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Our World Friday, September 16, 2011

DISCOVER CHILE AT worldfolio.co.uk CHILE Latin America’s great success story

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Chile: #1 in Latin America on Forbes’ Best Countries for Doing Business list

HILE EXUDES is possible that a country that confidence. A lived through such a costly confidence that earthquake so recently can the country has now be enjoying economic deservedly ac- growth of 6%. How? Why? quiredC over the past few What changed? I believe the decades as it has made a most important thing is that peaceful transition from dic- Chile has changed its vision of tatorship to democracy; as it world business: now there is continues to rise to its full greater confidence, there is a potential as a Latin Ameri- greater sense of calm and can economic powerhouse; knowing that the country will as it bounces back from continue to move forward, ‘CHILE ISN’T THE

tragedies and recessions; and and that we’ll once again grow BIGGEST, RICHEST Ibañez Gobierno de Chile / Alex PHOTO: as it continues to attract for- at the same pace as before.” OR MOST eign businesses and invest- U.S. Ambassador to Chile POWERFUL ments to its shores. Alejandro Wolff attributes the COUNTRY IN THE 2010 was a landmark year country’s success to “stability, WORLD, BUT WE for Chile, beginning with a run- predictability and a national SHOULD DEDICATE off presidential election, which consensus about broad trends OURSELVES TO saw the first center-right can- and policies,” adding that “this TRANSFORMING IT didate, Sebastian Piñera of the creates an attractive environ- INTO THE BEST Coalition for Change, democ- ment for economic growth COUNTRY IN THE ratically elected to office in and investment.” WORLD’ more than half a century. This Stretched along South was followed shortly by the America’s southernmost Pa- SEBASTIAN PIÑERA, earthquake in February that cific coast for thousands of President of Chile registered 8.8 on the Richter miles, Chile’s skinny profile is scale, making it one of the easy to pick out on a map. For strongest ever recorded. those in the northern hemi- In May 2010, Chile became sphere, Chile – complete with President Barack Obama with Chilean President Sebastian Piñera during a joint press conference on March 21, 2011, the first South American coun- its deserts, high Andes, lush at La Moneda Palace in Santiago try to join the Organization for forests, bright lakes and glac- Economic Cooperation and iers – is sometimes considered tween Chile’s National Emer- sulting in a greater diversifi- public debt to GDP ratio, the The President is pushing Development (OECD). More the “end of the world”. How- gency Office and the U.S. Fed- cation of products. lowest among major Latin through structural reforms major events came later in the ever, this has proven to be no eral Emergency Management Chile’s relationship with the American economies, should aimed at boosting competi- same year. The world watched barrier to Chile’s rise in the Agency (FEMA), regarding dis- U.S. has traditionally been peak at just 10.2% this year, and tiveness and productivity. The the euphoric rescue of the 33 global economy. aster preparedness, mitigation warm, and Ambassador Wolff the country’s two sovereign Piñera administration is pro- miners who had endured 69 When President Barack and response. They also ex- calls it a special one that has en- wealth funds – which togeth- moting entrepreneurship and days trapped underground. Obama visited this frontier pressed their support for vari- dured many changes on both er amount to some US$16.8 the simplification of business 2010 was also a bicentennial country in March this year (on ous bilateral initiatives, such as sides. “Chile’s political, eco- billion – are seeing the bene- processes by cutting excessive year: on September 18, the what was the first visit by a U.S. the U.S.-Chile Energy Business nomic, social and scientific fits of a windfall surplus from red tape, and making the labor country celebrated 200 years president to Chile in more than Council, which is focused on successes are some of the rea- copper revenues. market more flexible. of independence from Spain. 20 years), he said that despite clean energy infrastructure and sons why this relationship has High commodity prices, cou- These reforms, combined Despite the setbacks caused its physical remoteness, “this development, and the new An- flourished. It is a relationship pled with robust domestic and with Chile’s self-confidence and by both the earthquake and the nation is part of our intercon- dean Glacier Monitoring and that has been developing for external demand (especially the world’s faith in the country, global financial downturn, nected world.” Research Center, which will many years now, and it cuts from resource-hungry China, may well be the stepping stones Chile is determinedly re- Toasting President Piñera twin Chile’s Francisco Coloane across administrations and po- Chile’s top export market), are for Chile to achieve its vision of bounding thanks to its diver- and his predecessors at the Coastal and Marine Protected litical parties,” he says. pushing strong economic becoming Latin America’s first sified economic base, political meeting, President Obama Area with Alaska’s Glacier Bay growth, and helping Chile to developed nation by the end of stability and self-confidence, said: “Despite barriers of dis- National Park and Preserve. Robust Economy bear the costs of reconstruc- this decade. among other factors. tance and geography, you’ve Furthermore, Presidents Chile’s economy, like its rela- tion and social programs. integrated Chile into the glob- Obama and Piñera under- tionship with the U.S., is in good Although President Piñera Strong U.S. relations al economy, trading with coun- scored the importance of the health. The Economist Intelli- has adopted an undeniably A UNITED WORLD “If one looks back, Chile has tries all over the world and, in U.S.-Chile free trade agree- gence Unit predicts gross do- business-oriented outlook for SUPPLEMENT clearly suffered hard times due this Internet age, becoming the ment (FTA) signed in 2004, mestic product (GDP) growth his administration, he has not PRODUCED BY: to the global crisis. This is be- most digitally connected coun- pointing out that not only has of 6.2% in 2011, largely due to broken altogether with his left- Agustina Bellsola cause Chile has a completely try in Latin America.” bilateral trade doubled and heavy post-earthquake recon- leaning predecessors. Indeed, and Alvaro Botella open economy,” explains Pe- During their meeting, the conditions for the exchange of struction investments. Over his strong social agenda has ter Hill, president of the San- two presidents signed various goods and services improved, the period 2012-2015, this been criticized among party This report is available at tiago Chamber of Commerce. Memorandums of Under- but also that new business op- growth is expected to level off members for being too left- www.unitedworld-usa.com “And one may wonder how it standing, including one be- portunities have arisen, re- at a stable 4.9%. Chile’s ratio of wing.

