ECONOMICS PROJECT

URUGUAY

SUBMITTED TO
Professor Dharmendra
Unitedworld School of Law,
Karnavati University
(Faculty Economics)

SUBMITTED BY
Name- Kostubh Tiwari
Roll NO.- 42
Uruguay - Introduction
The Oriental Republic of Uruguay is a small country located
between Argentina to its west and Brazil to its east. Uruguay is a relatively low-
lying country with fertile plains and low hills, with its highest point, Cerro
Catedral, reaching 514 meters above sea level. Uruguay’s
western border with Argentina is made up entirely by the Uruguay river and the
Rio de la Plata Estuary. Uruguay’s full name in Spanish means ‘the Republic on
the east of the Uruguay (River)’, from which it gets its common name of
‘Uruguay’. Uruguay’s capital is Montevideo.

In 2016, The Economist magazine ranked Uruguay as the only “full democracy”
in Latin America, and one of only two in the world “outside of the rich
western countries of Europe, North America and Australasia”. Uruguay is a
stable democracy in which respect for the rule of law is the norm and the
majority of the population is committed to non-violence. There have been no
cases of political violence or damage to projects/installations over the past
decade.

Uruguay’s population is approximately 3.4 million (2013 est) and is made up of

mainly European (88 per cent) and mestizo (eight per cent) people, with a small
black population (four per cent). Roman Catholicism is the largest religion in
Uruguay with around 47 per cent of the population identifying as Catholic
although some of these identify as non-practising Catholics. Protestantism,
Judaism and other faiths are also present. Spanish is the official language of
Uruguay.

The most fertile parts of the globe have always been fought for the most.
Uruguay has been the Flanders of South America. Her productive, well-watered,
and gently rolling plains are well adapted for agriculture and unsurpassed for
pasturage. Here the Indians struggled hardest to maintain themselves and longest
resisted the Spanish conquest. From colonial times, Argentines have crowded in
from the west, Brazilians from the north, and Buenos Aireans and Europeans
from the coast, until this favored spot has become the most thickly populated
country of South America.

The very strategic and industrial desirability of this region, and the ease with
which it can be invaded, made it the scene of constant armed conflict. Uruguay
had been the cockpit of the southern half of the continent, and its people had
been fighting continually through the first one hundred and fifty years during
which the country had been inhabited by Europeans. They fought for their
independence against the Spaniards, then against the Buenos Aireans, then
against the Brazilians, then against the Buenos Aireans again, and in the intervals
they fought pretty constantly among themselves.

Uruguay was once known as the "Switzerland of South America," but clearly not
because of any geographical similarity. Although it is the second smallest
republic in South America (after Suriname), Uruguay is more than four times
larger than landlocked Switzerland, and its highest peak is only 501 meters.
Rather, the analogy was made because Uruguay enjoyed other Swiss-like
attributes. It was a peaceful, conservative country with a bountiful, livestock-
based economy. It was also home to South America's first social democracy; a
cradle-to-grave welfare system; and a largely urban, homogeneous, and relatively
well-educated population. A political slogan of the 1940s proudly boasted,
"There's no place like Uruguay."

Beginning with the prolonged stagnation of their country's industrial

and livestock sectors in the mid-1950s, however, Uruguayans began losing their
economic well-being, civility, and tranquillity. By the late 1960s, Uruguay was
suffering from high inflation and public deficits and was governed by an
authoritarian president, instead of by the former revolving collegial executive
(colegiado) that had been modeled on the Swiss system and designed to avoid a
concentration of power. In 1973 Uruguayans also lost their cherished freedom
and their democratic system when the country was plunged into one of Latin
America's most repressive military dictatorships (1973-85). The country's
democratic system was not fully restored until 1990.

Having fallen far behind many countries economically, Uruguayans could only

reminisce about their former welfare state. In a discussion of Uruguay's global
ranking, the late political scientist and Uruguay specialist Charles Guy Gillespie
noted that "Uruguayan society in 1990 presented a rather contradictory picture of
advanced social indicators and declining economic status." Since Gillespie's
research was completed, Uruguay rose to be the highest ranking country in South
America and Central America on the United Nations Development Programme's
1991 Human Development Index (HDI), a measure that combines per capita
gross domestic product with such factors as longevity and access to education.

The armed forces are constitutionally subordinate to the president through the
minister of defense. By offering early retirement incentives, the government has
trimmed the armed forces to about 14,500 for the army, 6,000 for the navy, and
3,000 for the air force. Uruguay is one of the top 10 per capita contributors to UN
peacekeeping forces, with between 2,500 and 3,000 personnel in 15 UN
peacekeeping missions. As of February 2012, Uruguay had 962 military
personnel deployed to Haiti in support of MINUSTAH and 1,175 deployed in
support of MONUC in the Congo.

Medical care facilities in Uruguay are considered adequate and most meet U.S.

standards. The responsiveness of emergency personnel ambulance service is
generally within U.S. standards. Ambulances are staffed with a medical doctor,
enabling advanced treatment/care en route to the local hospital.

Taxis, public buses, and remise services are safe to use. The use of clearly
marked taxi stands and online apps (voyentaxi.uy) are recommended over hailing
a cab on the street. Uruguay experienced a 14.1% decrease in transit-related
fatalities, and a 10% decrease in transit-related injuries from 2015 to 2016,
according to the Uruguayan National Highway Safety Administration.
Motorcyclists and bicyclists accounted for 70% of transit-related fatalities.

Traffic fatalities are among the most common causes of death in Uruguay.
Uruguay’s rate of traffic deaths per 100,000 people (21.5) is nearly double that of
the United States (11.4), according to the World Health Organization.
Illumination, pavement markings, and road surfaces can be poor. Several of the
main highways are particularly accident-ridden because of heavy tourist traffic.
Poor illumination, inadequate pavement markings, and substandard road surfaces
are contributing factors to traffic accidents.

Street-level crime (pickpocketing, purse snatching, assault, armed robbery,

general theft) is common in the Montevideo. During the summer tourism season,
crime typically migrates with the population to popular destinations (Punta del
Este, Colonia del Sacramento). Criminals prey on targets of opportunity, to
include tourists openly carrying valuables, motorists stopped at traffic lights with
valuables visible within the vehicle, vacant homes, and unattended parked
vehicles. Criminals operate within popular tourist areas of the capital (Ciudad
Vieja, Avenida 18 de Julio, Plaza Independencia, Mercado del Puerto) and other
popular areas within country. Police typically increase patrols during periods of
high tourist activity in these areas, especially during the visits of cruise liners in
the summer. However, only partial police presence remain into the late evening
and early morning hours.
Uruguay continues to experience a significant level of violent crime. Criminals
are well-armed, brazen, and do not hesitate to resort to violence if victims resist
or if the police attempt to intervene. Precautions for residential security include
the use of private security patrols, a centrally-monitored alarm system, grilled
windows with tightly spaced cross-members, high perimeter fences, exterior
lighting, and residences without adjacent vacant lots or parks.

