Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0111.TXT

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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. [phone]).  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
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