Uruguay

INDIGENOUS PEOPLE originally inhabited what is now the Oriental Republic of Uruguay, but two centuries of Portuguese and Spanish rule virtually eliminated this population. In 1811, Uruguay rebelled against Spain but was conquered by the Brazilian Portuguese within six years. Assisted by Argentina, Uruguay finally achieved independence in 1825.

In the late 1960s, the Tupamaros, a violent Marxist urban guerrilla movement, forced the Uruguayan president to concede to military control of the government. Even though the rebellion was crushed fairly quickly, the military had become entrenched throughout the government. In 1985, Uruguay was restored to civilian rule. In the 21st century, Uruguay is known for having one of the freest political and labor environments on the South American continent.

The Uruguayan economy is characterized by an ex-port-oriented agricultural sector, a well-educated labor force, and high levels of social spending. During the late 20th century, Uruguay experienced an economic downturn as a consequence of economic problems in Argentina and Brazil. When Argentine banks withdrew huge sums from banks in Uruguay, the result was an unemployment rate of almost 20 percent and surging inflation. Uruguay's external debt doubled, but negotiations with the International Monetary Fund alleviated immediate problems. In 2004, the economy grew around 10 percent. Approximately 70 percent of Uruguay's labor force are engaged in services, and 16 percent are employed in industry. About 14 percent are involved in agriculture. The current unemployment rate is 13 percent.

Uruguay is an upper-middle-income nation with an annual per capita income of $14,500. Despite relative affluence, one-fifth of the population lives in poverty. Almost four percent of the people live on less than $2 a day. Most poor people live in rural areas and in migrant communities. Around 40 percent of children in Uruguay are born into the poorest families. Generally, these families are headed by females with little education. Many of them are teenage mothers. Efforts to break the cycle of poverty for young mothers have focused on state-sponsored childcare programs that allow poor mothers to pursue education and training. Preschool programs target poor children to prepare them for primary school. Uruguay has received World Bank funds to build kindergartens in the poorest areas.

Under the National Food Program, food is distributed to needy families. The poor also receive free healthcare and education. The social security system underwent a major overhaul. The program now covers unemployment benefits, family allowances, and non-contribution pensions. In 1989, a constitutional amendment mandated increases in the real value of pensions. As a result, 35 percent of the elderly were no longer poor. Incomes are fairly well distributed in Uruguay, and the country is ranked 44.6 on the Gini Index of Human Inequality.

Healthcare is widely available in Uruguay. There are 387 physicians for every 100,000 residents, and most people have access to affordable essential drugs. Only two percent of the population lack access to safe drinking water, and only six percent do not have access to improved sanitation. Uruguayans enjoy a life expectancy of 76.13 years. Females (79.45 years) outlive men by an [Page 1126]average of over seven years. Among the population of 3,415,920, the median age is 32.46 years. Around 23 percent of the population are below the age of 14, and 13.2 have reached the age of 65.

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