on uruguay’s sustained growth uruguay · 2016-05-19 · uruguay, which now stands as an...

In May, U.S. President Barack Obama met with Uruguayan President José Mujica in Washington in what was the first visit by a Uruguayan president to the White House since Tabaré Vázquez in 2006. The event marked another move by Washington to re-engage with a region that was largely overlooked during President Obama’s first term. It sent a clear message that the time to deepen bilateral ties be-tween the U.S. and Uruguay is now.

Diplomatic relations be-

tween the two countries date back to 1867, and while to-day Uruguay is a construc-tive partner for its northern ally, there is much room to strengthen commercial ties. U.S. investment in Uruguay has more than tripled since 2007, reaching $1.4 billion by 2012. Important Uru-guayan products such as citrus fruits and meats have received considerable suc-cess in the U.S. market, yet Uruguayan exports to the U.S. represent only 2% of the Latin American coun-try’s total. In fact, 18.6% of Uruguayan exports went to Brazil in 2012, followed by China at 17.9%, and Argen-tina and Germany taking third and fourth places at 6.2% and 4.3% respectively.

Uruguay is now in the in-ternational spotlight for re-cent progressive moves by its government to fight tobacco, and to legalize marijuana and same-sex marriage. The government is using this mo-mentum to cast its economic net beyond the region. The United States is a natural market. For its part, Uru-guay represents an attractive alternative for U.S. compa-nies looking to gain a solid foothold in the region.

The two countries already have the foundations for eco-nomic partnership. In 2002 they created a Joint Com-mission on Trade and Invest-ment that helped broaden trade and facilitated the successful negotiation of the United States-Uruguay Bi-

lateral Investment Treaty in 2006. The following year, the two countries signed a Trade and Investment Framework Agreement, and additional protocols have been added since then to further liberal-ize commercial relations.

Last year, bilateral trade increased by 27% to $2.2 billion, the largest percent-age increase for the U.S. with any country in the Western Hemisphere. This is a prom-ising trend. U.S. goods ex-ports to Uruguay were up by 29.3% over 2012, while im-ports from Uruguay rose by 18.3%. Still, the country was only 18th among U.S. trading partners in Latin America (and its 82nd globally).

President Mujica’s visit to Washington was timely. The

U.S.-Uruguay Joint Com-mission on Trade and In-vestment has already identi-fied six areas for increased cooperation: customs issues, intellectual property pro-tection, investment, labor, environment, and trade in goods. The meeting between the two presidents was an opportunity to further ad-vance these talks. It was also an opportunity for the U.S. to further its goal of building stronger relations with Latin America’s left-wing govern-ments. As such, it seems that Uruguay, which now stands as an international model of progressive laws and so-cial policies, is also leading the way in the region for the initiation of closer ties with the U.S.

José Alberto “Pepe” Mujica Cordano, President of Uruguay

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Latin America’s most progressive nation

We share an interest in

strengthening further the

people-to-people bonds between our two coun-

tries, particularly around the issues

of science, technology and

education”President Barack Obama

‘‘For the U.S. and Uruguay, the time is nowUruguay’s humble head of state, José Mujica, initiates closer ties with U.S.

UruguayMONdAy, AUGUST 25, 2014 189th AnniverSAry OF UrUgUAy’S indePendenCe

See at www.haddockmedia.com

osé Mujica was a Nobel Peace Prize nominee for the second time in Febru-ary after being among the top 10 finalists for the prestigious distinction last year, his can-didature backed then by such highly regarded international figures as former Russian president and Nobel laureate Mikhail Gorbachev. His latest nomination marked yet an-other occasion when the Uru-

guayan President, who has been called ‘the world’s poor-est president’ for his humble lifestyle, and his small coun-try had made international headlines over the previous six months.

Last September, Mr. Mu-jica delivered a highly lauded speech at the UN General Assembly in which he urged a return to a political system that governs relations as op-posed to one governed by eco-nomics. In December, Uru-guay made headlines again for its pioneering decision to regulate the marijuana trade, the first country in the world to do so. This heroic move, among other path-breaking reforms such as same-sex mar-riage and abortion rights, led

The Economist to vote it ‘2013 Country of the Year’. Uru-guay was also named by the Economist Intelligence Unit as the second most democratic country in South America in 2013, after Chile, while Inter-national Transparency named it the continent’s least corrupt country.

Uruguay also leads region-al development indicators. Known for its secularism, lib-eral social laws, and well de-veloped social security, health, and educational systems, the country boasts high levels of literacy and a well educated population, thanks to free uni-versity. In 2011, Latinobaro-metro identified Uruguay as the country that is the second most supportive of democ-

racy and the most opposed to authoritarian governments among 18 Latin American countries. Uruguay also head-ed Latinobarometro’s rankings of political participation and freedom of speech.

President Mujica says that social democracy has a long tradition in Uruguay, which has historically provided a counterbalance to the social inequality long prevalent in Latin America. “We were al-ways the small country with the best wealth distribution in a continent that was very rich and very unjust,” comments the President.

In May of this year, the same month in which Uru-guay’s pioneering marijuana laws went into effect, Presi-

dent Mujica met with U.S. President Barack Obama in Washington. The Uruguayan president took advantage of the opportunity to advocate for greater global gover-nance and closer coopera-tion on global issues such as climate change.

“The world has created is-sues that no one country can face alone. Politicians have a difficult time understanding that we can no longer think as a country, and that global-ization is not just a fairy tale. It has brought many changes that are leading us toward a different world, yet we con-tinue thinking about winning elections, and then preparing for the next ones. We must ac-cept that the forces of produc-

tion have resulted in globaliza-tion, but we must govern this and not be governed by it,” says Mr. Mujica.

For the Uruguayan Presi-dent, this calls for a change to a more holistic perspective that will allow for better global so-lutions. “We have been argu-ing over the Tobin Tax for 25 or 30 years, while we continue to let our financial institutions do whatever they want. We must resist accumulation. We need to view the world as one nation and accept responsibil-ity for all the people who suffer from poverty, and not exclude them from global markets. We must help the younger gen-erations to think like a species, and not as a country or as an individual.”

J Presidency President Mujica’s policies have bolstered Uruguay’s already pioneering role in social issues

Antel’s fiber-optic network is up and loadingPAGe 7

Latin America’s well rounded tourist destinationPAGeS 10-11

intervieW ecONOMy MINISTeR beRGARA ON URUGUAy’S SUSTAINed GROwTH PAge 3

Project team: belén Huerta, executive Producer; Hugo Asch, Reporter; and Marcelo Llaryora, executive Producer

This, together with good productivity and a commit-ment to investing in new technologies and infrastruc-ture, have helped lay a solid foundation.

An important step on the path to stability was finan-cial sector reform. Uruguay has implemented major re-forms in recent years, and its banks are strictly regulated and adhere to the highest in-ternational standards.

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The tough times are behind Uru-guay, which is experienc-ing growth, registering an inflow of investment, and forging ahead with new and ambitious projects. But things weren’t always this way. Economic problems in neighboring countries, such as Brazil and Argentina, spilled over in 2002, leading to a sharp economic con-traction, a banking crisis, a boom in unemployment, falling GDP, and rising in-flation. But Uruguay picked itself up, dusted itself off, implemented reforms and returned to growth, which averaged 8% per annum between 2004 and 2008. And when the global finan-cial crisis struck, Uruguay teetered, its growth deceler-ated, but it held steady. To-day, this small powerhouse is stronger than ever and the outlook is positive.

Says Mario Bergara, Minister of Economy and Finance, “Our house is in order, and we are now in a very strong financial posi-tion. Uruguay has a long-standing tradition of playing by the rules, a corruption-free government, and a cli-mate which allows business-es to prosper.”

Uruguay successfully achieved growth in the last 10 years thanks to a change in approach. Whereas it used to focus primarily on financial services, trade and agricultural exports in the region, the contagion effect made the need to diversify and reduce external depen-dence very clear.

A small yet stable economic powerhouse

is the investment environ-ment and favorable but equal treatment for investors, both domestic and foreign. Ac-cording to Mr. Bergara, “We have a decade-long track record of success which we are building on to offer busi-nesses and investors a safe, secure and attractive loca-tion for business investment and development.”

It is unsurprising, then, that FDI has increased no-tably in recent years, from 1-2% of GDP prior to 2006, to 5-7% in the last eight years, and now represents 23% of GDP, almost double historical levels.

The country has been able to attract funds for myriad projects across a range of industries, includ-ing investment from Argen-tina in the agricultural sec-tor, from Brazil in the beef sector, from New Zealand in the dairy industry, and from China in the automo-bile segment, among other projects funded by Spain, other European countries and the U.S.

Mr. Bergara confirms, “Uruguay is increasingly seen as a good place for do-ing business by both the re-gional and global markets.”

Last year, FDI totaled $3 billion, equivalent to 5.4% of GDP, and this item is trending upwards. There are also specific institutions focused entirely on this area, such as Uruguay XXI, the Investment and Export Promotion Institute, whose main goal is to attract invest-ment, promote exports, and position Uruguay as a strate-gic destination.

According to the insti-tute’s executive director, An-dres Pelaez, “The country is extremely receptive, which helps create a stable envi-

Our house is in order, and

we are now in a very strong fi-nancial position. Uruguay has a long-standing

tradition of play-ing by the rules, a corruption-free government, and a climate which allows businesses

to prosper”Mario Bergara, Minister of

economy and Finance

‘‘

Liquidity and solvency ra-tios are high, there is a strong focus on transparency, and today the country has one of the strongest institutional structures on the continent.

Perhaps one of the coun-try’s most attractive qualities

economy and Finance Minister Mario Bergara says: “Uruguay is increasingly seen as a good place for doing business by both the regional and global markets.” Proof lies in the fact that Fdi now represents 23% of gdP, almost double historical levels

In José Mujica, Uruguay pos-sesses a leader whose star on the international stage has been wax-ing for some time. “I’m lucky in that I come from a small country, so I can say what I think,” he says on the back of widespread recog-nition for his government’s liberal, progressive policy-making.

Meanwhile, at the heart of Uruguay’s foreign policy is Min-ister Luis Almagro, who was ap-pointed to the office by President Mujica in March 2010. A career diplomat with a doctorate in so-cial sciences, Mr. Almagro is a former ambassador to China and has been put forward by Uru-guay as a candidate to replace José Miguel Insulza at the helm of the Organization of Ameri-can States from next year. Mr. Almagro, noted a communiqué from the government, “maintains a constant, fluid dialogue with the heads of state and foreign min-

isters in all of the Americas and actively participates in all the re-gional and sub-regional forums.”