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020 Friday, September 16, 2011 CHILE Distributed by USA TODAY Trade agreements keep business booming Chile’s multiple free trade agreements make it a highly attractive platform for international companies looking to access global markets Chile has the most free trade Relations Office (Direcon), the agreements (FTAs) in the TPP is “the most ambitious world. Though geographically process of economic and trade remote, and with just 17 million integration in the history of the people, or perhaps because of Asia-Pacific region.” this, it has long based its eco- Opting for trade liberaliza- nomic strategy on export-led tion in the 1970s, and produc- growth. Today, Chile has 21 ing one of the simplest and most trade agreements with 58 dif- transparent trade regimes in ferent countries, including the the world, Chile is today the U.S., the EU, China, Mercosur, world’s 11th most open econo- India and Mexico. The latest my, according to the 2011 In- agreement to come into force dex of Economic Freedom by was a FTA with Turkey in the Heritage Foundation. Its March of this year. “freedom score” of 77.4 puts it These agreements give Chile just 0.4 points behind the U.S., preferential access to markets which ranks in ninth place, and

that represent 62.5% of the 2.9 points ahead of the U.K., Imagen de Chile / Max Donoso Fundación PHOTO: world’s population, and 86.3% which appears 16th in the as- of global GDP. The country’s sessment of 179 countries. exports totaled US$64.2 billion In addition, Chile leapt 10 in 2010, representing 45% of places this year, to 43rd posi- the national GDP. This is to say tion, in the Doing Business that nearly half of Chile’s pro- 2011 report by the IFC and duction was shipped abroad World Bank that analyzed and last year. More than 90% of the rated 183 economies for their country’s trade is carried out ease of doing business. with the countries with which Former President Patricio it has trade agreements. Aylwin, who took over from Chile’s FTA with the U.S. Augusto Pinochet in the 1990s, came into effect on January 1, expanded the economic re- 2004, with bilateral trade be- forms begun under the mili- tween the two countries jump- tary regime. This policy of Last year almost half of the nation’s produced goods were exported. Bilateral trade with the United States reached US$18 billion ing by more than 200% in the continuity has been preserved following five years. Last year, by successive governments, American integration.” sador to Chile Alejandro Wolff. trade between the two nations which have pursued even clos- He comments: “We are work- He says that the U.S. has a num- reached US$18 billion, placing er economic integration into ‘CHILE’S POLICIES ON ‘A BIG ADVANTAGE IS ing to improve relations with ber of companies that are doing the U.S. ahead of Japan in the the global economy, underpin- TRADE OPENNESS, KNOWING THAT THE Argentina. We are also work- very well in Chile. Its pool of ranks of Chile’s top export mar- ning Chile’s rise as the Latin GLOBAL INTEGRATION BUSINESS, LEGAL ing with Brazil on shipping highly qualified and English- kets and taking it to second American country with the AND HUMAN RIGHTS AND POLITICAL routes, in order to bring Brazil- speaking professionals is one of place behind China, by far highest GDP per capita and HAVE FOLLOWED THE ENVIRONMENT IS ian machinery into Chilean the reasons for this, and also Chile’s largest market and the best-sustained growth record. SAME LINE FOR MANY STABLE, PREDICTABLE ports, and on matters of ener- why Chilean