Political Risk Latin America Blog @PolRiskLatam

Uruguay: The Components of Its Success

Posted in News and Articles, Political Risk by politicalrisklatam on March 31, 2011

by Janie Hulse Najenson for Americas Quarterly Online, March 29th, 2011.

Just a decade ago, most Latin American governments looked to the United States and Europe as examples of how to improve governance, foster sustainable economic growth and institute more just societies. But today, there are some countries in Latin America that serve as case studies worth following—one of which is Uruguay. It may be the size of Washington State and have one of the smallest populations in the region (3.3 million), but it should be truly commended for its developmental progress in recent years.

Although dwarfed by the neighboring economies of Brazil and Argentina, Uruguayans overall have a better standard of living. Uruguay’s annual per-capita income is estimated at roughly $14,000—higher than that of Brazil and Argentina. Physical security is better, too, as evidenced by known cases of families moving from Buenos Aires to Montevideo in search of a safer environment. Recent regional rankings on tourism reflect Uruguay as a desirable destination. According to the 2010 Latin Business Chronicle’s Tourism Index, Uruguay is Latin America’s tourism champion. The country receives more than 2 million tourists a year, an amount equaling roughly 60 percent of its population.

Years of economic growth and state policy promoting technology usage by citizens, government and business has made the Uruguayans some of the most tech-savvy in the region. In May 2008, former president Tabaré Vázquez (2005-10) launched a government program called La Agenda Digital Uruguay 2008-10 (Uruguay Digital Agenda 2008-10) that worked toward the consolidation of all of Uruguay’s information technology programs. Its main objective was to create a more inclusive and democratic society. It gave high priority to Plan Ceibal, known in English as One Laptop per Child, which is responsible for distributing low-cost laptops to all public primary-school students and teachers. This open-source initiative has been so successful that it was extended to secondary schools, and inspired another project to make available affordable “triple play” (Internet, phone, and television) services to low-income families. By November 2010, Uruguay’s investment agency Uruguay XXI reported that the government had distributed 380,000 laptops, trained 18,000 teachers, created 280 free Wi-Fi areas in Montevideo and gave 220,000 families their first computer. (continue reading… )

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