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Mise En Page 1 LATIN AMERICA URUGUAY UNITARY COUNTRY BASIC SOCIO-ECONOMIC INDICATORS INCOME GROUP: HIGH INCOME LOCAL CURRENCY: URUGUAYAN PESO (UYU) POPULATION AND GEOGRAPHY ECONOMIC DATA Area: 176 220 km 2 GDP: 78.2 billion (current PPP international dollars), i.e. 22 562 dollars per inhabitant Population: 3 456 million inhabitants (2017), an increase of 0.34% (2017) per year (2010-2015) Real GDP growth: 2.7% (2017 vs 2016) Density: 20 inhabitants / km 2 Unemployment rate: 8.3% (2018) Urban population: 95.2% of national population Foreign direct investment, net inflows (FDI): -878.31 (BoP, current USD millions, 2017) Urban population growth: 0.5% (2017 vs 2016) Gross Fixed Capital Formation (GFCF): 16.66 (2017) Capital city: Montevideo (50.2% of national population) HDI: 0.804 (high), rank 55 (2017) Poverty rate: 0.1% (2017) MAIN FEATURES OF THE MULTI-LEVEL GOVERNANCE FRAMEWORK Uruguay is a unitary republic organized as a presidential representative democracy with division of powers and three levels of elective government: national, departmental and municipal. The President is vested with the Executive power and is both the head of government and the head of the State. Legislative power is vested in a bicameral General Assembly, comprised of the Chamber of Representatives and the Chamber of Senators. The President is elected every five years by popular vote, while members of the General Assembly are elected every five years by proportional representation to ensure the presence of at least two members by department. Judicial power is vested in the courts, of which the Supreme Court is the highest one. The beginning of the decentralization process can be traced back to 1935, with the enactment of the Organic Municipal Act No. 9 515 ( Ley Orgánica Municipal ). Decentralization is embedded in the 1967 Constitution (Section XVI), which acknowledges the existence of local authorities, although they are not explicitly deemed as municipalities. The Constitution has been amended in several occasions: 1989, 1994, 1996 and 2004. In particular, the 1996 Constitutional Reform defined a series of political reforms towards decentralization, amongst which the creation of the Sectoral Commission on Decentra - lization and the Congress of Mayors, as well as the definition of departmental and municipal matters may be highlighted. A second set of interventions was carried out since 1990 with the decentralizing initiative and new mechanisms of citizen participation of the department of Montevideo. Important steps towards decentralization were taken in 2009 with the approval of the Law No. 18 567 on Political Decentralization and Citizen Participation, which established municipalities as local governments yet subject to the hierarchy of the head of department ( Intendente ). In July 2010, the first local governments were elected at the same time that the Law No. 18 719 gave rise to the Incentive Fund for Municipal Management ( Fondo de Incentivo a la Gestión de los Municipios ). In 2014, Law No. 19 272 was introduced, replacing Law No. 18 567 and establishing municipal councils as fully decentralized government bodies. However, the approval in 2015 of National Budget Law No. 19 355 entailed the return to the hierarchical system initially contemplated in Law No. 18 567. TERRITORIAL ORGANISATION 2016 Municipal level Intermediate level regional or State level Total number of SNGs 112 Municipalities 19 Department (Municipio) (Departamento) Average municipal size: 21 391 inhabitants 112 19 131 OVERALL DESCRIPTION. Following the enactment of Law No. 18 567 and the subsequent creation of municipalities, Uruguay is divided into 19 departments and 112 municipalities. Slightly over 20% of the country’s territory is municipalized, including 72% of total population. Three departments have their territory completely municipalized: Canelones, Maldonado and Montevideo. The three departments include 41% of all municipalities. Territories which are not municipalized remain under the management of the departmental government they fall within. MUNICIPALITIES AND INTER-MUNICIPAL COOPERATION. 