firms also do well destination for 23.2% of its ex- The Economist also calls Chile YEARS’ AND RESPECTED’ gy and water. We also want to in the U.S.; the Chilean gov- ports. Its Latin American and the Latin American country improve infrastructure so that ernment has long promoted ed- Asian markets combined rep- with the soundest economic it is easier for people to move ucation initiatives targeting resent more than half of Chile’s fundamentals. dubbed the incoming govern- Earlier this year, he also oversaw from one country to another. English-language proficiency export base, the diversity of “Chile’s policies on a wide va- ment as “Chile Inc.” Conse- the integration of the Chilean And although some countries and digital literacy. which has helped protect the riety of areas – from trade open- quently, he clearly represents stock market with those of have different development “On the other hand the in- country from global volatility ness and global integration to another link in the chain of Colombia and Peru, which cre- models, we feel that there is stitutional framework is trans- and provides ample sources of human rights – have followed Chile’s successful open eco- ated the largest and second- plenty of room for mutually parent, based on a legal system growing external demand. the same line for many, many nomic model, one that has be- largest bourse in Latin America beneficial collaboration.” that is respected. The rules are Chile was a founding mem- years and will continue to do so come an example to developing in terms of listed firms and cap- Chile’s strong financial insti- known; they don’t change, so ber of the Trans-Pacific Strate- as they are now ingrained in so- countries across the globe. italization respectively. tutions and sound macroeco- people and businesses can gic Economic Partnership ciety,” says Minister of Foreign Pledging to set Chile on the The Minister of Foreign Af- nomic management, which have come to Chile and know what Agreement (TPP), a multilat- Affairs Alfredo Moreno. path to becoming a fully devel- fairs says that while Chile is look- given it the strongest sovereign they are getting into,” says Mr. eral FTA that came into force A prominent businessman oped country by 2018, Presi- ing to continue integrating with bond rating in the region, have Wolff. “That is of course a big in 2006 and aims to further lib- and economist prior to his elec- dent Piñera has in fact worked the Asia-Pacific region and made it a regional destination for advantage when you make de- eralize the economies of the tion last year, President Piñera to broaden and deepen Chile’s maintaining political and eco- equity and debt investors. cisions on where you want to Asia-Pacific region. According placed so many high-level pri- trade links, including efforts to nomic ties with the U.S. and Eu- “The current administration establish a subsidiary, knowing to Jorge Bunster, director gen- vate sector executives in min- more closely integrate with the rope, it also has “a lot of work to is focused on new sectors and that the business, legal and po- eral of the Ministry of Foreign istries and other senior positions region’s Pacific economies do with regards to improving innovation, and that is very litical environment is stable, Affairs’ International Economic upon taking office that some (Mexico, Peru and Colombia). Latin American and South promising,” says U.S. Ambas- predictable and respected.”

INFRASTRUCTURE Railroad network keeps Chile’s exports on track Chile’s thriving exports sector relies on its rail infrastructure to keep things moving

