On March 1, Yamandú Orsi will take office as the next president of Uruguay. Orsi, of the center-left Frente Amplio coalition, defeated the ruling center-right coalition’s nominee in a runoff last November. Unlike in many other democracies around the world, there was no doubt that both candidates would accept the election’s results immediately and commit to a peaceful transfer of power.
Uruguay has proved remarkably resilient in the face of the increasing political polarization sweeping the globe. The country has one of the highest GDPs per capita in Latin America and is often dubbed the region’s “Switzerland.” While disagreements exist—as in any democracy—political opponents rarely turn into personal enemies. Citizens tend not to gravitate toward extreme positions and are far less prone to the us-vs.-them mentality that has taken root elsewhere. Elections occur with little drama.
It’s no surprise, then, that Uruguay ranks above France, the United Kingdom, and the United States in numerous respected democratic indices, such as the Economist Intelligence Unit’s Democracy Index. The International Institute for Democracy and Electoral Assistance has Germany and Uruguay tied for first place in terms of political representation, reflecting the country’s effective legislature, credible elections, and freely operating political parties. In Freedom House’s 2024 index of political rights and civil liberties, Uruguay obtained a near-perfect score.
Even in last year’s competitive presidential election, neither candidate resorted to incendiary rhetoric. “Beyond our ranks, let all our compatriots know that we, as democrats of each party, will defend the healthy and respectful electoral competition that we value so much and advocate for on a global level,” Orsi said on the campaign trail.
A common explanation for Uruguay’s political stability is that it is small and homogeneous, with a population of just 3.5 million people and low cultural diversity. But this analysis is simplistic.
While size and cultural homogeneity may contribute to political cohesion, they are by no means sufficient. Other small countries, such as Honduras, have experienced deep political divisions, as have fairly homogeneous ones such as South Korea and Hungary. What sets Uruguay apart is not just its demographics but also its political culture, which political leaders have carefully cultivated over decades.
Uruguay returned to democracy in 1985 following over a decade under a U.S.-backed dictatorship. Democratically elected President Julio María Sanguinetti took office on March 1 that year, marking a key step in a negotiated process of democratic consolidation in the country. Uruguay’s transition to democracy was driven by sustained pressure from political and civil society groups that eventually led to elections. Memory of the dictatorship still acts as a pro-democracy bulwark.
Political figures across Uruguay’s political spectrum made a concerted effort to reinforce democratic norms, including civility in political discourse. It is common in the country for political rivals to have personal friendships. This sets a powerful example for society at large: Respect and coexistence among political elites trickles down to the electorate.
Uruguay’s strong civic culture has prevented the type of social fragmentation that can lead to extreme political divisions. As Brian Winter, the editor in chief of Americas Quarterly, wrote in 2023: “Almost everyone [in Uruguay] seems to be part of something; a political party, a union, a neighborhood club, that in turn has ties, or at least some connectivity, to the state.” Political engagement in Uruguay is not just limited to voting; citizens actively debate policies, engage with their representatives, and participate in grassroots initiatives.
Perhaps by consequence, Uruguay has one of the highest levels of trust in institutions and faith in democracy in Latin America, according to AmericasBarometer. The judiciary, electoral system, and the bureaucracy generally function effectively, reducing the kind of institutional distrust that has fueled polarization in other countries, such as Brazil.
Corruption in Uruguay is low by global standards, and Transparency International ranks it as less corrupt than Germany and Canada. Even when corruption scandals do occasionally surface, they do not reach the systemic levels seen elsewhere in the region, maintaining public confidence in the rule of law. Furthermore, government institutions have a strong track record of accountability to voters, including via a transparency law that addresses various forms of misconduct related to abuse of power.
Another key factor behind Uruguay’s democratic stability is its economy. The World Bank describes Uruguay as one of Latin America’s most egalitarian societies, with relatively low levels of inequality and a large middle class that comprises more than 60 percent of the population. Strong social policies, including public health care and unemployment insurance, help prevent the economic discontent that has fueled populist movements and political extremism elsewhere, such as in the United States.
