National Trade Data Bank ITEM ID : ST BNOTES URUGUAY DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - URUGUAY Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1993 Date of record : 19941018 Keywords 3 : Keywords 3 : | URUGUAY BACKGROUND NOTES: URUGUAY PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS US DEPARTMENT OF STATE JANUARY 1993 Official Name: Oriental Republic of Uruguay PROFILE Geography Area: 176,000 sq. km. (68,000 sq. mi.); slightly smaller than Oklahoma. Cities: Capital--Montevideo (1991 est. pop. 1.4 million). Terrain: Plains and low hills, 84% agricultural. Climate: Temperate. People Nationality: Noun and adjective--Uruguayan(s). Population (1992 est): 3 million. Annual growth rate (1991-92): 0.6%. Ethnic groups (est.): 90% white, 7% mestizo, 3% black. Religions: Roman Catholic 66%, Protestant 2%, Jewish 2%, non-professing or other 30%. Language: Spanish. Education: (Projected school-age pop., 1990--538,000 ages 5-14 yrs.; 260,000 ages 15-19 yrs.). Literacy--96%. Health: Life expectancy (1985-90)--75 yrs. (female); 69 yrs. (male). Infant mortality rate (1990)--24/1,000. Work force (1992): 1.4 million. Manufacturing--22%. Government--20%. Agriculture--13%. Commerce--17%. Utilities, construction, transport, and communications--12%. Other services--16%. Unemployment (1992)--9%. Government Type: Republic. Independence: August 25, 1825. Constitution: February 1967. Branches: Executive--president (chief of state and head of government). Legislative--General Assembly consisting of Chamber of Deputies, 99 seats; Senate, 30 seats. Judicial--Supreme Court of Justice. Administrative subdivisions: 19 departments with limited autonomy. Political parties: Colorado, Blanco (National), Broad Front Coalition, New Space Party. Suffrage: Universal, 18 and over. Flag: Nine horizontal stripes--five white and four blue with a yellow sun in the left corner. The flag was adopted in 1830. Economy GDP (Est. 1992): $11.3 billion. Annual growth rate (Est. 1992): 4%:. Per capita GDP (1992): $3,600. Avg. inflation rate (1992): 57%. Natural resources: Arable land, hydroelectric potential, gold, granite, and marble. Agriculture (11% of GDP): Products--beef, wool, grains, fruits, vegetables. Industry (25% of GDP): Types--meat processing, wool and hides, textiles, shoes, handbags, leather apparel, tires, cement, fishing, petroleum refining. Trade (1992): Exports--$1.7 billion (1992): meat, wool, hides, leather and wool products, fish, rice, furs. Major markets--US 10%, EC 24% (Germany 8%), ALADI 40% (Argentina 11%, Brazil 24%). Imports (1992)--$1.8 billion (1991): fuels, chemicals, machinery, metals. Major suppliers--US 11%, EC 17% (Germany 5%), ALADI 47% (Argentina 17%, Brazil 23%). Exchange rate (Jan. 8, 1993): 3,373 new pesos=US$1. PEOPLE Uruguayans share a Spanish linguistic and cultural background, even though 25% of the population is of Italian origin. Most are Roman Catholic. Church and state are officially separated. Uruguay is distinguished by its high literacy rate and large urban middle class. The overall drop in real income since the 1960s has increased poverty, but the average Uruguayan standard of living still compares favorably with that of most other Latin Americans. Metropolitan Montevideo, with about 1.41 million inhabitants, is the only large city. The rest of the urban population lives in about 20 towns. During the past two decades, an estimated 500,000 Uruguayans have emigrated, principally to Argentina and Brazil. As a result of the low birth rate and relatively high rate of emigration of younger people, Uruguay's population is quite mature. HISTORY The only inhabitants of Uruguay, prior to European colonization of the area, were the Charrua Indians, a small tribe pressed south by the Guarani Indians of Paraguay. In 1811, Jose Gervasio Artigas, Uruguay's national hero, launched Uruguay's revolt against Spain and later led an unsuccessful attempt to gain autonomy within a regional federation with Argentina. In 1821, Uruguay was annexed to Brazil by Portugal; however, in 1825, Uruguayan patriots declared independence from Portuguese rule and, with the support of Argentine troops, defeated Brazilian forces. Independence came in 1828. The new nation's first con-stitution was adopted on July 18, 1830. Jose Batlle y Ordonez, president from 1903 to 1907 and again from 1911 to 1915, set the pattern for Uruguay's modern political development. He established widespread political, social, and economic reforms, such as an extensive welfare program, government participation in many facets of the economy, and a plural executive. Many of these programs continue today. In 1973, amid increasing economic and political turmoil, the armed forces closed the Congress and established a civilian-military regime. A new constitution drafted by the military was rejected in a November 1980 plebiscite. Following the plebiscite, the armed forces announced a plan for return to civilian rule. National elections were held in 1984; Colorado Party