Uruguay vs. Argentina

Montevideo, founded by the Spanish in 1726 as a military stronghold, soon took advantage of its natural harbor to become an important commercial center. Claimed by Argentina but annexed by Brazil in 1821, Uruguay declared its independence four years later and secured its freedom in 1828 after a three-year struggle. The administrations of President Jose BATLLE in the early 20th century launched widespread political, social, and economic reforms that established a statist tradition. A violent Marxist urban guerrilla movement named the Tupamaros, launched in the late 1960s, led Uruguay's president to cede control of the government to the military in 1973. By yearend, the rebels had been crushed, but the military continued to expand its hold over the government. Civilian rule was restored in 1985. In 2004, the left-of-center Frente Amplio Coalition won national elections that effectively ended 170 years of political control previously held by the Colorado and National (Blanco) parties. Uruguay's political and labor conditions are among the freest on the continent.

In 1816, the United Provinces of the Rio Plata declared their independence from Spain. After Bolivia, Paraguay, and Uruguay went their separate ways, the area that remained became Argentina. The country's population and culture were heavily shaped by immigrants from throughout Europe, with Italy and Spain providing the largest percentage of newcomers from 1860 to 1930. Up until about the mid-20th century, much of Argentina's history was dominated by periods of internal political unrest and conflict between civilian and military factions.

After World War II, an era of Peronist populism and direct and indirect military interference in subsequent governments was followed by a military junta that took power in 1976. Democracy returned in 1983 after a failed bid to seize the Falkland Islands (Islas Malvinas) by force, and has persisted despite numerous challenges, the most formidable of which was a severe economic crisis in 2001-02 that led to violent public protests and the successive resignations of several presidents. The years 2003-15 saw Peronist rule by Nestor and Cristina FERNANDEZ de KIRCHNER, whose policies isolated Argentina and caused economic stagnation. With the election of Mauricio MACRI in November 2015, Argentina began a period of reform and international reintegration.

San Miguel de Tucuman and Mendoza areas in the Andes subject to earthquakes; pamperos are violent windstorms that can strike the pampas and northeast; heavy flooding in some areas

volcanism: volcanic activity in the Andes Mountains along the Chilean border; Copahue (2,997 m) last erupted in 2000; other historically active volcanoes include Llullaillaco, Maipo, Planchon-Peteroa, San Jose, Tromen, Tupungatito, and Viedma

Uruguay rates high for most development indicators and is known for its secularism, liberal social laws, and well-developed social security, health, and educational systems. It is one of the few countries in Latin America and the Caribbean where the entire population has access to clean water. Uruguay's provision of free primary through university education has contributed to the country's high levels of literacy and educational attainment. However, the emigration of human capital has diminished the state's return on its investment in education. Remittances from the roughly 18% of Uruguayans abroad amount to less than 1 percent of national GDP. The emigration of young adults and a low birth rate are causing Uruguay's population to age rapidly.

In the 1960s, Uruguayans for the first time emigrated en masse - primarily to Argentina and Brazil - because of economic decline and the onset of more than a decade of military dictatorship. Economic crises in the early 1980s and 2002 also triggered waves of emigration, but since 2002 more than 70% of Uruguayan emigrants have selected the US and Spain as destinations because of better job prospects. Uruguay had a tiny population upon its independence in 1828 and welcomed thousands of predominantly Italian and Spanish immigrants, but the country has not experienced large influxes of new arrivals since the aftermath of World War II. More recent immigrants include Peruvians and Arabs.

Argentina's population continues to grow but at a slower rate because of its steadily declining birth rate. Argentina's fertility decline began earlier than in the rest of Latin America, occurring most rapidly between the early 20th century and the 1950s, and then becoming more gradual. Life expectancy has been improving, most notably among the young and the poor. While the population under age 15 is shrinking, the youth cohort - ages 15-24 - is the largest in Argentina's history and will continue to bolster the working-age population. If this large working-age population is well-educated and gainfully employed, Argentina is likely to experience an economic boost and possibly higher per capita savings and investment. Although literacy and primary school enrollment are nearly universal, grade repetition is problematic and secondary school completion is low. Both of these issues vary widely by region and socioeconomic group.

