ECONOMY
Industry:
Although foreign trade depends mainly on agricultural production, the production of industrial goods for domestic consumption is increasing, primarily in the fields of textiles, tires, shoes, leather apparel, cement, petroleum refining, and wine. World War II spurred the industrial growth of Uruguay, and now local industry supplies most of the manufactured products used. Most industry is concentrated in and around Montevideo.
The manufacturing sector still has severe structural problems as a legacy of the protectionist policies that stressed import substitution during the 1970s. With the MERCOSUR trade bloc, the domestic market for manufactured goods has opened to strong competition from Argentina and Brazil. Some industries, like textiles, may expand because they are already internationally competitive. Others, like petrochemical refining, chemicals, pharmaceuticals, and tires are reasonably competitive and should do well with new investment.
The automotive, electronic, and machinery sectors will probably continue to decline because of competition among MERCOSUR partners. Uruguay produced 10,530 automobiles in 2001, down 27% from the 14,404 units produced in 2000. Uruguay's oil refinery had a capacity of 37,000 barrels per day in 2002.
Agriculture:
Uruguay has a primarily agricultural and pastoral economy, but the importance of these sectors has been declining. The formation of the Mercosur common market in 1995 had a significant effect on Uruguayan agriculture by providing preferential access to neighboring countries, particularly Brazil. Agriculture and animal husbandry together contributed 6% of the GDP in 2001. About 40% of the agriculture's contribution to GDP comes from crops and the rest is from animal husbandry.
About 77% of Uruguay's land area is devoted to stock raising and 7.4% to the cultivation of crops. In pasturage, large farms predominate, with farms of more than 1,000 hectares (2,500 acres) accounting for two-thirds of all farmland. Crops are grown mainly on small farms of less than 100 hectares (250 acres).
The principal crops harvested (in thousands of tons) in 1999 were rice, 1,328; wheat, 377; barley, 111; corn, 243; sorghum, 106; sunflower seeds, 161; oats, 45; apples, 74; and peaches, 25.
Research & Development:
The UNESCO Regional Office for Science and Technology in Latin America and the Caribbean is located in Montevideo. Learned societies include the Pediatrics Society, the Association of Uruguayan Engineers, and the Chemical and Pharmaceutical Association, the Odontological Association, and the Surgical Society, all headquartered in Montevideo. The University of the Republic, founded in 1849 at Montevideo, has faculties of agronomy, sciences, engineering, medicine, dentistry, chemistry, and veterinary medicine.
The Institute of Higher Studies, founded in 1928 at Montevideo, offers courses in biological climatology, geomorphology, paleontology, and mathematics. The Higher Institute of Electrical Engineering, Electronics, and Computing were founded in 1922 at Montevideo. In 1987–97, science and engineering students accounted for 32% of college and university enrollments. In 1997, 2,093 scientists and engineers were engaged in research and development.