leader Julio Maria Sanguinetti won the presidency. GOVERNMENT Uruguay's 1967 constitution institutionalizes a strong presidency, subject to legislative and judicial checks. The president's term is 5 years. Twelve cabinet ministers, appointed by the president, head executive departments. The constitution also provides for a bicameral General Assembly responsible for enacting laws and regulating the administration of justice. The General Assembly consists of a 30-member Senate, presided over by the vice president of the republic, and a 99-member Chamber of Deputies. The highest court is the Supreme Court; below it are appellate and lower courts and justices of the peace. In addition, there are electoral and administrative ("contentious") courts, an accounts court, and a military judicial system. In the 1989 presidential election, Blanco Party leader Luis Alberto Lacalle won the presidency with 31.4% of the vote. Since taking office on March 1, 1990, President Lacalle has concentrated on economic and social reform programs. The Lacalle Administration vigorously is pursuing budget deficit reduction, foreign debt reduction, privatization of state enterprises, civil service reform, and education and labor reform. To achieve these ambitious goals, President Lacalle has sought the legislative cooperation of the Colorado Party by appointing cabinet members from several Colorado Party factions. He has continued the previous government's policies of reserving some directorship positions in the autonomous state entities for opposition parties. Principal Government Officials President--Luis ALBERTO Lacalle Minister of Foreign Affairs--Hector GROS Espiell Ambassador to the United States--Eduardo MACGILLYCUDDY Ambassador to the United Nations--Ramiro PIRIZ Ambassador to the Organization of American States--Didier OPERTI Uruguay maintains an embassy in the United States at 1919 F Street, NW, Washington, DC 20006 (tel. 202-331-1313). Consulates also are located in Miami, Los Angeles, and New York. ECONOMY Uruguay's economy remains dependent on agriculture. Although agricultural production accounts for 11% of the gross domestic product (GDP), it comprises more than 50% of exports. The industrial sector, which produces 25% of GDP, is largely based on the transformation of agricultural products. Leading industrial sectors include meat processing, leather production, textiles, leather footwear, handbags, and leather apparel. Uruguay's strategy to stimulate growth and meet its debt service obligations is based on exports. In 1989 and 1990, the country enjoyed trade surpluses of more than $400 million. However, a strengthening peso and weakening overseas markets for key Uruguayan exports contributed to a 1991 trade deficit of about $81 million. Uruguay is committed to an open financial system and maintains a free- floating exchange rate; the government intervenes in the exchange market. Although it has the best-educated work force in Latin America and a long tradition of social and political stability, Uruguay has endured decades-long economic stagnation. Excessive bureaucracy, inefficient state monopolies, persistent inflation, and frequent labor unrest have led to a low level of investment and declining per capita income. The Administration has begun to address these economic problems. During President Lacalle's first 2 years in office, the budget deficit has been slashed through a combination of internal reform and enhanced revenue collection. Economic growth rose from negligible levels to 2% in 1991. Inflation, although still a problem at an estimated 57% for 1992, has been reduced from its 1991 level of 102%. A privatization law passed in 1991 will enable the government to sell a major share of the telephone monopoly, ANTEL, and the state-owned airline, PLUNA. Under port reform law passed in early 1992, the government will begin the key task of transforming the inefficient operations of the Port of Montevideo. Legislation to deal with the difficult but crucial job of restructuring the bankrupt social security system is being considered by the General Assembly. Economic reform has been given impetus by the scheduled 1995 implementation of the Southern Cone Common Market (MERCOSUR), consisting of Argentina, Brazil, Paraguay, and Uruguay. For Uruguay, MERCOSUR will bring access to a market of nearly 200 million people as well as competition to long-protected industries. FOREIGN RELATIONS Uruguay has strong political and cultural links with the democratic countries of the Americas and Europe, with which it shares basic values, such as support for constitutional democracy, political pluralism, and individual liberties. Its international relations historically have been guided by the principles of non-intervention, respect for national sovereignty, and reliance on the rule of law to settle disputes. The Lacalle Government has an active international relations program and seeks export markets and financial support. Uruguay is a member of the Group of Rio, an