Uruguay Uruguay Background A violent Marxist urban guerrilla movement, the Tupamaros, launched in the late 1960s, led Uruguay's president to agree to military control of his administration in 1973. By yearend, the rebels had been crushed, but the military continued to expand its hold throughout the government. Civilian rule was not restored until 1985. Uruguay's political and labor conditions are among the freest on the continent. Uruguay Economy Uruguay's economy is characterized by an export-oriented agricultural sector, a well-educated workforce, and high levels of social spending. After averaging growth of 5% annually during 1996-98, in 1999-2002 the economy suffered a major downturn, stemming largely from lower demand in Argentina and Brazil, which together account for nearly half of Uruguay's exports. Total GDP in these four years dropped by nearly 20%, with 2002 the worst year. Unemployment rose to nearly 20% in 2002, inflation surged, and the burden of external debt doubled. Cooperation with the IMF and the US has limited the damage, which is still extensive. Moves to reschedule debt and promote economic recovery may help limit a further decline in output in 2003. Uruguay Location Southern South America, bordering the South Atlantic Ocean, between Argentina and Brazil Uruguay Flag nine equal horizontal stripes of white (top and bottom) alternating with blue; there is a white square in the upper hoist-side corner with a yellow sun bearing a human face known as the Sun of May and 16 rays alternately triangular and wavy
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