Why Uruguay is South American Silicon Valley.
There are a lot of people in the United States that probably never heard of a small South American country called Uruguay. Situated to the south of Brazil and North East of Argentina, this country was once called the Switzerland of America. As with every country it has its good and bad stories. Unfortunately, during the Spanish colonization, there were many battles and wars that ended up with the entire Indigenous population, and while there were some mixed races, full-blooded Indigenous Charruas do not seem to exist anymore, however, that is a story for some other time.
Although being a small country with a population of only around 3.5 million people, and although the country also went through an economic crisis, it is one of the most social, political, and economically stable countries of the region compared to other South American countries. According to a worldbank.org article, moderate poverty declined from 32.5% in 2006 to 8.1% in 2018, and extreme poverty practically disappear and economic growth has rates averaged a 4.1% increase and remained positive in 2017 and 2018 despite recessions experienced by neighbored countries. More detailed information can be read in this article.
HOW URUGUAY DIFFER FROM OTHER COUNTRIES
So, how is possible that Uruguay can remain with positive economic growth despite neighboring countries' recession, usually the countries that Uruguay trade with? This is due to prudent macroeconomic policies and by diversifying its markets and products with its dominant agriculture and forestry sectors, hence being able to withstand regional recessions as the world bank article mentions above.
THE ENGINEERING AND SOFTWARE SECTOR
Besides agriculture, and forestry. Uruguay ranks as the #1 software exporter per capita of South America and third in the world. Uruguay has 700 tech companies that bring in $1.2 billion a year.
Although Uruguay's number of software engineers is small, around 114,000 it is mostly because the population is also small, around 3.5 million. However, thanks to a completely tuition-free public University (UDELAR) and affordable private universities compared to those of other countries, such as ORT, it is easier for students to finish their careers.
In addition to Computer Science and engineers degrees, students with electronics and information technology degrees graduate also enter into software development. This article by Christian Serron explains more in-depth about the government incentives that result in a high number of software engineers and overall university graduates.
Despite all the incentives and resources available to its citizens, there is something that cannot be lacking, and that is the interest of the population for innovation, technology, and overall a progressive mentality when it comes to technology, and education. Although like in any country, there are blockers for some people to finish their education. Although education is free, due to other factors some children of poor families might not finish high school as well. However, of those that do study, from my experience have a strong desire to go into Computer Science, Engineering, Medicine, and Accounting.
THE INNOVATION AND TECHNOLOGY-BASED CULTURE
Besides technology, Silicon Valley is also known for its startups and although most of them are tech companies, that is not always the case. In Uruguay, specifically, but not limited to, Montevideo. New startups also emerge from Uruguayan citizens, including tech companies, and they are successful. Therefore, besides foreign companies, Uruguay also has its fair share of Uruguayan companies. As I have experienced myself, I do remember always wanting to invent something new when I was younger, and I still do until now. In addition, I’ve also met people with the same drive to inventing new technology, careers, etc. Therefore, it could be said that innovating is also in the Uruguayan blood.
CONCLUSION
To conclude, thanks to the government incentives, including tax-free zones, free education, one laptop per child, etc, those interested in a career in engineering can pursue their dream career. As a result, they can either work for software development companies or open their own company. Therefore, allowing Uruguay to stay competitive in the technology sector globally, which is why it is the Silicon Valley of South America.