ECONOMIC

EURUGUAY IS A WEALTHY COUNTRY by Latin American standards,

although its economic development has been sluggish since the 1950s. In 1990 the
country had a gross domestic product ( GDP) of approximately US$9.2 billion, or
US$2,970 per capita, placing it among the highest-income countries in Latin
America. Uruguay's small population (just over 3 million) and low population
growth (0.7 percent per year) enabled its people to maintain a reasonable standard
of living during the 1980s, despite the nation's unsteady economic performance.
Like many other countries in the region, Uruguay faced a large external debt and
an appreciable public-sector deficit, both of which impeded the growth of the
economy. Other major limitations on growth were the continued dependence on a
few agricultural products and one of South America's lowest levels of foreign and
domestic investment.

Uruguay's economy developed rapidly during the first three decades of the
twentieth century because of expanding beef and wool exportation. Rising trade
income led to the creation of an advanced welfare state in which the government
redistributed wealth and protected workers. After agricultural exports leveled off in
the 1950s, the government's role in the economy expanded. With agriculture stalled
and manufacturing potential limited by the small size of the domestic market, the
public sector became the source of most new jobs in Uruguay. The economy
operated behind high tariff barriers, barring competition from abroad. An alliance
between the nation's two major political parties upheld this statist model through
the 1960s, but lack of GDP growth and large public-sector deficits testified to its
inefficiency.

Although the military government (1973-85) enacted major economic reforms

during the 1970s, it operated with high fiscal deficits and borrowed extensively to
pay for those deficits. In an effort to reorient the stagnated economy toward
external markets, the government eliminated price controls and slashed tariffs
while providing subsidies to exporters. These reforms of the goods market
produced favorable results in the short run: exports, investment, and GDP all
increased significantly. When the government went further, however, by
deregulating the banking sector in hopes of removing inflationary pressures, the
economy became unstable. In 1981 Uruguay's economy went into recession.

One source of instability was the growing "dollarization" of the banks. When
foreign-exchange regulations were canceled, United States dollars (mostly from
Argentine real estate investment) flowed into Uruguay. Uruguayan banks, in turn,
loaned dollars to private companies and ranchers within the country. The danger in
this system was the exchange rate: when the government allowed its currency, the
Uruguayan new peso, to float against the dollar in 1982, the peso value of many
Uruguayan loans suddenly tripled. Thus, Uruguay faced both a recession and a
domestic debt crisis in the early 1980s.

In 1986-87 the economy recovered from the recession as real GDP increased by
6.6 percent in 1986 and 4.9 percent in 1987. The renewed emphasis on exports,
including several new categories of goods, resulted in a positive trade balance.
Real wages, which had fallen by 50 percent in the 1970s but risen by 15 percent in
the early 1980s, increased again (but only marginally), as did employment (by 4
percent). These modest improvements could not mask fundamental problems,
however. Inflation averaged over 60 percent per year in the 1980s, despite efforts
to reduce it. In addition, the domestic debt was largely absorbed by the public
sector, but in the process Uruguay's deficit and foreign debt became larger. Debt
service alone absorbed about one-quarter of export earnings. During the last two
years of the administration of Julio María Sanguinetti Cairolo (1985-90), fiscal
pressures forced the government to abandon its growth-promotion strategy, and
GDP did not increase. On the contrary, real GDP growth fell to 0.5 percent in
1988, 1.5 percent in 1989, and an estimated - 0.4 percent in 1990.

In 1989 Sanguinetti defended his administration's economic record in terms of

what had not happened. In a speech to the General Assembly, he said that
Uruguay's political and economic climate remained stable in contrast to its larger
neighbors (Argentina and Brazil). The nation's economy "had not collapsed into
regional hyperinflation, as was predicted; nor had the banking crisis that the
government inherited destroyed the financial system; nor had the heavy external
debt prevented the country from growing." The statement was an apt summary of
both the government's cautious philosophy and of Uruguay's limited economic
progress in the late 1980s.

The Sanguinetti government could claim credit for steering a sensible course
during a difficult decade for Latin American nations. The government did not,
however, make much progress addressing a fundamental limitation on the
economy and the leading cause of the deficit: the size of the public sector.
Powerful public-sector unions made it difficult for the government to reduce public
employment. When, for example, the inefficient passenger rail service was
discontinued in 1988 because of declining ridership, workers were not released but
rather were transferred to other government jobs. The welfarestate model remained
largely intact. By the last two years of the decade, however, economists and
politicians were beginning to ask basic questions about the state's proper role in the
economy.

An even more fundamental question, not addressed in the 1980s, was the
economy's heavy dependence on a few livestock products, which were produced
by primitive agricultural practices. Although exports could be diversified, for
example, by producing not just wool but also woolen textiles and apparel, the
supply of raw material depended on methods of raising sheep and cattle that had
not changed significantly in two centuries. Livestock ranged over unimproved
pastures whose carrying capacity was quite limited; production had actually
decreased since the beginning of the twentieth century. The vulnerability of the
sector was demonstrated in the late 1980s when a two-year drought (1988-89)
decimated livestock herds.

Such fundamental issues were still in the background as Luis Alberto Lacalle de
Herrera became president in March 1990. Lacalle indicated that his government
would continue the cautious adjustment policies of its predecessor, seeking to
reduce inflation and debt first and to resume growth second. Lacalle embraced
privatization and drew up a bill to eliminate several state monopolies. Continued
diversification of exports, including the possibility of exporting services, also
appeared to hold good prospects for economic growth.

Uruguay Economy Data

 2013 2014 2015 2016 2017

Population (million) 3.4 3.5 3.5 3.5 3.5

GDP per capita (USD) 16,860 16,79 15,575 14,94 17,177

2 3

GDP (USD bn) 57.5 57.2 53.3 52.4 60.0

Economic Growth (GDP, annual 4.6 3.2 0.4 1.5 2.7

variation in %)

Consumption (annual variation in %) 5.5 3.0 -0.5 0.1 4.4

Investment (annual variation in %) 3.8 2.4 -9.2 -1.6 -15.5

Industrial Production (annual 4.1 1.1 3.1 0.3 -11.1

variation in %)

Unemployment Rate 6.5 6.6 7.5 7.9 7.9

Fiscal Balance (% of GDP) -2.3 -3.5 -3.6 -3.9 -3.5

Public Debt (% of GDP) 57.5 58.6 58.9 63.6 64.5

Money (annual variation in %) -   -   -   -   -  

Inflation Rate (CPI, annual variation 8.5 8.3 9.4 8.1 6.6
in %, eop)

Inflation Rate (CPI, annual variation 8.6 8.9 8.7 9.6 6.2
in %)

