000, exports increased by 2.6% and imports rose 3.3%.

Imports have been stimulated by falling tariffs, the ongoing implementation of Mercosur agreements, revaluation of the Uruguayan peso, and gradual liberalization of the economy. Rising imports of consumer goods reflect pent-up demand, while increased imports of capital goods reflect the need to upgrade industrial facilities to meet foreign competition. In the first half of 1999, Uruguay's exports declined by 25%. The nation's trade deficit nearly doubled between 1998 and 1999 as a result of the international financial recession.

Uruguay is a member of the Río Group, an association of Latin American states that deals with multilateral security issues (under the Inter-American Treaty of Reciprocal Assistance). Uruguay's location between Argentina and Brazil makes close relations with these two larger neighbors and Mercosur associate members Chile and Bolivia particularly important. Uruguay is a member of the Latin American Integration Association (ALADI), a trade association based in Montevideo that includes 10 South American countries plus Mexico and Cuba.

In 2004, Uruguay exported $2.9 billion, mainly meat, wool, hides, leather, wool products, fish, rice, and furs. The major export markets are the United States (19.8%), Brazil (16.3%), Argentina

(7.6%), Germany (5.1%), Mexico (4.0%), and China (3.9%). Imports reached $3.1 billion, mainly machinery, chemicals, fuel, and vehicles. The major suppliers are Brazil and Argentina (25.7% each), United States (9.0%), China (7.1%), and Germany (3.4%).

BALANCE OF PAYMENTS

Balance of payments deficits are common in Uruguay, owing to fluctuating world markets for agricultural exports and a high dependency on imports for raw materials and fuels. Traditionally, multilateral assistance, income from tourism, and inflow of capital from other Latin American countries has tended to offset the negative trade picture. The balance of payments in the 1980s and 1990s was affected by the continued weakening of international prices of Uruguay's exports, which are concentrated in a few products—meat, rice, wool, dairy products, and leather account for about half of the country's exports. The Batlle administration in the early 2000s was looking to expand trade with the United States and the rest of NAFTA. The country's trade with Mercosur has declined in recent years, in part due to a decline in Brazil's importance as a source for Uruguayan imports. Trade with Argentina subsequently increased.

The US Central Intelligence Agency (CIA) reported that in 2001 the purchasing power parity of Uruguay's exports was $2.24 billion while imports totaled $2.9 billion resulting in a trade deficit of $660 million. The International Monetary Fund (IMF) reported that in 2001 Uruguay had exports of goods totaling $2.15 billion and imports totaling $2.92 billion. The services credit totaled $1.13 billion and debit $803 million.

Currently, the balance of payments is under control, although the account shows a modest deficit, reflecting the strong pickup in imports that, in part, is being financed by foreign direct investment. Gross international reserves are expected to increase, raising the coverage of dollar liabilities in the banking system by official reserves and bank foreign assets to about 62%. Several measures

have been undertaken to maintain its stability. The fiscal program is well on track, and is attempting to exceed the primary surplus target of 3.4% of GDP in 2004. Expenditure restraint will be maintained, and public tariffs will continue to be adjusted in line with operational costs. No further tax reductions will be granted.

BANKING AND SECURITIES

The Bank of the Republic (Banco de la República Oriental del Uruguay—BRDU), established in 1896, is a state bank with a government-appointed director. It operates as both a public and a private bank. It is the financial agent of the government; it also acts as an autonomous agency and, as a commercial bank, makes loans and receives deposits. It participates in determining financial policies and the allocation of foreign exchange for imports. One of its main functions is to provide rural credit.

The 1966 constitutional revision created a Central Bank (Banco Central del Uruguay—BCU), which is responsible for currency circulation, thus permitting the Bank of the Republic to concentrate on public and private credit. The third state bank is the Mortgage Bank (Banco Hipotecario del Uruguay-BHU). There are 21 private banks operating in Uruguay, the 3 public banks, 8 financial institutions, 12 offshore banks, and 6 savings and loans organizations.

In the early 1980s, economic recession produced a flood of bad debts, prompting the BCU to introduce a refinancing scheme in 1983, under which it took over the nonperforming loans of some financial institutions. This improved the liquidity of the financial system, but shifted the burden onto public finances. In 1999, the IMF criticized Uruguay's two large public banks as being less efficient and profitable than private banks, calling for banking reforms.

A policy of regular minidevaluations was introduced in mid-1975; currency stability was established in the late 1970s, but in November 1982, the peso, regarded as overvalued, was allowed to float freely. The peso has fallen against the dollar since that time. As of 1999, about 90% of the private sector's deposits in the banking system were dollar-denominated, and 75% of the overall credit to the private sector was in dollars. Most purchases were made in dollars. Net foreign reserves equaled $2.43 billion at the end of 1998.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $1.0 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $11.1 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 22.1%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 71.66%.

The Montevideo Stock Exchange is supplemented by its Internet based partner, the Bolsa Electrónica de Valores (BEVSA). The number of firms raising risk capital through the stock exchange is very small, and only 19 companies are quoted on it. In 1999, practically no shares were traded in the stock market.

INSURANCE

The State Insurance Bank (Banco de Seguros del Estado—BSE), launched early in 1912 by a bond issue, was granted a monopoly on all insurance in 1919; however, private insurance companies were allowed to continue issuing life, fire, and marine insurance if they had been in business prior to creation of the state bank. An October 1993 law demonopolized the insurance industry, allowing an individual to purchase insurance with the company of his or her choice, as well as allowing Brazilian, UK, and Spanish companies among others to participate in the market. The Banco de Seguros des Estado remains, however, the only company permitted to insure occupational and health hazard. In 2003, the value of all direct insurance premiums written totaled $238 million, of which nonlife premiums accounted for $185 million. For that same year, the top nonlife and life insurer was Banco de Seguros del Estatdo, which had gross written nonlife and life insurance premiums of $122.9 million and $24.1 million, respectively.

PUBLIC FINANCE

Under the inflationary pressures of the 1990s, budgetary expenditures generally exceeded revenues, although greater fiscal austerity caused a decrease in the budget deficit. In 1998, the number of government offices was reduced by one-third. The 1998 budget deficit was 0.9% of GDP, mostly financed by external loans ($685 million). Because of falling tax revenues and increased spending, the deficit rose in 1999.

The US Central Intelligence Agency (CIA) estimated that in 2005 Uruguay's central government took in revenues of approximately $4.4 billion and had expenditures of $4.8 billion. Revenues minus expenditures totaled approximately -$377 million. Public debt in 2005 amounted to 82.1% of GDP. Total external debt was $9.931 billion.

The International Monetary Fund (IMF) reported that in 2001, the most recent year for which it had data, central government revenues in millions of pesos were 65,592 and expenditures were 77,487. The value of revenues in millions of US dollars was $4,925 and expenditures $5,956, based on a market exchange rate for 2001 of 13.3191 as reported by the IMF. Government outlays by function were as follows: general public services, 14.9%; defense, 4.2%; public order and safety, 4.7%; economic affairs, 5.8%; housing and community amenities, 1.6%; health, 6.6%; recreation, culture, and religion, 0.6%; education, 7.6%; and social protection, 56.5%.

TAXATION

As of 2005, corporate tax is imposed on industrial and commercial income at a flat rate of 30%. Capital gains incurred by companies are taxed as ordinary income at the corporate rate. Individuals are not subject to a capital gains tax. A 30% withholding tax is also imposed on dividends and royalties paid to nonresidents. Other taxes include a commissions tax of 9% and a capital tax of 15%. Personal income and inheritance taxes were repealed in 1974. Other taxes include a net worth tax, a 2.8% tax on banking activities, a bank assets tax, farming and property taxes, consumption taxes, and insurance taxes.

The most important indirect tax is Uruguay's value-added tax (VAT) instituted in January 1968. The standard rate is 23% and there is a reduced rate of 14% on necessities such as foodstuffs, as well as on fruit, flowers, road passenger transport, and hotel accommodation services. Exempt are imports of crude oil, the transfer and rental of immovable property, agricultural goods and raw materials, certain types of machinery, certain banking activities, and medical services.

CUSTOMS AND DUTIES

Uruguay is a member of the Southern Common Market (Mercosur) along with Argentina, Brazil and Paraguay. As of July 2003, the Mercosur common external tariff (CET) ranged from 0–20% on most goods, although there is a 21.5% rate. A general 23% VAT rate is applied, although a lower 10% rate is assessed on certain products, while a 14% rate is applied to medicines, certain basic foodstuffs, and certain primary products. Excise taxes ranged from 10–30% on soft drinks, cosmetics, and motor vehicles, to 70% on tobacco, 80% on alcohol, and 133% for gasoline. Almost all goods can be imported into Uruguay without restrictions or licenses.

Tariff preferences are also given to members of the LAFA. Uruguay also has a large number of bilateral investment agreements, mostly with EU countries.

Free trade zones operate in Colonia, Florida, Nueva Helvecia, Nueva Palmira, Río Negro, Rivera, San José, and Montevideo.

FOREIGN INVESTMENT

Historically, Uruguay maintained a number of state monopolies in which direct foreign equity participation was prohibited. Uruguay's Foreign Investment Law of 28 March 1974 closed certain industries to foreign investors: public water and drainage services, railroads, alcohol and petroleum refineries, electric, telephone, local telegraph, mail, port services, insurance, and issuance of mortgage bonds. Private investment in other sectors was generally welcomed.

From 1992 to 1998, foreign direct investment (FDI) amounted to about $150 million annually, which reflected a relatively low pace of privatization, even though the government promoted investment in the mining, tourism, hydrocarbons, forestry, printing, and media sectors.

The 1998 Investment Promotion and Protection Law declared that promotion and protection of national and foreign investment was in the national interest. Foreign and national investments would be treated the same, and investment would be allowed without prior authorization or registration. Complete foreign ownership is allowed in most sectors except for oil and telecommunications. Privatization is often popularly opposed, and the state seeks to foster efficiency through de-monopolization and deregulation. State sectors that have been partially liberalized include insurance, mortgages, road building and repair, water sanitation and distribution, energy generation, piped gas distribution, and cellular phones.

From 1999 to 2001 FDI inflow increased steadily, from $239 million to $285 million, to $320 million. Under the impact of the worldwide decline in outward FDI, flows to Uruguay in 2002 are estimated to have fallen about one-third, but rebounded in 2003. Main investors included Canada and the EU.

A law in February 2001 de-monopolized the telecommunications industry, which was controlled by ANTEL. The state-owned oil company ANCAP was the only importer and refiner of petroleum products in Uruguay, and was scheduled to remain a monopoly until 2006. There are nine free trade zones (FTZs), in the country, some state-owned and operated, others state-owned but privately operated, and others privately owned and operated. FTZs offer tax and duty exemptions.

FDI was virtually insignificant at the beginning of the 1990s but increased quite steadily afterwards, accounting for 1.36% of GDP in 2000 and 2.46% of GDP in 2003. FDI in Uruguay has been historically low because of the country's small market, the lack of major privatizations, and the small number of firms that base their Mercosur-wide operations locally. Uruguay's FDI/GDP ratio of 1% is well below the Latin American/Caribbean average of about 3%, and that of its Southern Cone neighbors Argentina and Brazil, with 2.6% each, and Chile with 5.6%.

According to Uruguay's Central Bank, FDI stock declined from $2.4 billion in 2001 to $1.4 billion in 2002, mostly due to decreased asset values following the sharp 2002 economic contraction and devaluation. Economic recovery led the stock of FDI to increase to $1.8 billion in 2003.

