Aproximando la realidad utilizando un modelo descriptivo de las características esenciales de una economía capitalista, el trabajo divide la historia reciente del Uruguay desde 1870 a la fecha.La contribución principal del trabajo es el intento de adaptar un modelo descriptivo de sociedades desarrolladas capitalistas a las características de países de distinto grado de desarrollo económico.

1. Capitalism in Uruguay
Juan José Barrios
Santiago Acerenza
Universidad ORT Uruguay
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016

2. Capitalism in Uruguay
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
What this paper is not about:
It is not about a critique of capitalism
What this paper intends to:
Describe the evolution of capitalism in a small, peripheral country
Based on a (of course, controversial) framework

3. Capitalism in Uruguay
Setting the Stage: Some thinkers
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
• Adam Smith
• Karl Marx
• John Keynes
• Max Weber
• Werner Sombart
• Stephen Gardner

4. Capitalism in Uruguay
Setting the Stage: Some thinkers
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
• Stephen Gardner
Types of Capitalism
Private Regulated
Which is the dominant system of ownership?
Which is the dominant system of coordination?
Which is the dominant system of incentives?
Which is the dominant system of objectives?

5. Capitalism in Uruguay
Our Approach
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
Hall and Soskice (2002): Spheres of Analysis
• Industrial Relations (wage bargaining)
• Vocational Training (acquisition of skills(
• Corporate Governance (financial resources)
• Interfirm Relations (upstream and downstream)
• Coordination with own Employees (In-house training)

6. Capitalism in Uruguay
Our Approach
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
Hall and Soskice (2002): Types of Capitalist Economies
• Coordinated Market Economy (CME)
• Liberal Market Economy (LME)

7. Capitalism in Uruguay
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
Hall and Soskice (2002): Types of Capitalist Economies
• Liberal Market Economy (CME)
1. Short term-oriented corporate finance
2. Unregulated labor markets
3. Unregulated product markets
4. Standard education: General skills
5. Strong competition

8. Capitalism in Uruguay
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
Hall and Soskice (2002): Types of Capitalist Economies
• Coordinated Market Economy (CME)
1. Long term-oriented corporate finance
2. Cooperative Industrial Relations
3. Vocational training
4. Strong Unions and Collective Bargaining

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Poltical Economy, Lisbon
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Types of Capitalism
Coordinated Market Economy Liberal Market Economy
Spheres of analysis
Industrial
Relations
Vocational
training
Corporate
Governance
Inter-firm relations Coordination with
own employees
Evolution of Capitalism in Uruguay
First Stage Second Stage Third Stage Fourth Stage Fifth Stage Sixth Stage Seventh
Stage
1870-1913 1914-1930 1931-1954 1955-1973 1974-1984 1985-2002 2003-2014
Modernization
Period
Welfare State I:
International
Welfare State
II: Import
Substitution
Welfare State III:
Limits of Import
Substitution and
Political Chaos
Economic
Liberalism I:
Dictatorship and
Liberalization
Economic
Liberalism II:
Democracy, Debt
and Adjustment
Back to
Welfare State
Type of classification by stage
Coordinated Market
Economy
Coordinated
Market
Economy
Coordinated
Market
Economy
Coordinated Market
Economy
Transition/ Liberal
Market Economy
Liberal Market
Economy
Coordinated
Market
Economy
Main actors and institutions in each period
Political Parties in
Capital City and
Rural Areas
State, Political
Parties
State, Political
Parties
State, Armed Forces,
Radical movements,
Unions
State Markets, Washington
Consensus,
MERCOSUR and
IMF
State,
Political
Parties,
Markets,
Unions
Brief description of the Uruguayan Capitalism
Uruguayan capitalism is characterized as showing an important influence of the State, Political Parties and Corporations (such as
Unions) on the economic and political choices of consumers, producers, voters and governors. Additionally, structural duality is
pervasive.

11. Capitalism in Uruguay
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International Initiative for Promoting
Poltical Economy, Lisbon
10/26/2016
What is next?
• More Capitalism/Social Democracy?
• The Road to Market Socialism?
• Is the System Crumbling (Richard Wolf)?
• Participatory Economics?

12. Capitalism in Uruguay
10/26/2016
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Poltical Economy, Lisbon
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Maxim 1: Payment according to the value of the contribution of one’s labor
and the contribution of the productive property one owns.
Maxim 2: Payment according to the value of one’s personal contribution only.
Maxim 3: Payment according to effort, or the personal sacrifices one makes in work
¿Contribution or Sacrifice?
What does PEOPLE want?

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Poltical Economy, Lisbon
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THANK YOU