Uruguay continues to be one of the more prosperous countries in South America, with solid economic growth, responsible economic and political policies, and a well-consolidated democracy. Progress continues to be made in the political arena as leaders have stuck to their promises to investigate human rights abuses committed during the country’s military dictatorship, further contributing to national unity and reconciliation. Major reforms in 2010 moved to improve the poor conditions in Uruguay’s prisons. However, Uruguay faces challenges with stabilizing its external debt and relatively high inflation rates. Reforms to address gender, sexual and racial discrimination and to relieve a backlogged judiciary are needed to further consolidate the country’s democracy. Despite these areas for improvement, Uruguay looks set to maintain economic, social, and political stability.

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Indicator Scores

	Position													Total Score
2011	153 (177)	3.9	1.7	2.4	5.3	4.7	3.8	2.5	3.3	2.5	3.7	2.7	3.9	41.3
2010	153 (177)	4.3	1.3	2.0	5.6	5.0	4.0	2.6	3.4	2.5	3.4	3.0	4.2	41.3
2009	154 (177)	4.7	1.0	2.0	5.8	5.2	4.1	2.8	3.6	2.5	3.3	2.5	3.7	41.2
2008	151 (177)	5.1	1.1	2.0	5.9	5.1	3.7	2.9	4.0	2.5	3.0	2.3	3.8	41.4
2007	151 (177)	5.1	1.1	2.0	5.9	5.1	3.5	2.9	4.0	2.5	3.0	2.3	3.5	40.9

Core Five State Institutions

	Leadership	Military	Police	Judiciary	Civil Service
2011	good	good	moderate	moderate	good

Basic Information

Context

One of the most developed countries in Latin America, Uruguay’s progressive leadership in the early 20th century laid out the pattern for the country’s modern political development, with multiple economic, social, and political reforms and the establishment of welfare programs. Economic and political instability in the 1960s led to the establishment of a repressive military dictatorship in 1973, which became notorious for human rights abuses. Following mounting political pressure, the regime ended in 1984 with the election of Julio Maria Sanguinetti, who continued to implement economic reforms and consolidate democracy. Elections in 2004 saw the end of over 100 years of political domination by the National and Colorado parties, as the Frente Amplio’s Tabare Vazquez rose to the presidency. Vazquez conducted an investigation into abuses committed by the military dictatorship. President Jose Mujica was inaugurated in 2010.

Social Indicators

Uruguay boasts some of the most advanced social performance in Latin America. However, rural poverty remains a problem, especially as frequent droughts and floods can make agriculture unpredictable. A dispute over water pollution from one of Uruguay’s paper mills strained relations with Argentina in 2007.

Recent Improvements and Pressures

• The Demographic Pressures score decreased due to continued progress in poverty reduction from social welfare programs and economic recovery.
• The Refugees and IDPs score increased, reflecting the acceptance of Colombian, Palestinian and Iraqi refugees.
• Uruguay’s Group Grievance score jumped 0.4 points for the first time in the FSI as the LGBT community and other civil rights groups joined together for a 10,000 person demonstration to protest discrimination.
• The Human Flight score continued to decreased. The country’s prosperity has reduced emigration rates.

Economic Indicators

Uruguay’s economy is largely services-based due to its highly educated work force, bolstered by agricultural exports. Despite spillover problems from Argentina and Brazil and the global financial crisis, Uruguay has managed to keep positive growth rates.

Recent Improvements and Pressures

• The Uneven Development score fell as 2008’s social welfare Equity Plan continued to make improvements
• Uruguay’s Poverty and Decline score improved due to continued economic growth. GDP grew 8.5% in 2010.

Political/Military Indicators

Despite a short period of repressive military dictatorship in the 1970s and 80s, Uruguay has typically been favored with responsible and responsive leadership. Two-party rule ended in 2004, marking another important step in the country’s democratic consolidation. Uruguay has an extremely free press and human rights are well respected in the country, though some ethnic and gender discrimination still occurs and prison conditions are poor. Uruguay is one of the least corrupt countries in the world.

Recent Improvements and Pressures

• The Legitimacy of the State score improved as former president Bordaberry is sentenced to 30 years in prison for murder and constitutional violations under military rule.
• Uruguay’s Security Apparatus score declined 0.3 points. The government established a hotline for complaints of police abuse, leading to an increase in reports.
• The Factionalized Elites score decreased as polarization from the 2009 elections diminished last year.
• The External Intervention score increased as Uruguay decreased public spending and investment following recovery from the global financial crisis.

Latest Update: 2011-05-17 Kristen Blandford

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