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Uruguay’s culture of moderation and consensus-building has helped it avoid dramatic polarization. However, stability cannot come at the cost of necessary reform.
Over time, the political consensus that has prevented extreme divisions in Uruguay could lead to complacency regarding the country’s deeper challenges. The perception that both major parties are too similar may also produce sudden waves of anti-elite sentiments, as happened during the Brexit referendum in the United Kingdom.
Writing in the New York Times last fall, Uruguayan journalist Guillermo Garat reported that there was a general lack of excitement during the presidential campaign between Orsi and center-right candidate Álvaro Delgado—which featured “unexciting candidates” and “unimpressive speeches.” The absence of charisma and innovation, Garat argued, risks increasing popular disengagement—and may signal that politicians are unaware of the simmering challenges the country faces.
Uruguay’s economic growth has slowed significantly since the commodity boom ended in 2014, and income per capita has stagnated. While Uruguay remains one of the most developed countries in Latin America, its lack of economic dynamism could become a long-term issue. Uruguay’s youth unemployment rate stood at 26 percent in 2023, one of the highest rates in the region.
Garat cited polling that 38 percent of young people in Uruguay would agree to forego democracy if it helped solve their problems. This may explain why a candidate who compared himself to Javier Milei, Argentina’s disruptive “anarcho-capitalist” president, won more than 16 percent of the vote in the first round of Uruguay’s election.
Uruguay’s education system is also struggling. The country’s performance in international assessments such as the PISA tests has stagnated, and high school dropout rates remain high. Despite these clear challenges, political candidates, including Orsi, have largely shied away from proposing major education reforms, likely to avoid alienating influential teachers’ unions.
Another pressing issue Uruguay faces is security. The country had a murder rate of 11 per 100,000 people in 2023—lower than in neighboring Brazil but significantly higher than in Chile or Argentina. The country’s incarceration rate is also rising and is now the 11th highest in the world, behind the United States but ahead of Brazil. Despite this, neither of Uruguay’s main political parties has presented a bold new strategy to address crime, preferring incremental adjustments to existing policies, such as boosting police ranks and improving coordination among state agencies.
What’s more, although Uruguay has largely avoided the waves of misinformation seen in other countries, conservative lawmakers introduced a bill in April that would penalize spreading misleading content online during elections. This suggests that politicians fear Uruguay is not immune to digital manipulation of its democracy.
Orsi’s presidency will be a test of whether Uruguay can maintain its political stability while addressing growing social and economic challenges. In a rejection of political elitism, he has chosen not to live in the presidential palace, much like his mentor, former President José Mujica. However, amid a highly polarized international environment and rising domestic political tensions in most of Uruguay’s main partners—Argentina, Brazil, and the United States—it will be hard for Orsi to steer clear of controversy entirely.
There are already political disagreements in Uruguay about the guest list for Orsi’s inauguration. The incoming administration submitted a list of invitations that included the leftist authoritarian leaders of Cuba, Nicaragua, and Venezuela; Orsi argued that Uruguay should invite all states it maintains diplomatic relations with, regardless of whether they are democratic. But outgoing President Luis Lacalle Pou, of the center-right party, refused to authorize all three invitations.
Still, Uruguay’s successes in resisting polarization offer valuable lessons for other democracies. First, political leaders play a crucial role in setting the tone for discourse and in shaping political culture. Second, economic policies that promote stability and reduce inequality may help diminish the demand for polarizing leaders who thrive on discontent. And finally, trust in institutions could both reduce the demand for polarizing leaders and make it harder for a leader with authoritarian ambitions to fan the flames of polarization.
Uruguay’s democracy is a reminder that political stability is not an accident or an innate cultural phenomenon. It is the result of conscious efforts to build institutions, maintain economic fairness, and cultivate democratic respect. Uruguay has resisted the global wave of populism and polarization. Now it must prove that it can also rise to the challenges of the future.