Abstract

This case examines Chile’s economic success story. Chile has come a long way since the 1973 military coup. It is probably the best managed economy in Latin America. The country has set an example in economic liberalisation and structural reforms. Chile now boasts of a stable currency, steady growth, budget surpluses, modern and competitive industrial policies - all of which have been facilitated by efficient and timely reforms. Minimal government intervention, major privatisation initiatives and absence of trade barriers have all played a pivotal role in Chile’s development. The case can be used to teach students the key issues involved in the case while framing economic policies in emerging markets.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Country case study of Chile, Latin America, 1973 military coup, Economic liberalization, Copper reserves, Lithium reserves, Foreign trade in Chile, Ricardo Lagos, Pinochet, 600% inflation, Asian currency crisis, Management of capital flows, Economic policies in Chile, Peso