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Thousands of workers marched in Montevideo, Uruguay, in April to protest austerity measures and economic conditions imposed by the government
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Mass protest in Uruguay condemns government austerity moves |
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Thousands of workers marched in Montevideo, Uruguay, in April to protest austerity measures and economic conditions imposed by the government |
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BY MAURICE WILLIAMS
Uruguay’s economy has been hammered by Argentina’s economic free fall and the collapse of its banking system. The bulk of its exports have gone to Argentina and Brazil, its biggest trading partners. Uruguay is now in the third year of recession after following those two countries into an economic tailspin several years ago. Moody’s Investors Service lowered Uruguay’s investment rating to junk status May 3 saying the country was "increasingly vulnerable to macroeconomic shocks emanating from Argentina." Recently when the Argentine government severely restricted bank withdrawals, many took money from their Uruguayan accounts instead, draining hundreds of millions of dollars out of the country. The Uruguayan central bank had to intervene because of a run on deposits. While the Uruguayan government has depreciated its currency to increase the competitiveness of the country’s exports, the regime and its capitalist rulers hold mostly dollar-denominated debts that add up to more than 60 percent of the country’s gross domestic product.
Seeking to force Uruguayan working people to bear the brunt of the economic crisis, the government in Montevideo has implemented cuts in social spending while increasing taxes, following IMF dictates. Thousands of workers marched in the capital in April to protest these austerity measures and the economic conditions.
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