Speaking in Paris in June, where he met with his coun-terpart Laurent Fabius, Mr. Al-magro said that Uruguay “has sufficient credentials as a result of our work in peace-keeping opera-tions and environmental issues” to be granted non-permanent member status of the UN Secu-rity Council.

Spurred by Uruguay’s long-held belief in social equality, both Minister Almagro and President Mujica have called on the inter-

national community to exercise greater control over the inexo-rable march of globalization.

Uruguay is an observer nation in the Pacific Alliance free trade area, which it hopes to join as a full member in due course in order to push for trade agreements with the EU. “We agree on the necessity of improving economic-commercial relations [with the EU],” said Mr. Almagro in Paris, adding that the Mercosur-EU negotiations “are a very important instrument” in achieving that goal.

While noting that Uruguay has always enjoyed a cordial re-

Uruguay on the world stageA founding member of Mercosur and an observer nation in the Pacific Alliance, Uruguay holds a strong position for a country that is larger only than Suriname on the continent

Luis Almagro, Minister of Foreign Affairs

economy A decade of impressive growth, triggered partially by the 2002 crises in brazil and Argentina, looks set to continue thanks to smart policies and a very attractive investment environment

This supplement was produced by Vista Reports. USA Today did not participate in its preparation and is not responsible for its content

Agriculture - products

Soybeans, rice, wheat;beef, dairy products;

fish; lumber, cellulose

IndustriesFood processing, electricalmachinery, transportation

equipment, petroleum products,textiles

GPD - composition,by sector of origin

0

20

40

60

80

7.5%21.5%

71% (2013 est.)

Agriculture Industry Services

Exports

10.5billion (2013 est.)

Export partners (%)

0

5

10

15

20

Brazil

China

Argen

tina

German

y

GPD3.5% (2013 est.)Real growth rate

$56.27 billion (2013 est.)Purchasing power parity[

Inflationrate

8.3 (2013 est.)Consumer prices

62.8 of GDP (2013 est.)Public debt[

GDPper year

0

4

88.9%

6.5%

2.2%3.9%

2009 2010 2011 2012Sources: CIA World Factbook and World Bank

How would you characterize the economic and business scenario today in Uruguay?

From the financial point of view, our house is in order. We undertook many important reforms after the financial crisis of 2002 and we now have a very strong financial position with net debt at just 23% of GDP and a very comfortable debt amor-tization profile. Uruguay has a longstanding tradition of good and credible rules of the game, with strong public administra-tion free of corruption, as well as great business freedom and a climate that encourages busi-nesses to prosper. We have a decade-long track record of success that we are building on to offer businesses and investors a safe, secure and attractive loca-tion for business investment and development.

Please tell us more about the country’s growth record and the challenges it now faces.

Growth has been very balanced with exports, domestic demand and investment all progressing strongly. Since 2006, investment has been a very significant engine of growth and now represents 23% of GDP, close to double his-torical levels. Within that figure, FDI now accounts for 5% to 7% of GDP, whereas historically it was only between 1% and 2%. This growth in investment and in technological change has in turn brought sustained gains in pro-ductivity, enabling us to continue to grow strongly even though we essentially now already have full employment and are explicitly sharing the dividends of growth through policies of social inclu-sion and poverty reduction. We are proud of this virtuous cycle of inclusive growth.

Now, of course, we have the challenges of growth, principally with inflation a little higher than we want, at around 9%, whereas our target range is 3% to 7%, but the Central Bank is managing this responsibly with real inter-est rates of about 6% and we keep the macroeconomic side in order. Our average growth over the last decade has been 5.7% per annum and in 2013 we were at 4.4% which is about the best in the region, while our growth perspective for coming years is of the order of 3% to 4%.

What have been the specific factors behind the country’s growth over the last decade?

Uruguay was previously very narrowly focused on the export of agricultural commodities and on trade and financial services within our immediate region and this, of course, left us very vulnerable to external shocks. We now have a solid platform to mitigate this particular vulnerability and, for example, only 20% of our exports are now to our immediate region against 50% a decade ago. We have achieved similar diversifica-

tion in the financial sector and in tourism, in both of which our previous dependence on busi-ness from Argentina has been very dramatically reduced. Other key fundamentals of Uruguay’s growth success have been our open economy and investments in infrastructure and technological change, together with our good productivity record.

What have been the specific areas of success in attract-ing FDI?

Before 2006, FDI flows repre-sented about 1% to 2% of our GDP. In that year, we changed the rules for foreign investment and FDI over the last eight years has been between 5% and 7% of GDP. There have been some

mega-projects, for example those in paper pulp, but the vast major-ity of this growth has come over a very wide range of sectors and from very diverse origins. There has been a great deal of Brazilian investment in the beef industry and Argentine investment in the agricultural sector, with this latter leading to soy exports now representing 2% of our GDP. American investment has been spread over a number of sectors, while Spain and other European countries have invested in banking and in telecoms. Exports of paper

pulp to China and to Europe now also represent about 2% of our GDP. Other successes include investment from New Zealand in the dairy industry and from Japan and China in the automobile sector. So Uruguay is increasingly seen as a good place for doing business for both the regional and global markets.

Would you tell us more about how Uruguay sees itself in terms of global trade.

Uruguay has a small population and the local market is small. We survive and prosper through being open to the world. Uruguay is seen as a good and credible investment platform for businesses with both regional and global perspectives. In particular, businesses are choos-

ing to invest in Uruguay as a base for accessing regional markets, par-ticularly Brazil. Of course, we are part of Mercosur and, although the pace of its development has been slower than we expected, we continue to see this regional bloc as a platform for better insertion within the global economy.

We have more a philosophy of open regionalism and that ap-proach has, for example, resulted in Uruguay taking advantage of the Mercosur free trade agree-ment with Israel to multiply our exports to that country fourfold; in fact, Israel is now our third main buyer of beef after China and Russia! Our approach is flex-ible and pragmatic and the result is the diversified economic and trade structure that Uruguay has developed so successfully over the last decade.

How is Uruguay growing its services sector capability?

Uruguay has had a traditional role as a logistical hub for the re-gion and today more than half of the containers handled in the port of Montevideo are for regional trans-shipment, while envisaged investment in a new deep-water port and in expanding rail fa-cilities ought to keep the country ahead of the game.

It’s perhaps less well known than it ought to be that Uruguay is a major regional player in the information technology sector and exports of services such as these have also shown strong growth in the last few years. Investment in new technologies is vital to keep growth going in our present situa-tion of full employment, that is we need to invest in enhancing and enriching our human capital and that will bring prosperity while also fulfilling our commitment to social inclusion. We will add value to our human capital as we add value to our economic capability.

How have the banking and financial services sectors responded to change?

We have carried out very sig-nificant reforms and these sectors are stable and regulated to the highest international standards. Liquidity is high and solvency ratios are about double what is required. Uruguay is certainly not a tax haven; in fact we are better than most of the G20 countries in applying money laundering and financial terrorism regulations and transparency provisions, but we know we are a small country and have to demonstrate and sell our reputation and our credibility. We understand that transparency is one of the key issues today and that’s why Uruguay has one of the strongest institutional structures in Latin America.

3 189th AnniverSAry OF UrUgUAy’S indePendenCe MONdAy, AUGUST 25, 2014

ronment for business. And Uruguay XXI provides tai-lored information to inves-tors so they know they have a loyal, reliable partner and a safe place in which to in-vest their money.”

Uruguay has an export-oriented economy, mainly focused on agriculture. This includes beef, rice, wool, for-est products, milk, and dairy produce. However, with time, the country has been adding new export routes and prod-ucts, with a focus of late on added-value services.

Brazil is its main commer-cial partner, accounting for 18.6% of exports, followed by China (17.9%), Argentina (6.2%) and Germany (4.3%), although Uruguay exports to over 140 countries world-wide. Mr. Pelaez says: “Mar-ket diversification, in terms of both exports and invest-ments, is very important.”

These qualities explain why Uruguay has been show-ered with accolades recently, including being named the most transparent (Transpar-ency International), the least corrupt (Maplecroft), and Country of the Year (The Economist).

Such factors, along with its history of stability and com-mitment to progress, will surely make it an ideal place to do business for a long time to come.

Uruguay’s “virtuous cycle of inclusive growth” set to continue

Uruguay’s Minister of economy and Finance Mario bergara discusses how solid policies have al-lowed for the nation’s sus-tained economic growth over the last decade

economy and Finance Minister Mario Bergara says: “Uruguay is increasingly seen as a good place for doing business by both the regional and global markets.” Proof lies in the fact that Fdi now represents 23% of gdP, almost double historical levels Montevideo is ranked the second safest city in the world, after tokyo

Uruguay on the world stagelationship with Argentina and Brazil, Mr. Mujica says the fate of his nation is interlinked to the eco-nomic ebbs and flows of its larger neighbors. “When Argentina is doing well, so are we,” he says, pointing to differences between the two countries stemming from Buenos Aires’ recent decision to ban transshipment of its ex-ports through Uruguayan ports. “When Argentina is doing badly, Uruguay has a problem. That is not to speak ill of Argentina. It is more to do with the weight of his-tory in terms of ports in Uruguay. But we feel empathy with Argen-tina. We are practically the same.

“With Brazil we have a much more open relationship. The last few Brazilian governments have adopted intelligent and very open policies with Uruguay. We have an excellent relationship with Brazil and we are working to-ward building a common policy of cooperation.”

Uruguay signed a Trade and Investment Framework Agree-ment with the U.S. in 2007, the same year as the Pacific Alliance was first mooted. As an observer nation today, Uruguay has po-sitioned itself to be involved in the decisions that need to be ad-dressed in the future. “It was a po-litical decision,” says Mr. Mujica. “Where there is talk of integra-tion that is where we try to be.”

Growth has been very balanced with exports, domestic demand and investment all progressing strongly”

Mario Bergara, Minister of economy and Finance

‘‘

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of security and financing for the country. They did, how-ever, also produce an appre-ciation of the Uruguayan peso against the dollar, which meant that for a time, our eco-nomic policy was focused on making sure the exchange rate did not fluctuate drastically.

For an economy like ours, the amount of inflows that we received was hugely signifi-cant, and we had to devise eco-nomic policies to intervene. We created various mechanisms to ease volatility in the exchange rate, and in particular, curren-cy appreciation, which would have caused problems for our industrial exports.

