Published May 17, 2011 | By Kristen Blandford

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.