History of Uruguay - Recent History

Recent History

Sanguinetti's economic reforms, focusing on the attraction of foreign trade and capital, achieved some success and stabilized the economy. In order to promote national reconciliation and facilitate the return of democratic civilian rule, Sanguinetti secured public approval by plebiscite of a controversial general amnesty for military leaders accused of committing human rights violations under the military regime and sped the release of former guerrillas.

The National Party's Luis Alberto Lacalle won the 1989 presidential election and served from 1990 to 1995. President Lacalle executed major economic structural reforms and pursued further liberalization of trade regimes, including Uruguay's inclusion in the Southern Common Market (MERCOSUR) in 1991. Despite economic growth during Lacalle's term, adjustment and privatization efforts provoked political opposition, and some reforms were overturned by referendum.

In the 1994 elections, former President Sanguinetti won a new term, which ran from 1995 until March 2000. As no single party had a majority in the General Assembly, the National Party joined with Sanguinetti's Colorado Party in a coalition government. The Sanguinetti government continued Uruguay's economic reforms and integration into MERCOSUR. Other important reforms were aimed at improving the electoral system, social security, education, and public safety. The economy grew steadily for most of Sanguinetti's term until low commodity prices and economic difficulties in its main export markets caused a recession in 1999, which has continued into 2002.

The 1999 national elections were held under a new electoral system established by a 1996 constitutional amendment. Primaries in April decided single presidential candidates for each party, and national elections on October 31 determined representation in the legislature. As no presidential candidate received a majority in the October election, a runoff was held in November. In the runoff, Colorado Party candidate Jorge Batlle, aided by the support of the National Party, defeated Broad Front candidate Tabaré Vázquez.

The Colorado and National Parties continued their legislative coalition, as neither party by itself won as many seats as the 40% of each house won by the Broad Front coalition. The formal coalition ended in November 2002, when the Blancos withdrew their ministers from the cabinet, although the Blancos continued to support the Colorados on most issues.

Batlle's five-year term was marked by economic recession and uncertainty, first with the 1999 devaluation of the Brazilian real, then with the outbreaks of foot-and-mouth disease (aftosa) in Uruguay's key beef sector in 2001, and finally with the political and economic collapse of Argentina. Unemployment rose to close to twenty percent, real wages fell, the peso was devalued and the percentage of Uruguayans in poverty reached almost forty percent.

These worsening economic conditions played a part in turning public opinion against the free market economic policies adopted by the Batlle administration and its predecessors, leading to popular rejection through plebiscites of proposals for privatization of the state petroleum company in 2003 and of the state water company in 2004. In 2004 Uruguayans elected Tabaré Vázquez as president, while giving the Broad Front coalition a majority in both houses of parliament. The newly elected government, while pledging to continue payments on Uruguay's external debt, has also promised to undertake a crash jobs programs to attack the widespread problems of poverty and unemployment.

In 2009, former Tupamaro and agriculture minister José Mujica, was elected president, subsequently succeeding Vázquez on March 1, 2010.