Uruguay: a Study of Arrested Economic Development. Robert Henderson Burton IV Louisiana State University and Agricultural & Mechanical College
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Louisiana State University LSU Digital Commons LSU Historical Dissertations and Theses Graduate School 1967 Uruguay: a Study of Arrested Economic Development. Robert Henderson Burton IV Louisiana State University and Agricultural & Mechanical College Follow this and additional works at: https://digitalcommons.lsu.edu/gradschool_disstheses Recommended Citation Burton, Robert Henderson IV, "Uruguay: a Study of Arrested Economic Development." (1967). LSU Historical Dissertations and Theses. 1325. https://digitalcommons.lsu.edu/gradschool_disstheses/1325 This Dissertation is brought to you for free and open access by the Graduate School at LSU Digital Commons. It has been accepted for inclusion in LSU Historical Dissertations and Theses by an authorized administrator of LSU Digital Commons. For more information, please contact [email protected]. This dissertation has been microfilmed exactly as received 67-17,308 BURTON IV, Robert Henderson, 1934- URUGUAY: A STUDY OF ARRESTED ECONOMIC DEVELOPMENT. Louisiana State University and Agricultural and Mechanical College, Ph.D., 1967 Economics, general University Microfilms, Inc., Ann Arbor, Michigan URUGUAY: A STUDY OP ARRESTED ECONOMIC DEVELOPMENT A Dissertation Submitted to the Graduate Faculty of th Louisiana State University and Agricultural and Mechanical College in partial fulfillment of the requirements for the degree of Doctor of Philosophy in The Department of Economics by Robert Henderson Burton I#" M.B.A., Tulane University, 1955 August, 1967 ACKNOWLEDGMENT The author would like to thank the members of his committee— Drs. Robert Flammang, Eric Baklanoff, James Payne, Lee Melton, and Peter J, pleiss— for helpful comments and criticism in the preparation of this study. i j/fii TABLE OP CONTENTS Page ACKNOWLEDGMENT i i/ill LIST OP TABLES ................... viii LIST OP GRAPHS ...................................... x ABSTRACT .......................................... xii INTRODUCTION................... ....XV Organization...................... xvii S o u r c e s ....................................... xvii CHAPTER I. THE COUNTRY OP URUGUAY......................... 1 Introduction...................................1 History . ................................... 3 The Indians ......... • k- The Colonial period .................... 6 Independence. ........ .......... 9 The emergence of political stability......... 11 The present political situation........... 16 The history of education. ..........19 The history of p e n s i o n s .................... 20 The early history of government ownership of industry ....••.•••......... 22 Geography ................................ 23 Position.............'.............. ..23 Borders and hydrographic features ............ 2k- iv V TABLE OP CONTENTS (continued) CHAPTER Page Land forms................................ 25 Natural animal and vegetable l i f e ........... 2? Mineral resources ...... ............. 27 Political divisions ....................... 28 The capital ................................ 28 The people............. .... 30 Conclusion . 32 II. THE GOVERNMENT SECTOR ........................ 3^ Introduction. .... .......... .......3^ The Uruguayan concept of the welfare state. 37 Public health ........................ * 3 9 Education ................. ......... *K) Transfer payments .......... ........ ^2 Government ownership of Industry. ...,...^6 Financial institutions........................ ^-7 Public utilities, transportation and communications. ..."..,.........50 Other government enterprises.................. 6l The government as employer.................... 65 Evaluation of the government sector ........... 66 Statistical appendix. .............69 III. THE PRIVATE SECTOR.......................... 7 9 Introduction......... 79 Primary industries............................ 81 vi TABLE OP CONTENTS (continued) CHAPTER Page Forests • . • .......... ........ 91 Minerals and mining ............. 92 F i s h i n g ........... 93 Secondary industries.......................... 95 Manufacturing ............... .95 Construction........... .103 Tertiary industries ........ ........ .104 Distribution. ........ ..... 10^ Services. ....................... .105 F i n a n c e ................................... 105 Transport and warehousing.................. 106 The professions........................... 107 Summary and conclusions........... 108 Statistical appendix....................... .110 IV. THE FOREIGN SECTOR........................... 125 Introduction. .......... 125 E x p o r t s .............................. .127 I m p o r t s ............................ .131 Financing and the foreign balance ......... .133 Impart restrictions .13^ Exchange surcharges .135 The exchange market ............ .136 Transfers .. .......... ......... .14-0 Capital flows ............. 1^-1 vii TABLE OP CONTENTS (continued) CHAPTER Page Trade agreements. 1^2 Summary and conclusions..................... 1^5 Statistical appendix. • 1^8 V. PROBLEMS AND PROSPECTS...................... l6l Introduction. ...... 161 Trends...................... 162 Aggregate ................. 162 Per capita...................... 163 The cycle .......... 167 Gross national product............. 167 Sector analysis ................... 168 The foreign sector................... 171 Analysis and projections............... 175 Introduction. ......... 175 Financial factors . ......... ...... 177 Commodity ’’real" factors. ......... 183 Sector analysis 18^ Conclusions ........ 188 Statistical appendix I ......... ...... 191 Statistical appendix I I ............. «... 201 Statistical appendix III. .......... 227 CONCLUSION ..................... 2^2 BIBLIOGRAPHY ........ ............... 2^5 AUTOBIOGRAPHY..... .... .......................... 255 LIST OP TABLES CHAPTER II Page I. Consolidated Account of Sources and Uses of Funds of the Public Sector ..........• . • • 70 II, Consumption Expenditures of the Central Government 7P III. Government Consumption in 1961 Prices, . 72 IV. GNP in 1961 Prices .............. 73 V. Wholesale Price Index......... 7 ^ VI. Percentage of Students Who Complete“a Primary Cycle of Six Years 75 VII. Cost of Education in 1961. ....-*......... 7& VIII. Distributions and Collections of the Principal Social Security Institutes ,,,.,.,,..77 IX. Money in Circulation ...,. ............. 78 CHAPTER III I. Index of Uruguay’s Real GNP Physical Volume by Sector at Constant Factor Cost .111 II. Uruguay's GNP by Sector................... .112 III. Uruguay's GNP by Economic Sector ...... ,113 IV. Uruguay's Livestock in Selected Years........ 11^ V. Total Agricultural Investment in Uruguay Percentage by Sector ............... .115 VI. Output Per Hectare in Selected Products. ,116 VII, Fishing Production in Tons ,117 VIII. Value of Industrial Production...............118 IX. Cumulative Annual Growth Rates in Industrial Manufacturing Production . ......... .119 X. Industrial Growth in Latin American Countries.120 viii ix LIST OP TABLES CHAPTER III (continued) Page XI. Manufacturing Output Index of Physical Volume by Branch of Activity ••••••.. 121 XII. Number of Dwellings* Constructed by Source of Finan c i n g .......................... 122 XIII. Index of Physical Volume of Construction . 123 XIV. Cost of Private Building in Montevideo . 12^ CHAPTER IV I. Terms of Trade and Purchasing Power Prom Exports. ............. 1^9 II. Balance of Trade .............. 150 III. Classification of Exports by Economic Sector of Origin............... 151 IV. Development of the Manufacturing Sector in Foreign Trade........................ 153 V. Exports by Country of Destination........... 15^ VI. Classification of Imports by Economic Sector 156 VII. Capacity to Pay and Capacity to Import . • . 158 VIII. Import Surcharges by Date. ............... 160 CHAPTER V I. Uruguay*s Gross National Product . ....... 192 II. GNP Per Capita by Sector ................... 193 III. Index of Real GNP by Sector................. 195 IV. Manufacturing Output Index by 3ranch of A c t i v i t y ...................................196 V. Balance of Payments......................... 197 VT. Merchandise Terms of Trade. ......... 198 VII. Increase In Prices ......................... 199 VIII. Financial Position of the Central Government 200 LIST OP GHAPHS Page 1. Gross National Product . .......... • • . • • 202 2. Farming.................................... 203 3. Stockraising ......... 20^ k . Agriculture................................ 205 5. Manufacturing (Including Mining & Quarrying) . 206 6 . Construction ........................... 20? 7. Manufacturing and Construction............. 208 3. Transportation, Warehousing & Communications • • 209 9. Public Utilities .......................... .. 210 10. Other Services ......................... 211 11. Total S e r v i c e s .............. 212 12. Gross National P r o d u c t ..................... 213 13. GNP With Sine Curve Pitted To Data Around Constant Trend ........... 21^4- 14. GNP (Three-year Moving Average)............. 215 15* Farming (Three-year Moving Average). ...... 216 16. Stockraising (Three-year Moving Average) .... 217 17* Agriculture (Three-year Moving Average)..... 218 18. Manufacturing (Three-year Moving Average). 219 19. Construction (Three-year Moving Average) .... 220 20. Manufacturing & Construction (Three-year Moving Average)........................... 221 21. Transportation, Warehousing & Communications (Three-year Moving Average)............... 222 22. Public Utilities (Three-year Moving Average) . • 223 x xi LIST OF GRAPHS (continued) Page 2