Inflation (PPI, annual variation in %) -   -   -   -   -  

 2013 2014 2015 2016 2017

Benchmark Interest Rate (%) 7.35 7.17 6.94 6.58 5.56

Exchange Rate (vs USD) 21.13 24.37 29.91 29.33 28.83

Exchange Rate (vs USD, aop) 20.41 23.21 27.31 30.14 28.66

Current Account (% of GDP) -3.4 -3.1 -0.8 0.8 1.5

Current Account Balance (USD bn) -2.0 -1.8 -0.4 0.4 0.9

Trade Balance (USD billion) 1.8 1.6 1.2 0.6 0.0

Exports (USD billion) 9.1 9.1 7.7 7.0 7.9

Imports (USD billion) 10.9 10.8 8.9 7.6 7.9

Exports (annual variation in %) 4.1 0.7 -15.9 -8.9 12.7

Imports (annual variation in %) -1.2 -1.2 -17.4 -14.0 3.5

International Reserves (USD) 16.3 17.8 15.6 13.4 16.0

External Debt (% of GDP) 65.0 70.4 80.2 76.6 64.5

POLITICAL OUTLINE
The politics of Uruguay abide by a presidential representative
democratic republic, under which the President of Uruguay is both the head of
state and the head of government, as well as a multiform party system. The
president exercises executive power and legislative power and is vested in the two
chambers of the General Assembly of Uruguay. The Judiciary branch is
independent from that of the executive and legislature.
The Colorado and National parties have been locked in a power struggle, with the
predominance of the Colorado party throughout most of Uruguay's history. The
elections of 2004, however, brought the Encuentro Progresista-Frente Amplio-
Nueva Mayoría, a coalition of socialists, former Tupamaros, communists, social
democrats, and Christian Democrats among others to power with majorities in both
houses of parliament. A majority vote elected President Tabaré Vázquez.
In 2009, the Broad Front once again won the elections with a plurality of the votes.
A presidential runoff was triggered because their candidate, José Mujica, only
received 47.96 percent of the vote. The Broad Front's candidate easily beat Luis
Alberto Lacalle of the Nacional Party in second round of voting. In addition to the
presidency, the Broad Front won a simple majority in the Uruguayan Senate and
Congress.
 Constitution of Uruguay
Uruguay adopted its first constitution in 1830, following the conclusion of a three-
year war in which Argentina and Uruguay fought as a regional federation:
the United Provinces of Río de la Plata. Sponsored by the United Kingdom,
the 1828 Treaty of Montevideo built the foundations for a Uruguayan state and
constitution. A constitution proposed under the military dictatorship government
was rejected by a referendum in 1980.

Executive branch[edit]
See also: List of Presidents of Uruguay and List of Ministries of Uruguay

Uruguay's president Tabaré Vázquez

Uruguay's Constitution of 1967 created a strong presidency, subject
to legislative and judicial balance. Many of these provisions were suspended in
1973 but reestablished in 1985. The president, who is both the head of state and
the head of government, is elected by popular vote for a five-year term, with the
vice president elected on the same ticket. The President must act together with the
Council of Ministers, which comprises cabinet ministers, appointed by the
president. Thirteen ministers head various executive departments. The ministers
can be removed by the General Assembly by a majority vote.
Legislative branch[edit]

General Assembly of Uruguay.

The General Assembly (Asamblea General) has two chambers. The Chamber of
Representatives (Cámara de Representantes) has 99 members, elected for a five-
year term by proportional representation with at least two members per
department. The Chamber of Senators (Cámara de Senadores) has 31 members; 30
members are elected for a five-year term by proportional representationand the
Vice-president who presides over it.

Judicial branch[edit]
The Supreme Court is the highest court.

Direct democracy[edit]
The Uruguayan constitution allows citizens to challenge laws approved by
Parliament by use of a referendum or to propose changes to the Constitution by the
use of a plebiscite. The Economist Intelligence Unit has rated Uruguay as "full
democracy" in 2016.
TECHNOLOGY
The UNESCO Regional Office for Science and Technology in Latin America and
the Caribbean is located in Montevideo. Learned societies include the Pediatrics
Society, the Association of Uruguayan Engineers, and the Chemical and
Pharmaceutical Association, the Odontological Association, and the Surgical
Society, all headquartered in Montevideo. The University of the Republic, founded
in 1849 at Montevideo, has faculties of agronomy, sciences, engineering, medicine,
dentistry, chemistry, and veterinary medicine. The Institute of Higher Studies,
founded in 1928 at Montevideo, offers courses in biological climatology,
geomorphology, palaeontology, and mathematics. The Higher Institute of
Electrical Engineering, Electronics, and Computing was founded in 1922 at
Montevideo. In 1987–97, science and engineering students accounted for 32% of
college and university enrollments. In 1997, 2,093 scientists and engineers were
engaged in research and development.

In November 2010, Uruguay ratified the Unasur Constitutive Treaty, becoming the
ninth nation out of 12 to do so. The treaty was written in 2008 and was to come
into force 30 days after the date of receipt of the ninth instrument of ratification.

Argentina and Brazil are Uruguay's most important trading partners: imports from
Argentina accounted for 20% of the total in 2009. Since bilateral relations with
Argentina are considered a priority, Uruguay denies clearance to Falkland Islands
bound British naval vessels and prevents them from calling in at Uruguayan
territories and ports for supplies and fuel. A rivalry between the port of
Montevideo and the port of Buenos Aires, dating back to the times of the Spanish
Empire, has been described as a "port war". Officials of both countries emphasized
the need to end this rivalry in the name of regional integration in 2010.

The construction of a controversial pulp paper mill in 2007, on the Uruguayan side
of the Uruguay River, caused protests in Argentina over fears that it would pollute
the environment and lead to diplomatic tensions between the two countries. The
ensuing dispute remained a subject of controversy into 2010, particularly after
ongoing reports of growing water contamination in the area were later proved to be
from sewage discharge of Gualeguaychú town. In November 2010, Uruguay and
Argentina announced they had reached a final agreement for the joint
environmental monitoring of the pulp mill.

Brazil and Uruguay have signed cooperation agreements on defence, science,

technology, energy, river transportation and fishing, with the hope of accelerating
political and economic integration between these two neighbouring countries.
Uruguay has two uncontested boundary disputes with Brazil, over Isla Brasilera
and the 235 km2 (91 sq mi) Invernada River region near Masoller, over which
tributary represents the legitimate source of the Quaraí River/Cuareim River.

Uruguay has enjoyed friendly relations with the United States since its transition
back to democracy. Commercial ties between Uruguay and the United States have
expanded substantially in recent years, with the countries signing a bilateral
investment treaty in 2004 and a Trade and Investment Framework Agreement in
January 2007. The United States and Uruguay have also cooperated on military
matters, with both countries playing significant roles in the United Nations
Stabilization Mission in Haiti.