It is a complicated subject because on the one hand, it’s

positive that foreign capital flows are coming in, but on the other, it does create pressure on the FX. We took advantage of the situation to build a cush-ion of international reserves that now allows us a more comfortable position when anticipating different global economic scenarios. This has also lowered our risk level as a country, and it is below average for an emerging economy. The indicators are where the words stop and the numbers take over. What our risk premium shows is that there is real con-fidence in the solidity of the Uruguayan economy. If you weigh our reserves against our public debt, the conclusion is clear for any investor. Uruguay,

in terms of its macroeconomic solidity and balance of pay-ments, is in a good position. It has been a spectacular decade for the economy.

Janet Yellen, President of the Federal Reserve, believes that the U.S. will have recovered from its re-cession by 2016. How does Uruguay plan to situate it-self in this new context?

It is good news for every-body if the U.S. continues to recover. It’s not only positive for us in the direct impact it will have on Uruguayan trade with the U.S. There will also be a higher demand for goods and services from other countries, which will increase the growth

A solid economy and stable currency, all in a day’s work

In January, Alberto Graña, a 59-year-old professor of macroeconomics and public finance at the University of Uruguay, took over as gover-nor of the country’s Central Bank. Mr. Graña, who did his doctoral studies at Sweden’s Lund University before begin-ning a life-long career at the Central Bank as an economic analyst, said that his priorities as governor would be reducing inflation (which had reached

8.52% at year-end 2013) and creating new savings tools. Then, as now, Mr. Graña is optimistic in the face of stimu-lus tapering in the U.S.: “If the economy of the United States recovers, it’s good news for the regional and global economy.”

What role has the Central Bank of Uruguay played in the development of the positive economic indica-tors that the country is currently enjoying?

Uruguay experienced a sig-nificant crisis in 2002, and, as is the case with all crises, it also brought opportunities, espe-cially the opportunity to learn. Since then, there have been sev-eral noteworthy developments. One was an improvement in our financial supervision and regulation, and another, from a monetary policy standpoint, was the switch to a regime of inflation targeting. Also, mon-etary policy plays an important role within the context of float-ing exchange rates with the free circulation of capital. Uruguay, like other Latin American countries, had tried having fixed exchange rates, and it did not work in the region nor in other parts of the world. So, there were supervisory and regulato-ry changes that created greater stability in the financial system, and this is something that inves-tors look at carefully and which makes a country more attrac-tive. Our monetary policy has also helped to create the stability we are enjoying. We believe that the results have been positive.

How has Uruguay been able to accumulate and maintain its reserves given the unfa-vorable regional economy?

The Federal Reserve’s deci-sion to generate the monetary stimulus needed to get the U.S. out of its recession was a favor-able one for Uruguay, as well as for other countries in Latin America, in that we provided an alternative destination for investment flows looking for higher yields than those of the U.S. or Europe. Both in the form of FDI and investment portfolios, these inflows helped generate greater economic growth. The portfolio invest-ments (financial investment in public debt) were good news because they were a source

the 2002 crisis spurred the Central Bank to improve financial supervision and regulation

Alberto graña, governor of the Central Bank of Uruguay (BCU)

the insurance market leader that has held its own in the face of competition

Insurance, like many other sectors in Uruguay, is growing and it’s growing fast. Whereas first semester figures for 2013 were 16% higher than those of 1H-2012, those from the first six months of the cur-rent year have trumped last

year’s figures by a resounding 26%, reaching $312.2 million. The biggest name in the sec-tor, hands down, is Banco de Seguros del Estado (BSE), the State Insurance Bank, with a 64% market share.

BSE’s history has everything to do with its success today. Between 1911 and 1995, it monopolized as the sole player in the sector. Indeed, BSE was established just over 100 years ago to retake the reigns of a sector that was dominated by foreign companies who repa-triated their earnings. Uru-guay’s open market policy of the 1990s then liberalized the stagnant market, thus allow-ing players, foreign and local alike, to join in. And as with most sectors that brush off the thick layer of dust that monopolization tends to leave, competition unleashed a raft of new products and set off price wars.

At first, however, it wasn’t easy for BSE’s competi-tors, who found themselves up against such a solid, tra-ditional and long-trusted name. “When the market opened up to new brokers, BSE had to adapt,” recalls Mario Castro, President of BSE. “Meanwhile, the com-petition had a hard time get-ting their brands out there because people were so used to the BSE name. Now we have a good relationship with the competition but at first it wasn’t so. Rivalry was fierce.”

Mr. Castro goes on to say that the bank is proud to have managed to keep such a strong market share, though he admits BSE still holds the monopoly on labor insurance, which is obligatory, and is the only broker to offer agricultur-al insurance. It has a portfolio of 600,000 hectares of farm-land insured. This is a sec-tor that heretofore had gone mostly uninsured, but thanks to a government program, small and medium farmers can access insurance policies

at highly subsidized prices. For farms of up to 10 hectares the Ministry of Agriculture pays 90% of the policy, and 70% for farms up to 40 hectares.

The state bank also domi-nates the motor vehicle branch of insurance. “A law was passed making low-cost automobile insurance obliga-tory. There we hold more

than 90% of the market. We have coverage that reaches a social class that the competi-tion doesn’t reach,” explains the bank’s president. “The competition are all private companies whose aim is to make profits. We have a so-cial responsibility towards society – though of course we have to keep the business sustainable.”

And sustainable it is. Throughout its entire history, the bank has never needed bailing out by the government, according to Mr. Castro. With $300 million in assets, an ex-cess of $2.35 billion in shares, and $101 million in profits in the last four years, BSE is cer-tainly holding its ground.

Mr. Castro also highlights the fact that BSE works with everyone from individuals to large corporations, and that the bank has “a highly devel-oped offer for all the invest-ments that enter the country” and that it is backed by seri-ous, multinational reinsur-ance firms.

with its affordable offering of products, bSe enjoys a 64% market share

The insurance industry is 2% higher than the national GDP.

We’re bringing in-surance to sectors

that had never had an ‘insurance culture’ before”

Mario Castro, President of BSe

‘‘

Finance exclusive interview with the governor of Uruguay’s central bank

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Uruguay, in terms of its mac-roeconomic solid-ity and balance of payments, is in a good position. It has been a spec-

tacular decade for the economy”

Alberto graña, governor of BCU

‘‘

rates of those countries, and they will in turn import more products from the region, and in particular, from Uruguay. When an economy like that of the U.S. starts to reactivate, it’s good news for the global economy.

What measures is the Cen-tral Bank taking to tame inflation and bring it within the goal range of 3% to 7%?

We have had a contractive monetary policy since last year, and we feel this is the correct path. However, family savings is also an important element. If, because of problems in the structure of the financial mar-ket or problems with transac-tion costs or accessibility of information, the contractive nature of monetary policy does not generate incentives for families to save part of their increases in real incomes, then there is a transmission mecha-nism that is incomplete. This is why we are working to stimu-late family savings, that is retail investments. Savings is always an important variable, and even more so if there is going to be lighter inflows of capital due to a U.S. recovery. Consequently, it’s important that Uruguay, like all emerging countries, needs to create incentives to increase savings in the medium and long term as a condition for creating new investments.

Uruguay’s role is one of sta-bility. Our monetary policy is going to continue to be con-tractive as long as the inflation rate is above target, but in a way that maintains macroeconomic equilibrium. We think of it as spinning plates. You can’t spin one of them faster than the oth-ers or it will shoot off into space.


With 40% of the domestic market, Banco de la República Orien-tal del Uruguay (BROU) is the undisputed leader of the coun-try’s banking sector, outper-forming in profitability what is already a profitable market. It was declared Bank of the Year in Uruguay last year by Latin Finance, Best Banking Group in Uruguay 2013 by World Finance (for the third consecutive year), and ranked as the 41st larg-est bank in Latin America by América Economía.

The government-backed lender also dominates in terms of sheer scale. Return on eq-uity jumped 23.5% last year on profits of $290 million. This represented more than half of the banking sector’s total prof-its of $477 million and was an increase for BROU of $92 mil-lion over the previous year. As of March 2014, BROU had $14.1 billion in assets and equity of $1.25 billion. It accounts for 41% of the domestic loan mar-ket and 43% of the deposits.

Founded in 1896, BROU to-day has 115 branches through-out the country and three more abroad in addition to 160 ATMs. According to Moody’s, “BROU’s ratings capture the bank’s strong balance sheet, good asset quality and risk-weighted capitalization levels, as well as its…ample reserves coverage.” BROU’s dominant franchise in the Uruguayan market, adds the credit agency, is reflected in its strong deposit and earnings growth.

Banco República, as the bank is commonly known, also has a new president. Appointed in April of this year, Julio César Porteiro said he felt he was taking command of a Ferrari, and he intends to push the accelerator to the floor. BROU’s new president wants to build on the bank’s leg-acy by using it as a means to add dynamism to the market through

the creation of new mutual funds and as many other new financial products as possible.

“BROU has the level of resources that can make a sig-nificant impact on the capital market, as well as the internal organization to work in those markets. On more than one oc-casion, the bank has acted as an intermediary with the intention of adding dynamism to the mar-ket in terms of small-scale savers, not just large institutions. Today, savings mostly take the form of bank deposits and in securities that some companies here issue. The market is incipient; it is not yet developed in Uruguay, and

one of the bank’s goals is im-prove this,” says Mr. Porteiro.

He adds that BROU has set a precedent with $1,000 bonds in several of the country’s larger public and private entities such as the electric utility, UTE, and the country’s groundbreaking dairy industry. The creation of these products was a clear sign meant to encourage the activity of small investors in the market.

The bank has come a long way since 2002 when it experi-enced a massive run on depos-its of $1.05 billion and suffered an $188 million loss as a result

of Uruguay’s financial crisis, a knock-on effect of the economic catastrophe that took place in neighboring Argentina. The bank’s commitment to guaran-teeing its depositors funds at that time (depositors had the chance to exchange their deposits for Certificates of Deposits, but 92% of them decided to leave their money with the bank) was the first step in a larger post- crisis restructuring process that has not only seen financial suc-cess but which has inspired a large and highly loyal client base.

