Uruguay vs. Brazil

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.

Brazil's rapid fertility decline since the 1960s is the main factor behind the country's slowing population growth rate, aging population, and fast-paced demographic transition. Brasilia has not taken full advantage of its large working-age population to develop its human capital and strengthen its social and economic institutions but is funding a study abroad program to bring advanced skills back to the country. The current favorable age structure will begin to shift around 2025, with the labor force shrinking and the elderly starting to compose an increasing share of the total population. Well-funded public pensions have nearly wiped out poverty among the elderly, and Bolsa Familia and other social programs have lifted tens of millions out of poverty. More than half of Brazil's population is considered middle class, but poverty and income inequality levels remain high; the Northeast, North, and Center-West, women, and black, mixed race, and indigenous populations are disproportionately affected. Disparities in opportunities foster social exclusion and contribute to Brazil's high crime rate, particularly violent crime in cities and favelas (slums).

Brazil has traditionally been a net recipient of immigrants, with its southeast being the prime destination. After the importation of African slaves was outlawed in the mid-19th century, Brazil sought Europeans (Italians, Portuguese, Spaniards, and Germans) and later Asians (Japanese) to work in agriculture, especially coffee cultivation. Recent immigrants come mainly from Argentina, Chile, and Andean countries (many are unskilled illegal migrants) or are returning Brazilian nationals. Since Brazil's economic downturn in the 1980s, emigration to the United States, Europe, and Japan has been rising but is negligible relative to Brazil's total population. The majority of these emigrants are well-educated and middle-class. Fewer Brazilian peasants are emigrating to neighboring countries to take up agricultural work.