Uruguay’s Road to Development

Uruguay’s Road to Development, Camino al Desarrollo, is a report summary published by the Government of Uruguay, outlining the main advances and achievements of that government during the year 2022. The report was published on March 2, 2023.

“Three years after the beginning of the administration in the Executive Power, it is the duty of [Uruguay’s] national government to put on the table an assessment of what has been done and what has been achieved up to now, and to make the public aware of the course for the Uruguay of the future. Many of the proposed goals to which the government committed itself in Compromiso por el País have been achieved…We work tirelessly in the Uruguay of today, thinking about the Uruguay of tomorrow,” Presidencia del Uruguay, March 2nd, 2023.

Below, is a translated excerpt of the report. 

“Uruguay shows a great recovery today. Economic growth in 2022 is estimated at around 5% above estimates by the Ministry of Economy and Finance.

Employment

There are also 40,000 more employed compared to 2021 and compared to the pre-pandemic. The year closed with an increase in real wages.

In 2022 a record number of people stopped working in the informal labor sector.

The unemployment rate dropped, reaching even lower figures than the pre-pandemic in 2019.

International Recognition

International recognition was achieved thanks to the good performance of public finances.

Uruguay has the lowest country risk rating in South America.

The government is there to fuel growth and recovery, but these are also achievements of society. A society that produces and generates activity.

Difficulties have been overcome and we are growing.

For this reason, there are no better reasons to believe in the opportunities that are coming for Uruguay.

The LUC made it possible to recover the value and respect for the democratic norms of social coexistence. It gave tools to the police to identify citizens in public spaces, penalized resisting arrest and allowed workers to freely exercise their rights to both work and strike, without one restricting the other.

It prohibited the pickets that were carried out preventing free movement through public spaces.

It gave 151 children who were in INAU in 2022 the opportunity to have a family and a home, favoring and accelerating adoptions by 21% more than in 2021.

It created a new specific Directorate in the Ministry of Housing to deal with the situation of the settlements in our country.

The Law of Urgent Consideration accelerated the state processes of the country. Actions were generated that were transformed into social, infrastructure and security policies.

A Fiscal Rule was created to take care of people’s money, to stop spending more than there is available. The imprudence in the management of public funds was put to an end.

Work began on fundamental transformations, on reforms that cannot be postponed for the people, such as the Social Security Reform and the Educational Transformation.

The main political leaders of the country were summoned to listen to the contributions and the improvement of ideas.

The measures and policies of this government have no other addressee than the Uruguayan, considering its problems and concerns.

Educational Transformation

Thinking about the future is thinking about the young. Uruguay has always generated social instances to address inequalities. It is something that characterizes us as a country. Education has historically been the standard bearer, with its public and free character, as well as access to health and social policies.

This government promised to work on education from day one, because we cannot continue to accept inequalities, let alone transfer them to young people.

Education has a significant deterioration that we have been dragging for several years. There is a problem regarding its contents.

Students often lack motivation, do not find meaning in it, or do not understand why they are learning some disciplines.

Job opportunities require a different reality that is not provided by current training.

Uruguay is ranked eighth in Latin America in education.

To illustrate this reality in data, 42% of 19-year-olds and 15% of 16-year-olds are outside the educational system. Only 41% of those between 20 and 24 years old finished high school.

These are not simple numbers, they have a face and a heart. Even more so when this affects those who have less. The reason for the change is in the future of young people and that is why the country needs an Educational Transformation.

With the participation of teachers who took the existing successful experiences in our own country and technical suggestions, a new way of teaching appropriate to the current times was developed.

Uruguay was already different when it decided to work in education in the midst of a pandemic, in April 2020. The families trusted the system, the teachers and the government.

The results speak for themselves.

• We were the ones who lost the fewest days in education, thanks to technology and in conjunction with the Ceibal plan. Because when there were no face-to-face classes, we were with all the students.
• We were the first to return to face-to-face
• We were the ones that were least affected by delays.

The current challenge is to deepen and make many actions a reality:

• Establish a curricular transformation that will be based on competencies.
• Strengthen educational centers, deepening the supervision and management teams with the holding of competitions, courses for directors and calls for inspectors.
• Reduce the internal inequality that the educational system has, extending full time and extended time in educational centers throughout the country at all levels.
• Multiply the María Espínola centers, which are 7-hour full-time high schools and UTUs where our students receive three meals a day and workshops with subject coordination.

