Santiago Torres - Transcultural Uruguay

Uruguay: Certain aspects you might be interested to know

Whether you are already a foreign resident in Uruguay, an actual or a prospective investor, an investments consultant, or just a tourist with a broader interest than just sightseeing, you may need to know what is going on in the Uruguayan political scene. That is, you need to know the facts, certainly, but you also need to know the actual significance of those facts in the context of the culture of the country.

As you already surely know, economics and politics are intimately intertwined. We do not pass judgment on that. We take it as it is. Therefore, getting to know the political reality of the country where you have already invested your money and/or your life expectations —or you are thinking of doing it— is of utmost importance. In that sense, an analysis that pays attention to details, focusing in the relevance of certain attitutdes, speeches and decisions in the broader context of a particular culture, represents an essential input for many of your decisions.

On March 1, 2005, a 34 years-old coalition of left-wing parties reached the government, in a historical shift of the traditional political balance in Uruguay. Has this circumstance affected the bussines climate in any way, either positive or negative? According to the conventional wisdom spread by many of the most important bussiness magazines and the multilateral institutions (IMF, WB, IADB), the economy of Uruguay —which is enjoying one of the best times in history due to the high prices of commodities— is doing superb, with a government that, despite ideology, has not changed thus far the free market policies, nor the sound fiscal policies and the responsible management of public debt that characterized previous administrations.

Is that really true? Is that the whole story or just part of it? What will happen to the “sound policies” if certain tendencies inside the coalition in charge of the government prevail over others, in a political climate affected in advance by the 2009 election? What is going on with property rights and the rule of law?

Besides that: which is the best currency to keep your savings relatively protected? The U.S. dollar is steadily deppreciating. The inflation in Uruguay is becoming (again!) a concern.

The educational field might interest you too. The long term prospects of what used to be on of the major assets of this country —and is not anymore— should be a matter of interest (and, perhaps, concern) if you are thinking of moving to Uruguay or becoming a regular visitor.

Besides all of that, you may want to know how to get accomodation, rent or buy a home, where to hang out, which are those tips any person should know in order to get along with Uruguayans in different situations.

Those are the kind of questions I'm ready to answer.