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Economy of Chile

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Rank  
Currency Chilean peso (CLP)
Labour force 7.30 million (ariculture & mining: 12.6%, industry: 21.8%, services: 65.6%)
Export goods copper, fruit, fish products, paper and pulp, chemicals, wine (China U.S. Japan Brazil Mexico)
Import goods petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas (U.S., China, Argentina, Brazil, South Korea)

 

1.Prior to arrival of the Spanish in the 16th century, northern Chile was under Inca rule while the indigenous Mapuche inhabited central and southern Chile. Chile declared its independence from Spain on February 12, 1818. Chile endured the 17-year long military dictatorship (1973–1990) of Augusto Pinochet that left more than 3,000 people dead or missing. In a plebiscite on October 5, 1988, General Pinochet was denied a second 8-year term as president (56% against 44%). New president, Christian Democrat Patricio Aylwin, received an absolute majority of votes (55%). President Aylwin served from 1990 to 1994, in what was considered a transition period. Today, Chile is one of South America's most stable and prosperous nations and a recognized middle power (not superpowers or great powers, but still have large or moderate influence and international recognition).

 

2. The Global Competitiveness Report ranks Chile as being the 30th most competitive country in the world and the first in Latin America, well above from Brazil (56th), Mexico (60th) and Argentina which ranks 85th. In spite of this, Chile still suffers from many problems common in Latin America, ranking higher than such countries as Mexico in terms of economic inequality and unemployment rate. Chile's economy is highly dependent on international trade. Chile has traditionally been dependent upon copper exports; the state-owned firm CODELCO is the world's largest copper-producing company. Foreign private investment has developed many new mines, and the private sector now produces more copper than CODELCO. The most important non-mineral exports are forestry and wood products, fresh fruit and processed food, fishmeal and seafood, and other manufactured products. Total public and private investment in the Chilean economy has remained high despite current economic difficulties.

 

3. The government recognizes the necessity of private investment to boost worker productivity. Chile's welcoming attitude toward foreign direct investment is codified in the country's Foreign Investment Law, which gives foreign investors the same treatment as Chileans. Registration is simple and transparent, and foreign investors are guaranteed access to the official foreign exchange market to repatriate their profits and capital. The government also is encouraging diversification, including such non-traditional exports as fruit, wine, and fish to reduce the relative importance of basic traditional exports such as copper, timber, and other natural resources. Chile leads Latin American nations in human development, competitiveness, income per capita, globalization, economic freedom, and low perception of corruption. It also ranks high regionally in freedom of the press and democratic development.

 


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