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About Uruguay

  • Telecommunications in Uruguay are more developed than in most other Latin American countries, being the first country in the Americas to achieve complete digital telephony coverage in 1997. The telephone system is completely digitized and has very good coverage over all the country. The system is government-owned and there have been controversial proposals to partially privatize since the 1990s.
  • The mobile phone market is shared by the state-owned (Ancel) and two private companies, Movistar and Claro.
  • After the Guerra Grande there was a sharp rise in the number of immigrants, primarily from Italy and Spain. By 1879 the total population of the country was over 438,000. The economy saw a steep upswing, above all in livestock raising and exports. Montevideo became a major economic centre of the region and an entrepôt for goods from Argentina, Brazil and Paraguay.
  • The Colorado leader José Batlle y Ordóñez was elected president in 1903. The following year the Blancos led a rural revolt and eight bloody months of fighting ensued before their leader, Aparicio Saraiva, was killed in battle. Government forces emerged victorious, leading to the end of the co-participation politics that had begun in 1872. Batlle had two terms (1903–07 and 1911–15) during which, and taking advantage of the nation’s stability and growing economic prosperity, he instituted major reforms such as a welfare program, government participation in many facets of the economy, and a plural executive.
  • Gabriel Terra became president in March 1931. His inauguration coincided with the effects of the Great Depression. when the social climate became tense as a result of the lack of jobs. There were confrontations in which police and leftists died. In 1933 Terra organized a coup d'état, dissolving the General Assembly and governing by decree. A new constitution was promulgated in 1934, transferring powers to the president. In general, the Terra government weakened or neutralized economic nationalism and social reform.
  • In 1938 general elections were held and Terra's brother-in-law, General Alfredo Baldomir, was elected president. Under pressure from organized labor and the National Party Baldomir advocated free elections, freedom of the press, and a new constitution. Although Baldomir declared Uruguay neutral in 1939 British warships and the German ship Admiral Graf Spee fought a battle not far off Uruguay's coast. Admiral Graf Spee took refuge in Montevideo, claiming sanctuary in a neutral port, but was later ordered out. Uruguay would drop its policy of neutrality and join the Allies only in 1945.
  • In the late 1950s, partly because of a world-wide decrease in demand for agricultural products, Uruguayans suffered from a steep drop in the standard of living which led to student militancy and labor unrest. An urban guerrilla movement known as the Tupamaros emerged, engaging in activities such as robbing banks and distributing the proceeds to the poor in addition to attempting political dialogue. As the government banned their political activities and the police became more oppressive, the Tupamaros took up an overtly armed struggle.
  • President Jorge Pacheco declared a state of emergency in 1968, followed by a further suspension of civil liberties in 1972. In 1973, amid increasing economic and political turmoil, the armed forces closed the Congress and established a civilian-military regime. Around 180 Uruguayans are known to have been killed during the 12-year military rule from 1973–1985. Most were killed in Argentina and other neighbouring countries, with only 36 of them having been killed in Uruguay.
  • A new constitution, drafted by the military, was rejected in a November 1980 referendum. Following the referendum the armed forces announced a plan for the return to civilian rule, and national elections were held in 1984. Colorado Party leader Julio María Sanguinetti won the presidency and served from 1985 to 1990. The first Sanguinetti administration implemented economic reforms and consolidated democracy following the country's years under military rule.
  • The National Party's Luis Alberto Lacalle won the 1989 presidential election and an amnesty for human rights abusers was endorsed by referendum. Sanguinetti was again elected in 1994. Both carried on with the economic structural reforms initiated after the reinstatement of democracy and other important reforms were aimed at improving the electoral system, social security, education, and public safety.
  • The 1999 national elections were held under a new electoral system established by a 1996 constitutional amendment. Colorado Party candidate Jorge Batlle, aided by the support of the National Party, defeated Broad Front candidate Tabaré Vázquez. The formal coalition ended in November 2002 when the Blancos withdrew their ministers from the cabinet, although the Blancos continued to support the Colorados on most issues. Low commodity prices and economic difficulties in Uruguay's main export markets, first in Brazil with the devaluation of the real then in Argentina in 2002, caused a severe recession—the economy contracted by 11%, unemployment climbed to 21% and the percentage of Uruguayans in poverty rose to over 30%.
