MercoPress. South Atlantic News Agency

Neo-liberal paradigm collapsed” in 2008 says Uruguay

Main square, Montevideo

Uruguay's economy expanded 10.6% last year compared to 2007, said the government in an official state of the country address to Congress. The report also underlines that with the triggering of last year's international crisis, ”the neo-liberal (economic) paradigm collapsed”.

The several volumes report points out that in spite of the growing problems worldwide Uruguay managed to keep growing. "This demanded a very careful management of economic policy instruments as well as the strong commitment of the government and economic and social actors. The task was not easy, but the responsibility and collective effort enabled us to limit the crisis impact and close the year with an estimated GDP expansion of 10.6%, according to data complied until November 2008". "According to data available last October, during the first nine months of the year, Uruguay's GDP expanded 13.2% (over the same period in 2007), private investment in machinery and equipment remained particularly dynamic and domestic demand showed sustained growth", points out the report on the bright side. The report indicates that globally 2008 signals the beginning of a financial crisis "of unprecedented characteristics with duration and consequences still too risky to predict". But among so many things, some seem quite clear: "the neo-liberal paradigm collapsed; credit is over for those who believed they were infallible and non accountable and acted with arrogance and irresponsibility". Further on it admits Uruguay "is not absent from this complex situation, but the country is neither defenceless nor unskilful to address it". The government has reacted saying that measures have been adopted to preserve jobs, salaries and contain inflation, which was above 9% in 2008.