informal group of Latin American states which deals with multilateral regional issues. It is a party to the Inter-American Treaty of Reciprocal Assistance (Rio Treaty), General Agreement on Tariffs and Trade, and the Latin American Nuclear Free Zone. Uruguay's location between Argentina and Brazil makes close relations with these two larger neighbors particularly desirable. The three countries have been working closely on integrating their economic systems and improving relations. Uruguay also has been working with Brazil, Argentina, Paraguay, and Bolivia, under terms of the River Plate Basin Treaty, on an economic integration plan whose centerpiece is the development of the River Plate basin as a major shipping and commercial transportation link between the countries of the basin. DEFENSE The armed forces are constitutionally subordinate to the president through the minister of defense. By offering early retirement incentives, the Lacalle Government has trimmed the upper mid-level officer ranks so that the approximate size of the armed forces is now 17,000 for the army, 6,200 for the navy, and 3,400 for the air force. The 1992 deployment of an army battalion to Cambodia was the latest and largest Uruguayan contribution to a UN peace-keeping force. Other units currently serve in the Sinai, in Pakistan, and on the Iraq-Iran border. US-URUGUAYAN RELATIONS US-Uruguayan relations traditionally have been based on a common outlook and dedication to democratic ideals. Consequently, during the military regime, the United States expressed deep concern for human rights there and welcomed Uruguay's return to democracy. The Lacalle Administration cooperates with the United States on many fronts, such as regional efforts to reduce drug trafficking, which is increasing there, and to limit the exploitation for money-laundering purposes of Uruguay's strict bank secrecy regulation. Uruguay works with the United States bilaterally and in international trade liberalization to foster economic and political cooperation and to improve regional cooperation. It was an early proponent of the Enterprise for the Americas Initiative. It supported the international coalitions in Operations Desert Shield and Desert Storm. It assisted in overturning the infamous UN resolution equating Zionism with racism and voted with the US at the UN Human Rights Commission in March 1992 to name a special rapporteur on Cuba. Principal US Officials Ambassador--Richard C. Brown Deputy Chief of Mission--Gerald Whitman Political Counselor--Gerard R. Pascua Economic Counselor--Paul B. Larsen Labor Counselor--Judy M. Buelow Consul--Paul M. Doherty Chief, Administrative Section--John P. Baca Public Affairs Officer (USIS)--Frank L. Jenista Chief, Office of Defense Cooperation--Col. Curtis S. Morris, USAF The US embassy in Uruguay is located at Lauro Muller 1776, Montevideo. The mailing address for the embassy is APO Miami, Fl. 34035. TRAVEL NOTES: Climate and clothing: Seasonal clothing, as in the US, is recommended. Although the temperature seldom drops below freezing and snow is rare, warm clothing is essential in winter months (June-August). Rainwear is useful. Customs: No visa is required for a visit of less than 90 days. No inoculations are required. Travelers should check latest medical information. There are no currency restrictions. Health: No particular health risks exist. Food handling and sanitation standards are relatively high, and the water supply is well maintained. Montevideo has several good private hospitals and many well-trained doctors. Telecommunications: International telephone and telegraph service is efficient, although delays may be encountered; however, the local telephone network is overburdened. International telegraph-telex systems are available. Uruguay is two time zones ahead of eastern standard time. Transportation: Several airlines have frequent service to Montevideo's Carrasco International Airport from the US, Europe, and other parts of Latin America. Internal transportation is mainly by car or bus; air service is available to a number of towns in the interior; there is no passenger railway service. Within Montevideo, bus service is inexpensive. Taxi service is reasonably priced, good, and readily available. Main roads are good, and secondary roads are adequate. Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC -- Managing Editor: Peter Knecht -- Editor: Joan Bigge Department of State Publication 7857 -- Background Notes Series -- This material is in the public domain and may be reprinted without permission; citation of this source is appreciated. For sale by the Superintendent of Documents, US Government Printing Office, Washington, DC 20402. Contents of this publication are not copyrighted unless indicated. If not copyrighted, the material may be reproduced without consent; citation of the publication as the source is appreciated. Permission to reproduce any copyrighted material (including graphics) must be obtained from the original source.