prices for Uruguay's principal exports, and growing protectionism of main external markets. Consequently, Uruguay's economy begun to unravel. Under these circumstances, the welfare system became an increasingly heavy burden for public sector. The growing external debt, very important if it is considered per capita, aggravated the situation after the 1970s. Nevertheless, the country's Gross Domestic Product per capita is traditionally one of the highest in Latin America. Uruguay belongs to the group of upper middle income countries of Latin America, which also includes Argentina, Brazil, Chile and Mexico (Fujii, 1991). The primary sources of energy are imported petroleum and hydroelectricity. During the 1980s, the latter grew in importance. Agriculture, especially livestock production, has historically been the main economic activity of the country. This is due to the fact that soil availability is very high; 85% of its total area, which is 16 million hectares, can be cultivated or devoted to pasture. It accounts for just 13 percent of the Gross Domestic Product (GDP) and employs relatively few people, but it is relevant in terms of exports. Annual rate of increase in total agricultural production and population growth are basically identical over the last decades, just one percent. This means that agricultural production has been stagnant. Large livestock farmers have relied on the bounties of the pastureland they owned, and have neglected to adopt or encourage new technologies that would have raised productivity. Although land tenure is highly concentrated in Uruguay, a trend which is expected to continue, land distribution was never a major political issue. In this sense, the central government played a great role by providing jobs to those who were expelled from rural areas. This chapter considered the results of the evaluation of six projects on rural development recently carried out in Uruguay. The conceptual framework and methodology described in previous chapters were taken into account. Each project evaluation was followed by a short annotation labeled introduction, intending to provide a general view of the project setting, a description of the project, a matrix describing the project development process, and key findings related to this process.