When the management of this government began, there were 12 centers. In 2022, we reached 29 and it is projected to reach 43 by 2023.

There, the accompaniment of young people in vulnerable situations is carried out, through support and tutoring, with 9,000 hours in secondary, 5,500 in UTU and 24,000 in primary.

Deepening actions for 2023, work began on a curricular change with groups of teachers, with the participation of all sectors of education.

• A national curricular framework was developed, establishing 10 general competencies that students must develop in their educational journey.
• A new integrated basic education plan for ages 3 to 15 was established.
• New programs and a new evaluation regulation were approved.

With the Educational Transformation, the permanence of teachers is effectively ensured for three years. In addition, children will have a strong education in technology, innovation, sports and recreation.

Full-time schools continued to be offered and expanded, reaching 390 schools and kindergartens.

During 2022, the school feeding system was increased and professionalized, $3,368,123,521 pesos were allocated and this service was extended to high schools and UTU.

Work is done on teacher training. To facilitate integration and educational quality, the best teachers and professors are necessary. That is why they will begin to receive training in neuroscience, English and research.

Today there are 35,000 teachers who are being trained through CEIBAL and 19,000 who have already finished their courses.

Education in Uruguay starts from a new paradigm: the center is the student. Which is the raison d’être of the educational system and the future of our country.

We must recognize the effort and commitment of the vast majority of teachers.

During 2022, work was done to settle a historical debt that existed with teachers and for this reason, as of 2023, their university degree will be recognized through an agreement between the MEC and the ANEP.

In a joint work process between the MEF, ANEP, MTSS and the unions, salary recovery for teachers and civil servants began. The historical salary inequalities for civil servants and teachers have ended.

In March 2023 the Educational Transformation will begin to get underway. Our young people deserve a quality education, where they have access to a new and dynamic system that leads them to make better decisions for their future.

This Educational Transformation is of a very important social sensitivity and justice, thinking of all children, adolescents and young people, and above all, those who have less.

Ministry of Labor and Social Security

Educational opportunities are what condition access to decent work.

Almost three years after the health emergency was declared, our country has recovered remarkably.

The unemployment rate is lower than it was even before the pandemic. It decreased and went from 10.5% in 2021 to 7.8% in 2022.The number of workers on unemployment insurance also decreased during 2022, with a monthly average of 46,000 compared to 66,310 in 2021, and 111,000 in 2020.

The informality rate was reduced by 4 points, being today at 21% and in 2019 at 25%, which indicates a job with greater protection for workers, who trust in the support provided by the State regarding their social security rights.

The bill that seeks to comply with Article 57 of our Constitution, to grant recognition of legal status to trade union organizations. Giving formality to professional organizations ensures guaranteed operation.

The Ministry of Labor achieved 68% of labor agreements, at least partially. Within the 1,600 negotiations, only 12% (139 of these) were accompanied by conflict measures.

An agreement was reached with the public sector to achieve the recovery of purchasing power, which was a commitment set by this Government. Work continues on the recovery of wages for the private sector.

One of the most important figures left by the previous year is that more than 40,000 new jobs were created.

Social Security Reform

Work must be accompanied by a secure retirement. All workers deserve that peace of mind after years of work and contributions. We think of a Uruguay that will have a Social Security strong enough to guarantee aging with dignity and without debt.

The Reform is by and for the people. Current retirements will not be touched. On the contrary, in the future retirees will have higher minimum pensions than the current ones through the implementation of the solidarity supplement. The lower the income, the higher the supplement the person will receive.

Our young people will have a fair and supportive system that will respond in the future without complications. Social security has many strengths: extended coverage in the active and passive phase, and reasonable benefits. But the demographic reality changed and the last reform was approved more than 25 years ago.

We are going through an accelerated aging process. In turn, people live longer and better, but births fall. There were 59 thousand births in 1996 in Uruguay and only 34 thousand in 2021.

Financing issues have changed and we are aware that automation, greater job turnover during working life, new forms of contracting and self-employed workers are going to increase. Uruguay is already going through these changes and governing requires that the laws accompany the current dynamics.

Everyone, including political parties, have long recognized the need to review our pension system. In such a necessary Reform, the answer cannot be an increase in taxes or employer contributions. That is why it seeks to contain spending without burdening the new generations.

