Chile - Latin America's Star Performer
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Case Code: ECOA123 Case Length: 14 Pages Period: 2003 Pub Date: 2003 Teaching Note: Not Available |
Price: Rs.300 Organization : - Industry : - Countries : Chile, South America Themes: - |
Abstract Case Intro 1 Excerpts
Excerpts
Background Note
Early History
Chile in its modern form emerged after the Spanish invasion of 1536. The Spanish did not find much gold or silver in the country. So, they decided to use the local population as cheap labour. In the absence of any strong policy initiative, the country remained undeveloped...
Chile under Pinochet
Pinochet quickly took control. He imposed a state of emergency. He also abolished political parties and imposed a ban on strikes and collective bargaining by labor unions. Tariffs were cut and nationalized companies were returned to the main private owners...
Recent Developments
In 1988, Pinochet relinquished power, following a plebiscite. A democratic Presidential election was subsequently held in December 1989, when Patricio Aylwin, the candidate of the centre-left Concertacion coalition, was elected President for four years...
Economic Policies
After the Asian crisis of 1998, economic growth slowed down and resulted in the first recession in 17 years. The economy recovered to grow by 4.4% in 2000, thanks to buoyant exports. In 2001, GDP grew by 2.8% and in 2002 by 2.2%. The unemployment rate, which was 9% in 2001, declined to 8.3% in February 2002, but was expected to rise again...
Human Resources
Chile's population was young but aging. Population growth had slowed from 2% in the 1960s to 1.3% by the early 2000s . The proportion of people aged over 65 rose from 4.3% in 1960 to 6.9% in 1998. It was expected to increase to 9.7% by 2015...
Health Care
Chile scored well on basic health indicators. But behind the impressive averages lay some glaring inequalities. For example, infant mortality in certain rural areas of southern Chile was much higher than in Santiago. These trends reflected the underlying income disparities. The government had announced plans to revamp the system so that guaranteed free or low-cost treatment could be offered for ailments that accounted for most of the premature deaths and disablements. This plan would be financed by a new national fund into which wage earners would pay part of their contribution...
Future Outlook
Chile's dependence on copper continued to be a major problem. Copper prices had displayed a declining trend. In 1991, the price of copper was lower in real terms than it had been during the 1930s. In 2000, copper accounted for about 40% of the total value of Chile's exports. But Chile's copper industry had become more efficient in recent times. The entry of foreign players had a beneficial impact on the state-owned mining giant, Codelco. Moreover, there had been a revival in demand for copper in the early 2000s...
Exhibits
Exhibit I: Chile at a Glance
Exhibit II: Chile: Macro Economic Indicators
Exhibit III: Comparative Analysis: Economic Indicators, 2000
Exhibit IV: Comparative Analysis: Social Indicators
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