ECONOMIC DEVELOPMENT

Monopolies have traditionally been permitted in the fields of banking and insurance, postal services, ports, water, light and power, telephone services, and fuels. Industrial and commercial activities of the state must be organized as "autonomous entities." Other public services may be organized as autonomous entities, like decentralized services, or divisions under a ministry. Exceptions to this policy are state-operated postal and telephone services, customs houses, port administration, and public health.

The Committee on Investment and Economic Development, established in 1960, published a 10-year plan for 1965–75 for production, investment, and consumption. The plan, stressing industrial development and external financing, was superseded in April 1973 by the National Development Plan for 1973–77, prepared by the Planning and Budget Office. This plan projected an annual growth rate of 3.8% in real gross domestic product (GDP), or 2.5% per capita; increases in exports and imports were projected at 10.1% and 14.9%, respectively. Domestic investment was to rise at an annual rate of 15.1%—a projection quite remote from the actual average annual increase of 3.2% realized during 1966–72.

After the severe slump of the early 1980s, the decisive actions by the new government injected life into the economy. In particular, restructuring the heavy domestic debt burden of the industrial and agricultural sectors increased confidence in the economy. Domestic investment rose sharply, with some industries at full capacity.

The Lacalle administration continued the fiscal adjustment program in 1990 to reduce the budget deficit. A state-enterprises reforms law passed in September 1991 permitted partial privatization of certain state-owned enterprises. Uruguay also became an important trade partner and provider of services to Mercosur countries. The flip side of this relationship was Uruguay's dependency on and vulnerability to economic developments in its neighboring countries. A slowdown in Brazilian growth and a recession in Argentina caused Uruguay's economy to slip into recession in 1995 and in 1998.

The government instituted a three-stage stabilization program in 1994. The plan increased consumption and payroll taxes, instituted a program designed to downsize government, and planned for long-term social security reform. This plan continued into the late 1990s with moderate success, but a recession hit in 1999 that exacerbated the problems of a state-monopolized economy dependent upon exports to Argentina and Brazil, and dependent on US dollars for the currency.

The financial crisis in Argentina in late 2001 and subsequent recession hurt exports and tourism in Uruguay, and Uruguay's banking crisis in 2002 was exacerbated by the situation in Argentina. In all, the Argentine economic crisis and its aftereffects caused a 10% contraction in Uruguay's economy. An outbreak of hoof-and-mouth disease among its cattle and an energy crisis in Brazil also adversely affected the economy. By 2002, the total debt stood at around $13.5 billion, some 65% of GDP, and the fiscal deficit stood at around 3% of GDP. Uruguay is diversifying its export base, has a well-run offshore financial center, and has significantly improved the structure of the economy. Foreign direct investment reached $248 million in 2001. Many formerly state-owned sectors had been liberalized by 2003, including insurance, mortgages, road construction and repair, piped-gas distribution, energy generation, water sanitation and distribution, cellular telephones, and airline transportation. In June 2005, the International Monetary Fund (IMF) approved a three-year $1.13 billion Stand-By Arrangement for Uruguay. Oil refining was de-monopolized, but oil imports were to remain a monopoly until 2006.

Uruguay is characterized by an export-oriented agricultural sector, a well-educated workforce, and high levels of social spending. The economy grew about 10% in 2004 as a result of high commodity prices for Uruguayan exports, the weakness of the dollar against the euro, growth in the region, low international interest rates, and greater export competitiveness. By 2005, it had slowed to 6.2%.

SOCIAL DEVELOPMENT

Uruguay has frequently been referred to as South America's first welfare state. Some legislation dates back to 1829. Social legislation now provides for a day of rest in every week (plus Saturday afternoon), holidays with pay, minimum wages, annual cash and vacation bonuses, family allowances, compensation for unemployment or dismissal, workers' accident compensation, retirement pensions for rural and domestic workers, old age and disability pensions, and special consideration for working women and minors. The state also provides care for children and mothers, as well as for the blind, deaf, and mute. Free medical attention is available to the poor, as are low-cost living quarters for workers.

A dual social insurance program and private insurance system is in place. There is a separate system for bank employees, notaries, university graduates, members of the armed forces, and the police. All other employees and the self-employed are within the program. For pension coverage, employers withhold 15% of each employee's gross earnings and contribute 12.5% of payroll to the appropriate fund. Retirement is set at 60. Maternity and sickness benefits are also provided and are funded by contributions of 3% of earnings by the employee and 5% of payroll from the employer. Maternity benefits are paid at 100% of earnings for up to 12 weeks. Work injury and unemployment insurance are available to all employees.

Women account for nearly half of the work force but tend to be concentrated in lower paying jobs. Nevertheless, many attend the national university and pursue professional careers. Although the law prohibits sexual harassment in the workplace, few claims are filed because it is not viewed as a problem. Spousal abuse is a serious social problem which is receiving greater attention by non-governmental organizations. The number of reported cases has increased dramatically, reflecting a greater willingness by women to confront the problem.

Black minorities, accounting for 6% of the population, are severely underrepresented in politics and in the professions. They face considerable discrimination in education and employment. Occasional reports of the use of excessive force by police are reported each year, and judicial delays can result in lengthy pretrial detention. Human rights organizations operate freely in Uruguay.

HEALTH

The government traditionally has placed great emphasis on preventive medicine and on the sociological approach to public health problems. The US Institute of Inter-American Affairs and the Uruguayan Ministry of Public Health created the Inter-American Cooperative Public Health Service, which built four health centers and clinics. For the region, life expectancy is high (76.13 years in 2005); infant mortality is low (11.95 per 1,000 live births in 2005); and the ratios of doctors and beds to the population are exceptionally good. Approximately 98% of the population had access to safe drinking water and 95% had adequate sanitation. As of 2004, there were an estimated 365 physicians, 86 nurses, and 116 dentists per 100,000 people. Total health care expenditure was estimated at 9.1% of GDP.

The Commission for the Fight against Tuberculosis is under the jurisdiction of the Ministry of Health; as a result of its efforts, tuberculosis is almost unknown in Uruguay today. The commission also deals with the social and economic effects of various diseases.

The major causes of death are heart diseases, cancer, and digestive disorders. Degenerative diseases rank higher as a cause of death in Uruguay than in most other Latin American countries.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 17.3 and 9 per 1,000 people. Maternal mortality was 26 per 1,000 live births. Contraceptive use was high, with nearly 85% of married women in Uruguay using some method of birth control. Immunization rates for children up to one year old were tuberculosis, 99%; diphtheria, pertussis, and tetanus, 88%; polio, 88%; and measles, 80%.

The HIV/AIDS prevalence was 0.30 per 100 adults in 2003. As of 2004, there were approximately 6,000 people living with HIV/AIDS in the country. There were an estimated 500 deaths from AIDS in 2003.

HOUSING

The housing situation is more favorable in Uruguay than in most Latin American countries. Housing construction, dominated by the public sector, is financed in large part by the Mortgage Bank. The National Institute of Low-Cost Housing builds low-cost dwellings for low-income workers and pensioners.

At last estimate, 98% of all housing units were made of durable materials including stone masonry, wood, zinc, or concrete. Owners occupied more than 55% of all dwellings; nearly 25% were rented; less than 20% were occupied by usufructus (households legally inhabiting someone else's living quarters); and about 1% were occupied by members of housing cooperatives. Of all housing units, more than 90% had private toilet facilities, and nearly 75% had water piped indoors. The preliminary results of the 2004 census indicated that there were about 1,274,052 housing units nationwide.

EDUCATION

Education in elementary, secondary, and technical schools and at the University of the Republic in Montevideo is free. Elementary education, which lasts six years, is compulsory. Secondary education is in two stages of three years. Students may choose to attend a three or four year technical school at the upper secondary level. The academic year runs from March to December.

In 2001, about 62% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 90% of age-eligible students. The same year, secondary school enrollment was about 73% of age-eligible students. It is estimated that about 91.8% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 21:1 in 2003; the ratio for secondary school was about 18:1. In 2003, private schools accounted for about 12.9% of primary school enrollment and 11.2% of secondary enrollment.

There are five major universities: the University of the Republic, the Catholic University, the University ORT Uruguay, Universidad de la Empresa, and the University of Montevideo. The University of Trabajo is a state-operated technical school. In 2003, it was estimated that about 37% of the tertiary age population were enrolled in tertiary education programs. The overall adult literacy rate for 2004 was estimated at about 97.7%.

As of 2003, public expenditure on education was estimated at 2.6% of GDP, or 9.6% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library, founded in 1816, contains over 900,000 volumes, primarily modern but including a sizable historical collection. Other major collections are found in the special libraries of the Council of Secondary, Basic, and Higher Education (110,000 volumes), the Museum of Natural History (200,000), and at the Pedagogic Library (118,000). The University of the Republic in Montevideo (1849) holds nearly one million volumes.

The National Historical Museum exhibits artifacts of local Amerindian cultures and of Uruguayan historical development. The National Museum of Fine Arts has paintings by prominent Uruguayan artists, including Juan Manuel Blanes and Joaquín Torres García. Both are in Montevideo, as are the Museum of Industrial Arts, the Pedagogical Museum, and the Museum of the Discovery, a unique public affairs institution chronicling the impact of the European encounter with the new world. There are regional museums in Mercedes, Salto, San José de Mayo, and Tacuarembo.

MEDIA

The state owns the telegraph and telephone services. In 2003, there were an estimated 280 mainline telephones for every 1,000 people. The same year, there were approximately 193 mobile phones in use for every 1,000 people.

Private broadcasting companies share the airwaves with the state-run public broadcasting company, SODRE. As of 2001, Uruguay had 91 AM and 149 FM radio stations and 20 television stations; color television broadcasting was introduced in 1981. In 2003 there were 603 radios and about 530 television sets for every 1,000 people. In 2003, there were 110.1 personal computers for every 1,000 people and 119 of every 1,000 people had access to the Internet. There were 79 secure Internet servers in the country in 2004.

In 2004 there were at least four major daily newspapers in Montevideo, including El Diario, 170,000, El País, 110,000; El Diario Espanol, 20,000; and Últimas Noticias, 19,500. The first newspaper in the Banda Oriental was the Southern Star, published by the British in 1807 during their brief occupation of Montevideo. El Día, founded by José Batlle y Ordóñez in 1886, helped lay the foundation for the social reforms of the first two decades of the 20th century.

The constitution provides for freedom of speech and the press and these rights are generally respected by the government. The government does retain the right to impose regulations or restrictions on speech and press if a person is inciting violence or insulting the state.

ORGANIZATIONS

The two most important organizations of livestock farmers are the Rural Association and the Rural Federation, both founded by large landowners. Other employers' organizations include the Importers' and Wholesalers' Association and the Uruguayan Exporters' Union. The Chamber of Industries is a powerful organization, with a representative on the Export and Import Control Commission. There are several professional societies, including the National Council for Scientific and Technological Research, which serves also as a primary educational and research organization.

There are student-youth organizations associated with universities and political parties. Scouting and YMCA/YWCA programs are also active. International organizations with national chapters include Amnesty International, Defence for Children International, and the Red Cross.

TOURISM, TRAVEL, AND RECREATION

Tourism, one of Uruguay's major enterprises, enjoys government support. The state owns many hotels along the coast, especially in the area of Punta del Este, 145 km (90 mi) east of Montevideo and one of the more sophisticated resorts in South America. Montevideo has been promoted as the "city of parks" because of its many parks and gardens.