President Mujica backed Venezuela's bid to join Mercosur and supported the
Venezuelan Economy Minister Ali Rodriguez to become general secretary of
UNASUR, a position previously held by Néstor Kirchner. Venezuela has a deal to
sell Uruguay up to 40,000 barrels of oil a day under preferential terms. Uruguay
will officially recognize a Palestinian state in March 2011.

Military
Military of Uruguay

The Uruguayan armed forces are constitutionally subordinate to the president,

through the minister of defense. The armed forces personnel number about 14,000
for the Army, 6,000 for the Navy, and 3,000 for the Air force. Enlistment is
voluntary in peacetime, but the government has the authority to conscript in
emergencies.

Since May 2009, homosexuals are allowed to serve openly in the military after the
Defence Minister signed a decree stating that military recruitment policy would no
longer discriminate on the basis of sexual orientation. In the fiscal year 2010 the
United States provided Uruguay with $1.7 million in military assistance, including
$1 million in Foreign Military Financing and $480,000 in International Military
Education and Training.

Uruguay ranks first in the world on a per capita basis for its contributions to the
United Nations peacekeeping forces with 2,513 soldiers and officers in 10 UN
peacekeeping missions. As of February 2010, Uruguay had 1,136 military
personnel deployed to Haiti in support of MINUSTAH and 1,360 deployed in
support of MONUC in the Congo. In December 2010, a Uruguayan, Major General
Gloodtdofsky, was appointed Chief Military Observer and head of the United
Nations Military Observer Group in India and Pakistan.

Administrative divisions

Administrative divisions of Uruguay

Uruguay is divided into 19 departments whose local administrations replicate the
division of the executive and legislative powers. Each department elects its own
authorities through a universal suffrage system. The departmental executive
authority resides in a superintendent and the legislative authority in a departmental
board.

Geography

Geography of Uruguay

At 176,214 km2 (68,037 sq mi) of continental land 142,199 km2 (54,903 sq mi) of

jurisdictional water and small river islands, Uruguay is the second smallest
sovereign nation in South America (after Suriname) and the third smallest territory
(French Guiana is the smallest). The landscape features mostly rolling plains and
low hill ranges (cuchillas) with a fertile coastal lowland.

A dense fluvial network covers the country, consisting of four river basins or
deltas; the Río de la Plata, the Uruguay River, the Laguna Merín and the Río
Negro. The major internal river is the Río Negro ('black river'). Several lagoons are
found along the Atlantic coast.

The highest point in the country is the Cerro Catedral whose peak reaches to 514
metres (1,686 ft) AMSL in the Sierra Carapé hill range. To the southwest is the
Río de Plata, the estuary of the Uruguay River which forms the western border,
and the Paraná River.

Montevideo is the southernmost capital city in the Americas, and the third most
southerly in the world (only Canberra and Wellington are further south).

Uruguay has 660 km of coastline

Agriculture
Agriculture in Uruguay

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 in
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.
According to FAOSTAT, Uruguay is one of world's largest producers of: soybeans
(9th); greasy wool (12th); horse meat (14th); beeswax (14th); quinces (17th);
natural honey (19th); cattle meat (20th).

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.

Transportation
Transport in Uruguay

The Port of Montevideo, handling over 1.1 million containers annually, is the most
advanced container terminal in South America. Its quay can handle 14 metres
(46 ft) draught vessels. Nine straddle cranes allow for 80 to 100 movements per
hour. The port of Nueva Palmira is a major regional merchandise transfer point,
and houses both private and government-run terminals.

Carrasco Airport, designed by the architect Rafael Viñoly with an investment of

165 million dollars, was inaugurated in 2009. The airport can handle up to
4,500,000 users per year. PLUNA is the flag carrier of Uruguay, and is
headquartered in Carrasco. The Laguna del Sauce Airport, located 15 kilometres
(9.3 mi) from Punta del Este, has been remodeled in 1997 and runways have been
renovated through a private investment concession.

The Administración de Ferrocarriles del Estado is the autonomous agency in

charge of rail transport and the maintenance of the railroad network. Uruguay has
about 1,200 km (750 mi) of operational railroad track. Until 1947 about 90% of the
railroad system was British-owned. In 1949, the government nationalized the
railways, along with the electric trams and the Montevideo Waterworks Company.
However, in 1985 the "National Transport Plan" suggested passenger trains were
too costly to repair and maintain. Cargo trains would continue for loads more than
120 tons, but bus transportation became the "economic" alternative for travellers.
The last passenger train rolled into Montevideo on 2 January 1988.
Telecommunications
Communications in 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.

Demographics

Further information: Uruguayan people and Demographics of Uruguay

Colour/Race (self-reported,
2008)
White 95.4%
Black/African 3.4%
Indigenous 1.1%
Asian/Amarillo 0.1%

Uruguayans are of predominantly European origin with an estimated 88% of the

population being of European descent. A 2008 survey by the Instituto Nacional de
Estadística (INE) of Uruguay requesting the respondent to self-report their
predominant ancestry (only one choice was allowed) found that 95.4% reported a
predominant white ancestry, 3.4% Black or African, 1.1% Indigenous and 0.1%
Asian or Amarillo ("yellow"). Another INE survey, also conducted in 2008, found
that 10% reported having some degree of Black/African ancestry, 5.5% partial
Indigenous, and 0.3% partial Asian ancestry.

Most Uruguayans of European ancestry are descendants of 19th and 20th century
immigrants from Spain and Italy (about one-quarter of the population is of Italian
origin) and, to a much lesser degree, from France and Britain. Earlier settlers had
migrated from Argentina and Paraguay. Few direct descendants of Uruguay's
indigenous peoples remain, and mestizos account for less than one-tenth of the
population. People of African descent make up an even smaller proportion of the
total.
Health Facts:

 Fertility rate - 140th most fertile, at 1.89 per woman

 Birth rate - 157th most births, at 13.91 per 1000 people
 Infant mortality - 128th most deaths, at 1 per 1000 live births
 Death rate - 84th death rate at 9.16 per 1000 people
 Life Expectancy - 47th at 76.4 years
 Suicide Rate - 24th suicide rate per 100,000 (15.1 for males and 6.4 for
females)
 HIV/AIDS Rate – 108th at 0.30%

From 1963 to 1985, an estimated 320,000 Uruguayans emigrated. By far the most
popular destination for Uruguayan emigrants was Argentina followed by the
United States, Australia, Spain, Brazil, and Venezuela. In 2009, for the first time in
44 years, the country saw an overall positive influx when comparing immigration
to emigration. 3,825 residence permits were awarded in 2009, compared with
1,216 in 2005. 50% of new legal residents come from Argentina and Brazil. A
migration law passed in 2008 gives immigrants the same rights and opportunities
that nationals have, with the requisite of proving a monthly income of $650.

