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1 1 (April 17, 2023)

handle is hein.crs/govelhn0001 and id is 1 raw text is: Congressional Research Sern inforrning the IegisIathve debate sinco 1914 Uruguay: An Overview Uruguay, with a population of 3.6 million people, is located on the Atlantic coast of South America between Brazil and Argentina (see Figure 1). The country stands out in Latin America for its strong democratic institutions; high per capita income; and low levels of corruption, poverty, and inequality. Due to its domestic success and commitment to international engagement, Uruguay plays a more influential role in global affairs than its size might suggest. Successive U.S. Administrations have sought to work with Uruguay to address political and security challenges in the Western Hemisphere and around the world. Political and Economk Situation Uruguay has a long democratic tradition but experienced 12 years of authoritarian rule following a 1973 coup. During the dictatorship, tens of thousands of Uruguayans were forced into political exile, 3,000-4,000 were imprisoned, and several hundred were killed or disappeared. The country restored civilian democratic governance in 1985, and analysts now consider Uruguay to be among the strongest democracies in the world. President Luis Lacalle Pou of the center-right National Party took office for a five-year term in March 2020, bringing to an end 15 consecutive years of governance by the center-left Broad Front coalition. A former legislator and the son of a former president, Lacalle Pou narrowly defeated the Broad Front's Daniel Martinez (50.8% to 49.2%) in a 2019 runoff election. Lacalle Pou's coalition, which, in addition to his National Party, includes the centrist Colorado Party, the right-wing populist Open Town Hall party, and two smaller parties, also won majorities in both houses of the Uruguayan General Assembly. The government coalition holds 56 of 99 seats in the Chamber of Representatives and 17 of 30 seats in the Senate. Shortly after taking office, Lacalle Pou's multiparty coalition passed a far-reaching legislative package that enacted many of the market-oriented economic reforms and hardline security policies included in the president's campaign platform. Among other changes, the legislation established a fiscal rule to limit public expenditures, made structural changes to the education system, created a new environment ministry, increased some criminal penalties, gave greater powers to the police, banned blockades that prevent the free movement of persons or goods, and prohibited labor unions from impeding workers or owners from entering businesses during strikes. The political opposition, led by the Broad Front and the national labor federation, sought to repeal portions of the law through a national referendum held in March 2022. The referendum received nearly 49% of valid votes but fell short of the absolute majority needed to repeal the reforms. Updated April 17, 2023 Figure I. Uruguay at a Glance Sources: CR5 Graphics, Instituto Nacional de Estadistica de Uruguay, Latinobar6metro, International Monetary Fund, and Trade Data Monitor. In August 2022, the government proposed major reforms of the pension and education systems. A key feature of the pension reform is the phased increase of the retirement age from 60 to 65 for most workers. Although it would bring Uruguay closer to the regional norm for retirement age, a March 2023 poll conducted by the Uruguayan firm Cifra concluded that 27% of Uruguayans support the reform, while 54% oppose it. President Lacalle Pou's popularity has suffered as a result of the political battles over labor and pension reforms, questions about his cabinet's role in a corruption scandal involving the sale of falsified passports by the presidential head of security, and concerns about rising crime and drug trafficking. In Cifra's March 2023 poll, 44% of respondents approved of Lacalle Pou's performance in office and 42% disapproved-an 11-point decline in his net approval rating compared with February 2022. Uruguay's next general elections for a new president and congress are scheduled for October 2024. Uruguay's economy is heavily dependent on agriculture and tourism, with agricultural products accounting for 60% of the country's exports. Uruguay has a small but growing information technology sector. From 2003 to 2019, Uruguay experienced the longest economic expansion in the country's history; per capita gross domestic product (GDP) nearly doubled, from $9,000 to over $16,000, fueled by a boom in commodity prices and the diversification of Uruguay's trade with Asia and the European Union (EU). The Coronavirus Disease 2019 (COVID-19) pandemic, which claimed 7,600 lives in Uruguay (222 deaths per 100,000 residents), contributed to a steep economic downturn. GDP declined by 6.1% in 2020, pushing the poverty rate up from 8.8% to 11.6%, according to government statistics. An emergency government support

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