http://www.progresoweekly.com/index.php?progreso=eduardo_dimas&otherweek=1110780000

Uruguay: Now what? 

By Eduardo Dimas

[EMAIL PROTECTED]

On March 1, a man from the left, Tabar� V�zquez, assumed the presidency of 
Uruguay at the head of a heterogeneous government composed of socialists, 
communists, Christian socialists and even important figures of Uruguay's 
neoliberalism.

His rise to power, after winning the October elections on the first round with 
50.45 percent of the votes (more than 1.113 million votes), has created a 
string of expectations regarding the direction his administration will take, 
basically a leftist government that holds a majority in the Chamber of Deputies 
(53 of 99 seats) and the Senate (17 of 30 seats.)

The presidents of both chambers, Nora Castro and Jos� Mujica, respectively, are 
former Tupamaro guerrillas who were persecuted, tortured and sentenced to long 
prison terms during the military dictatorship of 1972-1985.

For obvious reasons, a government with those characteristics is not often seen 
in Latin America, not even in Venezuela or Brazil, much less in Argentina.

The first actions taken by the V�zquez government could not be more symbolic: A 
$100 million emergency plan to alleviate the misery in which 40 percent of the 
Uruguayan people live; the restoration of full diplomatic relations with Cuba 
-- broken during the administration of Jorge Batlle, whose servility to the 
government of the United States was total -- and the signing of a trade pact 
with Venezuela whereby Uruguay receives crude oil at reasonable prices and 
exports food products, in a demonstration that Latin American integration is 
possible. 

In other words, Uruguay establishes stronger economic and political links with 
the two countries that are in the crosshairs of the current U.S. 
administration. This is a gesture that many observers have viewed -- with good 
reason, in my opinion -- as a show of independence and a warning to the empire 
that the new Uruguayan government will be guided by the interests of the nation 
and not by foreign interests, to the extent that this is possible for a nation 
that is practically in the hands of the international financial organizations. 

However, the very heterogeneity of the new government's members and the 
ideological differences between some raise the specter of possible splits and 
disagreements that may weaken the government's performance. Some news agencies 
have reminded us of the splits that occurred in the past between the members of 
the Encuentro Progresista-Frente Amplio [Progressive Encounter-Broad Front] and 
the implications similar splits might have for Uruguay's first progressive 
government in 174 years of independent existence.

Others point out, also with reason, that the majority of the Uruguayan people 
have placed their hopes on the performance of the new government, in the wake 
of the economic setbacks created by the application of the neoliberal model, 
the corruption and a series of circumstances that led the country to bankruptcy.

If those hopes are frustrated by a misguided action or by a continuation of the 
neoliberal policies, the Uruguayan people would cease to support the left. This 
would mean a serious defeat, which would have repercussions not only inside 
Uruguay but also on a regional scale, at a time when new perspectives of 
integration are opening, and several neoliberal-minded and pro-U.S. governments 
are rejected by their citizens, as is the case in Ecuador, Bolivia and Peru.

Tabar� V�zquez reached the presidency with more than 80 percent of the popular 
acceptance, which means that an important sector of those who did not vote for 
him now support his presidency -- or at least hope that he will do more for the 
benefit of the people than his predecessors. If no changes are made -- which 
wouldn't be immediate, of course -- then it would not unthinkable that a good 
many Uruguayans will reject him. 

We should bear in mind that more than half of the 50.45 percent of the votes 
V�zquez received were punishment votes against the other two traditional 
parties. That is, people voted for the Broad Front so as not to vote for the 
White Party or the Red Party, which received 34 percent and 10 percent of the 
vote, respectively.

In this connection, we should bear in mind the economic situation inherited by 
the V�zquez government. In his farewell speech, departing President Jorge 
Batlle (who earned the soubriquet of The Weeper) said he was turning over a 
country in full economic growth and many resolved problems.