Music
Music of Uruguay

The folk and popular music of Uruguay shares not only its gaucho roots with
Argentina but also those of the tango. One of the most famous tangos, La
Cumparsita (1917), was written by the Uruguayan composer Gerardo Matos
Rodríguez. The candombe is a folk dance performed at Carnival mainly by
Uruguayans of African ancestry. The guitar is the preferred musical instrument
and, in a popular traditional contest called the payada two singers, each with a
guitar, take turns improvising verses to the same tune. Numerous radio stations and
musical events reflect the popularity of rock music and the Caribbean genres,
known as música tropical("tropical music"). Early classical music in Uruguay
showed heavy Spanish and Italian influence but, since the 20th century, a number
of composers of classical music including Eduardo Fabini, Vicente Ascone and
Héctor Tosar have made use of Latin American musical idioms.

Media
The Reporters Without Borders worldwide press freedom index has ranked
Uruguay as 37th of 178 reported countries in 2010. Freedom of speech and media
are guaranteed by the constitution, with qualifications for inciting violence or
"insulting the nation". Uruguayans have access to more than 100 private daily and
weekly newspapers, more than 100 radio stations and some 20 terrestrial television
channels and cable TV is widely available.

Uruguay's long tradition of freedom of the press was severely curtailed during the
years of military dictatorship. On his first day in office in March 1985, Sanguinetti
re-established complete freedom of the press. Consequently Montevideo's
newspapers, which account for all of Uruguay's principal daily newspapers, greatly
expanded their circulations.

State-run radio and TV are operated by the official broadcasting service SODRE.
Some newspapers are owned by, or linked to, the main political parties. El Día was
the nation's most prestigious paper until its demise in the early 1990s, founded in
1886 by the Colorado party leader and (later) president José Batlle y Ordóñez. El
País, the paper of the rival Blanco Party, has the largest circulation. Búsqueda is
Uruguay's most important weekly news magazine and serves as an important
forum for political and economic analysis. Although it sells only about 16,000
copies a week, its estimated readership exceeds to 50,000. MercoPress is an
independent news agency focusing on news related to Mercosur and is based in
Montevideo.

Sport
Sport in Uruguay

Football is the most popular Sport in Uruguay. The first international match
outside the British Isles was played between Uruguay and Argentina in
Montevideo in July 1902. Uruguay won gold at the 1924 Paris Olympic Games,
and again in 1928 in Amsterdam.

The Uruguay national football team has won the FIFA World Cup on two
occasions. Uruguay won the inaugural tournament on home soil in 1930 and again
in 1950, famously defeating home favorites Brazil in the final. Uruguay has won
the Copa América (an international tournament for South American nations and
guests) more than any other country, their victory in 2011 made a total of 15 Copa
Américas won. Uruguay has by far the smallest population of any country that has
won a World Cup. Despite their early success they have only qualified for two of
the last five World Cups. Uruguay performed very credibly in the 2010 FIFA
World Cup having reached the semi-final for the first time in 40 years. Diego
Forlán was presented with the Golden Ball award as the best player of the 2010
tournament.

Uruguay exported 1,414 football players during the 2000s, almost as many players
as Brazil and Argentina. In 2010, the Uruguayan government enacted measures
intended to retain players in the country.

Education

Education in Uruguay

Education in Uruguay is secular, free, and compulsory for 14 years, starting at the
age of 4. The system is divided into six levels of education: early childhood (3–5
years); primary (6–11 years); basic secondary (12–14 years); upper secondary (15–
17 years); higher education (18 and up); and post-graduate education.

Public education is the primary responsibility of three institutions: the Ministry of

Education and Culture, which coordinates education policies, the National Public
Education Administration, which formulates and implements policies on early to
secondary education, and the University of the Republic, responsible for higher
education. In 2009, the government planned to invest 4.5% of GDP in education.

Uruguay ranks high on standardised tests such as PISA at a regional level, but
compares unfavourably to the OECD average, and is also below some countries
with similar levels of income. In the 2006 PISA test, Uruguay had one of the
greatest standard deviations among schools, suggesting significant variability by
socio-economic level.

Uruguay is part of the One Laptop Per Child project, and in 2009 became the first
country in the world to provide a laptop for every primary school student, as part
of the Plan Ceibal. Over the 2007–2009 period, 362,000 pupils and 18,000 teachers
were involved in the scheme; around 70% of the laptops were given to children
who did not have computers at home. The OLPC programme represents less than
5% of the country's education budget.
PESTEL OF INDIA

India, officially known as the Republic of India, is the seventh largest country by
area, and the second most populous in the world with more than 1.2 billion people.
Attaining independence in 1947, the South Asian country is known for its cultural
diversity and is also among the world’s leading democratic countries.

For the past decade or so, India has been experiencing a constant growth in its
GDP, along with a continuous growth of liberalization from 1991 till date. The
country has also been opening its doors to attract investors and foreign companies
to further promote growth. To get a better understanding of the business
environment in India, read on, as we analyze it through the PESTLE analysis of
India.

 Political Factors

Being one of the largest democracies in the world, India runs on a federal form of
government. The political environment is greatly influenced by factors such as
government’s policies, politician’s interests, and the ideologies of several political
parties. As a result, the business environment in India is affected by multivariate
political factors. The taxation system is well-developed and several taxes, such as
income tax, services tax and sales tax are imposed by the Union Government.
Other taxes, such as octroi and utilities, are taken care of by local bodies.
Privatization is also influenced and the government encourages free business
through a variety of programs.

India is one of the most powerful countries in the world. It is the largest democracy
in the world and enjoys a relatively stable political environment. New Delhi is the
capital of India. India neighbours two powerful countries i.e. China and Pakistan.
Other neighbouring countries are Bangladesh, Myanmar, Nepal, Bhutan, & Sri
Lanka.Democratic will of the people reflected in the local and national elections is
mostly respected and accepted by the political parties and people in general. This
political culture of tolerance contributes immensely to maintain a stable political
climate which is in fact a very important factor to attract foreign direct investment
(FDI). However, sporadic political unrest is not very uncommon in India.
A major area of concern in India is corruption. It badly affects the country’s
business and political environment, posing a challenge to the country’s economic
growth. Corruption increases the cost of business operations and often affects
foreign direct investment. However, a growing public awareness and government
initiatives are combating the challenges of corruption.