The most popular sport in Uruguay is football (soccer); there is an intense rivalry between supporters of the two major teams, the Peñarol and the Nacional. Other popular sports include basketball, cycling, tennis, pelota, golf, and water sports. Uruguayan soccer teams won the World Cup in 1930 and 1950; the first World Cup competition was hosted by Uruguay in 1930.

All visitors must have a valid passport. Visas are required of all foreign visitors except for the citizens of 63 nations, including Australia, Canada, and the United States. Visas are valid for up to three months. Tourist arrivals numbered 1,508,055 in 2003. There were 18,160 hotel rooms with 41,759 beds. Tourism expenditure receipts totaled $406 million that same year.

In 2004, the US Department of State estimated the cost of staying in Montevideo at $133 per day; elsewhere costs ranged between $133 and $369 per day.

FAMOUS URUGUAYANS

The national hero of Uruguay is José Gervasio Artigas (1764–1850), who led the fight for independence against Brazil and Portugal. Juan Antonio Lavalleja (1786?–1853) directed the uprising that established Uruguay's independence in 1828. The nation's first two presidents were Gen. José Fructuoso Rivera (1790?–1854) and Brig. Gen. Manuel Oribe (1796?–1857), the founders of the Colorados and Blancos, respectively. One of Uruguay's greatest citizens was José Batlle y Ordóñez (1856–1929), who served twice as president of the country. José Pedro Varela (1845–79) was Uruguay's chief educational reformer.

One of the most respected defenders of Latin America's cultural tradition was José Enrique Rodó (1872–1917), whose Ariel and Motivos de Proteo fostered the idea of the superiority of Latin American culture. Juan Zorrilla de San Martín (1855–1933) was a 19th-century romantic poet whose finest work, Tabaré, describes Uruguay at the time of the Spanish conquest. Eduardo Acevedo Díaz (1851–1924) won fame as the writer of a gaucho novel, Soledad (1894). Other significant novelists are Carlos Reyles (1868–1938) and Javier de Viana (1872–1925). Horacio Quiroga (1878–1937) is regarded as one of Latin America's foremost short-story writers. The poets Julio Herrera y Reissig (1875–1910) and Juana de Ibarbourou (1895–1979) have attained a devoted audience beyond the borders of Uruguay. Emir Rodríguez Monegal (1921–85) is considered a leading writer and literary scholar.

The painter Juan Manuel Blanes (1830–1901) is best known for his Episode of the Yellow Fever. Pedro Figari (1861–1938) painted vivid scenes of early 19th-century Uruguay. Joaquín Torres García (1874–1949) founded his painting style on the principles of universalism and constructivism. Eduardo Fabini (1883–1951) is Uruguay's best-known composer. Francisco Curt Lange (b.Germany, 1903–1997), Latin America's foremost musicologist, founded various inter-American institutions and publications for the promotion of music of the Americas.

DEPENDENCIES

Uruguay has no territories or colonies.

BIBLIOGRAPHY

Calvert, Peter. A Political and Economic Dictionary of Latin America. Philadelphia: Routledge/Taylor and Francis, 2004.

Castiglioni, Rossana. The Politics of Social Policy Change in Chile and Uruguay: Retrenchment Versus Maintenance, 1973–1998. New York: Routledge, 2005.

Garretón, Manuel Antonio, and Edward Newman, (eds.). Democracy in Latin America: (Re)constructing Political Society. New York: United Nations University Press, 2001.

Health in the Americas, 2002 edition. Washington, D.C.: Pan American Health Organization, Pan American Sanitary Bureau, Regional Office of the World Health Organization, 2002.

Kohut, David R. Historical Dictionary of the "Dirty Wars." Lanham, Md.: Scarecrow Press, 2003.

Uruguay

History & Background

Uruguay, the smallest country in South America, is located in the southern part of the continent, nestled between Brazil and Argentina along 220 kilometers of Atlantic coastline. The country is recognized as having one of the more eclectic societies in Latin America, showcasing a rich European heritage, a broad variety of artistic and cultural attractions, and one of the most progressive educational systems in the region. These characteristics, among others, have earned Uruguay the title, the "Switzerland of South America." Its mild climate, modest mountain ranges (Cuchilla de Haedo and Cuchilla Grande ), and inviting tourist attractions make Uruguay popular among travelers from the Western Hemisphere and Europe.

Although Uruguay's land mass is small—only 187,000 square kilometers, compared to the much larger areas of Argentina and Brazil—the quality of life in this tiny nation is high. Approximately 90 percent of the country's 3.2 million people live in urban areas; most of these reside in the capital city of Montevideo. The country boasts one of the lowest infant mortality rates in the world, a life expectancy rate paralleling that of the United States, and an impressive adult literacy rate of 97 percent among its relatively low population density. Although the country's economy has lagged behind its neighbors' occasionally in the past, its agricultural, hydropower, mineral, fishing, and tourism industries have sustained it through its slow times. Uruguay enjoys highly interactive economic and political relationships with its South American neighbors and with countries abroad, trading often with Brazil, Argentina, the United States, Germany and Italy. The national currency is the Uruguayan peso.

People of Uruguay (Uruguayans ) have a unique cultural history. While many of the citizens identify themselves as "white," their lineages can be traced to a number of origins, including Spanish, Portuguese, Italian, mestizo, Amerindian, and African-Uruguayan. Spanish is the official national language, although Portuguese, Brazilero (a Spanish-Portuguese mix), English, French, German, and Italian are spoken widely in the Montevideo metropolitan area. This linguistic diversity is reflected in the wide range of artistic outlets found in Uruguay, including theatre, the visual arts, music, literature, and poetry. About two-thirds of the population is Roman Catholic; Judaism, Protestantism, and other religions account for the country's other religious preferences.

Like many other areas of South America, the land that was to become known as Uruguay was once occupied by indigenous populations, most notably the Charruas. When Spanish explorers, seeking a water route between the Atlantic and Pacific oceans, initially cast anchor in Uruguay in the 1500s, they were attacked and killed by the Charruas. Later arrivals of Spanish settlers along Uruguay's coastline subdued the Charruas and established lucrative farming and ranching sites in the area. The expansion of the Portuguese from Brazil, however, posed a threat to Spain's commercial interests, and the next several years would witness a continued military struggle between Spanish and Portuguese forces.

Uruguay was under the influence of a number of governments in its early years, including Spain, Portugal, Argentina, Brazil, and Great Britain. It was not until 1828, at the signing of the Treaty of Montevideo at Rio de Janeiro, that Uruguay finally achieved lasting independence. This treaty, negotiated by Great Britain, called for the permanent removal of Brazilian and Argentine forces from the country, although both neighboring countries still retained limited rights to intervene in Uruguay's civil affairs. A constitution was drafted, naming the new country the Republica Oriental del Uruguay, or The Republic of Uruguay (the term "Oriental" referred to the country's eastern position on the continent, not to anything associated with Asia). Today, Uruguay retains this official name, although it is most commonly referred to as "The Republic of Uruguay," or just "Uruguay." Each year, August 25 is celebrated as independence day in memorial of the 1828 treaty.

During the remainder of the nineteenth century, ranching-related immigration from Europe increased and Uruguay's population grew. At the onset of the industrial revolution, Uruguay initiated a series of social reforms, many of which were unprecedented at the time, especially related to employment conditions. The government also included reforms that abolished the death penalty, instituted child care laws, allowed for women's suffrage, and provided for other issues related to human rights. But this time of progressive change was also characterized by numerous political upheavals, insurrections, and economic crises that lasted throughout the first half of the twentieth century. Then, in 1966, a new constitution was created, later suspended, and then reformed in 1997, under which the current government operates.

Constitutional & Legal Foundations

The Republic of Uruguay follows a Democratic-Republic system of government, not unlike that of the United States. Three branches of the government operate separately from each other and are based on principles established by the Magna Carta. The executive branch is comprised of the president and vice president (who are elected by electoral and popular votes every five years) and the ministers of the Cabinet. The legislative branch consists of the General Assembly, which includes two bodies, the House of Representatives, and the Senate. The judicial branch consists of the Supreme Court, made up of five members, and by lower courts, which are called Tribunals and Courts of Law. There are 19 departmentos, or states, which maintain local, autonomous law enforcement. Voting is compulsory for all adult Uruguayans.

Several political parties exist in Uruguay, two of which are historically prominent: the Colorado Party and the Blanco (National) Party. Within each of these parties are groups characterized by special interests. Two other general parties, both of which tend to be more leftist in nature, have emerged since the 1967 constitution: the Frente Amplio ("Broad Front") and the Nuevo Espacio ("New Space") Party. All parties contain representation in the country's government.

Educational System—Overview

Public education in Uruguay is free and compulsory for children aged 6 to 14. The country has traditionally boasted high levels of compliance with required education, as well as a large number of students who enroll in secondary school. As a result, Uruguay holds an impressive position in the Latin America community for its high literacy rate of approximately 96 percent.

All Uruguayan children are required by law to enter school at age six. From ages 6 to 12, they attend primary school. At age 12, they enter the first stage of secondary school, which lasts for 2 years. During this time, they are instructed in the "basics," such as language, mathematics, sciences, and history.

At age 15, students may opt for several advanced tracks, depending on their choice of vocation. For the next three to four years, students complete the bachellerito, which is similar to a high school diploma in the United States. Following completion of the bachellerito, graduates may proceed either to one of the country's three universities or attend special institutes related to their specific interests. All instruction in Uruguayan schools is delivered in Spanish, although English and Portuguese are often taught at the secondary levels, and students attending the universities may be trained in a number of international languages.

During the mid-1990s, a number of educational reforms were proposed by the Administracion Nacional de la Educacion Publica (National Administration of Public Education). These reforms, which had not been passed as of 2001, would provide for new school facilities, a broader curriculum including more science, math, critical thinking, and English and Portuguese language instruction, as well as more attention to technology. Additionally, the World Bank approved a $28 million (U.S.) loan to improve primary education for Uruguayan children. The monies from this loan were dedicated to improving educational facilities, hiring more teachers, integrating technology into the classroom, and other instructionbased student initiatives.

Another development that is seriously affecting education in Uruguay—as in countries everywhere—is Mercosur. Mercosur is a free trade market agreement among six South American countries, including Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay, that was created in the 1990s. Its implications for the economy extend to the classroom since the agreement will impact political relations, globalization, and technology.

All aspects of education in Uruguay fall under the auspices of the Ministerio de Educacion y Cultura (The Ministry of Education and Culture). A substantial portion of government expenditures are allocated to secular education.

Preprimary & Primary Education

Children completing the first 6 years (ages 6 to 12) of compulsory education in Uruguay are awarded a Certificado de Suficiencia Escolar Para Continuar Estudios, which certifies their preparation for secondary education.

Secondary Education

Students completing secondary education may receive different types of certifications and diplomas, depending on the length of study and their choices of study. All students from ages 12 to 15 complete the Ciclo Basico, which offers general education courses. At age 15, students have three options. One is to study under the Circlo Diversificado, a program which leads to a Bachillerator Diversificado de Secundaria (similar to a high school diploma), and includes courses in humanities, science, law, business, and medicine, among other subjects. A second alternative is the Bachillerato Tecnico/Diversificado, which prepares students for careers in technical fields but also includes courses in the humanities. The Bachillerato in both areas—Ciclo Diversificado and Technico Diversificado —requires three years of additional study. The third option for secondary students is the Bachillerato Tecnico, which focuses on technical skills only, and requires up to four years of study.

