Volume 1. Main Report
Resource information
The report reviews the macroeconomic
perspectives of Uruguay, focused on its rural development
and natural resources intensive sectors, to form the basis
for expanding agricultural production, and increasing
productivity. It reviews the country's sectoral
composition, exports of natural resource intensive products,
and labor and capital use, as well as the tax burden.
Although agriculture represents less than ten percent of the
gross domestic product (GDP) of Uruguay, the combination of
agriculture, and agro-industry makes up twenty three percent
of GDP, of which half of the output is exported, which
represented in 2000, seventy three percent of the
country's total export earnings, with the composition
of exports, significantly diversified. Nonetheless, the
agricultural sector remains vulnerable to both external
shocks, and domestic factors, and, while the
government's ability to ameliorate the impacts of these
shocks is limited, the likely increasing importance of
international trade calls for a long-term approach to
agricultural, and agro-industrial development. Regarding the
socioeconomic dimensions of the rural economy, its income
distribution is the least-skewed in the region, but,
regardless of the relatively small number of rural poor -
highly dependent on wage labor - given the high levels of
literacy, future efforts should be oriented towards
improving secondary, and technical education. Although the
agricultural sector has demonstrated a capacity to innovate
by adopting technology, and diversifying both production,
and markets, production expansion, and productivity increase
must be compatible with the protection, and conservation of
its natural resource base, with a supportive public
framework in promoting rural areas, encouraged by the
private sector.
