Uruguay

Created as a buffer state between Brazil and Argentina, Uruguay has one of the most homogenous and literate populations in Latin America, was the first , welfare state, in the region, and the capital, Montevideo, is a bustling metropolis similar in European style to Buenos Aries. The so-called , Denmark of South America, has developed a rich tradition of democracy and is rated as the most democratic country in Latin America. From 1903-1973 Uruguay was governed by constitutional governments and experimented with a plural nine-man executive council between 1952-1967. Some components of the welfare state include: a minimum wage, unemployment compensation, free health care, liability insurance, retirement benefits, and a short work week with paid vacations and holidays. In the 1960s, the weight of the welfare state almost crushed the economy. Complications arose recently with the economic hardships faced by neighboring Brazil and Argentina. The economic future of Uruguay remains questionable and is in need of diversification and balance between the various segments of the economy.