THE FINANCIAL EYE CARIBBEAN How Uruguay Transformed Caregiving: Secrets to a Thriving Economy!
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How Uruguay Transformed Caregiving: Secrets to a Thriving Economy!

How Uruguay Transformed Caregiving: Secrets to a Thriving Economy!

The global population is aging rapidly, leading to a surge in demand for care services that poses significant challenges, especially in developed countries like Uruguay. With a demographic profile resembling North America and Europe rather than its regional neighbors, Uruguay faces the pressing need to address care needs across all age groups due to a sharp decline in fertility rates.

  1. Social Security Transfers and Poverty Rates
  • Uruguay boasts the region’s lowest poverty rate among the elderly, largely attributed to robust social-security transfers.
  • However, poverty rates among the youngest population cohorts are nine times higher than for the oldest, highlighting disparities in care and support.
  1. Challenges of the National Integrated Care System (SNIC)
  • In response to the rising demand for care services, Uruguay established the SNIC in 2015 to offer universal coverage for vulnerable groups.
  • Despite its intentions, public coverage remains low for adults over 65 and individuals with disabilities, indicating gaps in service provision.
  • The burden of unpaid care falls primarily on women, restricting their participation in the labor market and perpetuating gender inequalities.
  1. Gender Disparities in the Care Sector
  • The paid care sector in Uruguay is overwhelmingly female-dominated, characterized by informality, underemployment, and lower wages compared to the national average.
  • Women in the informal care sector juggle caregiving responsibilities within households, limiting their opportunities in the workforce and reinforcing systemic inequalities.
  1. Encouraging Policy Reforms
  • To address these disparities, Uruguay must invest in increased funding and expanded coverage within the SNIC to support all vulnerable populations effectively.
  • By integrating policies that promote gender equality and extend parental leave, Uruguay can empower women in the workforce and boost labor-force participation.
  • Growing recognition of care as a fundamental right underscores the need for comprehensive reforms that promote social inclusion and gender equity in both public and private sectors.

In conclusion, Uruguay’s experience with the SNIC highlights the importance of prioritizing care as a social imperative, investing in early childhood development, and advancing gender equality to ensure sustainable growth. By emphasizing these reforms, Uruguay can set an example for other countries seeking to build resilient and inclusive societies in an era of demographic change.

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