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Chile is changing!
The Pacific Tiger and its unique geographic advantages
Chile is not a mere celebration of harmony, panorama & serenity, but also a transfusion of political stability, social development & financial success in the whole of Latin America (LA). This ribbon shaped country has been attracting large investments and attention, particularly after it adopted the free trade regime. This economy is considered one of the world’s largest free markets and has FTAs (Free Trade Agreements) with most of developed economies like the US, the EU, New Zealand, Singapore et al.
Chile has charted a sound economic policy with great focus on infrastructure and privatisation. It has predominantly exploited its rich natural resource base and has been minting money from its copper reserves. It is the most stable and flourishing LA economy and is largely free of any coups and arbitration. The GDP per capita stands at $12,700 and has employment rate of more than 92%. Chile has been successfully managing a low inflation and high GDP growth, predominantly on account of its high export earnings. Export income for the year 2006 had been at a mind boggling $59 billion. Realising the constraint with natural resources, Chile had recently started focusing on non-mineral exports like fishery, forestry, wood products, food and wine.
On the policy front, Red Hot Chile’s innovative policies like private pension system has not only boosted domestic investments but also acted as cushion in times of recession. This pension scheme is worth more than $70 billion and has been an important player in the capital markets. The most noticeable feature of this jaguar (of the Pacific Rim) is the mode in which it has gone about hedging the weaknesses. The openness of development policies and political modernisation will not only reap monetary benefits but will also make it a tough competitor in the rat race of development. Amidst the given political turmoil in the LA, Chile is one economy to clearly look out for.
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