Argentina has been primarily a country of immigration for most of its history, welcoming European immigrants (often providing needed low-skilled labor) after its independence in the 19th century and attracting especially large numbers from Spain and Italy. More than 7 million European immigrants are estimated to have arrived in Argentina between 1880 and 1930, when it adopted a more restrictive immigration policy. European immigration also began to wane in the 1930s because of the global depression. The inflow rebounded temporarily following WWII and resumed its decline in the 1950s when Argentina's military dictators tightened immigration rules and European economies rebounded. Regional migration increased, however, supplying low-skilled workers escaping economic and political instability in their home countries. As of 2015, immigrants made up almost 5% of Argentina's population, the largest share in South America. Migration from neighboring countries accounted for approximately 80% of Argentina's immigrant population in 2015.

The first waves of highly skilled Argentine emigrant workers headed mainly to the United States and Spain in the 1960s and 1970s, driven by economic decline and repressive military dictatorships. The 2008 European economic crisis drove the return migration of some Argentinean and other Latin American nationals, as well as the immigration of Europeans to South America, where Argentina was a key recipient. In 2015, Argentina received the highest number of legal migrants in Latin America and the Caribbean. The majority of its migrant inflow came from Paraguay and Bolivia.

Uruguay has a free market economy characterized by an export-oriented agricultural sector, a well-educated workforce, and high levels of social spending. Uruguay has sought to expand trade within the Common Market of the South (Mercosur) and with non-Mercosur members, and President VAZQUEZ has maintained his predecessor's mix of pro-market policies and a strong social safety net. 

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight.

Cristina FERNANDEZ DE KIRCHNER succeeded her husband as president in late 2007, and in 2008 the rapid economic growth of previous years slowed sharply as government policies held back exports and the world economy fell into recession. In 2010 the economy rebounded strongly, but slowed in late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which kept inflation in the double digits.

In order to deal with these problems, the government expanded state intervention in the economy: it nationalized the oil company YPF from Spain's Repsol, expanded measures to restrict imports, and further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. Between 2011 and 2013, Central Bank foreign reserves dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

With the election of President Mauricio MACRI in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country's official statistics. Argentina negotiated debt payments with holdout bond creditors, continued working with the IMF to shore up its finances, and returned to international capital markets in April 2016.

In 2017, Argentina's economy emerged from recession with GDP growth of nearly 3.0%. The government passed important pension, tax, and fiscal reforms. And after years of international isolation, Argentina took on several international leadership roles, including hosting the World Economic Forum on Latin America and the World Trade Organization Ministerial Conference, and is set to assume the presidency of the G-20 in 2018.

Uruguay has an advanced telecom market, with excellent infrastructure and one of the highest broadband penetration rates in Latin America; fully digitized; high computer use and fixed-line/mobile penetrations; deployment of fiber infrastructure will encourage economic growth and stimulate e-commerce; state-owned monopoly on fixed-line market and dominance of mobile market; nationwide 3G coverage and LTE networks; limited 5G commercial reach; strong focus on fiber infrastructure with high percentage of residential fixed-broadband connections and near total business connections; importer of broadcasting equipment from China (2021)

in 2010, the ICJ ruled in favor of Uruguay's operation of two paper mills on the Uruguay River, which forms the border with Argentina; the two countries formed a joint pollution monitoring regime; uncontested boundary dispute between Brazil and Uruguay over Braziliera/Brasiliera Island in the Quarai/Cuareim River leaves the tripoint with Argentina in question; smuggling of firearms and narcotics continues to be an issue along the Uruguay-Brazil border

Argentina continues to assert its claims to the UK-administered Falkland Islands (Islas Malvinas), South Georgia, and the South Sandwich Islands in its constitution, forcibly occupying the Falklands in 1982, but in 1995 agreed to no longer seek settlement by force; UK continues to reject Argentine requests for sovereignty talks; territorial claim in Antarctica partially overlaps UK and Chilean claims; uncontested dispute between Brazil and Uruguay over Braziliera/Brasiliera Island in the Quarai/Cuareim River leaves the tripoint with Argentina in question; in 2010, the ICJ ruled in favor of Uruguay's operation of two paper mills on the Uruguay River, which forms the border with Argentina; the two countries formed a joint pollution monitoring regime; the joint boundary commission, established by Chile and Argentina in 2001 has yet to map and demarcate the delimited boundary in the inhospitable Andean Southern Ice Field (Campo de Hielo Sur); contraband smuggling, human trafficking, and illegal narcotic trafficking are problems in the porous areas of the border with Bolivia