Uruguay

This Country Assistance Evaluation concludes that the 1997 country assistance strategy (CAS) for Uruguay was based on a good diagnosis of economic, social, and political... Show More + issues in the country. The strategy adequately recognized the role of other lending institutions and effectively reflected evaluation lessons. The strategy was elaborated after a period of relatively difficult dialogue that led to negative net disbursements during 1993-97, but the region has implemented a highly effective assistance strategy since then. Consequently, the results from the Bank's recent experience show highly satisfactory development outcome. The agenda for development, however, is still large and the economy is highly vulnerable to changes in terms of trade, capital flows, and the economic performance of Brazil and Argentina, while banking institutions are weak and poorly regulated. This vulnerability and the incomplete development agenda have led the government to be appropriately concerned with seeing a repeat of negative net disbursements in the near future. The study recommends: 1) The Bank should continue to have flexibility in the design of operations and appropriate timing of actions. 2) The CAS for fiscal year 2001-04 should continue to support access to education. 3) The CAS should continue to support private sector development and financial markets. Show Less -