Mr. Porteiro says that 77% of Uruguayans believe that Banco República is the best bank in the

country, and this opinion is not new. During the crisis, the bank fulfilled its commitments, and over the last nine years BROU has followed the right path, says the president, installing a new culture in the organization and a new management style focused on excellence and the highest levels of professionalism. “I have known a lot of the bank’s presi-dents and directors, but in my opinion, BROU never had a management team like the one it had from 2005 till now. There was a culture of mutual support and solidarity that permeated

throughout the organization, and resulted in workers feeling a closer affiliation with the bank. All of this translated into very positive results,” says Mr. Porteiro.

Another result of the crisis was BROU’s increased involve-ment as a lender to the indus-trial and agricultural sectors, a growing support for exporters and a more visible role in proj-ect financing. In other words, the bank became increasingly involved in the development of the country. In 2012, the Latin American Association of Development Financial Institu-tions (ALIDE) voted it as the most outstanding development bank in Latin America and the Caribbean, and the bank con-tinues to lead in the segment. Last year, BROU announced financing of $203 million for 35 investment projects, including two wind parks and a stadium, which brought its total in proj-ect financing over the past eight years up to $1 billion.

Today, Banco República dom-inates most areas of business and has yet to be seriously challenged by any of the private banks op-erating in the country. BROU’s next closest, Santander Uruguay, rings in with just 15% of depos-its, compared to BROU’s 44%. Mr. Porteiro says that the solidity and reliability of the Uruguayan financial system stems from its transparency and the strict super-visory control maintained by the country’s Central Bank, and that this strength will see the sector through the rough waters being experienced in the economies of its larger neighbors.

Looking forward, BROU aims to grow in the microfinance sector. It opened its first microfi-nance business in 2010, special-izing in products and services for this segment, and has since add-ed a large number of new clients and loans in the local market. “It’s a financial body that has a special line of loans for small and medium-sized businesses, and which works not only as a financier but also as a capacity builder for small businessmen to improve their management pro-cesses,” says the bank’s president.

BROU: The benefits of backing your wordBanking BROU’s behavior and performance during the 2002 crisis inspired its clients to remain loyal

‘‘

Banking on transparencyAwash with liquidity and buoyed by a strong local econ-omy, Uruguay has a stable, transparent and well regulated financial system. Traditionally one of the strongest service export sectors in the country, it received a stable outlook for growth from Moody’s last year based on expectations of con-tinued economic growth and favorable labor market condi-tions, as well as high liquidity and robust capitalization.

Uruguay’s financial sector has emerged healthily from the country’s 2002 financial crisis, the worst in its history, when 30% of private banks closed their doors and 50% of deposits were lost. Actions taken by the Central Bank to strengthen regulatory and su-pervisory capacities since then have paid off. Last year, the banking sector grew by nearly 10%, with a 12% increase in loans and a 9% increase in deposits. Total earnings were up by $194 million to $491 million, with much of the growth coming from the private sector. Net worth increased by an incred-ible 19%.

Today, Uruguay’s financial sector is still dominated by state-owned Banco República, or BROU, and Banco Hipotecario del Uruguay (Mortgage Bank of Uru-guay). But 10 private banks, most of them branches of international banks, operate in the country, including Banco Santander, ABN AMRO and Citibank. Within the private

banks, Santander stands out, registering growth of 18.3% last year, followed by Brazil’s Itaú at 17.7%. There are also a myriad of brokers and financial-services bureaus, including offshore banking.

The Uruguayan securities market, comprised of the Montevideo Stock Exchange (BVM) and the Electronic Stock Exchange (Bevsa), is also registering consistent growth, though still underdeveloped compared to other regional markets. Government financial instruments account for 96% of those traded on the BVM. Bevsa is used exclusively by banks and other financial institutions and is also focused on the foreign exchange and money market.

The strengthening of the Central Bank’s regula-tory capacity has also dealt a blow to Uruguay’s image

as the Switzerland of the Americas. Its

commitment to transparency and interna-tional standards resulted in the country’s removal

from the interna-tional blacklist more

than five years ago. As former President Tabaré

Vázquez said, “Uruguay may not be a monastery, but it is not a casino.”

Still, Alberto Graña, Gover-nor of the Central Bank, says that supervision is an ongoing activity and that Uruguay must continue to send out a strong message. “Within the realm of supervisory improvements, the control of money laundering is one of the priorities of the gov-ernment. This is widely known, but you must always keep work-ing at it,” he comments.

Julio César Porteiro, President of BROU

Distributed by USA TODAY 5 189th anniveRsaRy Of URUgUay’s indePendenCe MONDAY, AUGUST 25, 2014

BROU has the level of resources that can make a significant impact

on the capital market”Julio César Porteiro, President of BROU


In a recent interview, Uruguay-an Ambassador to the U.S., Juan Carlos Pita, said: “We have excellent business opportunities in logistics, excellent business opportunities in infrastruc-ture… There are a number of opportunities we have for any-one to invest, so we continue to grow. We need more and more investment.”

Beatriz Tabacco, President of INALOG (National Insti-tute for Logistics), agrees that the time to invest is now. “The government has passed a law that allows for public-private partnerships in infrastructure projects,” she says.

INALOG has taken its mes-sage abroad in an effort to raise awareness of Uruguay’s poten-tial as a regional logistics hub. Visiting Miami, Savannah and Atlanta earlier this year, mem-bers of the institute met with various businesspeople from the American logistics sector to showcase the small South American country’s logistics in-frastructure.

Formed just four years ago, INALOG brings together pub-lic and private sector players to promote logistics, analyze the sector and boost its develop-ment. “INALOG is very new and is still in the initial stages of compiling information and producing reports. Now we’re drafting the second strategic plan for 2014-2016. We’re making progress, slowly but surely,” says Ms. Tabacco.

Uruguay is indeed a small country, slightly larger than Florida and smaller than Mis-souri. Nevertheless, its road network is anything but small. With 5,600 miles of national highways plus another 25,000 miles of roads, Uruguay is ex-tremely well connected by land.

The country’s ports also per-form well. “Uruguay is com-petitive relative to the region because it has lower wait times and faster, as well as more pre-dictable, service times,” says the INALOG President. Nev-ertheless, port authorities, both private and public, continually work to identify bottlenecks, im-prove performance, and raise overall competitiveness.

In the design stages is a new deepwater port to be built in

Rocha. The $500 million proj-ect will alleviate the country’s other ports, and greatly augment the regional port system’s capaci-ties. Moreover, with paper pulp plants increasing their produc-tion, and a new enormous iron mining project (which will have rail links to the Rocha port) in the north of the country about to launch, a new deepwater ocean is more necessary than ever. In an interview last Decem-ber, Uruguayan Vice-President Danilo Astori said of Rocha, “This port will change routes, itineraries, cargo weights, and all of this will certainly have positive effects for Uruguay.”

In terms of duties, Uruguay’s free trade zones aren’t the only areas that offer tax exemptions. The country has what it calls a ‘free port’ and a ‘free airport’, where products can remain for an indefinite amount of time without a declared destination and not be charged with im-port levies. Ms. Tabacco under-scores this legal regime as one of several incentives for logistics companies to use Uruguay as a transport hub.

inaLOg is creating the region’s next logistics hubThe private and public sector work through INALOG to promote Uruguay’s logistics

Beatriz tabacco, President of Uruguay’s national institute for Logistics

Distributed by USA TODAY6 MONDAY, AUGUST 25, 2014 189th anniveRsaRy Of URUgUay’s indePendenCe

Uruguay is com-petitive relative to the region be-

cause it has lower wait times and

faster, as well as more predictable,

service times”Beatriz tabacco,

President of inaLOg

‘‘

Uruguay may be one of the smallest countries in Latin America, but what it lacks in size it makes up for in ambition. The government is allocating notable resources to ports, roads and railways, in-tensifying its commitment to providing quality transport and logistics infrastructure.

Enrique Pintado, Uruguay’s Minister of Transport and Public Works, highlights his particular focus on achieving “consensus between political parties, workers and enterprise to convert Uru-guay into a logistics hub by 2030. To that end, we are working over the next five years to ensure adequate connectivity between goods and services production units and export points, increase port capacity and accessibility, im-prove transportation routes, and invest in road safety and in rail-ways to support tourism.” With

these goals in mind, the Ministry created INALOG, the National Institute for Logistics, which is re-sponsible for striking the right bal-ance between public and private sector interests, ensuring efficient project execution, and managing expertise.

The government’s primary project is the deepwater port in Rocha, described by Mr. Pin-tado as “the most important initiative of the last 200 years”.

This ambitious, complex, mil-lion-dollar project capitalizes on Uruguay’s strategic geographic location and will serve routes from Chile, Bolivia, Paraguay, Brazil and Argentina, making the entire region’s commerce more dynamic. It will drive a complete shift in Uruguay’s financial center, and its cre-ation involves multiple logistics, regulatory and administrative decisions, additional railway de-velopment, and a construction solution that is environmentally friendly and 100% sustainable.

The new port will benefit Uruguay in many ways, from expediting shipments to trad-

ing partners and boosting do-mestic industries to diversify-ing the economy and shaping its geopolitical future.

Uruguay’s President José Mujica underlined that the port is “essential for Latin America”, noting that “it be-longs not to Uruguay, but to the entire region as a whole,”

while the Vice-President, Danilo Astori, described the project as a “revolutionary transformation for Uruguay.”

Given the project’s scope and cost, it will be executed as a public-private partner-ship (PPP), and invitations have been extended to many countries to bid, including the

U.S., China and Spain. In fact, last year Mr. Mujica traveled overseas in an effort to drum up investment for Uruguay’s infrastructure projects.

Beyond the port, the gov-ernment has also pledged considerable funds to improve connectivity by upgrading roads and railways. Invest-

ment plans totaled $2.5 billion in 2013, a figure that is expect-ed to increase when PPPs are created for this purpose. It has also rolled out Infrastructure Uruguay 2030, a very com-prehensive program that seeks to attain major improvements in the country’s energy, ports, roads, and railways.

Most recently, Mujica’s gov-ernment announced a $557 million PPP proposal involving nine construction companies to revamp the road network. There are plans to widen and repave important roads, includ-ing Routes 24 and 21. However, broadly speaking, the govern-ment has identified the primary need as maintaining the quality of service and updating existing roads. Going forward, 34 road projects have been identified, with plans for execution be-tween 2020 and 2030.