2. Economic Factors

According to the IMF 2017 economic forecast, India’s GDP is worth $2.4 trillion
making it the 7thlargest economy in the world by nominal GDP. The GDP will
grow by 7.0% in FY18 which is expected to increase to 7.4% by FY20 (The World
Bank Group, 2018).The current corporate tax rate in India is 30% (as of February
2018). It is worth noting that the country witnessed frequent corporate tax rate
changes over the years. For example, the tax rate in 2010 was 33.99%, while it
reached an all time high of 38.95% in 2001 (Trading Economics, 2018).India is
one of the top countries in many industries. For example, it is the 7 th largest coffee
producing countries in the world (International Coffee Organisation, 2017). It is
also one of the top agriculture producing countries in the world.
India’s key exports are petroleum products, jewellery, pharmaceutical products,
transport equipment, machinery and readymade garments to name but a few. On
the other hand, India imports crude petroleum, gold and silver, electronic good,
pearls and precious stones and many other things. Some of the top trading partners
of India are China, UAE, Switzerland, Saudi Arabia, USA, and Qatar (Guardian
News and Media Limited, 2016).The economy of India has been significantly
stable, since the introduction of the industrial reform policies in 1991. As per the
policy, reductions in industrial licensing, liberalization of foreign capital,
formation of FIBP and so on, has resulted in a constant improvement of India’s
economic environment. The country registered a GDP of $5.07 trillion in 2013
following a further improved GDP growth rate of 5% in 2014 as compared to
4.35% in 2013.
3. Social Factors

The social factors refer to any changes in trends which would impact a business
environment. For instance, the rise in India’s ageing population is resulting in a
considerable rise in pension costs and increase in the employment of older
workers. India has a population of more than 1.2 billion people with about 70%
between the ages of 15 and 65. Therefore, there are structures with percentages
according to age. These structures contain varying flexibility, in education, work
attitudes, income distribution, and so on.

India has a gigantic consumer market with a total population of approximately 1.2
billion. Such a huge market is a great opportunity for multinational companies. No
wonder why so many multinationals are operating in India! India offers cheap
labour and the labour force is expected to reach 160-170 million by 2020 (IBEF,
2018). Accessible and affordable labour force has encouraged many multinational
companies to outsource some of their business operations to India.
India is a multi-ethnic, multi-lingual, and multi-religious country. Communal
harmony is a great strength; however, the country sometimes witnesses tensions in
ethnic lines. India has a world-renowned film industry. It is also world renowned
for some of the sports e.g. Cricket and Hockey. IPL (Indian Premier League)
attracts cricket legends and talents to India.
India is one of the most attractive markets in the world in many sectors. Standard
of living is gradually improving and the country has a growing middle class with
good disposable income. However, it is worth noting that India still suffers from
poverty and according to the World Bank, 1 in 5 people in India are still poor.

4. Technological Factors

Technology significantly influences product development and also introduces fresh

cost-cutting processes. India is served with both 3G and 4G technology which has
facilitated several of their technological projects. Furthermore, the country also
possesses one of the strongest IT sectors in the world, promoting constant IT
development, software upgrades and other technological advancements. Recently,
India has also attempted to launch their satellites into space.

India is one of the most technologically advanced countries in the world. In fact,
according to some sources, it is the 3 rd most technologically advanced country in
the world. No wonder why more and more tech giants including but not limited to
Facebook, Microsoft, and Apple are investing in the country! India is a key
destination for outsourcing work in IT. With an advanced IT infrastructure and
highly skilled IT work force, India offer enormous opportunities for entrepreneurs
to embark upon technological projects such as software development and upgrades,
e-commerce, mobile apps, business solutions, and many more.

So, here is the PESTLE analysis of India, which will provide you with a detailed

analysis of the four significant factors that affect its external macro environment.

ENVIRONMENTAL

LEGAL

The last element to address in the PESTEL analysis of India is the legal landscape.
As mentioned above, India is a famous destination for foreign direct investment.
Depending on the scope and the business needs, foreign investors can set up a
company, branch, or a limited liability partnership in India. Indian companies are
governed by the Companies Act, 2013. There are a number of labour laws that
regulate employment relations in India e.g. Employees’ State Insurance Act 1948
(ESI Act), Industrial Disputes Act 1947 (ID Act), Maternity Benefit Act 1961
(MBA) and the Payment of Bonus Act 1965 (PBA).
COMPARISION BETWEEN INDIA AND URUGUAY
AGRICULTURE

Agriculture >Arable 159.65 million 1.37 million hectares 

land >Hectares hectares  Ranked 97th.
Ranked 2nd. 117
times more than
Uruguay

Agriculture >Arable 141.64 hectares  411.98 hectares 

land >Hectares per 1000 Ranked 42nd. Ranked 26th. 3 times more than India

Agriculture >Arable 0.129  0.534 

land >Hectares per capita Ranked 104th. Ranked 12th. 4 times more than India

Agriculture > Cereal yield > Kg 2,647.2  3,943.9 

per hectare Ranked 84th. Ranked 40th. 49% more than India

Agriculture > Cultivable land 158.65 million  1.35 million 

>Hectares Ranked 2nd. 118 Ranked 89th.
times more than
Uruguay

Agriculture >Produce > Crop 103.9%  132.2% 

>Production index Ranked 111th. Ranked 8th. 27% more than India

Agriculture >Produce > Food 104.7%  115.5% 

>Production index Ranked 100th. Ranked 31st. 10% more than India

Agriculture >Agricultural growth 121  125 


Agriculture >Agricultural growth
per capita
Agriculture > Farm workers
Agriculture >Products
Agriculture > Rural population
ECONOMY
 India is developing into an open-market
economy, yet traces of its past autarkic policies
remain. Economic liberalization measures,
including industrial deregulation, privatization of
state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early
1990s and have served to accelerate the country's
growth, which averaged under 7% per year since
1997. India's diverse economy encompasses
traditional village farming, modern agriculture,
handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than
half of the work force is in agriculture, but
services are the major source of economic
Ranked 53th. Ranked 42nd. 3% more than India
108 Int. $  124 Int. $ 
Ranked 55th. Ranked 20th. 15% more than India
261.63 million  188,000 
Ranked 2nd. 1392 Ranked 120th.
times more than
Uruguay
rice, wheat, oilseed, beef, soybeans, cellulose, rice, wheat, lumber, dairy p
cotton, jute, tea,
sugarcane, lentils,
onions, potatoes;
dairy products,
sheep, goats,
poultry; fish
59,140  4,595 
Ranked 28th. 13 times Ranked 204th.
more than Uruguay
All
 Uruguay has a free market economy
characterized by an export-oriented agricultura
sector, a well-educated work force, and high
levels of social spending. Following financial
difficulties in the late 1990s and early 2000s,
economic growth for Uruguay averaged 8%
annually during the period 2004-08. The 2008-
09 global financial crisis put a brake on
Uruguay's vigorous growth, which decelerated
to 2.6% in 2009. Nevertheless, the country
managed to avoid a recession and keep positiv
growth rates, mainly through higher public
expenditure and investment, and GDP growth
reached 8.9% in 2010 but fell to about 3.5% in
2012, the result of a renewed slowdown in the
growth, accounting for nearly two-thirds of global economy and in Uruguay's main trade
India's output, with less than one-third of its labor partners and Common Market of the South
force. India has capitalized on its large educated (Mercosur) counterparts, Argentina and Brazil.
English-speaking population to become a major Uruguay has sought to expand trade within
exporter of information technology services, Mercosur and with non-Mercosur members.
business outsourcing services, and software Uruguay''s total merchandise trade with
workers. In 2010, the Indian economy rebounded Mercosur since 2006 has increased by nearly
robustly from the global financial crisis - in large 70% to more than $5 billion while its total
part because of strong domestic demand - and trade with the world has almost doubled to
growth exceeded 8% year-on-year in real terms. roughly $20 billion.
However, India's economic growth began
slowing in 2011 because of a slowdown in
government spending and a decline in
investment, caused by investor pessimism about
the government's commitment to further
economic reforms and about the global situation.
High international crude prices have exacerbated
the government's fuel subsidy expenditures,
contributing to a higher fiscal deficit and a
worsening current account deficit. In late 2012,
the Indian Government announced additional
reforms and deficit reduction measures to reverse
India's slowdown, including allowing higher
levels of foreign participation in direct
investment in the economy. The outlook for
India's medium-term growth is positive due to a
young population and corresponding low
dependency ratio, healthy savings and investment
rates, and increasing integration into the global
economy. India has many long-term challenges
that it has yet to fully address, including poverty,
corruption, violence and discrimination against
women and girls, an inefficient power generation
and distribution system, ineffective enforcement
of intellectual property rights, decades-long civil
litigation dockets, inadequate transport and
agricultural infrastructure, limited non-
agricultural employment opportunities,
inadequate availability of quality basic and higher
 education, and accommodating rural-to-urban
migration.


