MercoPress. South Atlantic News Agency

Uruguayan president elect captivates audience of Argentine businesspeople

Mujica’s promised clear and tangible rules of the game, and government efforts to lessen risk factors

Uruguayan president elect Jose Mujica promised to the business elite of the River Plate economic stability, standing rules of the game, low taxes, incentives and reduced risks in exchange for productive investments in the country’s economy.

Mujica and his Vice president Danilo Astori were the only speakers at a lunch in the Atlantic resort of Punta del Este organized by the Argentine-Uruguayan Chamber of Commerce which attracted over 1.600 business people, (and some rich and famous) interested in hearing first hand the economic ideas of the former guerrilla leader turned politician and who was elected last November as Uruguay’s next president and will be taking office March first.

Mujica called on the business community, mainly Argentines, to invest in Uruguay, which is a necessary condition for his government to be able to honour the “merited illusion of Uruguayans of enjoying a better life”.

”We need investments, because we need more and better jobs. And that has a previous condition: clear and tangible rules of the game which respond to an objective analysis that promotes the right atmosphere for investments” underlined Mujica.

“This, he added, “means there are no strides or short cuts, but simply hard work” and that is why “I am asking you business people, with a vested interest in my country, to bet in Uruguay, to play your chips for Uruguay” because you can’t generate wealth only “with legislative decisions”.

“Being an investor means having work and risk capacities and we need people who want to bet in Uruguay, not to gamble, to bet in the future. The duty of the government is to lessen as much as possible risk margins and ensure stability”, said the veteran politician, who also pointed out that “economists and accountants like to draw nice numbers, equations and results, but it is us the politicians, the much questioned politicians who have to stand up to the people and explain”.

However Mujica said that the investment boost must first come from Uruguayan business people, who should not take their profits overseas: “We are not going to expropriate, we respect private property and we are not going to break your backs with taxes. Take my word for that”

He ended saying that Uruguay is by far the country most integrated and liveable of Latinamerica “we are inviting you to invest in the country, a reliable country, a stable country which honours contracts and commitments and understands that investors contribute and must be encouraged and looked after”.

Before Mujica Astori, former Economy minister of the outgoing government and architect of Uruguay’s current economic orientation outlined the main objectives of the government which takes office in March.

Astori said the plan is to maintain the “adequate equilibrium between the continuity of all that which contributed to create confidence and reliability” under President Vazquez and some “changes in the priorities, which this time will concentrate on infrastructure and wealth distribution”.

“We want to specialize in the production of high quality goods based on sustained investment and production, based on a healthy financial discipline and an open foreign exchange rate policy”,
anticipated Astori who promised improved incentives such as fiscal rebates and export promotion plus stability in labour relations.

Astori short-listed priorities to infrastructure development, State reform and income distribution, with the goal of a sustained 25% of GDP investment ratio by the end of the five year period.

The Vice president elect also anticipated a foreign policy opened to the world and as an example of political stability and coexistence indicated to the fact that all Uruguayan living presidents, and presidential candidates of the last election, (from different parties) were present at the event, “something which is not common in the region or in world politics for that matter”.

The overwhelming opinion of the participants of the event was praise for both speeches and the country’s solid political system which has ensured continuity in economic policies for almost the last three decades.

“A new government is taking office and there was the need to let the business community and the world know of Uruguay’s solid democratic values, respect for the rule of the law, independent judiciary branch and that both government and the opposition follow the same objectives”, said Juan Carlos Lopez Mena, president of the chamber which organized the event.

“Something like this, like what we have experienced is entirely unthinkable in Argentina; let’s hope some day we learn from our Uruguayan neighbours”, said Cristiano Rattazzi, CEO of Fiat Argentina. “I am envious, in the good sense of the word of the Uruguayans and their political system”.