Railways will also be over-hauled via PPP schemes, with a view to increasing the oper-ability of the current network, restoring the Algorta-Paysandú-Salto line, upgrading 262 miles in central Uruguay and 205 miles in the west, and extending track to Brazil. Countries such as Brazil, South Korea and China have expressed interest in projects to upgrade the net-work, and Uruguayan officials are in talks with Spanish railway operator Euskotren to create strategic partnerships to “invest

in the national freight network,” according to Javier Cruz, the company’s CEO. Mr. Cruz also spoke about offering “different alternatives to [modernize] and [revitalize] the national railway network, in accordance with [Uruguay’s] preferences and possibilities.” The government has already rolled out $260 million in investments through 2015 to upgrade the national railway network.

Other actions in this area include a shift from roads to railways with a view to achiev-ing cost savings and reducing air pollution, greenhouse gas emis-sions, accidents and noise. The government is also studying the possibility of creating railway lo-gistics hubs in strategic locations, with services including storage, classification and packaging, to be used in tandem with ports.

Mr. Mujica’s administration has no shortage of ambitious projects on the horizon, and while they may require sacri-fices from citizens, they’re sure to yield inestimable advantages over time.

Plans for ambitious road, railway and port projects Logistics Land and water infrastructure develop-ments are changing the way the region moves

‘‘“The deepwater port in Rocha is the most important initiative of the

last 200 years”enrique Pintado, Minister of transport and Public Works

Montevideo’s ideal conditions for a port are what primarily attracted european settlers centuries ago


Distributed by USA TODAY 7 189th anniveRsaRy Of URUgUay’s indePendenCe MONDAY, AUGUST 25, 2014

Fiber-optic network, up and loading telecoms The sole provider of fiber optic, Antel benchmarks itself against other ISPs throughout the Americas, and fares extremely well

That more than half of Uruguay’s population lives in Montevideo presents a challenge to Internet service providers to cover the needs of the rest of the country. The World Bank put Internet usage at 1,950,000 at the end of 2013 among a population of 3,332,972 – a 58.5% penetration rate. Of the five companies active in the sector, state-owned Antel, Uruguay’s biggest public sector enterprise and only provider of fiber optic (FO), has made the greatest strides to bring the In-ternet into the homes of every Uruguayan family. In 2010, Antel rolled out its fiber-to-the-home project, and it is expected that every town of 3,500 inhab-itants or more will have fiber-optic capability by the end of 2015. Antel states that the num-ber of homes covered by the initiative is now 780,000.

According to Internet diag-nostics company Ookla’s Net Index, download speeds in Uruguay exceed those of the U.S. and the country has an average bandwidth capacity of 9.53Mbps, which outshines the rest of Latin America.

As things stand, some 60% of Uruguayan homes are con-nected to the Internet, a figure that is well above the global average of 40% and equiva-lent to many European Union countries, where the average ranges from 60% to 70%. The stated goal of Antel president, Carolina Cosse, is to “reach 100% as soon as possible, in 2017.” Ms. Cosse, whose com-pany employs 6,000 people,

also envisages a “Uruguayan cloud” to provide the basis for a range of technology services. “Thinking about the future of communications is also to talk of the possibility of a great op-portunity for Uruguay,” she says. Antel’s recent launch of a next generation node, the only company in Uruguay to do so, is a step in that direction.

Ms. Cosse notes that in real-ity tariffs have not been modi-fied in Uruguay since 2005, which represents a 40% de-

crease in real terms. In the Lat-in America and Caribbean re-gion, Antel is the fifth-cheapest provider of telephony services and the cheapest supplier of broadband, according to cal-culations by the International Union of Telecommunica-tions. In customer satisfaction polls conducted in Uruguay, Antel “generally comes out on top,” says Ms. Cosse, with over 80% approval. In the cel-lular telephony stakes, Antel has carved out an almost 50%

share in competition with in-ternational firms Claro and Movistar.

In April of this year, Oo-kla positioned Uruguay second overall globally in terms of download speeds on Android and iOS cell phones. This is largely the result of Antel es-tablishing a fourth generation LTE system nationwide.

Antel’s goals are wide-rang-ing and designed, says Ms. Cosse, to act as “gestures to the future.” Chief among these are the Antel Arena, a $40-million construction due to be com-pleted in 2016 that will host entertainment including, po-tentially, top-level basketball matches after a memorandum of understanding was signed between Antel and the NBA. One of Ms. Cosse’s personal campaigns is for software to be made available for free, some-thing she firmly believes should be made “state policy”.

“It is important that we do not fail to contemplate the opportunity that free software presents for national develop-ment. Its global community brings together 2 million soft-ware developers.”

On April 19, Antel launched Uruguay’s first satellite. Funded by the state-owned company and developed at Engineering College of the University of the Republic, the Antel-SAT satellite is designed to cover ru-ral areas where it is not yet pos-sible to install fiber-optic cables. The device was put through a series of tests at the Univer-sity of California and given the green light. “The study results showed that the satellite is flaw-less and ready to be launched into space, a truly amazing milestone for our country,” An-tel said in a statement.

Thinking about the future of commu-nications is also to talk of the possibil-ity of a great opportunity for Uruguay”

Carolina Cosse, President of antel‘‘

antel is the least expensive provider of broadband services in the region the telecom firm has already established a 4g Lte system countrywide

Antel President Carolina Cosse dis-cusses the future of fixed-line telephony and the company’s challenges in the years to come. An electronic engineer-ing graduate from the University of the Republic, Ms. Cosse was appointed to the role in 2010 by President José Mujica.

There was a falling off in fixed-line telephony and later it recovered again. Do you think it possible the fixed-line market will disappear or do you think it will stabilize?

I believe that people’s conversational habits have started to become the same whether the telephone is a landline or a cell phone; people talk. What I think is happening is that fixed-line telephones are going to be transformed because of broadband. There is a process of transformation where the important thing is to have your home connected; it doesn’t matter how. This is what Antel understands and this is why Antel is modernizing. For this reason the challenge to have every house connected to the Internet is so important. It has to do with the sustainability of the company, with a platform for industrial and educational development with a social imperative. There are many things that converge to cause Antel to say “every home con-nected to the Internet”.

The Antel Arena has caused some controversy. Why was it necessary to embark on this project?

Telecommunications evolve quickly and the world also changes a great deal. It is a common and normal practice in other countries for telecom companies to operate arenas along the most diverse business lines and with the most diverse range of telecom companies: private, mixed and public. What is important here is that we are investing considerably in telecom infra-structure by providing a highway into every home, and we have to evolve as well. We have to provide the stimulus so that these highways are useful. This arena will be a great stimulus for the use of our own infrastructure. Whoever uses the arena is going to use a lot of telecommunications technology, as is the case already in open stadiums. And the content generated in the arena will travel via our infrastructure to every home. It’s not an innovation globally, but it is in Uruguay. It’s going to be good for Antel and for the country. It is part of our path to innovation.

Do you agree that the scheme of competitiveness in the sector should be followed or do you prefer the idea of a monopolistic Antel?

Whether it is a monopoly or not, these are tools that are used in the search for more profound objectives. These are how we conceive telecom-munications. Should we work with only the generation of funds in mind, or also as a stimulus for the knowledge industry, a tool for social inclusion and a source of increasing human rights? I am responding to that. I believe that the reality, in fact, is what we have; there is a regulatory framework that I believe should be respected.

In addition to the project to roll out fiber optic, what other important undertakings are in hand at Antel?

A much more important role is stim-ulating the knowledge industry. This is going to be possible because the neces-sary infrastructure is being unfurled successfully. When it is completed, we can stop worrying about whether we have insufficient infrastructure. We can instead start to concern ourselves with the development of applications; but when I say stimulus, it is important that these be strong. This is why it is so important to enact a policy of free soft-ware, to be able to create a large pool of national developers. The company is going to have to take a much more active role in encouraging scientific investigation. And it has to continue to evolve in the way it does business.

Q&a with Carolina Cosse,

President of antel

The company head discusses Antel’s plans and the direc-tion the sector is heading


Distributed by USA TODAY8 MONDAY, AUGUST 25, 2014 189th anniveRsaRy Of URUgUay’s indePendenCe

The Uruguay of today is in-

distinguishable from the coun-try that existed 10 years ago”

enzo Benech, deputy secretary of Livestock,

agriculture and fisheries

‘‘The breadbasket of Latin Americaagriculture Uruguay’s favorable climate and rich soil rank it among the continent’s top food producers

Historically the cornerstone of Uruguay’s economy has always been based on agriculture. A fertile land with snaking rivers, vast grasslands and a stable, temper-ate climate, the second-smallest South American nation is the garden of the continent; much of its 176,000 square miles are given over to agriculture and around 15% of the population is employed in the sector.

A Member of the Cairns Group of exporting nations, Uruguay’s main agro-industries consist of beef, soybeans, dairy products, wheat and fish. A primary challenge of the 21st century is the sustainable ex-pansion of agro-industry based on innovation, technology and improvements in the nation’s infrastructure. The government has taken great strides in these areas after the regional crisis of 1999-2002 that engulfed its powerhouse neighbors Brazil and Argentina, affecting market export prices and hitting Uru-guay in the pocket.

As Deputy Secretary of Live-stock, Agriculture and Fisher-ies Enzo Benech notes: “The Uruguay of today is indistin-guishable from the country that existed 10 years ago. In the past decade the government has ad-opted clear policies of foreign and national investment.

“Uruguay is a country that is based on agriculture and livestock. We are a country that produces foodstuffs but today the world has changed. The price relation worldwide has benefited us and this has,

In this way we know where ev-ery animal is, where it was born and what route it has taken throughout the entire country.”

Uruguay’s wealth can be said to originate from the earth itself. The soil found across the country has a high nutri-ent content and good fertility rates. Furthermore, Uruguay’s stable climate gives it a key ad-vantage over the U.S. in terms of grass-fed cattle, exports of which represent a nearly billion-dollar-plus per-year industry in Uruguay in fresh and frozen meat, and 10% of all exports, according to Observatory of Economic Complexity figures. Soy beans, which are in great demand globally for their use in human and animal consump-tion, biodiesel, lubricants and soy-based cooling foams for use in automobile production (en-gines, parts and interiors) and refrigerators, rake in a similar amount annually.

Uruguay exports beef to 80 countries and the industry represents a quarter of all ex-ports, rounding out annually at around 450,000 tons. Demand is especially high in countries that lack the climatic conditions of Uruguay to rear huge num-bers of grass-fed cattle, which are more coveted than those fed a diet of corn products, designed to fatten the animal more quickly.