STAT India Uruguay

Girls to boys ratio > Tertiary level enrolment 0.7  2.04 

Ranked 77th. Ranked 7th. 3 times
more than India

Women to men parity index > As ratio of literacy 0.8  1.01 

rates > Aged 15-24 Ranked 25th. Ranked 2nd. 26%
more than India

Gender ratio >Literacy rate of 15-24 year-olds 0.8%  1.01% 

Ranked 25th. Ranked 2nd. 26%
more than India

Education enrolment by level> Primary level >Per 0.12 per 0.11 per capita 
capita capita  Ranked 90th.
Ranked
76th. 9%
more than
Uruguay

Girls to boys ratio > Secondary level enrolment 0.81  1.15 

Ranked 118th. Ranked 11th. 42%
more than India

Girls to boys ratio > Primary level enrolment 0.93  0.98 

Ranked 115th. Ranked 86th. 5%
more than India

Tertiary > Students studying abroad per thousand 0.163  0.823 

STAT India Uruguay

people Ranked 184th. Ranked 120th. 5 times

more than India

Pupil-teacher ratio, secondary per million 0.0212  3.36 

Ranked 98th. Ranked 36th. 158 times
more than India

Inequality adjusted index 0.264  0.682 

Ranked 109th. Ranked 47th. 3 times
more than India

College and university >Gender parity index 0.726  1.73 

Ranked 100th. Ranked 11th. 2 times
more than India

Tertiary > Students studying abroad proportion 0.745%  1.75% 

Ranked 119th. Ranked 107th. 2 times
more than India

High school >Gender parity index 0.918  1.14 

Ranked 115th. Ranked 8th. 24%
more than India

Elementary (primary) school >Gender parity index 0.999  0.967 

Ranked Ranked 108th.
46th. 3%
more than
Uruguay

Hours of instruction for pupils aged 11 1,051 hours  455 hours 

Ranked 4th. 2 Ranked 37th.
times
more than
STAT India Uruguay

Uruguay

Hours of instruction for pupils aged 9 1,051 hours  455 hours 

Ranked 5th. 2 Ranked 36th.
times
more than
Uruguay

15
                                                                     

AGRICULTURE

STAT India Uruguay

Start-up procedures to register a business > Number 0.01 per 1 3.02 per 1 million people 
> Per capita million Ranked 46th. 302 times more than India
people 
Ranked
170th.

Procedures to register property > Number > Per capita 0.005 per 2.42 per 1 million people 
1 million Ranked 37th. 483 times more than India
people 
Ranked
165th.
STAT India Uruguay

Procedures to enforce a contract > Number > Per capita 0.05 per 1 11.77 per 1 million people 
million Ranked 45th. 235 times more than India
people 
Ranked
168th.

Trademarks > Nonresidents >Per capita 0.005 per 2.04 per 1,000 people 
1,000 Ranked 8th. 408 times more than India
people 
Ranked
81st.

Procedures to build a warehouse > Number > Per capita 0.018 per 5.13 per 1 million people 
1 million Ranked 51st. 285 times more than India
people 
Ranked
167th.

Procedures to enforce a contract > Number per million 0.049  11.71 

Ranked Ranked 45th. 239 times more than India
167th.

Trademarks > Residents > Per capita 0.061 per 1.39 per 1,000 people 
1,000 Ranked 8th. 23 times more than India
people 
Ranked
61st.

Red tape > Start-up procedures to register a business 0.0097  1.47 

> Number per million Ranked Ranked 68th. 152 times more than India
187th.

General government final >Consumption expenditure > 0.113$ 0.112$ per $1 of GDP 

Current US$ > Per $ GDP per $1 of Ranked 107th.
GDP 
Ranked
102nd. 1%
more than
Uruguay

Red tape > Time required to build a warehouse > Days 0.136  75.4 

per million Ranked Ranked 52nd. 555 times more than India
185th.
STAT India Uruguay

Procedures to build a warehouse > Number per million 0.0175  5.1 

Ranked Ranked 53th. 292 times more than India
166th.

Red tape > Time required to start a business > Days per 0.0218  1.91 
million Ranked Ranked 94th. 88 times more than India
187th.

Red tape > Procedures to build a warehouse > Number 0.0283  6.48 

per million Ranked Ranked 53th. 229 times more than India
183th.

Red tape > Burden of customs procedure, WEF 0.00307  1.24 

>1=extremely inefficient to 7=extremely efficient per Ranked Ranked 32nd. 403 times more than India
million 144th.

Red tape > Time required to register property > Days per 0.0356  19.44 
million Ranked Ranked 46th. 546 times more than India
182nd.

INDUSTRY

STAT India Uruguay

CO2 emissions from manufacturing 471.62  0.81 

industries and construction >Million Ranked 4th. 582 Ranked 116th.
metric tons times more than
Uruguay

Car > Production 2.81 million  3,579 

Ranked 6th. 786 Ranked 46th.
times more than
Uruguay

Gross value added by construction 143.61 billion  4.45 billion 

Ranked 4th. 32 Ranked 63th.
times more than
Uruguay
STAT India Uruguay

Gross value added by construction per 116.12  1,310.42 

capita Ranked 148th. Ranked 41st. 11 times more tha
India

Gross value added by manufacturing 239.53 billion  6.03 billion 

Ranked 8th. 40 Ranked 76th.
times more than
Uruguay

Gross value added by mining, 312.35 billion  6.51 billion 

manufacturing, utilities Ranked 14th. 48 Ranked 92nd.
times more than
Uruguay

Growth 9.27  1.05 

Ranked 8th. 9 times Ranked 45th.
more than Uruguay

Industry, value added > Current US$ $447.81 billion  $10.76 billion 

Ranked 4th. 42 Ranked 47th.
times more than
Uruguay

Manufacturing >Value 91.03 billion 3.84 billion constant 2000 US$ 

added >Constant 2000 US$ constant 2000 US$  Ranked 39th.
Ranked 6th. 24
times more than
Uruguay

Manufacturing growth 10.83  -3.65 

Ranked 4th. Ranked 59th.