  • In 2004 Uruguayans elected Tabaré Vázquez as president, while giving the Broad Front a majority in both houses of Parliament. Vázquez stuck to economic orthodoxy. As commodity prices soared and the economy recoiled from recession, he tripled foreign investment, cut poverty and unemployment, cut public debt from 79% of GDP to 60% and kept inflation steady.
  • In 2009 José Mujica, a former left-wing militant who spent almost 15 years in prison during the country's military rule, emerged as the new President as the Broad Front won the election for a second time.
  • In 2010 Uruguay's export-oriented agricultural sector contributed to 9.3% of the GDP, and employed a 13% of the workforce. Official statistics from Uruguay's Agriculture and Livestock Ministry indicate that meat and sheep farming is Uruguay occupies 59.6% of the land. The percentage further increases to 82.4% when cattle breeding is linked to other farm activities such as dairy, forage and rotation with crops such as rice. Agriculture produces 70% of Uruguayan exports.
  • Most farms are family managed (25,500 out of 39,120) and beef and wool represent the main activities and main source of income for 65% of them followed by vegetable farming at 12%, dairy farming at 11%, hogs at 2% and poultry at 2%. Beef is the main export commodity of the country totalling over a billion U.S. dollars in 2006.
  • In 2007 Uruguay had cattle herds totalling 12 million head, making it the country with the highest number of cattle per capita at 3.8. However 54% of the total number of cattle is in the hands of 11% of farmers who have a minimum of 500 head. At the other extreme 38% of farmers exploit small lots and have cattle herds averaging below a hundred head.
  • Uruguay experienced a major economic and financial crisis between 1999 and 2002, principally a spillover effect from the economic problems of Argentina. The economy contracted by 11% and unemployment climbed to 21%. Despite the severity of the trade shocks Uruguay's financial indicators remained more stable than those of its neighbours, a reflection of its solid reputation among investors and its investment-grade sovereign bond rating, one of only two in South America.
  • In 2004 the Vázquez government signed a three-year $1.1 billion stand-by arrangement with the International Monetary Fund, committing the country to a substantial primary fiscal surplus, low inflation, considerable reductions in external debt and several structural reforms designed to improve competitiveness and attract foreign investment. Uruguay terminated the agreement in 2006 following the early repayment of its debt, but maintained a number of the policy commitments.
  • Vázquez also created the "Ministry of Social Development" and sought to reduce the country’s poverty rate with a $240 million National Plan to Address the Social Emergency (PANES), that provided a monthly conditional cash transfer of approximately $75 to over 100,000 households in extreme poverty. In exchange, those receiving the benefits were required to participate in community work, ensure that their children attended school daily and had regular health check-ups.
  • In 2005 Uruguay was the first exporter of software in South America. The Frente Amplio government, while continuing payments on Uruguay's external debt, also undertook an emergency plan to attack the widespread problems of poverty and unemployment. The economy grew at an annual rate of 6.7% during the 2004–2008 period. Uruguay's exports markets have been diversified in order to reduce dependency on Argentina and Brazil. Poverty was reduced from 33% in 2002 to 21.7% in July 2008, while extreme poverty dropped from 3.3% to 1.7%, respectively.
  • Between the years 2007 and 2009 Uruguay was the only country in the Americas which did not technically experience a recession (two consecutive downwards quarters). Unemployment reached a record low of 5.4% in December 2010 before rising to 6.1% in January 2011. Low unemployment has caused a rise in inflationary pressures, although Uruguay's GDP expanded by 10.4% for the first half of 2010. According to IMF estimates, Uruguay is likely to achieve growth in real GDP of between 8% and 8.5% in 2010, followed by 5% growth in 2011 and 4% in subsequent years. The gross public sector debt contracted in the second quarter of 2010, after five consecutive periods of sustained increase, reached 21.885 billion US dollars, equivalent to 59.5% of the GDP.
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