Three decades of economic freedom and incentives for entrepreneurship have made of Chile one of the most dynamic, stable and open economies of the world. Foreign investment is a cornerstone of its development.
Saturday, August 08, 2009
In this country, businessmen and entrepreneurs from different parts of the world find institutional security, a stable and clear legal regulation framework, and an equal treatment.
For its condition, Chile is an ideal place for the activities of multinational companies, astronomy organizations and even Hollywood studios.
The Chilean economy is grounded on a stability sustained by its strong institutions and trustworthy authorities. The specialized international press and various multilateral organizations have positioned Chile as one of the most dependable countries to invest in.
One example is the World Economic Forum, which classifies Chile as Latin America’s foremost trade facilitator – 19th in a world ranking of 121 countries. The Economist has a similar vision of Chile, which it includes in its roster of the 20 best-prepared nations for doing business, chosen from the world’s 82 largest economies.
The Chilean economy has been classified as one of the economies that have most successfully withstood the world financial crisis unleashed in 2008. Even the most pessimistic mid-year analyses by reputable agencies forecasted that the contraction of Chile’s GDP would not exceed 1%.
At the start of the 1990s, the return to democracy meant not only the vindication of Chile’s 190-year-old republican traditions, but also the establishment of an unprecedented international network of free trade agreements that remains in force today, and whose scope in most cases goes beyond trade tariffs. The country has signed more than 20 treaties with other economies and blocs, such as the US, China and the European Union.
Chile is not just a powerful forest and mining exporter, but an internationally validated bidder in technology as well, from the discoveries enabled by the astronomy centers in the arid Atacama desert, to the videogames that are created in small offices in Santiago, through the enterprising activity of its scientists.
The progress achieved has been accompanied by improved performance in various macroeconomic indicators. For example, the population living below the poverty line has been reduced to 13% in the two last decades, and over two-thirds of the budget is allocated to social programs. Also, more young people have access to a university education today – 40%, compared to 10% in 1990.
The austerity policies implemented by the government during the boom years have been a major factor in the domestic economy’s good performance. This is the case of the sovereign bonds placed abroad backed by remittances from sales of copper, Chile’s main export, and used for redistribution in times of financial contraction.
The favorable investment conditions in Chile are widely recognized, from the country’s modern corporate taxation system and well-trained human resources, highly-developed connectivity infrastructure and telecommunications, to the quality of life offered by its cities for work, study and tourism.
For more detailed information on the domestic economy please visit the section 10 Reasons to do business in Chile in www.thisischile.cl.