Uruguay needs to 'change scale' for future well-being, says former statistics chief

Uruguay must urgently "change scale" to foster growth, as it currently exists in a "stable but insufficient equilibrium" for future well-being, stated Diego Aboal, former director of the National Statistics and Censuses Institute (INE).

Aboal, speaking at an Instituto Rumbos meeting, urged Uruguayans to "have a hunger for progress," learn from others, and set ambitious goals. He proposed seven critical decisions: a substantial increase in investment, promoting competition and efficiency, widespread adoption of productivity improvements and measurement, ensuring no child or young person is left behind, prioritizing China for investment, integrating the territory with a focus on social indicators in the north, and improving public policy execution.

He criticized the persistent "Switzerland of America" myth, calling it a "burden" that hinders humility and learning, noting Uruguay lost this status a century ago. Aboal stressed that the current investment level, 16% of GDP, is inadequate and must exceed 20%. "In an aging Uruguay with a declining working-age population, every broken educational path, every neighborhood captured by violence, and every company that fails to adopt technology represents productivity losses that the country has less and less room to absorb," he warned.

Agustín Iturralde of the Center for Development Studies highlighted fiscal challenges, noting Uruguay is "very expensive" and the state has grown significantly. He argued investment follows economic benefit and that Uruguay offers few opportunities, citing UPM's specific conditions. Iturralde also pointed to "tied cows" in both public and private sectors and limitations on new service stations, asserting, "There are no small, closed, prosperous countries" and that "ant nests must be kicked."

Milton Castellano from the Pit-Cnt's Cuesta-Duarte Institute countered that the market distributes unevenly, identified the agro-export sector as having "tied cows," and advocated for public investment and state-owned enterprises. He also called for accelerated efforts to combat child poverty.