This reform cannot continue to be postponed, because it has long since taken on the character of urgency. Taking over is a responsibility of whoever is ruling.

The LUC created a Commission of Social Security Experts to work responsibly, ensuring a fair reform. It was made up of 15 representatives of all political parties and workers, businessmen and retirees.

Civil society was heard through 84 different organizations, they worked in more than 100 sessions and in more than 30 academic activities.

From the work of the Commission, it is concluded that:

• The reform is gradual, only in 2040 will the first Uruguayan retire at age 65 and people who are 50 today will not be affected. It will be almost imperceptible because it accompanies the life cycle of the workers.

• Gives freedom of work. People who retire will be able to work if they want to. It is a subject that we have been listening to for many years. This reform will allow someone who retires to work if they have the desire, the strength or even the need. It will no longer be a matter of working secretly to have more income.

• It is an inclusive reform. It does not leave any family out. Families that have children with severe disabilities may compute two additional years.

• The reform is supportive because 100% of Uruguayans over the age of 70 will have access to a guaranteed minimum income gradually.

It is also supportive because every peso contributed to the system will count. Today, if the minimum of years are not reached, the contributions are lost. All years of work will be recognized, even when a minimum of 30 accumulated years is not reached.

Ministry of Social Development

MIDES has continued with the deepening of its policies oriented towards a greater and better presence for those who have less and the impulse towards the autonomy of people.

They are working on a structural problem that we have been dragging for years, which is the food system of the National Food Institute (INDA).

For the first time, an additional $500 million pesos were requested to go directly to the National Food Institute (INDA), to reinforce the Territorial Food Plan. This measure will make food more accessible, increase the number of dining rooms and food delivery points in the country.

In 2022 we already went from 4 delivery points that existed, to 26.

Coverage for Early Childhood was expanded.

As of December 1, a total of 63,395 boys and girls were served in 560 Early Childhood projects. Of the total, CAIF assisted 59,344 boys and girls in 472 projects. This means an approximate increase of 3% compared to December 2021.

In 2022, a new system was put into operation to achieve more and better presence in the territory. Efforts were concentrated on strengthening the care received.

The hours dedicated and greater territorial deployment increased, going from 10 hours per week per team to 30 hours per week per technician.

This was possible because citizen service work is no longer outsourced through NGOs. It began to hire its own technicians through the state portal Uruguay Concursa, without intermediaries.

Today decisions are made placing the Uruguayan as the center and main recipient of policies, with technicians with knowledge and in accordance with the strategy promoted by MIDES, to give people higher and better quality resources for our citizens.

For the second consecutive year in 2022, the Winter Plan had a greater supply than demand, responding to everyone who requested refuge in the MIDES centers. In previous winters, even if there was room, people were left outside due to lack of personnel to serve them.

Progress was made in the regularization process of establishments for the elderly, to provide greater guarantees of dignity and living conditions. It went from 19 authorized establishments in March 2020 to 147 in 2022.

Work on social inclusion continues. 11,097 UTE connections were made for families in vulnerable areas that did not have access to electricity. Today there are 140,000 new households that benefited from a rate with discounts of between 80% and 90%, obtained the right to a secure connection and an invoice that proves ownership of the place where they live and that is often an exclusive requirement to carry out any procedure.

The discount on supergas bottle refills was increased to 50%, a benefit that was accessed by more than 135,000 people. The focus is for the person to overcome their vulnerability to encourage them towards their own growth and development.

For this, the Family Allowance system – Equity Plan is improved, paying attention to the personal conditions of each individual, to the vulnerability of their home, with emphasis on a human and non-numerical vision.

The income cap to maintain the Family Allowances – Equity Plan was eliminated, allowing participants to be able to work within the formality. Prior to January 2022, if the person exceeded the income limit, the allowance was removed, which constituted an incentive to work informally.

As of November 2022, more than 20,000 households exceeded the income limit and maintain the benefit. In this way, the axis is placed on vulnerability. Until it is exceeded, the benefit is not removed.

For children from 0 to 6 years old, the Family Allowances – Equity Plan was reinforced by 70%.

The INJU inaugurated the Jorge Larrañaga University City, which provides accommodation for young people from the interior of the country who want to study in Montevideo.

