Uruguay
Uruguay’s ancient Charrúa Indian population heroically resisted settle-ment by European invaders, until parts of the country were taken by the Spanish in the 1620s and the Portuguese in the 1680s. Spain assumed full control in the eighteenth century, wiping out the indigenous population.
Area: 66,300 square miles Capital: Montevideo Government: Constitutional Republic Population: 3.4 million Language: Spanish, Portunol (only spoken on the border with Brazil), or Brazilero GDP per capita: USD 6,000 Monetary unit: Uruguayan Peso (UYU) Imports: road vehicles, electrical machinery, metal manufactures, heavy industrial machinery, crude petroleum Exports: meat, rice, leather products, vehicles, dairy products, wool, electricity.
Stability and security in the heart of Mercosur
History
Jorge Batlle, President
Even after Uruguay became independent in 1828, it was repeatedly threatened by Argentina and Brazil.In the early part of the twentieth century, Uruguay established Latin America’s first welfare state. Political and economic turmoil by the 1960s led to instability and the birth of an urban guerrilla movement, the Tupamaros. A military dictatorship ruled for a decade, until the 1984 presidential elections reestablished civilian government.
A process of national reconciliation and a return to democratic traditions has been followed by a successful process of economic liberalization. Uruguay is a free, stable market, and a key member of Mercosur (an economic integration agreement between Argentina, Brazil, Paraguay and Uruguay, plus Bolivia and Chile).
Economy
Uruguay has traditionally been more prosperous than many other Latin American countries, maintaining a sophisticated welfare and education system. However, recessions in Brazil and Argentina – its neighbors, main export markets and sources of tourists – have adversely affected the economy. Nonetheless the economic fundamentals are good, and Uruguay remains one of the most stable and attractive locations for investment in the region.
President Jorge Batlle was elected in November 1999, a great-nephew of the president that introduced the country’s welfare-state system nearly a century earlier. His challenges are to continue to expand Uruguay’s exports and to improve the competitiveness of the economy through structural reform.
“Uruguay is a good place to do business,” he says, adding, “Despite the setbacks in Argentina and Brazil, we were able to find new markets, which reflects the spirit and flexibility of entrepreneurs here. We are a stable society with many benefits, such as the quality of life, good human resources, and a free market. We make no distinction dealing with foreign or local investors. Uruguay is an attractive base to set up business.”
Alberto Bension, Minister of Economy and Finance, says that investors have been successful in agriculture,banking, tourism, real estate and the maritime industry. “We are a stable, democratic country with a very good location,” he says, adding, “We are an open country, and stable in macroeconomic terms, with a highly educated workforce. Uruguay is a good base to invest in and do business from.”
Uruguay XXI – Investment and Export Promotion Agency
“Uruguay is a place to grow.”
Victor Angenscheidt, Executive Director Uruguay XXI
Uruguay XXI, the Investment and Export Promotion Agency, was set up in 1996 and is funded by the Ministry of Foreign Affairs. Its role is to facilitate the entry of foreign investment into Uruguay and to promote Uruguayan exports abroad. As Executive Director Victor Angenscheidt explains, “Our mission is to render services to all enterprises interested in doing business with, in, from and through Uruguay and to the region.”
Uruguay XXI offers a full range of services, from sear-ching for potential partners to manage-ment consulting, the support of infrastructure investments, the design of promotional activities for specific sectors or groups of enterprises, and follow-up services. It provides market research and feasibility studies on market and investment conditions, and can advise on the legal framework for investment. The organization designs, develops and executes foreign promotion programs, and locates investment opportunities for local and foreign clients.
Under the slogan “Uruguay is people, Uruguay is land, Uruguay is culture, and Uruguay is natural beauty … Uruguay is a place to grow,” Uruguay XXI hopes to attract more business partners, alliances, technology and investors from the United States.
Angenscheidt says that his country used to be known as the Switzerland of South America, and he is committed to regaining that image. Above all else, Uruguay XXI is promoting the country as the gateway to an enormous market. “We must promote Uruguay as the base for any successful company to export to a market of 250 million people,” he says.
