Special Report: How to be small and successful in Latin America (ISSN 17414474)

Compared with the rest of the region, Uruguay stands out as an egalitarian society, with low levels of poverty and low inequality. Relative to the overall size of its population Uruguay has the largest middle class in Latin America. Confidence in the government is comparatively high, a reflection of low levels of perceived corruption. The World Bank says the country has attained a high level of equality of opportunity in terms of access to basic services such as education, running water, electricity and sanitation. Moderate poverty dropped from 32.5% of the population in 2006 to 9.4% by 2016, while in the same period extreme poverty was almost eradicated – down from 2.5% to 0.2% of the population. Income levels of the poorest 40% of the population have increased more rapidly than the average for the population as a whole. The proportion of the population over the age of 65 that receives a pension has grown to 87%, one of the highest coverage rates in the region. The World Bank attributes the reduction in poverty to two main factors, “a solid social contract and economic openness”.