Uruguay’s beef exports also meet Certified Quality Control Officer COCC worldwide stan-dards and the Hilton Quota in

Uruguay’s soil has a high nutrient content and good fertility rates, and its grass-fed cows are highly coveted for their high quality beef

Beef exports to the USA alone reached $171 million in 2013 and opportunities abound to increase that figure in a mar-ket ravenous for natural beef products”enzo Benech, deputy secretary of Livestock, agriculture and fisheries

‘‘

exportsAgricultural exports lead the way in Uruguay. Ship-ments of meat, vegetables, rice, and dairy products account for 52% of the country’s total exports. While general regional demand was down last year (Brazil by 2.2% and Argentina by 5.4%), exports to China soared by 45.2% due to massive sales of soybeans and beef. Top exports to the U.S. include meat and dairy products, citrus fruits and rice. Initia-tives are also under way to open the U.S. market to greater Uruguayan lamb and mutton exports.

a good catchThe commercial fishing industry in Uruguay under-went rapid growth in the 1970s, boosted by pro- industry government support. The country traditionally exports 90% of its catches, netting close to $190 million per year. Hake and whitemouth croaker are among its top catches, and Nigeria one of its main export markets. The EU and Brazil are also large consumers of Uruguayan fisheries products. Uruguay’s southern coast is considered one of the finest fishing grounds in the world.

success storiesUruguay’s agricultural success stories are plentiful: from a pioneering meat traceability system that tracks meat from farm to refrigerator, to the more than 90 tons of oranges that have been shipped to the U.S. since the citrus market opened up last year, to a thriving dairy industry managed by three coopera-tives, which have, over the past 20 years, managed to double milk production and increase income from exports tenfold.

Proportion-ately, the U.S. is our biggest-

growing market, at a rate of

between 8-12%”José María Lez secchi,

President of inavi

‘‘ The equity that exists in a co-

operative system is that a product is measured by its worth, by its quality, and not by its quantity”

Ricardo de izaguirre, President of inaLe

‘‘

the European Union, which gives it favorable status under the Most Favoured Nation im-port regime. The Uruguay Nat-ural brand, which markets beef products as an eco-friendly, sus-tainable brand globally, has al-lowed the country to penetrate markets across the world; Chi-na accounted for one-third of all Uruguayan beef exports in 2013. The country’s World Or-ganization for Animal Health FMD-free status and its peerless traceability system essentially al-low Uruguay to ship its beef to the highest bidder.

But as Mr. Benech notes, there are challenges ahead in an ever-changing, globalized world market increasingly concerned with sourcing sus-tainable, ecologically sound produce.

“There are resources that are not renewable in the short term, such as land, air and water. Be-cause of this, in a country that is based on agriculture and live-stock production, our challenge is to produce more but to bear in mind the effects on the environ-ment. In Uruguay we talk a lot about land concentration. It is a problem that affects the world and the region but we have implemented a plan of use and management on operational land that already covers 1.5 mil-lion hectares and that we are go-ing to expand into more areas.”

Uruguay has successfully ex-panded trade regionally within the Mercosur bloc, where since 2006 trade has increased by some 70% to a total of over $5 billion, but other markets are also ripe for expansion. Exports reached $10.5 billion in 2013 with Brazil, China, Argentina and Germany, Uruguay’s larg-est trade partners. Beef exports to the USA alone reached $171 million in 2013 and opportu-nities abound to increase that figure in a market ravenous for natural beef products and which already imports much of its grass-fed cattle products.

alongside the necessary legal requirements and confidence in the country, permitted us to develop this industry, which is an activity based on innovation.

“Our main export is soy-beans, followed by beef, dairy products and rice. The status our meat has achieved today is the result of hard work and of having 100% of our cattle herds registered and monitored.


Distributed by USA TODAY 9189th anniversary of UrUgUay’s independence MONDAY, AUGUST 25, 2014

This is the case with Uruguay’s milk producers. Operating under a co-operative system that relies on grass-fed animals raised at pasture, these dairy producers have grown their industry by 7% over the past decade. They produced 2.3 bil-lion liters of milk last year from 3,100 producers. They sold 240,000 tons of milk products abroad. They earned $970 mil-lion for these endeavors, a 17% increase over 2012. This year, they hope to bring home more than $1 billion.

Uruguay’s milk has no hor-mones, the country boasts a registry system in which every cow is identified and evaluated, and cows are not kept in com-mercial stables. They are free to graze. Yet Uruguayan farmers boast high productivity rates, and luckily so as the world is beginning to demand more of Uruguayan dairy products. While Mercosur members still consume the majority of the

country’s production, China is beginning to represent an in-creasingly larger percentage of an international market that now reaches 60 countries. The Asian giant consumed only 2% of Uruguay’s milk exports in 2012. Last year, this figure climbed to 12%.

“When people set certain so-cial or human values, it is a plea-sure to see them thrive,” says Ri-cardo de Izaguirre, President of the INALE, the national institute of milk-based products. Mr. de Izaguirre says that the industry

is governed by a series of proce-dures aimed not at increasing ex-ports, but at producing the best product possible as a country.

This philosophy has seen milk producers double their production over the past two decades and increase export revenues tenfold. The sector’s cooperatives have helped small-scale farmers flourish. Three cooperatives pool production so that producers obtain the same price, regardless of whether they have just three cows or pro-duce millions of liters of milk.

“The equity that exists in a co-operative system is that a product is measured by its worth, by its quality, and not by its quantity. It is a system of solidarity in that members need each other. You under-stand that when somebody else suffers, you suffer,” says Mr. de Izaguirre. “The more milk we have, the better our access to markets and the greater our chances for growth. If a small producer disappears, the entire chain suffers.”

INALE forms part of the support eco-system for the in-dustry. It represents producers, cheesemakers, industries and government bodies. The asso-ciation helps farmers gain ac-cess to land through a common trust that has been established for this purpose, and it grants micro-credits through Banco de la República Oriental del Uruguay. Finally, it provides farmers with the latest technol-ogy and industry advances in terms of genetics, health, and nutrition. Along with the Minis-try of Livestock, INALE is cur-rently working to implement a rotational system that will help avoid soil erosion.

“INALE’s goal is to provide producers with tools, such as finance, insurance, etc., that add security and mitigate any adverse effects that may come from the global dairy market in times of crisis,” Mr. de Izaguirre explains.

Uruguayan milk, a healthy choiceThere is a feel-good factor when sustain-able practices also bring worldly success

Uruguayan dairy cattle are grass fed and raised at pasture

INALE’s goal is to provide pro-

ducers with tools that that add

security and miti-gate any adverse effects from the global market”

ricardo de izaguirre, president of inaLe

‘‘

Drink it how you want” has for a long time been the slogan adopted by the Uruguayan National Institute of Viticulture (Inavi). The idea behind the campaign was to market the country’s wine in-ternally, where other alcoholic beverages have traditionally en-joyed a larger share of domestic consumption. The premise was simple: drink it with your friends, with your family, with whom and where you want, eschewing the formality often associated with fine wines.

The irony is that Uruguay’s history of wine production is in-trinsically linked with that most haute of countries, France. The majority of Uruguay’s vineyards are planted with Tannat vines, which were first introduced into the country from the Madiran region of south-west France by Basque settlers in the 19th century. The variety has thrived in the Uruguayan climate and forms the basis of the nation’s world-class red wine exports. Like Car-ménère in Chile and Malbec in Argentina, Uruguay has become synonymous with Tannat.

“It is a peculiarity of this country,” says José María Lez Secchi, the President of Ina-vi. “Tannat has be-haved remarkably well and this variety

has opened doors for us in many places. But Uruguay is not just Tannat; describing Uruguay as the country of Tannat is an important message and has given us a calling card. We export more Tannat in production percentages that any other country in the world.”

Uruguay is Latin America’s fourth-largest wine-producing nation, a remarkable testament to the spirit of innovation when its land area is measured in com-parison to Argentina, Chile and Brazil, where vineyards were established some two centuries earlier than in Uruguay. Mr. Lez Secchi notes that the total yield of grapes per annum in Uru-guay is around 120 million kilos (265 million lbs), while the sector employs 25,000 to 30,000 peo-ple comprised almost entirely of family business, many of them “fourth or fifth generation”.

Other familiar grape vari-eties – Merlot, Chardonnay, Sauvignon Blanc, Cabernet Sauvignon and Cabernet Franc – have been introduced into the sector but it is still the ubiqui-tous Tannat consumers in most countries are likely to pluck from a supermarket shelf.

“We have an extremely stable output, covering around 8,000 hectares in total,” the Inavi presi-dent notes. “These hectares have different levels of output. There are producers that harvest five hectares – in fact in Uruguay there is a very significant nucleus of these smallholders – and then there is another group of larger producers. In the first group, the producers have found that there are asymmetries that are pre-venting them from accessing the latest technology. However, their level of output is really good, at a median of 16,000 kilos per hectare, compared to those pro-ducers that have greater technol-ogy and who generally produce around 18,000 kilos per hectare.

“One of the biggest challeng-es we have set ourselves is that of helping these smaller producers to increase their production in terms of kilos per hectare.”

While great efforts have been made to introduce wine to the

domestic market, in global terms Uruguay’s offer has been making head-

way in diverse regions. In 2012 the country exported 20 million liters of wine to

Russia alone. The major-ity of this was bulk table wine

produced with grapes harvested from more than 100 small and

medium-sized vineyards. Qual-ity Uruguayan reds have found a place in the niche markets of South Korea and China, where wine and gastronomy have only recently been uttered in the same breath, while Brazil – which rep-resents 46% of all export volume – and the U.S. present opportu-nities closer to home.

“Proportionately, the U.S. is our biggest-growing market, at a rate of between 8-12%. We have come up with a strategy called Tannatour that we are going to repeat in the U.S. dur-ing September and October to strengthen our relationship with this burgeoning market. It is a project that has generated a lot of expectation. Many of our colleagues are looking for-ward to trying this Uruguayan varietal,” says Mr. Lez Secchi.

Indeed, throughout 2014

Uruguay has participated in wine fairs and competitions across the world, all under the auspice of the International Organisation of Vine and Wine (OIV). These included presti-gious events such as Vinalies Internationales in Paris; Bacchus in Madrid; Vinhos do Brasil in Río Grande del Sur; Canada’s

Sélections Internationales in Quebec, and Vinagora in To-kay, Hungary in June, where Uruguay picked up nine awards, including a Great Gold Medal for Narbona’s Tannat Roble 2011. In total, Uruguayan wines have obtained 37 awards during 2014, including 15 Gold Medals and 21 Silver. Although Tan-nat dominated the list, awards were also handed to Uruguayan Chardonnay, Pinot Noir, Merlot, Sauvignon Blanc and Cabernet Sauvignon.