To improve access to work, the new Access Program was launched, which is a transformation of Uruguay Works. The Program seeks the labor insertion and the educational training of the participants. It was possible to increase the salary they receive, from $11,444 to $19,000, and training was provided in English.

The National Directorate of Support for the Released, in charge of the reintegration of adults who leave the penitentiary system, went from being in the orbit of the Ministry of the Interior, to MIDES. With the aim of giving a more social imprint, generating a greater follow-up, anticipating and looking for opportunities. As a result, in 2022 the maximum number of job opportunities was registered for those people who regained their freedom.

The Parenting Bonus was created, aimed at pregnant women and/or children from 0 to 3 years of age. We were able to reach 25,000 households with extreme socioeconomic vulnerability that needed to improve their income level and access basic consumption.

Regarding mental health:

• ASSE created vacancies for Graduates in Psychology specialized in the problematic use of substances, reaching 2,894 hours per month.
• The Emotional Support Line, which is attended by psychologists 24 hours a day, 365 days a year, registered 82,000 calls in 2022, 42,792 more than last year.
• From the INJU we launched the Ni Silencio Ni Tabú Campaign, seeking awareness and prevention of suicide, in which more than 400 people were trained so that they can speak to our young people between 14 and 19 years of age.
• Through the National Sports Secretariat and the Goal for the Future program, work was done in male and female soccer clubs for the under 16s and in INISA centers for the adolescent population.

Ministry of Environment

Regarding health, Uruguay will also enjoy a better quality of life, because there will be sanitation works for the interior. A Universal Sanitation Plan was approved with an investment of US$ 284,313,656 million.

In order to provide quality of life for the inhabitants with new and good services, and direct work for 2,000 people, the sanitation plan was modified.

It will reach 61 locations in the 18 interior departments. Tomás Gomensoro, Vichadero, Quebracho, Piriápolis, Aiguá, Nuevo Berlin, Las Piedras, San Bautista, Nueva Helvecia, are some examples.

With an investment of 200 million dollars, the largest in the last 150 years in drinking water infrastructure, Uruguay is going to have its second drinking water treatment plant, located in Arazatí; it will ensure the supply of Montevideo, Canelones and San José.

This represents the access to the population of a basic right of a country committed and concerned about the environmental issue.

Another issue of environmental concern is open-air dumps.

On December 1, 2022, a resolution was signed to grant US$ 17 million to continue advancing in Waste Management to close open-air dumps.

16 departments of Uruguay disposed of their waste in disposal sites located in places not authorized by the Ministry of the Environment. This also generates that some 5,000 people work informally.

Work is underway to set up sorter stations in the current landfills that will not only combat the environmental situation, but also formalize the work of the sorters.

On December 7, 2022, the first open-air landfill in Uruguay was closed, which was located in Rocha and had been operating for 70 years near a drinking water intake. This is a milestone that is part of one of the main objectives of the ministry: To close all open-air landfills in the country by 2025.

Ministry of Industry, Energy and Mining

Uruguay is well positioned in the world thanks to the management of its development policies. The world looks at us for our ability to maintain energy and environmental policies that aim towards sustainability.

We have always been committed to caring for the environment. Policies such as sanitation have been promoted, such as access to drinking water in which work is already underway.

Progress has also been made in renewable energy. Uruguay is in the second energy transition, giving continuity to the policies to remain committed to the defense of our natural resources.

In this process, the path of decarbonization began.

• Progressively eliminate the production of energy based on fossil fuels. A goal that was set worldwide for 2050 and of which Uruguay is a part.

• Our country has practically decarbonized its electricity matrix and we are positioned worldwide, with a 97% participation in renewable energies.

• We began to work on sustainable mobility, promoting the importation of electric vehicles and also incorporating them into public transport.

• A sustainable bond was issued in October. With this, Uruguay enters the world market of sustainable finance.

Uruguay is in a position to produce green hydrogen and transform it into a new export product.

• A renewable energy source that can be used in transportation, in energy, and that is becoming a product of need worldwide.

• It will be able to generate more than 35 thousand jobs.

• By 2040, a turnover of US$ 2,100 million dollars can be reached. The call for projects that will surely be operational by 2024 has already been launched.”

Read the complete report: Camino al Desarrollo, Uruguay, March 2, 2023

 

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Dr. Soledad Quartucci | Founder

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