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Similarities Between Chile And Uruguay

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1. - Introduction.
Chile and Uruguay are two of the most prosperous countries of Latin America. Both countries had an important democratic tradition and enjoy of political Institutions that works, also they are a referent for the rest of the countries of the region and they are well known for been the countries with the greatest political stability in the region.
In the last Human Development Index of 2016 Chile was ranked 38 and Uruguay 54 (Human Development Report, 2016, pág 198). These two countries were in the first three places of the Latin America region. Another important indicator of development is the prosperity Index by the Legatum Institute. This ranking evaluates nine different variables that make a country prosperous. In …show more content…

Uruguay for instance is one of the countries that enjoys of direct democracy, when is normal the realizations of referendums. Another factor of stability is that two of their three more important political parties were founded in 1836, also is one of the Latin America countries with less inequality in their incomes. From the other hand Chile was the South American country that experiment one of the most political stability of the Nineteen century. After their independence period only had eight years of autarchy, and with the exception of a civil war in 1891 and the Military dictatorship (1973-1989) the country has been one of the most stables democracies in the entire …show more content…

In regards to the literature, one of the most important theories is the one that Daron Acemoglu and James Robinson explain in their book “Why Nations Fail” The authors argument is that the principal reason of one country is richer than other is because of their “extractive Institutions”, this mean that the institutions works for the benefits of their political leaders instead of working for the citizens interests. But is clear that in this case that explanation is insufficient. These four countries don`t have extractive institutions, but their results are very different from each other.
In fact the Democracy Index of 2017, ranked Switzerland in the second place and Norway tenth. From the other hand Uruguay was ranked 18 and Chile 26 (Democracy Index, 2017, pág 5). Therefore is clear that these four countries have strong political

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