Manufacturing output 220.16 billion  6.41 billion 

Ranked 7th. 34 Ranked 57th.
times more than
STAT India Uruguay

Uruguay

Manufacturing, value added >Current $235.25 billion  $6.03 billion 

US$ Ranked 4th. 39 Ranked 36th.
times more than
Uruguay

Manufacturing, value added >Current $190.22  $1,774.88 

US$ per capita Ranked 72nd. Ranked 11th. 9 times more than
India

Motor vehicle >Production 891,946  3,579 

Ranked 13th. 249 Ranked 34th
times more than
Uruguay

Patent applications > Residents > Per 6.29 per 1 million 11.21 per 1 million people 
capita people  Ranked 43th. 78% more than In
Ranked 45th.

STAT India Uruguay

Air force > Combat aircraft 1,080  28 

Ranked 2nd. 39 Ranked 45th.
times morethan
Uruguay

Armed forces growth 3%  -26% 

Ranked 65th. Ranked 93th.

Armed forces personnel 1.3 million  24,000 

Ranked 4th. 54 Ranked 88th.
STAT India Uruguay

times morethan
Uruguay

Armed forces personnel > % of 0.57%  1.58% 

total labor force Ranked 103th. Ranked 36th. 3 times more than India

Armed forces personnel > Total 2.58 million  25,900 

Ranked 2nd. 100 Ranked 87th.
times morethan
Uruguay

Armed forces personnel per 1000 1.25  7.23 

Ranked 126th. Ranked 33th. 6 times more than India

Arms > Exports > Constant 1990 20.38 constant 302.95 constant 1990 US$ per 1 
US$ > Per capita 1990 US$ per 1  Ranked 29th. 15 times more than India
Ranked 41st.

Arms > Exports >Constant 1990 22 million 1,000,000 constant 1990 US$ 
US$ constant 1990 Ranked 40th.
US$ 
Ranked 27th. 22
times morethan
Uruguay

Arms > Exports >Constant 1990 0.0198 constant 0.301 constant 1990 US$ 
US$ per capita 1990 US$  Ranked 29th. 15 times more than India
Ranked 41st.

Arms imports > Constant 1990 1.34 constant 5.45 constant 1990 US$ per c 
US$ > Per capita 1990 US$ per c  Ranked 34th. 4 times more than India
Ranked 56th.

Arms imports >Constant 1990 US$ 1.47 billion 18 million constant 1990 US$ 
constant 1990
STAT India Uruguay

US$  Ranked 61st.

Ranked 3rd. 82
times morethan
Uruguay

Arms imports >Constant 1990 US$ 1.31 constant 5.41 constant 1990 US$ 
per capita 1990 US$  Ranked 34th. 4 times more than India
Ranked 57th.

Army > Main battle tanks 5,978  85 

Ranked 2nd. 70 Ranked 43th.
times morethan
Uruguay

Branches Army, Navy Uruguayan Armed Forces: Army

(includes naval (Ejercito), Navy (Armada Nacional;
air arm), Air includes naval air arm, Marines,
Force Maritime Prefecture in wartime), Air
(Bharatiya Vayu Force (Fuerza Aerea Uruguaya, FAU
Sena), Coast
Guard

Budget 42.84 US$ BN  0.25 US$ BN 

Ranked 4th. 171 15

times morethan Ranked 46th          

Uruguay

CONSULTANCY

Uruguay, Bolivia, and Paraguay were established in the 19th

century as buffers between regional powers Brazil and
Argentina. Public outrage at Marxist guerrilla violence in the
1960s facilitated a military takeover of the government in
1973. Civilian rule was restored in 1985. The center-left
Frente Amplio Coalition’s election victory in 2004 ended 170
 years of political dominance by the center-right Colorado and
Blanco parties. President Tabaré Vázquez of the FAC will
complete his second nonconsecutive five-year term in 2020.
Pressures on government revenue have forced cuts in
programs popular with his political base. The economy, based
on exports of commodities like milk, beef, rice, and wool,
suffered in 2018 from economic and political turbulence in
Brazil and Argentina.

RULE OF LAWVIEW METHODOLOGY

Property Rights68.3Create a Graph using this measurement
Government Integrity69.2Create a Graph using this measurement
Judicial Effectiveness58.9Create a Graph using this measurement

In general, private property is secure, expropriation is unlikely, and contracts are

enforced. The judiciary is transparent and independent, although the courts
function slowly and are subject to intimidation. Uruguay is ranked Latin America’s
least corrupt country in Transparency International’s 2017 Corruption Perceptions
Index. After an investigation, former Vice President Raul Sendic was forced to
resign in 2017 amid accusations of corruption.

GOVERNMENT SIZEVIEW METHODOLOGY

Government Spending67.5Create a Graph using this measurement
Tax Burden77.2Create a Graph using this measurement
Fiscal Health69.9Create a Graph using this measurement

The top individual income tax rate is 30 percent, and the top corporate tax rate is
25 percent. Other taxes include value-added and capital gains taxes. The overall
tax burden equals 27.4 percent of total domestic income. Over the past three years,
government spending has amounted to 32.9 percent of the country’s output (GDP),
and budget deficits have averaged 3.7 percent of GDP. Public debt is equivalent to
66.2 percent of GDP.

REGULATORY EFFICIENCYVIEW METHODOLOGY

Business Freedom74.3Create a Graph using this measurement
Labor Freedom71.9Create a Graph using this measurement
Monetary Freedom72.9Create a Graph using this measurement
 Reforms in recent years have streamlined the regulatory environment, but
increased incorporation costs have made starting a business more expensive.
Fixed-term contracts have become more flexible in terms of work tasks. Uruguay
has eliminated many price controls, but the government continues to fix prices for
electricity, fuels, rents, interdepartmental transport, medicines, natural gas,
pasteurized milk, taxi fares, tolls, and water.

OPEN MARKETSVIEW METHODOLOGY

Trade Freedom78.6Create a Graph using this measurement
Investment Freedom85.0Create a Graph using this measurement
Financial Freedom30.0Create a Graph using this measurement
The combined value of exports and imports is equal to 40.0 percent of GDP. The
average applied tariff rate is 5.7 percent. As of June 30, 2018, according to the
WTO, Uruguay had 53 nontariff measures in force. The economy is relatively open
to foreign investment, but further investment reform measures have stalled since
2011. About 69 percent of adult Uruguayans have access to an account with a
formal banking institution.

GFGFHGFHGJGJGHJGHGFYFYGUGYFJYFKUGUGYFJYGF