Even before the global economic downturn in 2007,  Uruguay was hit hard by a crisis that saw poverty shoot up to 40 percent of the population and an unemployment rate grew to 20 percent. This was caused, in part, by a crisis in Argentina, a country that Uruguay was closely tied to economically.

However, after implementing strong new economic and social policies, the Uruguayan  economy has been on the rise. The poverty rate has been cut to 10 percent and unemployment is down to 6 percent. This has been achieved by globalizing the country’s exports as well as highly regulating its banking industry.

Minster of Commerce Mario Bergara is one of the reasons for the successful turnaround. After receiving a PhD in Economics from the University of California, Berkley, he returned to Uruguay where he quickly began his political ascent. In 2001, he was one of the first to create a regulatory system for the country’s telecommunications infrastructure. After that, he served as the Vice-Minister of Affairs for the ruling Ample Front party and then took over as the president of the Central Bank.

His policies in these positions are part of the reason Uruguay is now on much more stable economic footing than many of its neighbors. The minister sat down with us to discuss a variety of topics, including the continuing global economic crisis, how his country rebounded from their crisis and even the impending legalization of marijuana.

Uruguay rebounding from economic crisis

Even before the global economic downturn in 2007, Uruguay was hit hard by a crisis that saw poverty shoot up to 40 percent of the population and an unemployment rate grew to 20 percent. This was caused, in part, by a crisis in Argentina, a country that Uruguay was closely tied to economically.