While Uruguay’s wine gath-ers momentum globally, Inavi’s pursuit of excellence in the vi-ticulture sector from the roots up continues apace with a strat-egy to create a blanket system of traceability for all of its wines.

“We are aiming to complete georeferencing all of Uruguay’s vineyards by the end of the year,” says Mr. Lez Secchi. “This will allow us to provide informa-tion on the origin and trajectory of all our wine from the vine to the bottle.

“It will also feature details of the geographic region of culti-vation and information about the estate that bottled it. So far we have completed georeferenc-ing in five of the country’s de-partments that have vineyards: Salto, Rocha, Rivera, Durazno and Paysandú.

“The strength of a bottle of Uruguayan wine on the inter-national market is that in any part of the world this chain of elaboration can be identified. We believe that wine is the only Uruguayan product that can represent all of this effort on a dinner table. We admire other national products like beef and dairy, but a bottle of wine on a table tells the story of a country and of a culture.”

Salud to Uruguay’s fine wines viticulture Inavi is promoting the nation’s 150-year old wine industry at home and abroad

‘‘Tannat has behaved remarkably well and this variety has opened doors for

us in many places” José María Lez secchi, president of inavi

Uruguay’s total yield of grapes per annum hovers around 120 million kilos, or 132,000 tons‘‘


Distributed by USA TODAY10 MONDAY, AUGUST 25, 2014 189th anniversary of UrUgUay’s independence

Latin America’s southernmost capital, Montevideo is emerg-ing as the continent’s best kept tourism secret and one of its hippest vacation spots. Visi-tors from across the globe are increasingly heeding the call of a city renowned for its ar-chitecture, thriving cultural scene and the charms of its old quarters, known locally as the Ciudad Vieja.

Last year, nearly 3 mil-lion tourists visited Uruguay, the majority of them flowing through the nation’s capital. Tourism “is playing an in-creasingly important role in the economy, and it is set to become even more important in the future,” says the Mar-keting and Convention Direc-tor of Montevideo’s Radisson Victoria Plaza, Arnaldo Nar-done. “The majority of our tourists come from Argentina and Brazil. If you consider the numbers in the case of Brazil, a country with around 200 mil-lion people, we have virtually unexplored territory in terms of growth potential. Chile is also becoming more impor-tant, and then there are coun-tries like Colombia and Peru, where the economies have been growing, which represent tremendous potential for us.”

Situated on the northeast-ern bank of the Río de la Plata in the southern tip of the country, Montevideo was not always a hidden gem. It was highly coveted and openly contested by European pow-ers throughout the 18th cen-tury; claimed by the Spanish in 1724, for many years both Britain and Portugal contin-ued to try and steal it away.

Sailing into Montevideo’s wide harbor, haven to luxury cruise lines and super tank-ers alike, one can understand why. Sprawling some 13 miles along the Atlantic coast, the

port city’s skyline is a rich mix-ture of architecture with in-fluences ranging from French and Italian to English. There is also the distinct Art Deco air of the Palacio Salvo, the tall-est building in South America when it was originally built in the late 1920s, and the neo-classical design of the Metro-politan Cathedral.

The city’s expanse is dot-ted with parks and maritime promenades, skyscrapers and historic quarters. From the bay, visitors can view the long, winding Rambla, an es-planade that runs along the city’s entire coastline, and is busy with the activity of casual strollers, joggers, cyclists, skate-boarders and recreational fish-ermen. Beachfront golf courses and bathers dot the sandy beaches of Ramírez, Pocitos, Carrasco, Buceo and Malvín to the east and the west.

Birthplace of writer Edu-ardo Galeano, Montevideo was the host of the first FIFA World Cup in 1930. Mercer has ranked it as the top Latin American city for quality of life every year for the last eight consecutive years. Described as vibrant and eclectic with a rich cultural life, a thriving tech center and entrepreneur-ial culture, Montevideo ranked

eighth in Latin America on the 2013 MasterCard Global Destination Cities Index. It is Uruguay’s commercial, edu-cational and governmental heart. In addition to housing the country’s legislative palace, it is also the administrative seat of Mercosur, South America’s largest trading bloc, and ALA-DI, the Latin American Inte-gration Association.

Today, cruise ship passen-gers disembark directly in the colorful Ciudad Vieja neigh-borhood in the southwest, where Montevideo’s oldest buildings, along with galleries, museums, theaters, markets and the city’s best nightlife, are to be found. Here, churches and mansions dating back to the 18th century adorn narrow, cobbled streets. By the docks is the wrought-iron arcade of the Port Market, where local foods such as torta frita are the fare of the day.

On the edge of Ciudad Vieja in Plaza Independencia, the city’s main square, is the Gateway of the Citadel. The square marks the beginning of new Montevideo and 18 de Julio Avenue, Montevideo’s Art Deco-inspired retail heart. Palacio Silva, which occupies the former site of the of the Confitería La Giralda where

radisson victoria plaza, a luxury stay in chic MontevideoBeautiful Montevideo is becoming an increasingly trendy tourist destination

Mr. nardone says Montevideo has become a popular place for conferences

Uruguayan writer Eduardo Galeano once remarked that his country-men resembled “Argentines on Valium”, and President Mu-jica has called his country “an island of refugees in a world of crazy people”. Whatever the case, Uruguay’s tourism sec-tor is booming as visitors flock to the country from traditional regional markets along with in-creasing numbers of Europeans and North Americans. From the country’s first wave of tourism in the 1960s, when Argentines be-gan buying second residences on the Uruguayan coast, Uruguay’s annual visitors have grown to in-clude 400,000 Brazilians, 50,000 Chileans, 150,000 Europeans and 100,000 Americans.

Now a $2 billion industry that pulls in nearly as many visitors as there are residents, the industry is ripe for further diversification from traditional beach destina-

tions such as the country’s well-known Punta del Este resort (the St. Tropez of Uruguay, thanks to its beautiful beaches, upscale resorts and swanky nightclubs), the UNESCO World Heritage Site of Colonia del Sacramento, the thermal baths of Termas de Daymán, the backpackers’ haven of Punta del Diablo, and Mon-tevideo’s 40-day carnival, which lasts from January to March. Now, niche markets such as LGBT, ru-ral, nature and cultural tourism, including gaucho or cowboy cul-ture, are expanding. Cruise ship tourism and MICE markets are also on the rise as Uruguay con-tinues to establish itself as a year-round conference destination.

Today, Uruguay’s tourism sec-tor is a significant contributor to the country’s foreign exchange earnings, and it represents 6% of GDP and employs 8% of the country’s workers. Much of this growth is a result of the Mu-jica government’s efforts. Since he took office in 2010, visitor numbers have risen significantly. In 2011, Uruguay received more than 3 million visitors, placing it in the class of countries that

boast tourist numbers equal to or greater than their permanent populations. This led the World Tourism Organization to distin-guish Uruguay as a ‘Case Study’ for the advances in and successes of its tourism sector.

Minister of Tourism and Sport Liliam Kechichian agrees that the sector’s achievements have been significant. “Uruguay has had really good promotion in re-cent years,” she comments. “The

world now knows us. Before I was minister, I was the tourism director for the capital from 2000-2005. When we went abroad, we had to explain where Uruguay was, that we weren’t Paraguay, and that we were between Argentina and Brazil. There was a total lack of

awareness. The change was the product of a president who put us on the map, in addition to a few key decisions linked to human rights such as same-sex marriage, the legalization of abortion and the regulation of cannabis.”

Higher visibility abroad has

Latin America’s well-rounded destination tourism Uruguay’s tourism offering is surprisingly wide, with everything from sun and sand to sports, gaucho culture, LGBT, and everything in between

‘‘Today, there is tourism development or plans for development across the

entire country”Liliam Kechichian, Minister of tourism and sport

Many of the streets of Montevideo are reminiscent of european capitals like paris, Madrid or vienna

Liliam Kechichian, Minister of tourism and sport


Gerardo Matos Rodríguez wrote his famous tango La Cumparsita in 1917, sits at the intersection. A stone’s throw away is the Gaucho Museum and the marble columns and gold-leafed décor of the city’s oldest theater, Solís, built in 1856. Plaza Independencia is also the site of the offices of the President of Uruguay.

It is in this historic square that the Radisson Montevi-deo Victoria is located. “The Radisson is the social, cultural and political center of the city,” says Mr. Nardone, “and it has been that way since it was inaugurated in 1952. That is why it is said that the hotel is the heartbeat of Montevideo.”

The 232-room upscale ho-tel faces the Presidential Pal-ace. Its impressive array of world-class amenities includes an on-site casino, spa, a semi-Olympic swimming pool and an indoor jogging track. The hotel’s restaurant, Arcadia, located on the 25th floor, is widely regarded as the finest in the city. Other dining options include a ground floor bar, a casino café and a breakfast room with panoramic views of Harbor Bay and Montevi-deo Hill.

The Radisson Victoria serves a high number of cor-

Distributed by USA TODAY 11189th anniversary of UrUgUay’s independence MONDAY, AUGUST 25, 2014

radisson victoria plaza, a luxury stay in chic Montevideo

the radisson victoria plaza is located in plaza independencia, Montevideo’s main square

Many of the streets of Montevideo are reminiscent of european capitals like paris, Madrid or vienna

The Radisson is the social, cul-

tural and political center of the city... That is why it is

said that the hotel is the heartbeat of

Montevideo”arnaldo nardone, Marketing and

convention director of the radisson victoria plaza

‘‘

been combined with efforts to round out the offer at home. Tra-ditionally, tourism was centered around three or four products, says Minister Kechichian – beach, cruises, spa and historical-cultural tourism. Her ministry decided to enlarge the market, to include gay-friendly tourism and, following in the successful path of Argentina, tourism based around Spanish language learning. Natu-ral areas tourism, which is popu-lar among European visitors, and nautical and waterway tourism is also being developed. A waterway route in the west of the country on Uruguay and Negro rivers is being created.

All of these alternatives, says the minister, mean that Uruguay now has tourism destinations throughout its geography.

“Today, there is tourism devel-opment or plans for development across the entire country. This year, we have also had two fan-tastic developments with regards to events and conference tourism. One was the announcement that a builder has been contracted for the construction and manage-ment of a convention center in Punta del Este, which will be state-of-the-art with capacity for 3,000 people. Also, our telecommuni-cations company, Antel, is going to build a new sports complex in

Montevideo, which will serve for both sports events and meetings, so now Uruguay will be able to host events that it wasn’t able to before.”

