copy the linklink copied! Uruguay
Recent trends
Uruguay has made strong improvements in development outcomes during the last decades. The country performs well compared to other LAC countries on a range of indicators, including education, poverty reduction, health, environmental sustainability, corruption and citizen security. The share of the population living on less than USD 5.5 a day (2011 PPP) decreased by more than four times from 17.1% to 3.7% over 2006-16. The share of vulnerable population – those living on USD 5.5-13 a day (2011 PPP) – also decreased from 38.1% to 23.8% over the same period. This decrease made Uruguay the best performer in the region for its achievements in poverty reduction. Moreover, the maternal mortality ratio and the infant mortality rate are 15 per 100 000 live births and 7 per 1 000 live births, respectively. These rates are well below the Latin America and Caribbean (LAC) average and in line with the OECD average of 14 and 5.7 respectively.
Uruguay doubled its gross domestic product (GDP) per capita between 1990 and 2017, becoming one of the wealthiest economies in LAC. Yet some problems remain, especially regarding productivity. Labour productivity in terms of GDP per person employed is only 50.8% of the OECD average and total factor productivity growth between 2000-17 was -2.6%.
National strategies and international co-operation for development
“Hacia una Estrategia Nacional de Desarrollo – Uruguay 2050” [Towards a National Development Strategy – Uruguay 2050] presents the long-term objectives and necessary structural transformations for the future sustainable development of the country. It comprises two thematic axes: demographic change and transformation of the productive structure, as well as three transversal axes of gender, cultural development and territorial development.
The productive transformation axis is centred on the digital economy and the bioeconomy. These include the application of nanotechnology and biotechnology to production processes across the economy, such as in the fields of telecommunications, creative industries, manufacturing production and health.
Demography, labour market, education, social security and health are top priorities within Uruguay’s National Development Strategy. Additionally, the gender perspective looks at ways to tackle gender inequality and low female representation in politics and other high decision-making positions. The territorial development strategy aims to close the gaps across the different regions of Uruguay and tackle inequalities and heterogeneities.
In terms of public financing capacities, Uruguay’s total tax revenues were 27.9% of GDP in 2016 (vs. 22.7% in LAC and 34.3% in the OECD). The country has gradually made e-invoicing mandatory for business-to-business transactions since 2012. Uruguay is both a signatory of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports and of the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information to fight tax evasion.
Uruguay’s international co-operation priority is to continue receiving international aid and co-operation to support its transition towards development, while expanding its ability to provide international co-operation in areas where it has proven experience. At the regional level, Uruguay aims to move towards the recognition of its role as both recipient and donor of South-South Co-operation. Moreover, it deems it important to continue strengthening national South-South and Triangular Co-operation strategies. It also seeks to strengthen countries’ participation in regional co-ordination spaces to help build strategic alliances and joint positions in global international co-operation forums. At the global level, the country aims to reach an agreement on new measures and alternative criteria to GDP per capita for the allocation of international aid. This would help it better cater to the needs and abilities of countries in the different dimensions of sustainable development.
Uruguay’s dual co-operation policy has a universal vocation, although its programme is focused on LAC for reasons of geographical and cultural proximity. In its dual role as both recipient and donor of South-South Co-operation, in 2016 the country’s most frequent partners were Mexico and Argentina and the main sectors were health, agriculture and livestock, and governance. As a recipient of traditional co-operation, Uruguay’s main non-reimbursable co-operation partners in terms of financial volume were the Inter-American Development Bank, China and Japan. The main sectors were agriculture and livestock, environment and education. For regional and multi-country co-operation, the UN System, MERCOSUR and UNASUR were the most frequent partners. Health, education, agriculture and livestock, environment, culture and sport are the main sectors of intervention.
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https://doi.org/10.1787/g2g9ff18-en
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