Secondary students are graded on a uniform scale of 1 to 12, on which 12 is the highest possible mark and 3 is a minimum passing grade. Approximately 70 percent of children enroll in secondary schools, one of the highest secondary school enrollment rates within Latin America.

Higher Education

There are three universities in Uruguay: the Universidad de la Republica, the only state institution of higher learning; the Universidad Catolica del Uruguay Damaso A. Larangaga, a Catholic university; and the Universidad ORT, a private secular university. There are also several postsecondary technical schools offering credentials in selected fields. Attendance at the Universidad de la Republica is free for Uruguayan citizens.

Instruction in Uruguayan universities is conducted in Spanish. The academic year begins in March and runs through December, with summer vacation in January and February. Programs of study are organized into different levels:

1. An "Intermediate Diploma," similar to a bachelor's degree in the United States, is awarded after two to four years of study in fields such as business, health professions, engineering, and public administration.
2. The Licenciatura is considered a higher level qualification and is given after a minimum of four years of study. A student may be awarded this credential for continued study in medicine, law, dentistry, psychology, sociology, and architecture. A licenciatura may take up to six years of full-time study to achieve, not unlike many similar programs at U.S. institutions.
3. A student in Uruguay may also seek the equivalent of a graduate degree, or maestrias, which takes two years of study beyond the licenciatura. A related option is the especialzacione, or one-year specialization, which is offered as a level between the maestrias and the licenciatura.
4. The highest level of study, the doctorado, is a research-based degree and requires a minimum of three years of study beyond the maestrias. The U.S. equivalent of this degree is the doctorate.

A number of existing bilateral agreements allow for the acceptance and exchange of students from recognized programs of study at institutions in other countries. Non-Uruguayan students wishing to study in the country are required to provide documentation of their previous course work and apply for a study visa.

Teaching Profession

Prospective Uruguayan teachers are required to complete one of several programs of study to receive their teaching credentials. To teach at the primary level, it is necessary to complete a three to four-year course of study, offered at an institute, leading to the title, Maestro de Educacion. Secondary teachers are trained at a separate institute specifically for secondary teachers. This training program lasts four years. University instructors complete their studies at the Instituto Superior de Docentes.

Administration, Finance, & Educational Research

Educational research in Uruguay focuses on many topics, which are reflected by projects at all three universities in the country. Because of the large number of Uruguayan students who study the various health professions, a great deal of research (investigacion ) is dedicated to medical and scientific study. Other current research projects address issues such as software engineering, sociology, communication, education, mathematics, labor relations, and other related topics.

Summary

Uruguay possesses one of the most educated, socially conscious cultures in Latin America and in the world. Its historical concern for human development, even in the face of political and military adversity, has enabled it to become an enlightened, open-minded center of learning and peaceful relations. Like most other countries, however, Uruguay's educational system is in need of continual upgrading, most notably in the areas of physical facilities and technology. No doubt its high literacy rate and its commitment to self-improvement will help it overcome problems presented by lack of resources.

In short, South America's smallest country leads its neighbors in progressive thinking and educational reform. The quality of life enjoyed by Uruguayans is a reflection of its classroom achievements and its diverse cultural heritage.

Bibliography

Bernhardson, Wayne. Argentina, Uruguay & Paraguay. Melbourne: Lonely Planet Publications, 1999.

"Destination Uruguay." In Lonely Planet's Worldguide. Available from http://www.lonelyplanet.com/.

Devine, Elizabeth & Nancy L. Braganti. The Traveler's Guide to Latin American Customs & Manners. New York: St. Martin's Press, 2000.

"Embassy of Uruguay Washington D.C." Embassy of Uruguay to the United States Website. Available from http://www.embassy.org/uruguay.

"Mercosur and Its Origins." Embassy of Uruguay to the United States Webpage. Available from http://www.embassy.org/.

Universidad ORT Uruguay website. Available from http://www.ort.edu.uy/.

Universidad de Catolica website. Available from http://www.ucu.edu.uy/.

Universidad de la Republica website. Available from http://www.rau.edu.uy/.

"Uruguay." In The World Factbook 2000. Available from http://www.cia.gov/.

"Uruguay: Education." In GeoCities. Available from http://www.geocities.com/.

"Uruguay-Education System." In World Higher Education Database 2000. International Association of Universities. Available from http://www.usc.edu/.

"World Bank Finances Second Education Project in Uruguay." The World Bank Group News Release, July 31, 1998. Available from http://www.worldbank.org/.

—William Wardrope

Uruguay

Basic Data

Background & General Characteristics

Generally speaking, Uruguayans enjoy a higher standard of living than people in most other Latin American countries. According to the tenth edition of Global Studies: Latin America, in the early 2000s, Uruguay had the third highest per capita income (US$8,500) in South America after Argentina and Chile. Both the adult literacy rate (97.3 percent) and life expectancy (72 years, male, and 79 years, female) demonstrate a political commitment to education and health care. Extreme poverty is unusual in Uruguay, and most of the population enjoy an adequate diet and at least a minimal standard of living. Health care is within the reach of all citizens, and women are granted equality before the law. This publication claims that high levels of literacy and a large middle class allows Uruguay an intellectual climate that is superior to many much larger nations.

Over 90 percent of the population of 3,335,000 live in urban areas (especially the capital city Montevideo, population 1.3 million). The major languages are Spanish, Portunol, and Brazilero. The ethnic makeup is 88 percent white, 8 percent mestizo (European and indigenous ancestry), and 4 percent black.

Uruguay emerged from the government censorship of the 1970s into what was generally considered a free press from the mid-1980s into the early 2000s. The World Press Freedom Review considers Uruguay to have a "vibrant media," citing the more than 100 daily and weekly newspapers, approximately 150 radio stations, 604 radio receivers per 1,000 population, 34 regular and cable television channels.

Montevideo supports five daily newspapers and 10 widely read weeklies. The capital city has one government-affiliated and three commercial television stations. Some 825,000 main telephone lines exist within the country. There are 232 televisions per 1,000 persons, and at least seven primary Internet providers as of the year 2000. The daily newspaper circulation is 241 per 1,000 persons. The newspaper with the largest circulation, El País (founded in 1918), has a circulation of approximately 130,000. Along with other papers and magazines, it has well-developed Internet sites. Most newsprint and broadcasts are in Spanish, but at least two newspapers, Uruguay Post and Penguin News, are in English. This fact is explained by Uruguay's proximity to the Falkland Islands and thus the British influence it feels.

Newspaper & Magazines

From the 1970s and continuing into the 2000s, the newspaper industry experienced an economic downturn, and dozens of newspapers and magazines were forced to close as a result. In part, the economic problems were brought about by the reduction in state companies' spending on advertising.

Newspapers and magazines from the interior of Uruguay were affected the most because they had fewer readers and hence less opportunity for profit than publications in Montevideo. Nine newspaper agencies closed in 2001: El Diario, La Mañana Guambia, the weekly El Día, the evening Primera Plana, Prensa de los Viernes, the weekly Causa Abierta and the weekly magazines Tres andPosdata. The most widely distributed papers in Uruguay are El País followed by El Observador and La República.

Economic Framework

Because of its sweeping social and economic changes in the early twentieth century, Uruguay was known as the "Switzerland of Latin America." The effects could be seen in an evenness of income distribution that is uncommon in developing countries. The 1960s and 1970s were times of social and military upheaval as in many Latin American countries. By 1980, however, there was a return to civilian rule after a national referendum. Uruguay has a unique law regarding change of power: the Constitution states that if 25 percent of the voting population signs a petition, a referendum will appear on the next voting ballot. As of 2002, Uruguay was a multi-party democratic republic and operated within a free-market economic framework. The economy of this small country is integrated with that of larger Argentina, Chile, and Brazil.

In March of 2000, Jorge Batlle assumed the presidency of Uruguay, as the country was confronting a serious economic and political crisis after the devaluation of the Brazilian real in January 1999. There had been a move to privatize some sectors of the economy in the late 1990s. The country has a mixture of private and state enterprises and is heavily dependent on agricultural exports and agro industry. Opinion polls, however, show that most Uruguayans support state ownership of critical industries, especially in the face of a sustained recession, a public debt of 45 percent of the gross domestic product, and neighboring Argentina's existing economic crisis. Batlle planned to leave state-owned firms untouched but allow private companies to compete with them or tender bids to operate their services under contract.

Press Laws

In the early 2000s the press was legally free and unrestricted, as was speech. The political process is open, and academic freedom is the norm in the national university. Publishing is generally confined to the private sector. Although legally free, however, Uruguay's press faces some real limitations. Still, no government censorship exists, and anyone can produce a newspaper by registering before an official at the Ministry of Education and Culture.

State-Press Relations

The International Journalists' Network uses three characteristics to evaluate a press system: 1) state advertising as a means of bargaining; 2) budget and personnel cuts; 3) information of low quality.

The politicians and military officers who took control in the 1970s used advertising as a way to leverage for positive media coverage. In 2002, a vicious cycle existed between the state and the press to such an extent that Uruguayan press systems basically depended on the state in order to cope with the high cost of publishing and the overall economic downturn throughout the country. Newspaper budgets are achieved, more or less, from the 35 percent coming in from sales and the 65 percent from advertising from both public and private sources. The 1997 economic crisis, however, resulted in a 39 percent decline in advertising. The situation worsened after 1997 when the government reduced its advertising budget by 50 percent, contributing to budget cuts and layoffs in the communications sector. One result of the regional economic downturn, according to the Association of the Uruguayan Press (APU), was that the communications sector lost about 300 jobs, and many professionals received salary cuts that in some cases reached 50 percent.

Other economic threats are connected to a proposed bill that would levy value-added tax (VAT) on the sale of newspapers and magazines. The bill proposes to broaden the VAT's scope and lower the existing rate of 23 percent, one of the world's highest. The resulting effect would be an increase in retail prices, the closure of small publications, and ultimately the restriction of freedom of expression in the country.

As of 2002, Uruguay had not developed any legislation regulating radio and television. Most radio stations obtain their "precarious and easily revocable operating licenses by executive decree" (Faraone and Fox 148).

Defamation, contempt, and libel continue to be considered criminal offenses, a holdover from the past. Article 173 of the criminal code lists two definitions of desacato (insult), which is considered to be the undermining of official authority. The concept of insult includes "offensive words and gestures," which might be punishable by 3 to 18 months in prison. The 1989 Press Law 16.099 also provides for prison sentences of three months to two years for "knowingly divulging false news that caused a grave disturbance to the public peace or a grave prejudice to economic interests of the State" or for "insulting the nation, the State, or their powers." The authorities did not use this law during 2001.

Journalists generally do not feel motivated to engage in investigative journalism in part because of low salaries and low morale. In some of the few instances where reporters do investigative work, they may censor themselves to avoid possible repercussions.

The country's highly secretive banking and tax laws severely hinder coverage of corruption. Many Uruguayans only learn about state-sponsored corruption allegations by watching Argentine cable channels. The Uruguayan Press Association denounced local TV channel 12 in September 2001 for censoring parts of an Argentine show in which an Argentine politician exposed alleged money-laundering involving Uruguayan companies.

As of 2002, a right-to-information bill remained stalled in the Uruguayan Congress. Introduced in 1998, the law would guarantee the right of access to public records kept in government archives and would give preferential treatment to media requests for such information.