89 municipalities were initially created after the implementation of Law No. 18 567, a number that has expanded to become the 112 municipalities that exist to date in the country. The initial 2009 Law established that municipalities may be created in territories of 2000 inhabitants or more, although departmental governments were granted by the 2009 Law the capacity to create municipalities in territories of even less than 2000 inhabitants – a capacity that they kept until 2013. In 2010, the initial 89 municipalities were created in all territories with over 5000 inhabitants. In 2013, departmental governments created 12 new municipalities and in 2015, following that years’ municipal elections, 11 new municipalities were created in those territories whose populations exceeded 2000 inhabitants. In 2013, the Departmental Congress approved the creation of a National Municipal Plenary ( Plenario Nacional de Municipios ) for promoting cooperation between municipalities in advancing the decentralization process. DEPARTMENTS. The 19 departments constitute the second level of government in Uruguay. All departments are constituted by the Departmental Board ( Junta Departametal ), with judicial and legislative functions, and the Mayor ( Intendente ), which holds executive and administrative functions. The Constitution sets the basic responsibilities attributed to departments and leaves the determination of the rest of legislative and control responsibilities to ordinary law. Moreover, the Constitution also provides for the creation of the Departmental Congress, with the aim of coordinating the actions of the different departments in the country. SUBNATIONAL GOVERNMENT RESPONSIBILITIES The responsibilities of departmental governments are mostly defined by the Municipal Organic Law, adopted in 1935 and, more recently, by Art. 13 of abo - vementioned Law No. 19 272 on Political Decentralization and Citizen Participation. The law excludes from the local government’s sphere public security service and all the constitutional provisions that directly define powers of both national bodies and deconcentrated entities or services. Recent reforms have created new competencies that devolve responsibilities in the areas of land management, social policies, health, education and agriculture. Municipalities are responsible for annual accountability to their department; collaboration in the collection of departmental income; assisting public agencies in territorial management and collaborating in national public policies in agreement with the departmental government and the executive branch. There are several fields in which local government’s competences are not clearly defined, but local authorities can manifest institutional interest and contribute to programming and policy-making (Art. 13 of Law No. 19 272). Main responsibility sectors and sub-sectors Departmental level municipal level 1. General public services Internal administration Internal administration 2. Public order and safety 3. Economic affairs Transit and roads; Road management; Departmental and urban transport; Road network; Traffic signs and traffic control; Conforming measures /transports Promote the development of agriculture, livestock, industry and trade for the development of livestock, industry or tourism in coordination with the Departments; Opinion, proposal and assistance in the management of local development projects; Collaborate in guidelines on fairs and markets 4. Environmental Protection of the environment and sustainable development Environmental protection; Environmental education programs; protection of natural resources; Waste collection Maintenance of green areas; Rainwater management; Urgent measures in collaboration with the National Government on accidents, fires, floods and other natural disasters; Collection and final disposal of waste that is assigned by the department 5. Housing and Construction and housing (part of its execution and regulation); Territorial and Maintenance of public works; Improvement of goods and buildings; community amenities urban planning; Street cleaning; Public lighting; Sanitation; Cemeteries Public lighting; Street cleaning; Public spaces; Cemeteries 6. Health Public hygiene and health Zonal programs in health and hygiene 7. Recreation, Libraries; Museums; Exhibitions; Nurseries; Theater; Music; Social and cultural programs, attending to the proposals culture & religion Sports; Gardens; Zoos; Planetariums of other social bodies 8. Education 9. Social Activities and policies for specific population groups (women, children, protection young people, the elderly and people with disabilities) SUBNATIONAL GOVERNMENT FINANCE Availability of fiscal data: Quality/reliability of fiscal data : Scope of fiscal data: departmental and municipal governments. SNA 1993 and other Medium Medium GENERAL INTRODUCTION. Finance provisions regarding departments can be found in the Constitution, in particular in articles 214, 273, 275 and 298. Departments are financed through own revenue or transfers from the National Government or other agencies. Most of departmental own resources come from taxes and fees. The Constitution gives the departmental legislative body the possibility of creating specific taxes and fees. Law No. 19 272 directly regulates municipal finance, establishing that municipalities may only manage financial resources, not create them. Furthermore, the Law also sets out that departments must plan in their
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