Uruguay In Democracy: Thirty Years Of Economic Evolution (1985-2015)

Uruguay, a small and open economy of the Southern Cone of Latin America, had its political and economic destiny linked to its two great neighbors, Argentina and Brazil. However, over the last 30 years this relationship has gone through different stages, and from 2005, the policies applied allowed a progressive decoupling of Uruguay from these two countries. In 1985 Uruguay returned to democracy after suffering a deep crisis that bottomed out in 1982. From that point onwards, monetary, fiscal and wage policies were redefined, and a new growth path was entered with great hope. From 1990 onwards, a new neoliberal government established a stabilization plan, which added to the creation of Mercosur generated a strong commercial dependence with Argentina and Brazil. In 2002, Uruguay plunged into another deep crisis and living conditions for Uruguayans deteriorated rapidly. In 2005, the new left-wing government carried out structural reforms and under favorable international conditions resumed growth that lasted for more than a decade, with significant social improvements. Thus, here we analyze the different policies applied in the period and the results obtained in Uruguay, in the context of the changing international and regional situation.