Attitude toward Foreign Media

In the early 2000s, Uruguay was receiving more attention from global media giants. The most aggressive participant in Latin American television growth, Murdoch, started a Spanish version of the U.S. network Fox TV. The U.S.-based CBS network bought Tele Noticias in 1996, with service available for cable systems reaching over 20 million homes throughout the United States and Latin America. The primary reason for purchase was expansion into the Latin American market. The U.S. network NBC launched a Spanish language news service in March 1993, Canal de Noticias. It emphasized information from the Americas and was prepared by NBC in New York. CNN began its regular Spanish-language service in January 1997. Reuters has been in the region for decades and continues to be an important player in South American newsgathering.

Broadcast Media

Radio broadcasters have long been divided over the issue of community radio stations. In 2002, more than 20 of them operated without a permit in Uruguay. While commercial stations claim that community stations inter-fer with their frequencies, community stations argue that they could not afford to buy frequencies, which are at the time granted through auctions. In October 2001, representatives from both sides met with officials from the country's telecommunications regulatory agency, for preliminary negotiations on creating a legal framework for the operation of community station.

Radio and television receive their economic profits exclusively from public and private advertising. It is more difficult to start a radio station than a newspaper. In principle, the National Direction of Communications in Uruguay, an agency to which all electronic media are subject, depend on the Ministry of National Defense for permission to operate. The president grants final permission. The Uruguayan government established the office of radio diffusion (SODRE) as a public communications service. The electronic media dedicate considerable time to music, foreign soap operas, and other entertainment.

In the early 1990s cable television evolved in Montevideo. This communications medium has gained popularity in the rural areas before spreading to the capital. The three main companies that provided cable in Montevideo are Bahía Esmeralda, Tractoral, S.A., and Riselco, S.A.

The newspaper La República accused the cable companies of trying to impede the spread of satellite services such as DirecTV.

Electronic News Media

As of 2002 access to the Internet was available to anyone with a telephone line and enough money for a computer. There is no censorship of Internet sites by the government or other organizations. Several of the primary newspapers, magazines, and even radio stations have Internet sites. Online magazines address a variety of issues, for example, Charoná (the youth culture), Mujeres Prohibidasa (sexual orientation issues), and Tercer Mundo Económico (economics).

Education & Training

In the early 2000s, a college degree was not necessary for journalists. The universities that offer a degree in Communications are Universidad Católica, Universidad ORT, and Universidad de la República Oriental de Uruguay, all located in Montevideo.

Summary

In the early twenty-first century, while it was unclear if Uruguay would ever regain its moniker "Switzerland of Latin America," the healthy media industry there continues to play a role in presenting various viewpoints and voices to a generally literate, urban population. However, Article 173 of the criminal code and the 1989 Law 1.099 that discuss penalties for desacato (insult) to the State constitute a legal threat to freedom of the press and to journalists and broadcasters who address political and social issues. Self-censorship is still practiced by many broadcasters. Print media is experiencing a downturn as advertisers invest less, while the Internet, radio, and television continue to grow and to attract larger audiences. The primary factor in determining the future of Uruguay's press system continues to be the country's and region's economic condition.

Bibliography

Cole, Richard R., ed. Communication in Latin America: Journalism, Mass Media, and Society. Wilmington, DE: Scholarly Resources, Inc., 1996.

Committee to Protect Journalists. Attacks on the Press 2001—Uruguay, 2002. http://www.cpj.org .

El País. http://www.elpais.com .

Faraone, Roque, and Elizabeth Fox. "Communication and Politics in Uruguay," Media and Politics in Latin America, ed. Elizabeth Fox. London: Sage Publications, 1988.

Goodwin, Paul. Global Studies: Latin America. 10th ed. Storrs, CT: University of Connecticut Press, 2003.

International Journalists' Network (IJNet). Uruguay: Press Overview, 2001. http://www.ijnet.org .

IPI World Press Freedom Review, 2001. www.freemedia.at/wpfr/uruguay.htm .

Johnston, Carla Brooks. Global News Access. Westport, CT: Praeger, 1998.

U.S. Department of State. Country Reports on Human Rights Practices—2001. Uruguay. http://www.state.gov/

Waisbord, Silvio. Status of Media in Argentina, Uruguay, and Paraguay, n.d. üwaisbord/ENCYCLOP.html">http://www.scils.rutgers.edu/üwaisbord/ENCYCLOP.html .

Cynthia K. Pope

Uruguay , officially Oriental Republic of Uruguay, republic (2005 est. pop. 3,416,000), 68,536 sq mi (177,508 sq km), SE South America. The second smallest country (after Suriname) in South America, Uruguay extends from a short Atlantic coastline along the north bank of the Río de la Plata to the Uruguay River, which separates it on the west from Argentina. To the north is Brazil. The capital and largest city is Montevideo .

Land and People

The land is an area of topographical transition from the humid Argentine Pampa to the uplands of S Brazil. North of the alluvial plain, known as the Banda Oriental [Span.,=east bank, i.e., of the Uruguay and the Río de la Plata], Uruguay generally has long, sweeping slopes and grasslands, wooded valleys with slow-moving rivers, and long ranges of low hills, with some huge granite blocks that stand out against the horizon. Although Uruguay is within the temperate zone, climatic variations are moderate; generally the climate is warm, with rainfall evenly distributed through the seasons, but in some years there are severe droughts.

Most of the population is concentrated in the south; over 40% live in Montevideo. Almost 90% of Uruguay's people are of European descent, Spanish and Italian predominating; there are few pure indigenous Uruguayans. The original inhabitants, the Charrúa, were absorbed into the Spanish and Portuguese populations after long resistance; today the mestizo element (less than 10% of the total population) is found principally in N Uruguay. Spanish is the official language, but a dialect containing elements of Spanish and Portuguese is spoken along the Brazilian frontier. The majority of the population is nominally Roman Catholic. The nation has long been remarkable for its contributions to literature and the arts (see Spanish American literature ). The Univ. of the Republic is in Montevideo.

Economy

Uruguay's greatest natural resource is its rich agricultural land, almost 90% of which is devoted to livestock raising. Cattle, sheep, horses, and pigs are the major livestock animals. Grains for cattle fattening and human consumption make up the bulk of the harvested crops. Rice is the major food crop, followed by wheat and sugarcane. Corn is the principal feed concentrate. Barley, oats, and grain sorghums are also grown, and oil crops (flaxseed and sunflower seed) and sugar beets are important. In the vicinity of Salto there are many orchards and vineyards.

Despite Uruguay's basically agricultural-pastoral economy, its dependence upon imports for most raw materials, and its lack of fuel resources, there is considerable industrialization. The processing of agricultural and animal products accounts for about half of the manufacturing activity; Fray Bentos and Paysandú are noted for their meatpacking plants. Other industries manufacture electrical machinery, transportation equipment, petroleum products, textiles, and chemicals. A large refinery near Montevideo processes imported crude oil. Mineral resources include marble, stone, granite, and bauxite. There are important hydroelectric plants on the Uruguay and Negro rivers. Fishing and forestry add to the country's economy.

Uruguay's magnificent beaches, such as those at Punta del Este , are great economic assets; tourists, chiefly from Argentina, contribute much to the national income. The country's transportation facilities are extensively developed. Meat, wool, and hides and skins constitute the majority of Uruguay's exports; rice, fish, and dairy products are also exported. Machinery, chemicals, and vehicles are imported. Brazil, the United States, Argentina, and Russia are the main trading partners. Uruguay is a member of Mercosur .

Government

Uruguay is governed under the constitution of 1967 as amended. Executive power is held by the president, who is both head of state and head of government. The president is popularly elected for a five-year term and may not serve consecutive terms. The bicameral legislature, the General Assembly, consists of a 30-seat Chamber of Senators and a 99-seat Chamber of Representatives. The members of the General Assembly are also elected for five-year terms. Administratively, Uruguay is divided into 19 departments.

History

European Involvement and the Struggle for Independence

Although the Río de la Plata was explored as early as 1515, it was not until 1624 that the Spanish established the first permanent settlement, at Soriano in SW Uruguay. The Portuguese founded (1680) a short-lived settlement at Colonia, and in 1717 they fortified a hill on the site of Montevideo. Fearing encroachment and competition, the Spanish drove them out (1724) and from then until the wars of independence controlled the Banda Oriental. Uruguay's position between Spanish and Portuguese settlements, and later between Argentina and Brazil, helped determine the emergence of Uruguay as an independent state. On the pampas stock raising spread; gradually the unbounded range gave way to huge estancias (cattle ranches) and small settlements concentrated about the ranch buildings.

It was the rough and hardy gaucho who fought for independence, and the traditions, personal loyalties, and rivalries of the gauchos helped to keep the nation in almost continual strife for three quarters of a century after independence was won. When the revolutionary banner was raised in the Argentine in 1810, the leaders of the Banda Oriental, notably Artigas , accepted the cause, but in 1814 Artigas broke with the military junta of Buenos Aires and began a struggle for Uruguayan independence that lasted until the Brazilian occupation of Montevideo in 1820. Five years later a small group, known as the Thirty-three Immortals, under the guidance of Lavalleja , declared Uruguay independent.

Independence and War

In 1827 at Ituzaingó Brazil was defeated. Great Britain, opposing Brazilian expansion south to the Río de la Plata, helped ultimately to create an independent Uruguay as a buffer state between Argentina and Brazil. The peace (1828) stipulated that the new Uruguayan constitution should be acceptable to both the larger nations. When it was adopted in 1830, Fructuoso Rivera was chosen as president. He was promptly faced with revolts led by his old rival, Lavalleja, and when he was succeeded in office by Manuel Oribe , he himself revolted against Oribe, who was in sympathy with Juan Manuel de Rosas of Argentina. In the long fratricidal struggle that ensued, the two dominant political parties of Uruguay emerged, Rivera's Colorados [reds] and Oribe's Blancos [whites].

Oribe was driven out in 1838, but later with the aid of Rosas returned to begin the long siege of Montevideo. The Italian patriot Garibaldi fought in the Uruguayan wars from 1842 to 1846. In 1851 the Argentine general Urquiza drove out Rosas and brought an end to the Uruguayan civil war. When in 1864 Brazil presented a claim for damages to property and nationals during the civil wars, Uruguay refused to accept it. Brazil invaded and, aided by the Uruguayan general Vanancio Flores (a Colorado), overthrew the Blanco president. Paraguay, under Francisco Solano López , came to the assistance of the Blancos, whereupon Argentina, Brazil, and Uruguay formed a tripartite alliance against Paraguay (see Triple Alliance, War of the ). During the 19th and 20th cent. waves of immigration, chiefly from Europe, augmented the Uruguayan population.

Government Reforms

Until the rise of José Batlle y Ordóñez early in the 20th cent., Uruguay experienced many revolutions and counterrevolutions. In Batlle's second term as president (1911–15), however, began the social and material progress that made Uruguay one of the more stable and prosperous nations of Latin America. By a coup in 1933, Gabriel Terra suspended the constitution of 1919, and his rule was strongly personalistic. Yet, under Terra's rule, which ended in 1938, the socialistic measures for public welfare were not reversed but forwarded; the labor code was broadened, social benefits increased, and industry further nationalized.

Batlle's influence on Uruguayan political practice did not end with his death; concerned lest the country again fall prey to dictatorial caudillos, he had advocated the creation of an executive governing council. This reform, inspired by the Swiss multiple-executive system of government, was adopted in 1951; the office of president was abolished and replaced by a nine-man council with a president, chosen from the majority party, to act as titular head of state. The plural executive, however, proved ineffectual; factionalism and apathy within the council hindered action on social and economic problems, which became pressing in the mid-1950s and acute during the 60s.

