Corruption in Uruguay

Corruption is low in Uruguay by regional standards.[1] It has generally outperformed other Latin American Countries frequently in corruption related international indexes.[2][3]

Reasons for low corruption

Analysts have cited several reasons as contributing factors for the low corruption level in Uruguay. First of all, it generally enjoys higher income levels than the Latin American Average, although when GDP per capita or Purchasing power parity is taken into account, it is on per with Chile and Argentina[2]

In addition, Uruguay is a small, homogenous country where 40% of the population reside in the capital Montevideo. Combatting corruption is typically easier in large urban centers rather than federal or continental democracies. Furthermore, Uruguay has successfully established a vibrant democratic system which has ensured strong institutional frameworks, though some issues with campaign financing make political parties vulnerable to corrupt influences.[2]

Social inclusionary policies such as introducing pensions which reach 87% of the people as well as lower level of unemployments also have played significant role in cutting down corruption.[4]

Uruguayan political parties have avoided clientelism, which have assuaged concerns of corruption. Besides the expenditure in a public project is generally fixed, so the opportunities of discretionary politics is very limited.[5]

Instances of Corruption

Despite the low corruption prevalent in the country, there have been accusations of corruption against government officials, including ex-president Jose Mujica who was being investigated in a corruption case involving a gas company.[2]

It's historical record of financial secrecy has also exacerbated the risks of corruption. It is difficult for foreign companies to obtain records of their residents' undisclosed assets in Uruguay. It has created fertile ground for individuals to evade taxes in their respective countries of residence. For example, Spanish authorities investigated Argentine Football Superstar Lionel Messi for allegedly avoiding £4.2 million in taxes taking opportunity of Uruguayan regulations.[5]

The main anti-corruption body in the country has also faced lack of resources in its pursuit to tackle corruption.[1]

Uruguay has been party to the United Nations Convention against Corruption (UNCAC) since 2007 and the Inter-American Convention against Corruption since 1998.[5] It's anti-corruption bodies and the Judiciary are generally deemed to be independent.

The country has an anti-bribery law which prohibits government officials from taking or soliciting bribes. Anyone offering such bribe will be imprisoned for six years. The law for control of prevention and money laundering stipulates prison sentences of up to ten years for such crimes.[6]

Uruguay obliges political parties to declare their campaign financing and expenditures. Access to freedom of information is also generally upheld. However, there is no limit on how much contribution a party can receive. Although important state officials submit asset declaration to the anti-corruption bodies, they are not made public. Whistleblower protection is also limited and Revolving door practice still remains unregulated.[5]

References
  1. "Uruguay: Freedom in the World 2022 Country Report". Freedom House. 2022-06-16. Retrieved 2023-04-21.
  2. Simon, Roberto (2020-07-08). "Why Uruguay Finished First in Our Anti-Corruption Ranking". Americasquarterly.org. Retrieved 2023-04-21.
  3. "2022 Corruption Perceptions Index: Explore the results". Transparency.org.
  4. Seiko Agencia. "How can we explain the lower levels of corruption perception in Chile and Uruguay? - Córdoba Global". Cbaglobal.com.ar. Retrieved 2023-04-21.
  5. Martini, Maíra (28 March 2016). "URUGUAY: OVERVIEW OF CORRUPTION AND ANTICORRUPTION" (PDF). transparency.org. Retrieved 2023-04-24.
  6. "Uruguay country risk report — GAN Integrity". ganintegrity.com.
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