As an Uruguayan myself, I think this:
>> the economic elite tend to have very weak influence on political decision making, including tax reforms.
IS a good thing.
Actually, Uruguay seems like a cool place to hang out... will add to bucket list.
When I left Uruguay 2.5 years ago, applying for residency was changing a bit. Apparently, nowadays, you need to show you have "enough income to support yourself". The people I know say that's usually around $1500/month. Also, expect it to take at least 18 months to finally complete your residency. It took over 2 years for some people I knew. However, you can still live there while your application is in process (no visa runs needed).
If you've been reading anything that says it's "cheap" to live in Uruguay, it's probably several years out of date. Inflation seemed to be around 15% a year. Personally, I was spending about $2000-2500/month to live there by myself, and I wasn't living extravagantly (other than living in a decent neighborhood).
Uruguay doesn't manufacture much of anything, and imported goods have a 60% duty, along with the standard 21% IVA (Value Added Tax). So, electronics are about twice the price of what you'd pay in the US.
It's also not a very entrepreneurial place. There is some software development there, which can have some tax advantages. But prepare yourself for a very bureaucratic place, where things don't move quickly, and taxes/fees are high.
Uruguay may be a place you'd end up loving, but if you base your views about it on what you've read from International Living's website, you're going to be in for a big shock.
Cars are the most expensive in the world (at least 100% over US list price, often 200%, so a Honda Civic is a rich man's car and I'm not joking).
Salaries are South American standard, U$ 2000 / month is a HUGE salary, yet it doesn't get you that far !
Electronics are also expensive.
Housing is really expensive, rent is higher than anywhere in the U.S. excepting New York or San Francisco, unless you go to REALLY bad neighbourhoods.
And as scott says, it's really bureaucratic.
The only really big pro is that healthcare is good - basic stuff for free and really good coverage for what an American would consider incredibly cheap prices (U$ 70/month gets you coverage that includes house visits and emergency services which I've heard are impossible at any cost in the US, and U$ 100/month gets you into the very best hospital in the country.
The country is nice, we have nice beaches, I believe the people are friendly, etc. but that's true in several places :)
First of all, not everyone gets a free computer. Only those kids who go to public schools. That is the "poorer" that can't pay a private school, and the relatively rich that live in richer neighborhoods where the public school doesn't suck.
The teachers really don't understand almost nothing about computers and can't teach how to use them properly (from a techie point of view).
Also, as another commenter correctly states, Uruguay isn't a very entrepeneurial country and it is very bureacratic.
I suspect they might have a culture similar to Spain, in the respect that it's much less common for people to move around. Young adults often live at home well into their twenties, and go to university in their home town, and friend and family groups are usually in the local area. If almost everyone you know lives in one place, to move away is a much greater step, even if you are wealthy.