Civil Strife in Modern Uruguay

The increasing use of synthetics and the steadily declining price of wool cut deeply into Uruguay's exports of wool and leather. Inflation and unemployment grew, and the vast, inefficient bureaucracy became a burden to the economy. In 1958 the Colorados, who had been in power for over 93 years, were overwhelmingly defeated by the conservative Blancos, who won again in 1962 by a narrower margin. Throughout the 1960s and early 70s the economic decline continued, intensified by droughts and floods and accompanied by massive social unrest—riots, paralyzing strikes, and the emergence of a terrorist Marxist guerrilla group, the well-organized Tupamaro National Liberation Front (see Tupamaros ).

In 1967 a new constitution abolished the plural executive and reinstated a powerful president. That same year the Colorado party returned to power, with Oscar Gestido as president. Gestido died after several months in office and was succeeded by his vice president, Jorge Pacheco. Pacheco and his hand-picked successor, Juan María Bordaberry (who was elected in 1972), ruled with increasingly dictatorial powers. As the Tupamaros increased their terrorist activities, kidnapping foreign diplomats and assassinating high officials, the army assumed tremendous power, even successfully pressuring President Bordaberry (June, 1973) to dissolve the congress and suspend the constitution. The military, which made Aparicio Méndez president in 1976, ruled Uruguay with brutal force, regularly disregarding human rights by kidnapping, imprisoning, torturing, or murdering citizens.

The government's repressive tactics caused a massive emigration of Uruguayans, mostly to Argentina. After a 1980 plebiscite to continue de facto military rule was voted down by the populace, the military government steadily lost power. General Gregorio Álvarez became president in 1981. In 1985, Julio María Sanguinetti of the centrist Colorado party became president, restoring civilian government but also granting amnesty (1986) to former leaders accused of human-rights violations (for crimes committed in Uruguay). Luis Alberto Lacalle Herrera of the conservative National (Blanco) party became president in 1990. He was forced to form a coalition government in order to secure a parliamentary majority, and his attempts to introduce free-market reforms were obstructed.

Sanguinetti was returned to the presidency by a slim margin in the 1994 elections, and also had to form a coalition; he sought cutbacks in Uruguay's bankrupt social security program and modest amounts of privatization. In 1999, Jorge Batlle Ibañez, also of the Colorado party, was elected president; during the election, he faced a strong challenge on the left from the Broad Front's Tabaré Vázquez, the former mayor of Montevideo. Since the late 1990s the country's economy has been hurt by crises in the economies of Brazil and Argentina, its principal trade partners, resulting in several years of recession that became particularly severe in 2002. In 2003, Batlle Ibañez announced that the government would compensate families of victims of the 1976–85 military dictatorship and of the guerrilla groups that opposed it.

Uruguay's economic difficulties enabled Tabaré Vázquez to win the presidency without a runoff in 2004; his Broad Front coalition also won majorities in both legislative houses. Vázquez became the first leftist to be elected president in Uruguay. The planned construction in Uruguay of two pulp mills on the Uruguay River along the Argentina border led to tensions between the two nations throughout 2006; fearful of possible pollution from the mills, Argentinians blockaded several bridges between the nations. The International Court of Justice agreed to hear Argentina's contention that the mills violated a treaty on the use of the river but allowed construction to proceed (Uruguay built just one mill) while the court considered the case; it also refused to order Argentina to stop the protests, which continued until June, 2010. In 2010 the court ruled that although Uruguay had failed to adhere to its procedural obligations under the treaty, it had not violated its environmental obligations and the mill could continue to operate. An accord establishing a joint environmental monitoring committee for the river was signed in Nov., 2010.

Also in 2006, former president Bordaberry was charged and arrested in connection with the political murders of dissidents and others in 1976; he was convicted in 2010 of having violated the constitution during his presidency. In 2007 former president Álvarez was arrested on similar charges and was convicted in 2009. The supreme court in 2009 declared the 1986 amnesty law unconstitutional. In the Oct., 2009, elections the Broad Front won a narrow legislative majority, and after a runoff in November its presidential candidate, José "Pepe" Mujica, a former leftist guerrilla, also won. Legislation to overturn the amnesty law failed to pass in May, 2011. Although Mujica had not backed the legislation, he signed a decree in June that allowed as many as 80 human-rights cases to proceed, and in October a law revoking the amnesty was enacted.

Bibliography

See G. Pendle, Uruguay (3d ed. 1965); R. H. Brannon, The Agricultural Development of Uruguay (1968); J. H. Ferguson, The River Plata Republics (1968); T. E. Weil et al., Area Handbook for Uruguay (1971); M. E. Gilio, The Tupamaro Guerrillas (tr. 1973); M. H. Finch, A Political Economy of Uruguay Since 1890 (1981); M. Weinstein, Uruguay: Democracy at the Crossroads (1988).

Uruguayans

PRONUNCIATION: yoor-uh-GWAY-ens

LOCATION: Uruguay

POPULATION: Over 3 million

LANGUAGE: Spanish; Portuñol dialect

RELIGION: Roman Catholicism; some Judaism; Afro-Brazilian churches; evangelical Protestantism

1 • INTRODUCTION

The Portuguese, based in Brazil, migrated south into Uruguay in 1680 where they founded a colony called Colonial de Sacramento. In 1726, Spain established a fort in nearby Montevideo (mohn-teh-vih-DAY-oh), the present-day capital of Uruguay. After a struggle between the two colonial powers, Uruguay fell under Portuguese control. It later became a province of Brazil. Uruguay was granted full independence in 1828, through an agreement between Argentina and Brazil. After independence, power alternated between two major political parties. They were called the Colorados (Reds) and the Blancos (Whites). A violent civil war lasted from the mid-1830s to 1851.

In the late 1960s, economic difficulties and the activities of a terrorist group known as the Tupamaros led to political instability. In 1973, a military dictatorship assumed control of the government. Democracy was restored in 1985.

2 • LOCATION

Uruguay is located between Brazil and Argentina on the Atlantic coast of South America. Its terrain is characterized by gently rolling hills and natural grasslands. A high proportion of Uruguay's territory is suitable for agriculture. Most of Uruguay's grasslands are currently used for grazing.

The total population of Uruguay is over 3 million people. Uruguay does not have a native population. Since 1830 the Uruguayans have been ethnically European, descended mainly from Italians or Spaniards.

3 • LANGUAGE

The official language of Uruguay is Spanish. In regions close to the Brazilian border, a Spanish-Portuguese dialect called Portuñol (or Portuniol) is spoken.

4 • FOLKLORE

There are conflicting legends explaining the name given to Uruguay's capital, Montevideo. Both originate in Ferdinand Magellan's visit to the region in 1520. According to one legend, a sailor on Magellan's ship saw land and shouted, "Monte vide eu" —"I see a hill." The other version is based on a Spanish phrase found on early maps: "Monte VI de E.O.," or "The sixth hill from east to west."

5 • RELIGION

Most Uruguayans are Roman Catholic. There is a sharp separation between church and state. Many religious holidays have even been given secular names. Christmas, for instance, is widely referred to as Family Day. Similarly, Easter Week is known as Criollo Week.

6 • MAJOR HOLIDAYS

Perhaps the most celebrated holiday in Uruguay is Carnival. This is a week-long celebration that marks the beginning of Lent (in February). There is a series of street parades, as well as drinking, feasting, and dancing.

Many of Uruguay's festivals celebrate its cattle-raising heritage. During Easter Week (in March or April), a Cowboy Festival (Fiesta Gaucha) is held in Montevideo. Rodeo competitions are the main event.

7 • RITES OF PASSAGE

Major life transitions, such as birth, puberty, and death, are marked by rituals appropriate to each Uruguayan's religion.

8 • RELATIONSHIPS

To say goodbye, most Uruguayans have adopted the Italian ciao or addio in place of the Spanish adios. It is proper to kiss someone both when saying hello and upon departing.

When invited to an Uruguayan home, one may be offered mate, an herbal tea. Traditionally, mate is drunk through a silver straw, called a bombilla, from a carved gourd (hollow fruit).

9 • LIVING CONDITIONS

Montevideo is a modern city, with high-rise apartments and office buildings. Many of the poorer residents, however, live in small homes or shacks on the outskirts of the city. In rural areas, Uruguayan cowboys, called gauchos, live in simple communal housing on farms where they work. Other rural dwellers live in adobe homes.

10 • FAMILY LIFE

Marriage in Uruguay can be formalized through a civil ceremony. Families in Uruguay are relatively small compared with other countries in the region. Most urban families choose to limit the size of their families. In rural areas, however, there is less access to birth control, and women typically have more children.

11 • CLOTHING

Urban Uruguayans wear modern Western dress. Today's youths favor jeans and T-shirts. Suits and ties are appropriate attire for businessmen. Uruguay's gauchos (cow-boys) proudly wear the distinctive clothing of their ancestors. They sport baggy pants called bombachas. Wide-brimmed black hats offer protection from the midday sun. Woolen ponchos are used for warmth in the evenings.

12 • FOOD

Not surprisingly for a cattle-ranching country, beef figures prominently in Uruguayan cuisine. Churrasco, or grilled steak, can be said to be the national dish. Also very popular are chivitos: hot steak sandwiches, topped with bacon, eggs, cheese, lettuce, and tomatoes.

Recipe

Puchero
(Uruguayan meat stew)

Ingredients

• water
• 4 pounds osso buco (veal shanks), cut into six pieces
• 6 carrots, peeled
• 1 onion
• 1 pound green beans
• 6 ears of sweet corn, husked
• 1 squash (medium size), cut into 6 pieces, unpeeled
• 1 cup chopped celery 6 white potatoes, peeled
• 6 zucchini
• 1 bunch parsley
• 4 teaspoons salt

Directions

1. Fill a large saucepan with water and bring it to a boil.
2. Add all ingredients to boiling water in the following order: the meat, then carrots, onion, green beans, corn, squash, and celery. Then add potatoes, zucchini, and corn. Add parsley and salt to season the stew.
3. Cover and simmer for 30 minutes, or until potatoes are tender.
4. Drain off most of the liquid.

Serve the meat and vegetable in bowls with a little of the broth. Mustard, mayonnaise, tomato, onion, or pepper sauce may be served as accompaniments.

Recipe courtesy of the Embassy of Uruguay.

The Uruguayans have also adapted traditional Spanish dishes. A Uruguayan version of puchero, Spanish meat stew, is sometimes cooked with blood sausage.

13 • EDUCATION

Uruguayans have a literacy rate (percentage of the population who can read and write) of over 97 percent. Children receive six required years of elementary education. These are followed by six years of secondary schooling, divided into two three-year stages.

14 • CULTURAL HERITAGE

Perhaps the most celebrated Uruguayan poet was Juan Zorrilla de San Martin (1855–1931). A more recent writer of international acclaim is Juan Carlos Onetti, a contemporary novelist. Uruguay's musical tradition reflects a historical Spanish influence. As in Argentina, the tango is a popular dance form. Candombe, an Afro-Brazilian music and dance form, is also popular.

15 • EMPLOYMENT

Agriculture is the driving force behind the Uruguayan economy. Sheep and cattle ranching are the most important agricultural activities. Many urban dwellers find work in industries related to the processing of agricultural products. These including canning, brewing, and the leather industry. Montevideo businesses offer jobs as waiters, taxi drivers, and shopkeepers. Unemployment, however, is a major problem. Many Uruguayans resort to such jobs as street vending and tailoring.

16 • SPORTS

Uruguayans love soccer (futbol), both as spectators and participants. They are equally passionate about horses. Rodeos are always well attended. Horse racing is also very popular. Like Argentina, Uruguay also has a passion for polo.

