Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation
Uruguay, with a prosperity built on beef and other meat exports, was among the fastest-growing economies in the world at the turn of the twentieth century. In parallel with economic successes driven by exports under a liberal trade regime, early in the 20th century, Uruguay had already initiated a s...
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| Format: | Country Economic Memorandum |
| Language: | English en_US |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/06/5879098/uruguay-sources-growth-policies-development-human-capital-integration-competition-innovation http://hdl.handle.net/10986/8622 |
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okr-10986-8622 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL EXPORTS BANKING SECTOR BANKRUPTCY BENCHMARKING BUDGETARY PROCESS BUSINESS CLIMATE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL FORMATION CAPITAL MARKETS CENTRAL BANK CITIZENS CIVIL SOCIETY CLIMATE COMMUNICATIONS TECHNOLOGY COMPETITION POLICY COMPETITIVE ADVANTAGES COMPETITIVENESS CONSUMERS CORRUPTION COST EFFECTIVENESS CRISES CROSS SUBSIDIZATION DEBT DEREGULATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT STRATEGY DIVERSIFICATION ECONOMIC DECLINE ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMIGRATION EMPLOYMENT EQUAL ACCESS EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXPORTS FINANCIAL INSTITUTIONS FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GROWTH PATH GROWTH PERFORMANCE GROWTH POLICIES GROWTH POTENTIAL GROWTH PRO-POOR GROWTH RATE HEALTH CARE HIGH TAXES HOUSING HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME GROWTH INDEXATION INDUSTRIALIZED COUNTRIES INEFFICIENCY INFLATION INFRASTRUCTURE INVESTMENT INNOVATION INSTITUTIONAL CAPACITY INSURANCE INTERGENERATIONAL EQUITY INTERNATIONAL COMPARISONS INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKETS LAWS LEGISLATION LIQUIDITY MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MACROECONOMICS MARKET ECONOMIES MEDIA MEDIUM TERM MIDDLE INCOME COUNTRIES MONETARY POLICY MONOPOLIES MULTILATERAL TRADE NEGATIVE IMPACT OPEN ECONOMIES OUTPUT GROWTH PAYROLL TAXES PER CAPITA INCOME POLICY OPTIONS POLITICAL PARTIES POOR GROWTH POVERTY LEVELS POVERTY LINE POVERTY REDUCTION PRICE STABILITY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC EMPLOYMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC INSTITUTIONS PUBLIC SECTOR PUBLIC WORKS PURCHASING POWER PURCHASING POWER PARITY QUALITY STANDARDS REAL WAGES REGULATORY FRAMEWORK RETIREMENT RISK AVERSION SAFETY SAFETY NET SAVINGS SCHOOLS SECONDARY SCHOOLS SOCIAL PARTICIPATION SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SPENDING SUSTAINABLE GROWTH TARIFF BARRIERS TAXATION TECHNOLOGICAL CHANGE TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE NEGOTIATIONS TRADE POLICY TRADE REGIME TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATE UNFAIR COMPETITION WORKERS YOUNG PEOPLE YOUTH |
| spellingShingle |
AGRICULTURAL EXPORTS BANKING SECTOR BANKRUPTCY BENCHMARKING BUDGETARY PROCESS BUSINESS CLIMATE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL FORMATION CAPITAL MARKETS CENTRAL BANK CITIZENS CIVIL SOCIETY CLIMATE COMMUNICATIONS TECHNOLOGY COMPETITION POLICY COMPETITIVE ADVANTAGES COMPETITIVENESS CONSUMERS CORRUPTION COST EFFECTIVENESS CRISES CROSS SUBSIDIZATION DEBT DEREGULATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT STRATEGY DIVERSIFICATION ECONOMIC DECLINE ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMIGRATION EMPLOYMENT EQUAL ACCESS EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXPORTS FINANCIAL INSTITUTIONS FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GROWTH PATH GROWTH PERFORMANCE GROWTH POLICIES GROWTH POTENTIAL GROWTH PRO-POOR GROWTH RATE HEALTH CARE HIGH TAXES HOUSING HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME GROWTH INDEXATION INDUSTRIALIZED COUNTRIES INEFFICIENCY INFLATION INFRASTRUCTURE INVESTMENT INNOVATION INSTITUTIONAL CAPACITY INSURANCE INTERGENERATIONAL EQUITY INTERNATIONAL COMPARISONS INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKETS LAWS LEGISLATION LIQUIDITY MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MACROECONOMICS MARKET ECONOMIES MEDIA MEDIUM TERM MIDDLE INCOME COUNTRIES MONETARY POLICY MONOPOLIES MULTILATERAL TRADE NEGATIVE IMPACT OPEN ECONOMIES OUTPUT GROWTH PAYROLL TAXES PER CAPITA INCOME POLICY OPTIONS POLITICAL PARTIES POOR GROWTH POVERTY LEVELS POVERTY LINE POVERTY REDUCTION PRICE STABILITY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC EMPLOYMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC INSTITUTIONS PUBLIC SECTOR PUBLIC WORKS PURCHASING POWER PURCHASING POWER PARITY QUALITY STANDARDS REAL WAGES REGULATORY FRAMEWORK RETIREMENT RISK AVERSION SAFETY SAFETY NET SAVINGS SCHOOLS SECONDARY SCHOOLS SOCIAL PARTICIPATION SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SPENDING SUSTAINABLE GROWTH TARIFF BARRIERS TAXATION TECHNOLOGICAL CHANGE TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE NEGOTIATIONS TRADE POLICY TRADE REGIME TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATE UNFAIR COMPETITION WORKERS YOUNG PEOPLE YOUTH World Bank Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation |
| geographic_facet |
Latin America & Caribbean America South America Uruguay |
| description |
Uruguay, with a prosperity built on beef and other meat exports, was among the fastest-growing economies in the world at the turn of the twentieth century. In parallel with economic successes driven by exports under a liberal trade regime, early in the 20th century, Uruguay had already initiated a strong and efficient welfare state. By contrast, the slowdown in per capita GDP growth has been more severe in the past 40 years (over 1961-99 per capita GDP growth averaged 1.1 percent, which is two-thirds of the rate achieved by Latin America) - except in the nineties when Uruguay (temporarily) grew at a faster rate than the region. In the 1961-1999 period, the rate of growth was less than half that of industrial countries, and less than one-fourth of that of East Asia. Uruguay must consolidate its incipient economic recovery following a prolonged, and deep recession: the economy shrank 17 percent, and household incomes dropped over 20 percent in real terms over 1999-2003. Notwithstanding, the economy bounced back strongly since mid-2003, and GDP growth in 2004 is estimated at 12.3 percent; the level of unemployment fell from almost 20 percent at the end of 2002, to 12.1 percent at the end of 2004. However, there is a qualitative difference between economic recovery and sustained growth. The country's relatively poor growth performance over the last half century can be traced to several key structural weaknesses, i.e., a pro-cyclical fiscal policy, intrinsically associated with lack of flexibility in social spending; a high and growing dependency ratio (between retirees and the working age population) - worsened by emigration by young people - and increased levels of informal employment; and, lack of effective competition in infrastructure sectors, dominated by the public sector and - in a related manner - the setting of tariffs with a fiscal criterion that limits incentives to increase efficiency, among several other structural factors. The objective of this study is to help develop a "shared" vision of growth with equity in Uruguay, but, unless shared, the policies and reforms discussed are unlikely to be implemented, maintained, or to be credible. The first pillar of this framework involves policies leading to fiscal and financial stability, the efficient operation of factor markets (capital and labor), and, the strengthening of social protection. The second pillar of policies and reforms aims at the creation of an investment climate, favorable to the accumulation of physical and human capital; it includes trade and integration policies, the development of a competitive framework - particularly in infrastructure sectors; and, policies on education and health for the development of human capital. The third pillar is formed by the policies and reforms that promote growth driven through innovation; it will require a thorough transformation of institutional capabilities, entrepreneurial culture, and the system of innovation. |
| format |
Economic & Sector Work :: Country Economic Memorandum |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation |
| title_short |
Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation |
| title_full |
Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation |
| title_fullStr |
Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation |
| title_full_unstemmed |
Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation |
| title_sort |
uruguay : sources of growth, policies for the development of human capital, integration, competition and innovation |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/06/5879098/uruguay-sources-growth-policies-development-human-capital-integration-competition-innovation http://hdl.handle.net/10986/8622 |
| _version_ |
1764404997061083136 |
| spelling |
okr-10986-86222021-04-23T14:02:39Z Uruguay : Sources of Growth, Policies for the Development of Human Capital, Integration, Competition and Innovation World Bank AGRICULTURAL EXPORTS BANKING SECTOR BANKRUPTCY BENCHMARKING BUDGETARY PROCESS BUSINESS CLIMATE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL FORMATION CAPITAL MARKETS CENTRAL BANK CITIZENS CIVIL SOCIETY CLIMATE COMMUNICATIONS TECHNOLOGY COMPETITION POLICY COMPETITIVE ADVANTAGES COMPETITIVENESS CONSUMERS CORRUPTION COST EFFECTIVENESS CRISES CROSS SUBSIDIZATION DEBT DEREGULATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT STRATEGY DIVERSIFICATION ECONOMIC DECLINE ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMIGRATION EMPLOYMENT EQUAL ACCESS EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXPORTS FINANCIAL INSTITUTIONS FREE TRADE GDP GENERAL EQUILIBRIUM MODEL GROWTH PATH GROWTH PERFORMANCE GROWTH POLICIES GROWTH POTENTIAL GROWTH PRO-POOR GROWTH RATE HEALTH CARE HIGH TAXES HOUSING HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME GROWTH INDEXATION INDUSTRIALIZED COUNTRIES INEFFICIENCY INFLATION INFRASTRUCTURE INVESTMENT INNOVATION INSTITUTIONAL CAPACITY INSURANCE INTERGENERATIONAL EQUITY INTERNATIONAL COMPARISONS INVESTMENT CLIMATE LABOR FORCE LABOR MARKET LABOR MARKETS LAWS LEGISLATION LIQUIDITY MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MACROECONOMICS MARKET ECONOMIES MEDIA MEDIUM TERM MIDDLE INCOME COUNTRIES MONETARY POLICY MONOPOLIES MULTILATERAL TRADE NEGATIVE IMPACT OPEN ECONOMIES OUTPUT GROWTH PAYROLL TAXES PER CAPITA INCOME POLICY OPTIONS POLITICAL PARTIES POOR GROWTH POVERTY LEVELS POVERTY LINE POVERTY REDUCTION PRICE STABILITY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC EMPLOYMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC INSTITUTIONS PUBLIC SECTOR PUBLIC WORKS PURCHASING POWER PURCHASING POWER PARITY QUALITY STANDARDS REAL WAGES REGULATORY FRAMEWORK RETIREMENT RISK AVERSION SAFETY SAFETY NET SAVINGS SCHOOLS SECONDARY SCHOOLS SOCIAL PARTICIPATION SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SPENDING SUSTAINABLE GROWTH TARIFF BARRIERS TAXATION TECHNOLOGICAL CHANGE TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE NEGOTIATIONS TRADE POLICY TRADE REGIME TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATE UNFAIR COMPETITION WORKERS YOUNG PEOPLE YOUTH Uruguay, with a prosperity built on beef and other meat exports, was among the fastest-growing economies in the world at the turn of the twentieth century. In parallel with economic successes driven by exports under a liberal trade regime, early in the 20th century, Uruguay had already initiated a strong and efficient welfare state. By contrast, the slowdown in per capita GDP growth has been more severe in the past 40 years (over 1961-99 per capita GDP growth averaged 1.1 percent, which is two-thirds of the rate achieved by Latin America) - except in the nineties when Uruguay (temporarily) grew at a faster rate than the region. In the 1961-1999 period, the rate of growth was less than half that of industrial countries, and less than one-fourth of that of East Asia. Uruguay must consolidate its incipient economic recovery following a prolonged, and deep recession: the economy shrank 17 percent, and household incomes dropped over 20 percent in real terms over 1999-2003. Notwithstanding, the economy bounced back strongly since mid-2003, and GDP growth in 2004 is estimated at 12.3 percent; the level of unemployment fell from almost 20 percent at the end of 2002, to 12.1 percent at the end of 2004. However, there is a qualitative difference between economic recovery and sustained growth. The country's relatively poor growth performance over the last half century can be traced to several key structural weaknesses, i.e., a pro-cyclical fiscal policy, intrinsically associated with lack of flexibility in social spending; a high and growing dependency ratio (between retirees and the working age population) - worsened by emigration by young people - and increased levels of informal employment; and, lack of effective competition in infrastructure sectors, dominated by the public sector and - in a related manner - the setting of tariffs with a fiscal criterion that limits incentives to increase efficiency, among several other structural factors. The objective of this study is to help develop a "shared" vision of growth with equity in Uruguay, but, unless shared, the policies and reforms discussed are unlikely to be implemented, maintained, or to be credible. The first pillar of this framework involves policies leading to fiscal and financial stability, the efficient operation of factor markets (capital and labor), and, the strengthening of social protection. The second pillar of policies and reforms aims at the creation of an investment climate, favorable to the accumulation of physical and human capital; it includes trade and integration policies, the development of a competitive framework - particularly in infrastructure sectors; and, policies on education and health for the development of human capital. The third pillar is formed by the policies and reforms that promote growth driven through innovation; it will require a thorough transformation of institutional capabilities, entrepreneurial culture, and the system of innovation. 2012-06-21T14:13:12Z 2012-06-21T14:13:12Z 2005-06 http://documents.worldbank.org/curated/en/2005/06/5879098/uruguay-sources-growth-policies-development-human-capital-integration-competition-innovation http://hdl.handle.net/10986/8622 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Country Economic Memorandum Economic & Sector Work Latin America & Caribbean America South America Uruguay |