MercoPress. South Atlantic News Agency

Pragmatism and seduction mark new Uruguayan president.

Soft spoken Tabare Vazquez who takes office Tuesday as Uruguay's next elected president is the fourth child of an oil refinery worker and the first oncologist to come out of the working class Montevideo neighborhood of La Teja.

The new president's inauguration marks the end of the Colorado and National (or Blanco) political parties predominance dating back to the country's independence in 1830, and the beginning of Uruguay's first left wing catch all coalition under the banner of the Broad Front-Progressive Encounter, which encompasses former urban guerrillas, Marxist oriented groupings to Christian Democrats and disenchanted "blancos" and "colorados".

The coalition's triumph, whose support grew slowly but steadily over 34 years to reach just under 51 percent of the vote in last October elections, is seen mainly as the achievement of Vazquez, a 65-year-old Socialist, who actually joined full time politics in the mid eighties after becoming a successful oncologist.

But Dr. Vazquez has a tremendous challenge ahead. Uruguay is still suffering the effects of the 1999/2003 recession which cut the GDP almost by half, unemployment soared to over 20% and the financial system was saved from a total collapse by a massive bridge loan of 1,5 billion US dollars from the US Treasury..

Even after economic growth of 12.5% in 2004 - the best in two decades ? unemployment remains above 13% and an estimated 33% of Uruguayans live below the poverty line with more than 50% births in poor homes.

Once known as the "Switzerland of South America" for its political and financial stability, with a strong middle class and high standards of living for Latinamerica, Uruguay in 1999 suffered the full impact of the devaluation of the Brazilian currency followed in late 2001 by the Argentine default and economic collapse which sparked a bank run on the Uruguayan financial system, where the rich Argentines kept their money in secret bank accounts. In the context of Mercosur both countries represented almost half of Uruguay's foreign trade. The extent of the crisis paved the way for Dr. Vazquez and a disenchanted, unbelieving electorate who turned to the Broad Front-Progressive Encounter.

Dr. Vazquez who became active in politics after Uruguay returned to democracy following an 11 year spell of military dictatorship 1984/85, not only is a recognized oncologist but also proved a good manager when during a short stint as president of a third league soccer club, Uruguay's national passion, managed to conquer the Champion Cup of the Premier league. During the eighties he accepted becoming a mason.

Based on these conditions which launched him to the national spotlight plus the fact his first name, Tabaré, recalls a deep rooted legend of an Indian chief who fought European invaders, in 1989 he scraped in as mayor of Montevideo where more than half of Uruguay's 3,4 million people live.

As Montevideo's mayor, 1990-1994, Dr. Vazquez decentralized the city government, promoted community centers, privatized and outsourced many municipal operations, while boosting staff salaries and increasing social programs. When he left the City Hall a surplus had turned into an important deficit.

During the following ten years he consolidated his grip over the fractious left wing coalition in spite of having lost two presidential bids, but on both occasions he was the most voted candidate individually with the Broad Front participation growing from 22 to 46% of the vote nationally.

Dr. Vazquez gave further evidence of pragmatism when leaving aside past frictions he invited his most serious rival in the coalition, Senator Danilo Astori to become Economy Minister. The announcement was made several weeks before the October election giving the coalition an extra edge to the centre. Economist Mr. Astori, a former Dean of the Uruguayan School of Economics is known for his fiscal prudence and orthodox approach to financial problems that openly supported the outgoing administration's sovereign debt rescheduling in spite of criticisms from inside the coalition.

The move proved strategically magic helping to harvest the vote of Uruguay's traditionally conservative middle class voters and international investors.

Since successfully rescheduling its debt and restoring the banking system, Uruguay has enjoyed a steady flow of foreign direct investment. Maintaining that trend and current economic policy, bitterly criticized as responsible for the country's poverty and emigration by a significant portion of the fractious coalition, will be crucial to restoring the potential of the economy, which has yet to recover to the pre-recession levels of 1998. This is particularly demanding when his cabinet is made up of several former guerrilla fighters and hard line trade unionists.

Dr. Vazquez has been married for 40 years to Maria Auxiliadora Delgado and is the father of three children.