17 • RECREATION

Many Uruguayan families flock to the beaches on weekends for rest and recreation. The coastal forests provide numerous sites for camping and fishing. Montevideo has a varied night life. Restaurants, cinemas, and musical shows are widely attended on weekends.

18 • CRAFTS AND HOBBIES

Uruguayans excel in producing handcrafted leather goods auch as belts, hats, boots, and purses. Montevideo has a well-known handicraft cooperative called Manos de Uruguay (Hands of Uruguay). Members of the cooperative spin and dye wool, knit sweaters, and also make ceramic crafts.

19 • SOCIAL PROBLEMS

Unemployment is high, typically ranging from 10 to 15 percent. There is also a serious lack of housing.

20 • BIBLIOGRAPHY

Finch, Martin. Uruguay. Santa Barbara, Calif.: Clio, 1989.

Haverstock, Nathan A. Uruguay in Pictures. Minneapolis, Minn.: Lerner Publications Co., 1987.

Morrison, Marion. Uruguay. Enchantment of the World Series. Chicago: Children's Press, 1992.

WEBSITES

Embassy of Uruguay, Washington, D.C. [Online] Available http://www.embassy.org/uruguay/, 1998.

World Travel Guide. Uruguay. [Online] Available http://www.wtgonline.com/country/uy/gen.html, 1998.

URUGUAY

The early days of psychoanalysis in Uruguay date back to the 1940s when Valentín Pérez Pastorini, a psychiatrist, began traveling to Buenos Aires to be analyzed by Pichon-Rivière. Pérez Pastorini trained with the Argentinean Psychoanalytic Association. Miguel Sesser then followed his example. Pérez Pastorini analyzed Roberto Agorio and Gilberto Koolhaas, and the group grew to include Jean Carlos Rey, Héctor Garbarino, Juan Pereira Anavitarte and professors Laura Achard, Marta Lacava, and Mercedes Freire de Garbarino. In 1950 it was proposed to form an institute, a project that required the presence of a training analyst.

In 1954 Willy and Madeleine Baranger, French teachers who were members of the Argentinean Psychoanalytic Association, set up in the country and began to work as training analysts. Argentinean analysts traveled each week for supervisions. The group began to take shape, and from 1955 to 1956 it established bylaws and acquired legal status. It was recognized as a study group at the Twentieth Congress of the International Psychoanalytical Association in Paris in 1957 and was admitted as an affiliate association of the International Psychoanalytical Association at the twenty-second congress, held in Edinburgh in 1961.

This expansion of psychoanalysis initially met with opposition from a group of physicians who accused the psychoanalysts of illegally practicing medicine. The Sindicato médico del Uruguay (Medical Association of Uruguay) finally ruled on the question in favor of the group of analysts. Psychoanalysis then experienced a period of rapid growth. It was taught at the graduate level as part of medical and psychiatric studies, as well as in bachelor courses in psychology in the faculty of arts and human sciences. Luis E. Prego Silva introduced psychoanalytic knowledge into pediatric departments in hospitals. In 1965 the Barangers returned to Buenos Aires after a ten-year stay in Montevideo, but by this time the Uruguay Psychoanalytic Association already had three training analysts: Héctor Garbarino, Laura Achard, and Mercedes Freire de Garbarino. In 1966 the Twelfth Congress of Latin American Psychoanalysis was held in Montevideo.

The psychoanalytic movement went into a noticeably slow period during the "de facto government" from 1973 to 1985, the period of military dictatorship that forced eminent analysts to emigrate, imposed rigorous controls on meetings of the Uruguay Psychoanalytic Association, restricted the appointment of its directors, and monitored publications. All the ground that had been gained at the level of universities, hospitals, and public health was lost. In 1985, with the advent of democracy, the Uruguay Psychoanalytic Association nevertheless rapidly made up for lost time.

Among the founding members of psychoanalysis in Uruguay the following stand out for their contributions to the field in terms of theory and practice: Rodolfo Agorio, Gilberto Koolhaas, Héctor Gabarino, Mercedes Freire de Gabarino, Laura Achard, Juan Carlos Rey, and Willy and Madeleine Baranger. Also worthy of note for their contributions are Luis E. Prego Silva, Vida Maberino de Prego, Marta Nieto, Carlos Mendilaharsu, Sélika Acevedo de Mendilaharsu, Gloria Mieres de Pizzolanti, Isabel Plosa, Alberto Pereda, Myrta Casas de Peredo, Ricardo Bernardi, Marcelo Viñar, Maren Ulriksen de Viñar, Fanny Schkolnik, and Marcos Lijtenstein.

The Uruguay Psychoanalytic Association is the only organization in the country that is a member of the International Psychoanalytical Association. It is also affiliated with the Latin American Psychoanalytic Federation. There have been no splits in the organization. The Executive Committee is elected every two years at a general assembly. The Training Commission is in charge of the study program. The Scientific Commission coordinates activities within and outside the association and organizes meetings, roundtables, and domestic and international conferences. The title "training analyst" has been replaced by "analyst in didactic function," a title that includes training, supervision, and teaching. Admission is by interview, since one of the criteria governing training is that personal analysis cannot be formally associated with the association in any way. To apply, candidates must have completed three and a half years of personal analysis. Supervised practice consists of three analyses of two years each, two of adults and one of a child. Various laboratories operate under the aegis of the Uruguay Psychoanalytic Association: laboratories that study children, adolescents, psychosis, couples and families, as well as laboratories that take research and group psychoanalytic approaches. The Centro de intercambio (Exchange Center) is responsible for spreading psychoanalysis to neighboring domains of knowledge and culture. It also provides psychoanalytic treatment for low-income patients. The Publications Commission, in addition to publishing books, has published the Revista uruguaya de psicoanálisis since 1956 and the journal Temas since 1983.

In July 2003 the president of the republic and the minister of education and culture approved the reform of the bylaws of the Uruguay Psychoanalytic Association and the foundation of the University Postgraduate Institute of Psychoanalysis under the auspices of the association. From then on, training by the association led to a university-level master's degree in psychoanalysis. In the same year a commission was set up whose goal it was to have the Uruguay Psychoanalytic Association recognized by the Graduate School of the Faculty of Medicine of the University of the Republic as an institution entitled to organize adult training programs.

SÉlika Acevedo de Mendilaharsu

Bibliography

Freire de Garbarino, Mercedes. (1988). Breve historia de la Asociación psicoanalítica del Uruguay. Revista uruguaya de psicoanálisis, 68, 3-10.

Freire de Garbarino, Mercedes, et al. (1995). Uruguay. In Peter Kutter (Ed.), Psychoanalysis international: A guide to psychoanalysis throughout the world, vol. 2 (pp. 174-185). Stuttgart, Germany: Frommann-Holzboog.

Prego Silva, Luis E. (1996). Notas y comentarios sobre los orígenes del psicoanálisis de niños en el Uruguay. In Psicoanálisis de niños y adolescentes en América latina (Vol. 2, pp. 51-56). Lima, Peru: Fe.P.A.L.

Uruguay

Official name: Oriental Republic of Uruguay

Area: 176,220 square kilometers (68,039 square miles)

Highest point on mainland: Cerro Catedral (514 meters/1,686 feet)

Lowest point on land: Sea level

Hemispheres: Southern and Western

Time zone: 9 a.m. = noon GMT

Longest distances: 555 kilometers (345 miles) from north-northwest to south-southeast; 504 kilometers (313 miles) from east-northeast to west-southwest

Land boundaries: 1,564 kilometers (972 miles) total boundary length; Brazil 985 kilometers (612 miles); Argentina 579 kilometers (612 miles)

Coastline: 660 kilometers (410 miles)

Territorial sea limits: 22 kilometers (12 nautical miles)

1 LOCATION AND SIZE

Small Uruguay forms a flat wedge between its giant neighbors, Brazil and Argentina. The great Río de la Plata estuary and the Atlantic Ocean border Uruguay's southern coast; on the west, the Río Uruguay separates it from Argentina. With an area of 176,220 square kilometers (68,039 square miles), Uruguay is almost as large as the state of Washington.

2 TERRITORIES AND DEPENDENCIES

Uruguay has no territories or dependencies.

3 CLIMATE

Uruguay has a temperate climate with four seasons: spring, from September to November; summer, from December to March; autumn, from April to June; and winter, from July to August. Average temperatures are 17°C (63°F) in spring; 25°C (77°F) in summer; 18°C (64° F) in autumn; and 12°C (54°F) in winter. Winds often sweep across Uruguay from the Atlantic Ocean; the pampero is a cold winter wind from Argentina. Most of Uruguay's rain falls in the winter months of July and August. The yearly average precipitation is 105 centimeters (41 inches). Humidity averages 65 percent. Although freezing temperatures occur, snow is rare.

4 TOPOGRAPHIC REGIONS

Well-watered grasslands predominate, with elevations rising into hills in the north. Swamps and lagoons mark eastern Uruguay.

5 OCEANS AND SEAS

Uruguay is bounded on the south and southwest by the South Atlantic Ocean.

Sea Inlets and Straits

The Río de la Plata estuary is located on an inlet of the South Atlantic Ocean.

Islands and Archipelagos

A few small islands lie off the coast of Uruguay. Isla de Lobos, with an area of 0.4 square kilometers (0.16 square miles), has one of the largest sea lion populations in the world. It is situated offshore from the mainland town of Punta del Este.

Coastal Features

Beaches and rocky headlands characterize Uruguay's coastline, and swamps and lagoons dot the eastern coast. It then curves west and leaves the open Atlantic, running for more than 322 kilometers (200 miles) along the Río de la Plata estuary to reach the mouth of the Rio Uruguay. At the center of the southern coastline, the city of Montevideo has nine beaches on the Atlantic. East of Montevideo is Punta del Este, a peninsular beach resort.

6 INLAND LAKES

Lagoons appear along the eastern coast. The largest is Lagoa Mirím (Laguna Merín), which extends across the border into Brazil.

7 RIVERS AND WATERFALLS

The largest of Uruguay's rivers is the Rio Uruguay itself, which flows for 435 kilometers (270 miles) through the country. It marks the entire western boundary with Argentina and extends farther to the north along the Argentina-Brazil frontier. The Uruguay merges with the Rio Parana to form the Río de la Plata, a vast estuary of the Atlantic Ocean. It is saline except at its western extremity, where the Parana and Uruguay gush enormous quantities of fresh water into it. The Río Negro rises in southern Brazil, then bisects Uruguay as it flows southwest-ward to join the Uruguay. Its principal tributaries are the Ríos Yi and Tacuarembó. Smaller rivers are found throughout the country, with the Cuareim and Yaguarón flowing along parts of the border with Brazil.

8 DESERTS

There are no deserts in Uruguay.

9 FLAT AND ROLLING TERRAIN

Uruguay's interior plateau features ranges of low hills that become more prominent in the north as they merge into the highlands of southern Brazil. The most important of Uruguay's cuchillas (hill ranges) are the Grande Range and the Haedo Hills. Only in these and in the Santa Ana Hills along the Brazilian frontier do altitudes exceed 183 meters (600 feet) with any frequency. Vast expanses of undulating grasslands cover more than 90 percent of the country.

10 MOUNTAINS AND VOLCANOES

Uruguay has no mountain ranges. Cerro Catedral (514 meters/1,686 feet in elevation), near the southern coast, is the country's highest point.

11 CANYONS AND CAVES

Uruguay has no significant canyons or caves.