If the story of Pinocchio were true, Batlle would have serious problems with 
his nose, because despite a 13 percent rise in the Gross Domestic Product last 
year -- attributable mostly to the loans received from the International 
Monetary Fund and the United States -- Uruguay's economic outlook is not at all 
encouraging.

Consider this: A foreign debt in excess of $14 billion, one of the highest per 
capita in the world, because Uruguay has barely 3.2 million inhabitants. This 
year, the nation will have to pay about $5 billion in interests and 
amortization of capital. That won't leave much for the war on poverty, which 
affects 40 percent of the population, 100,000 of whom are indigent.

Unemployment affects 20 percent of an active working population of more than 1 
million people. Add to this the breakdown of public services, particularly 
health care and education, which have undergone a process of neglect in 
preparation for their privatization.

With a situation like this, is it quite difficult for the government to solve 
the problems of poverty, much less jumpstart the economy in search not only of 
economic growth but also of development, something unthinkable in these 
circumstances.

There is another element that has not generated much talk but that could affect 
the direction the new government will take. It is the position assumed by the 
two traditional parties, accustomed to govern but now removed from power and 
discredited, although with a relative amount of popular backing. However, these 
two parties enjoy the support of the Uruguayan oligarchy and bourgeoisie and 
the United States government, which of course has begun to criticize V�zquez's 
independent policies, particularly the resumption of relations with Cuba and 
the closer ties to Venezuela. 

A fact that attracted the attention of many observers was the tranquil 
transference of power and the good relations between V�zquez and departing 
President Batlle. Those relations were not so friendly, however, as to make us 
think that the traditional parties (now the opposition) won't do everything 
possible to keep the new government from being successful. Failure to do so 
would mean the end of their political history and the loss of a power they have 
held for 174 years, even during the military dictatorships with which, somehow 
or other, they collaborated -- with some exceptions.

Other, more mistrustful observers, believe that those good relations are due to 
V�zquez's promises to the international financial organizations, the United 
States and the local oligarchy to not make substantial changes in Uruguay's 
economic and social situations.

However, these comments may be part of a campaign to discredit the new 
president and to deny him the support of the people and the more progressive 
organizations that form the coalition that carried him to power.

I believe these are, broadly speaking, the challenges before the new Uruguayan 
government. V�zquez's rise to power comes at a time when Latin America is 
carrying out an attempt at integration that greatly exceeds all other previous 
attempts.

But that process is still in its gestation and the V�zquez government is 
undeniably a considerable reinforcement, because it consolidates the position 
of the Mercosur and its relationship with the Andean Community of Nations, 
especially with Venezuela, which will join Mercosur.

Without a doubt, therein lies the embryo of Latin American unity. It remains to 
be seen what will happen in 2006, when six hemispheric nations will hold 
presidential elections: Mexico, Nicaragua, Colombia, Peru, Ecuador, and 
Venezuela.

Needless to say, this whole process is not seen kindly by the U.S. government 
or by important sectors of Latin America's oligarchy, which depend on 
transnational capital and are more interested in enforcing the Free Trade 
Accord of the Americas (FTAA) -- which would mean the total surrender of the 
riches of Latin America to the United States -- than in developing their own 
countries.

It is well known that Tabar� V�zquez always has had an integrationist vocation 
and for this reason it is important that he be successful in his 
administration. It is always said that politicians are tied to the 
circumstances around them. In the case of the new Uruguayan government, the 
circumstances are not favorable. Only the unity between its leaders and, above 
all, their willingness to create change will keep the new government from 
fading into history as just another deceit. 

If V�zquez manages to maintain and develop the objectives of his government 
(which he expressed often during and after the presidential campaign), if he 
manages to introduce into Uruguay's society at least a minimum of social 
justice, if he manages to pay even a small part of the social debt he inherited 
from the previous governments, he will take a firm step forward in the process 
of Latin American unity.

Eduardo Dimas, a professor at the School of Communications of Havana 
University, analyzes international politics for various media. 


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