Uruguay

Paso de los Toros

Integrated Policy and Programming

Innovation and Learning

Shifting the economic base from extractives to knowledge

In July 2019, Uruguay and the Finnish multinational UPM signed a US$3.3 billion agreement to build a greenfield eucalyptus pulp mill near the city of Paso de los Toros. This is the largest foreign direct investment in the country's history, estimated to bring thousands of new jobs and boost GDP. However, with such major investment comes the possibility of negative externalities - and lost opportunities. UNDP is supporting the country to leverage the momentum around the investment to lay out a more sustainable future, one that focuses on economic diversification, local knowledge and sound environmental policies.

UNDP'S Response

Borrowing from the Finnish Innovation Fund Sitra and its studio approach, UNDP is supporting Uruguay to rethink its development track and pivot towards systemic change. In December 2019, UNDP deployed a team of eight people with expertise in strategic design, impact investment, social protection and climate economics, to devise a strategic vision for the country and identify a top 10 list of implementable opportunities – to shift the economic base from extractives to knowledge. UNDP is currently working with the new administration to implement the proposals. These include boosting citizen engagement around the investment through a co-design process, creating a fund for women's economic empowerment to help transform the country's economy ('Mujeres Innovadoras'), and designing an 'architecture of solutions' for children and youth to tackle urban inequalities in the areas impacted by the new pulp mill. Learn more about the proposals here.

Partners

Government of Uruguay

Sitra

Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 10: Reduce inequality within and among countries

Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Goal 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Goal 17: Strengthen the means of implementation and revitalize the global partnership for sustainable development

Stories and Updates

How to tackle the 21st century's challenges with the studio approach

The studio approach was developed by the Finnish Innovation Fund Sitra to help...

Big bets and change

In Uruguay, we’re reimagining development with an eye on transformational results

Focal Points

Stefan Liller

Resident Representative

UNDP Uruguay
Virginia Varela

Programme Analyst

UNDP Uruguay