12 PLATEAUS AND MONOLITHS

The interior of Uruguay is a low, broken plateau, which is a transition from the pampas of Argentina to the hilly uplands of southern Brazil.

13 MAN-MADE FEATURES

The Río Negro is the site of several major reservoirs. Embalse del Río Negro, formed by the Río Negro dam in the central part of the country, is the largest artificial lake in South America, with a surface area of more than 10,359 square kilometers (4,000 square miles). Other reservoirs are Lake Palmar, also on the Río Negro, and Lake Salto Grande on the Rio Uruguay.

14 FURTHER READING

Books

Arrarte, Carlos Perez, and Guillermo Scarlato. "The Laguna Merín Basin of Uruguay: From Protecting Natural Heritage to Managing Sustainable Development." Cultivating Peace. Ottawa, Ontario: International Development Research Center, 1999.

Box, Ben. South American Handbook. Lincolnwood, IL: Passport Books, 1999.

Bridal, Tessa. The Tree of Red Stars. Minneapolis: Milkweed Editions, 1997.

Verdesio, Gustavo. Forgotten Conquests: Rereading New World History from the Margins. Philadelphia: Temple University Press, 2001.

Web Sites

Lonely Planet: Destination Uruguay. http://www.lonelyplanet.com/destinations/south_america/uruguay/ (accessed April 16, 2003).

Uruguay A Latin American country which gained independence in 1828 as a compromise between Argentinian and Brazilian claims over the territory. A model of democratic and economic stability in the early twentieth century, its political life was dominated by the Colorado Party, representing commercial interests, and the Blancos, representing landowners. The Colorado President José Batlle y Ordóñez (1903–7, 1911–15) laid the foundations for Latin America's first welfare state, and subsequently wide-ranging social legislation was introduced, including the eight-hour working day, minimum wages for farm labourers, and pensions. In addition, public works reduced unemployment and created a good infrastructure, while public monopolies were established out of nationalized, previously foreign-owned companies.

At Batlle y Ordóñez's instigation, the social harmony thus created was institutionalized in a constitutional revision of 1919, whereby the President ruled in conjunction with a National Council of Administration which contained a guaranteed minority from opposition parties. These advances were made possible by its economic prosperity, deriving principally from flourishing agricultural exports. The weakness of this over-reliance on exports was exposed by the Great Depression during the 1930s. President Gabriel Terra took on special powers to rule as a virtual dictator in 1933, while his elected successor from 1938, General Alfredo Baldomir, restored full democracy in 1942, albeit with some hesitation. Meanwhile, the country industrialized relatively successfully to make it less dependent on world trade. Many were given work in an expanded state administration, which reduced social tension and attracted employees' support for the state.

After the last great export boom stimulated by the Korean War in the early 1950s, the economy entered a long period of decline. This was accelerated by social expenditure which the country could no longer afford, and a bloated state administration which took up 35 per cent of all state spending. In the late 1960s social unrest emerged, which was exacerbated by the activities of the Tupamaros. Following his election in 1971, President Bordaberry gradually assumed dictatorial powers, with the consent of the military and leading elites. Parliament was dissolved in 1973, and civilian institutions were placed under military control. The economy was radically transformed, through (1) liberalization (reduction of import tariffs), (2) privatization, (3) promotion of domestic industry, (4) promotion of foreign investment. However, living standards continued to fall, while the regime's brutal suppression of opponents made the dictatorship increasingly untenable.

A new constitution to prepare for a return to democracy was rejected in a plebiscite in November 1980, so that new elections were not held until 1984. They were won by Sanguinetti, who returned to the Presidency in 1995 after the defeat of the Blancos under Luis Alberto Lacalle de Herrera (President 1990–5). While foreign debts and inflation remained high, the most important priorities remained a reduction in the number of state employees (20 per cent of the total workforce) and pension reform, as the number of pensioners amounted to half of the total active working population. Throughout the 1990s the economy grew steadily at an average of 3–4 per cent each year, though inflation declined only gradually. From the late 1990s, however, its economy was badly affected from the economic difficulties of neighbouring Brazil, and the economic collapse of its other neighbour, Argentina, in 2001. In the first three months of 2002, the economy contracted by 10 per cent as economic uncertainty spread to Uruguay's other neighbour, Brazil. In July 2002 the country–s banks were in a state of near-collapse until they were rescued by a $1.5bn. loan from the IMF. This was largely a response to the political stabilization of recent years. From 1995 to 2000 the erstwhile political enemies, the Blancos and Colorados, formed a governmental coalition. In 2000 they united their support in the second round behind a common candidate, Jorge Batlle Ibáñez, who was duly elected to the Presidency against the candidate of the left, Tabaré Ramón Vásquez Rosas.

Uruguay

Land and climate

Uruguay consists of low-lying plains and hills, rising to a highest point, Mirador Nacional, which is only 501m (1644 ft) above sea level. The main river in the interior is the Río Negro. The River Uruguay, which forms the country's w border, flows into the Río de la Plata, a large estuary leading into the South Atlantic Ocean. Uruguay has a mild climate, with rain throughout the year, although droughts sometimes occur. The summer months are pleasantly warm, especially near the coast. Grasslands cover 77% of Uruguay and arable land about 7%. Trees such as acacia, aloe, eucalyptus, and willow grow along the river valleys. Uruguay also has commercial tree plantations, including trees such as quebracho.

History

The original Native American inhabitants of Uruguay have largely disappeared. Many were killed by Europeans, others died of European diseases, while some fled into the interior. The first European to arrive in Uruguay was a Spanish navigator in 1516, but few Europeans settled there until the late 17th century. In 1726, Spanish settlers founded Montevideo in order to prevent the Portuguese gaining influence in the area. By the late 18th century, Spaniards had settled in most of the country, and Uruguay became part of a colony called the Viceroyalty of La Plata, which also included Argentina, Paraguay, and parts of Bolivia, Brazil, and Chile. In 1820 Brazil annexed Uruguay, ending Spanish rule. In 1825, Uruguayans, supported by Argentina, began a struggle for independence. Finally, Brazil and Argentina recognized Uruguay as an independent republic in 1828. Social and economic development was slow in the 19th century, with many revolutions and counter-revolutions. Following the election of Batlle y Ordóñez as president in 1903, however, Uruguay became a more democratic and stable country. From the 1950s, economic problems caused unrest. Terrorist groups, notably the Tupamaros, carried out murders and kidnappings. The army crushed the Tupamaros in 1972, and then took over the government in 1973. Repressive military rule continued until 1984, when civilian rule returned. Economic difficulties and high foreign debt continued to threaten stability, provoking massive emigration. Julio María Sanguinetti, who led Uruguay back to civilian rule in the 1980s, was re-elected president in 1994. In 2000, he was succeeded by Jorge Batlle.

Economy

Uruguay is an upper-middle-income developing country (2000 GDP per capita, US$ 9300). Agriculture employs only 5% of the workforce, but farm products, notably hides and leather goods, beef and wool, are the leading exports. The leading manufacturing industries, situated mainly in and around Montevideo, are concerned with processing farm produce. Other manufactures include beer, cement, textiles, and tyres. Tourism is important.

Political map

Physical map

Websites

http://www.turismo.gub.uy/conozca/ingles

Uruguay A country in south-east-central South America with a coast on the Atlantic bounded by Argentina on the west and Brazil on the north-east.

Physical

Uruguay has a coast on the estuary of the River Plate, and the Uruguay River flowing down its western boundary is navigable for some 320 km (200 miles). Tributaries flow westward across the country, which is mainly warm, grassy plain (pampas) supporting cattle and sheep. In the centre and north-east the plain is broken by occasional rocky ridges.

Economy

Uruguay has a predominantly agricultural economy dominated by livestock-rearing. Textiles, wool, and meat are the major exports. Arable crops occupy only 10% of agricultural land. Hydroelectricity is exported to Brazil, and accounts for some 90% of domestic consumption. Food-processing and textiles are the principal industries.

History

Uruguay was inhabited by various indigenous peoples, such as the Chaná and Charnía, prior to the arrival of Spanish and Portuguese colonists in the 16th century. During the colonial period, it was known as the Banda Oriental and became a part of the Spanish vice-royalty of Rio de la Plata. In 1814 the leaders of the Banda Oriental, notably ARTIGAS, broke with the military junta in ARGENTINA and led a struggle for Uruguayan independence until occupied by Brazil in 1820. In 1825 an independent republic of Uruguay was declared, which was recognized by the treaty between Argentina and Brazil, signed at Rio de Janeiro in 1828. Under a republican constitution, the liberals (Colorados, redshirts) and the clerical conservatives (Blancos, whites) struggled violently throughout the 19th century for political control. In 1872 the Colorado Party began a period of 86 years in office. During the first three decades of the 20th century, José BATLLE Y ORDÓÑEZ, while in and out of the presidency, helped mould Uruguay into South America's first welfare state. Numerous measures for promoting governmental social services and a state-dominated economy were enacted. In 1958 the elections were won by the Blanco Party. Economic and political unrest plagued the nation throughout the 1960s and saw the emergence of the Marxist terrorist group, the Tupamaros. The military took over in the 1970s, and a return to civilian rule took place in 1985, when Julio Sanguinetti became President. After a long campaign he won a referendum in 1989 in support of an Amnesty Law for political prisoners from the military regime of 1973 to 1985. In 1990 Luis Alberto Lacalle Herrera of the Blanco Party succeeded him, forming a coalition government with the Colorado Party. Sanguinetti was re-elected in 1995. Uruguay has emerged as one of the most prosperous and literate nations in the continent, in spite of falling world commodity prices and high inflation.

Uruguay The Oriental Republic of Uruguay (República Oriental del Uruguay) since 1830 when the new constitution officially founding the new republic was ratified. The ‘oriental’ signified its position on the eastern bank of the Uruguay River. Previously the territory had become known as the Banda Oriental del Uruguay ‘East bank of the Uruguay (River)’ (1776–1828), a province of the Spanish Viceroyalty of Río de la Plata whose capital was Buenos Aires. In 1814 a struggle with the Argentinians for independence began and this led to Banda Oriental being occupied by Brazil in 1820 and annexed to Brazil the following year. This was resisted by the Uruguayans who proclaimed their independence in 1825. However, this was not recognized until a treaty was signed between Argentina and Brazil in 1828 when Uruguay was established as a buffer state between those two countries. Called Iperoig by the local Tupinambá tribe, it took its new name from the Uruguay River. This name may have come from uruguä, the Guaraní for a species of mussel, thus ‘River of Shellfish’, or from uru, a type of bird that lived near the river, gua ‘to proceed from’, and y ‘water’. The river forms the border between Argentina and Uruguay and a large section of the border between Argentina and Brazil.

Uruguay was the most consistently pro-Allied, and anti-Axis, of all the South American states before the USA entered the war in December 1941, and its government maintained a strictly neutral stance when the German pocket battleship Admiral Graf Spee sought refuge in Montevideo after the River Plate battle in December 1939. Uruguay severed relations with the main Axis powers in January 1942. On 22 February 1945 it declared war on Germany and Japan, and signed the United Nations Declaration two days later. See also Latin America at war.

Uruguay

The inhabitants of Uruguay are primarily (about 88 percent) white and of European origin, mostly Spanish and Italian; a small percentage is descended from Portuguese, English, and other Europeans. Mestizos (mixed white and Amerindian lineage) represent 8 percent of the population, and blacks and mulattoes (mixed black and white) about 4 percent.

Uruguay •lapsus linguae • Paraguay • Uruguay