Still, there is more work to be done, says Ms. Kechichian. Although the country boasts a new airport and cruise port in Colonia, further infrastructure investment is needed, particularly in Montevideo where the city’s services are struggling to keep up with urban growth. Investors in tourism will benefit, however, from a favorable investment law that awards points for investment in strategic locations.

“When this government was

elected, we awarded points for in-vestment that created jobs. Today, we give points to those companies that create quality jobs, which use clean energies and which decen-tralize. If they want to be in Mon-tevideo, they get a certain number of points, but if they want to be inland, they get higher ratings. This has allowed us to attract investment, especially in hotels,” she says, adding that the govern-ment’s willingness to back up investment and the clarity of the country’s regulations have added to Uruguay’s attraction as a desti-nation, given that these are areas of traditional weakness in many Latin American countries.

friendly Uruguay

When Uruguayan legisla-tors voted in favor of legal-izing gay marriage last year, they probably were not thinking of the move as a way to boost tourism in the country, but this is exactly what has hap-pened. Though Uruguay had already appeared on the map of gay-friendly destinations, last year’s decision has served to in-crease the country’s share of the lucrative LGBT tourism market, with popular destinations such as Montevideo, Punta del Este and the small coastal town of Punta Ballena now boasting a wide tour-ism and leisure offering for this group.

Consequently, the Uruguayan government is beginning to view LGBT tourism as a year-round segment. Last year, it scheduled a series of talks and presentations with tourism stakeholders throughout the country to raise awareness and to develop strategies for the gay visitor. Minister

of Tourism and Sport Liliam Kechichian says the LGBT market is an important one on a global level, especially given that gay travelers are typically high spenders.

Punta del Este, in particular, has become a popular gay-friendly tourist destination that is a favorite among LGBT travelers, especially those from Brazil and Argentina. In the capital, the Monte-video Tourism Conglom-erate, a group of private ventures directly related to the LGBT community, is in charge of coordinating and promoting the differ-ent tourism offers related to this segment. The num-ber of hotels classed as gay-friendly is on the rise in the city, and in Ciudad Vieja, a ‘Friendly Map’ is available in many cafés and bars.

Montevideo’s respect for diversity is now proudly celebrated with a whole month of LGBT-themed events each September during ‘Diversity Month’.

punta del este is one of the most popular spots for LgBt tourism


porate clientele and its busi-ness services are among the best. The Business Class room gives clients access to upgraded amenities, services and benefits such as early check-in, spacious work desks with comfortable work chairs, a complimentary Wall Street Journal delivered to the room each morning, up-graded bathroom amenities, complimentary drink vouch-ers, and turn-down service. On-site business centers and 2,500 square meters of con-ference facilities with capacity for 2,500 people and equipped with the latest technology com-plete the package.

Conference participants are the second most impor-tant business segment for the hotel, and it is a niche market that is growing in importance both for the Radisson and the city, says Mr. Nardone. “The segment of small busi-ness conferences has grown a lot in Uruguay, which has es-tablished itself as a significant destination in this regard in the region. The sector of pro-fessional associations, such as scientific, medical and legal associations, is particularly strong. The number of an-nual meetings here per year has risen substantially,” he explains.

It’s hardly surprising that conference business is on the rise in the city. As well as housing the headquarters of various regional bodies, at the global level, Montevideo is the gateway to an enormous trade block. Its strategic posi-tion within Mercosur makes it the natural geographic center for a market of 255 million people. In addition, it is safe. According to a recent survey published by the Wall Street Journal, Montevideo ranks after Tokyo as the safest city in the world. This, along with Montevideo’s many charms, are deal sealers.

Distributed by USA TODAY12 MONDAY, AUGUST 25, 2014 189th anniversary of UrUgUay’s independence

culture From literature and music to soccer and festivals, Uruguay packs quite a cultural punch

Uruguay’s cultural heritage is a blend of European influences fused with local and regional tradi-tion, which combine to form a rich and diverse palate of art, literature and music.

Music: tango, gardel and drexler

The most famous of all South American dances, the tango, was born in the Rio de la Plata of African and European/Creole parentage. Perhaps more associated with Argen-tina than Uruguay, the essence of tango was nevertheless a labor of love between the two countries, a shared expression of rhythm. La Morocha, a semi-nal tango piece, was composed by Argentine Ángel Villoldo and Enrique Saborido, a na-tive of Montevideo. Similarly, La Cumparsita, one of the most famous tangos ever composed, was written by Uruguayan Gerardo Matos Rodríguez to lyrics by Argentine Pascual Contursi.

But the delivery of these tunes by Carlos Gardel will likely never be matched. Beyond doubt the most fa-mous man in the history of the genre, Gardel’s influence transcends tango to the extent that his name and lyrics have been absorbed into everyday phrases in Latin America, a museum stands in the loca-tion of his former residence in Buenos Aires, and one of the city’s Metro stations is named after him.

If the “son of tango” had been reincarnated, it may well have been in the shape of Jorge Drexler, Uruguay’s con-temporary bard. The son of a German Jew who fled the Nazi repression, Drexler was born in Montevideo and is a quali-fied medical doctor. But music was his calling and in addition to a Grammy nomination for his 2008 album Cara B, Drex-ler is the only Uruguayan in history to have won an Oscar, for Best Original Song ‘Al otro lado del río’, which featured on the award-winning Motorcycle Diaries in 2004.

carnival and mate

Two of the most famous and symbolic aspects of everyday Uruguayan culture can be found hand in hand through-out February and March on the streets of Montevideo as Carnival unfolds in a starburst of color and rhythm. The fi-nal Saturday of January bears witness to the inaugural pa-

rade along the Avenida 18 de Julio, so named to commem-orate the enshrinement of Uruguay’s first Constitution in 1830. Another important part of Uruguay’s Carnival celebrations, which last longer than in any other country in the world, is the Call Parade, a poignant reminder of the country’s African slaves. The parade is a cacophony of drum beats in the Candombe tradition, a music and dance form particular to Uruguay and that has been denominat-ed World Cultural Heritage of humanity by UNESCO.

Synonymous with down-time in Uruguay is the tradi-tional herbal beverage mate, a caffeine-infused plant which is brewed in the same way as herbal tea and consumed by straw from a calabash gourd. Uruguay is credited with com-ing up with idea of using a thermos flask to transport hot water so that mate-to-go would be readily available. The sight of people drinking mate is now commonplace from Montevi-deo to Madrid.

Uruguay has also recently staked a claim to a world-first piece of legislation surround-ing a different type of herb; the complete legalization of marijuana within the country’s borders. The groundbreak-ing move by the government of José Mujica, considered by many experts to represent the biggest step forward in the war against the global trade in il-legal drug-trafficking, earned Uruguay the accolade Coun-try of the Year 2013 from The Economist.

Literature: from Benedetti to Quiroga

With a full name as grandi-ose as Mario Orlando Hardy Hamlet Brenno Benedetti Farrugia, Mario Benedetti was perhaps destined to stand out in life a little. As one of the integral members of the celebrated Generation of ’45, a collective of authors, poets and thinkers credited with shaping the Uruguayan literary panorama, Benedetti, who passed away in 2009 aged 88, is considered one of the foremost Latin American writers of the second half of the 20th century. Juan Carlos Onetti was a peer of Bene-detti’s and along with Carlos Martínez Moreno the three were at the forefront of novel and short-story writing.

Uruguayan literature has its roots in the gaucho-themed poems of Bartolomé Hidalgo, who first used the imagery and language of the early set-tlers in his works. Picking up the torch from Hidalgo, Juan Zorrilla de San Martin in 1886 wrote Tabaré, which is

considered one of the epic po-ems of the Americas. Tabaré, the name of the main char-acter who falls in love with a Spanish settler called Blanca, is a study of the extinction of Uruguay’s indigenous cultures after the Spaniards arrived.

Celebrated Uruguayan writers of the late 19th and first half of the 20th century include the essayist and politi-cian Carlos Reyles; dramatist and poet Horacio Quiroga, whose works later influenced Gabriel García Márquez; and Julio Herrera y Reissig, who emerged during Uruguay’s Romaticism period and was a leading pioneer in the later Modernism movement.

Among Uruguay’s foremost historical female writers was Juana de Ibarbourou, one of the most successful and highly regarded of all Spanish Amer-ican poets, and the feminist-realist Armonía Somers.

soccer, or fútbol

As in most Latin American countries, soccer is an official state religion in Uruguay. The country hosted the first ever World Cup in 1930 and lifted the trophy, beating Argentina 4-2 in the final, José Nasazzi winning the best player award and Enrique Ballesteros that of best goalkeeper.

The inaugural internation-al football match was played between Argentina and Uru-guay in 1901 and no other countries have played each other more times. The rivalry is known as the Clásico del Río de la Plata.

In 1950 La Celeste traveled to Brazil under coach Juan López Fontana and beat the hosts 2-1 to claim their second world title, in a game known to history as the Maracanazo.

Uruguay are the reigning Copa de América champions and have won the continental showdown a record 15 times. Including Olympic titles and the 1980 Mundialito, Uru-guay holds more international titles than any other country in the world – quite an achieve-ment for a country with a cur-rent population of fewer than 3.5 million people.

In recent times Uruguay has re-emerged as a force to be reckoned with on the interna-tional stage and has produced several players that are house-hold names. The side reached the semifinals of the 2010 World Cup, where Diego For-lán won the Golden Ball as the tournament’s best player. The most expensive signing in the history of French football, Edinson Cavani, is a member of the current team alongside Luis Suárez, who is regarded among the best players in the world.

in Uruguay, as in southern Brazil and argentina, cow-boys are called gauchos. the word stems from the Quechua word huachu, which means vagabond, and indeed the legendary gauchos were wanderers of the pampas. Uruguayan literature is brimming with tales of these brave and resilient men

diego forlán won the 2010 fifa World cup golden Ball award

carnival in Uruguay lasts for a month and a half, starting in mid-January

the asado, or barbeque, is one of Uruguay’s favorite social occasions

Mario Benedetti, who passed away in 2009, is considered one of the greatest Latin american writers of the second half of the 20th century

Many claim that tango had its origins in Montevideo a few months before it took off in argentina

A cultural heavyweight


on uruguay’s sustained growth uruguay · 2016-05-19 · uruguay, which now stands as an...

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