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OECD Economic Surveys: Chile 2010

Basic Statistics of Chile (2008 Unless Noted Otherwise)

Executive summary

Assessment and recommendations

Overcoming the crisis

Fiscal policies for enhanced resilience and equity

Need for speed. Boosting productivity growth by strengthening competition, entrepreneurship and innovation.

Climbing on giants' shoulders. Better schools for all Chilean children.

Assessment and recommendations

Content Provider	OECD iLibrary
Organization	OECD
Abstract	The economy of Chile has performed strongly since the early 1990s, establishing a track record of robust growth, rising living standards, well contained inflation and recurring budget surpluses. This enviable outcome owes a lot to the sound macroeconomic framework implemented by successive governments. However, despite its strengths, the economy was not immune to the global financial and economic crises. As a small open economy relying on exports, particularly of copper, Chile was hit hard by the meltdown of international trade and the plunge in commodity prices, which exerted negative effects on domestic demand and activity. The government rapidly introduced counter-cyclical policies and, with the help of a rebound of copper prices, the economy is coming out of recession. Once the upturn is under way, the challenge will be to return to a path of rising living standards on a sustainable basis. Although income per capita on a purchasing power parity basis has increased sharply over the past two decades, it remains at only 44% of the OECD average. To foster convergence, key policy reforms require further enhancing product market competition, improving the conditions for entrepreneurship and innovation and improving the quality of education. Despite fast growth of per capita GDP and a reduction in poverty, income inequality, as measured by the Gini coefficient, has not declined markedly over the past 20 years and remains very high by OECD standards, notwithstanding some recent improvement. Sustained growth will need to be accompanied by the right social policies to further reduce poverty and improve income distribution. Against this background the key challenges discussed in this Survey are:
Page Count	8
Starting Page	9
Ending Page	16
Language	English
Publisher	OECD Publishing
Publisher Date	2010-01-27
Access Restriction	Open
Subject Keyword	Economics
Content Type	Text
Resource Type	Chapter

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