“The major pillars of Chile’s rolling stock and locomotives. economic development have, Today, it is the main operator without a doubt, been open- in southern and central Chile, ness to external trade, the lib- ‘CHILE HAS and, through its branch lines, eralization of the economy, the MAINTAINED carries lumber, corn, wheat, development of free enterprise, SUSTAINABLE steel, cement, coal and copper and the freedom to undertake GROWTH, AND WE to the main production cen- new ventures,” says Gamaliel HAVE BEEN ABLE TO ters and ports. Villalobos, general director of INTEGRATE WITH THE Though it has recently di- Ferrocarril del Pacifico WORLD. IT HAS versified its logistics platform (Fepasa), Chile’s largest rail- CLEARLY BEEN A with the launch of a trucking road freight company. “Thanks SUCCESS STORY’ division to provide more inte- to these four factors, Chile has grated services for its clients, maintained sustainable growth, of the country’s concession Mr. Villalobos sees Fepasa con- and we have been able to inte- model, which has contributed tinuing to focus on its rail divi- grate with the world. It has significantly to infrastructure sion, as it can carry mass clearly been a success story.” development through public- volumes of cargo, leaves less of Fepasa, which was fully pri- private partnerships. a carbon footprint, and provides vatized in 2007, forms part of Founded in 1993 when the professionally certified services. the national logistics network government partially priva- “We work with exporting com- that enables Chile’s export- tized the rail network, Fepasa panies that value professional- based economy to thrive. It is has since expanded operations ism. This is the niche we want also an example of the success through investments in new to explore,” he says.

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Distributed by USA TODAY CHILE Friday, September 16, 2011 3 Never say die... The dramatic televised rescue of the 33 miners, and Chile’s speedy recovery from a devasting earthquake highlight the dogged spirit of the nation

Until recently, Chile rarely trapped underground for 69 made the headlines. While days, were rescued in one of the popular with backpackers most dramatic events in recent and wine buffs, the coun- history. Prior to the rescue mis- try certainly didn’t rank sion, dubbed Operation San Chile made global headlines in 2010 with the February earthquake and the rescue of the miners in October among the world’s more Lorenzo, a video camera was well known loca- sent down a borehole, giving capsule that had been lowered Chile had made news when US$30 billion – the equivalent tions. the men the chance to record 2,300 feet into the mine, and were earlier in the year an 8.8 mag- of 18% of GDP. This all changed their experiences and send mes- hoisted up to the surface where nitude earthquake struck off the However, the Chileans in October 2010 sages. People worldwide could newly elected President Piñera coast on February 27 and then showed tremendous resilience. when 33 miners, watch the miners’ agonizingly awaited along with the Minister President Bachelet was forced Within 24 hours of the quake, slow wait, and although each of Mines and hundreds of jour- to declare a state of emergency. Santiago’s subway network was day that went by brought nalists, onlookers, family mem- The sixth largest earthquake functional. Also, 80,000 emer- new hope for their sur- bers and friends. Thirty-nine ever recorded rocked South gency homes were quickly built vival, it also brought trips later, the miners and their America, triggering tremors as to house the homeless. Within renewed despera- rescuers were back on the far as Argentina and Peru, and a year, 70% of school buildings tion and unease ground. a tsunami that leveled several had been rebuilt, 100% of hos- about the likeli- The rescue mission was the coastal towns. pital beds restored, and drink- hood of a suc- fruit of cooperation across About 80% of the popula- ing water supplies, roads, ports cessful rescue. nearly all government min- tion endured the powerful im- and airports were all back to However, be- istries, coupled with the use of pact. Santiago was thrown into normal. tween October the most advanced technolo- chaos and the blackout that Though the recovery effort is 12th and 13th an es- gy. NASA and over a dozen followed affected 93% of the far from over, Chile’s steely de- timated 1 billion multi-national corporations of- country’s population. An esti- termination to get back on its feet people around the fered their expertise to help mated 500 people lost their seems to be paying off: the econ- world watched as the carry out one of the most com- lives, and thousands more were omy is predicted to buck glob- miners, one-by-one, plicated rescue operations in injured. Losses from the dis- al economic trends and expand stepped into the narrow history. aster reached an estimated by a remarkable 6.2% in 2011. Chilean expertise on the world stage

From its national airline to flagship shopping centers to copper mining, examples of success span the range of Chile’s commerce and industry... Even the nation’s unique pension system has found international acclaim and has been emulated, either in whole or in part, by other countries PHOTO: Codelco PHOTO:

In 1981, Chile replaced its guished senior fellow of the Cato flawed and bankrupt pay-as- Institute and president of the you-go retirement system with International Center for Pen- the AFP (Pension Fund Ad- sion Reform. The Wall Street ministrator) system. Instead of Journalhas referred to Dr. Piñera paying social security taxes and as the “pied piper of global pen- hoping the government will de- sion reform”, advising many gov- liver the promised retirement ernments on the subject. payments, Chilean workers now Chile’s pioneering system has make a mandatory contribu- been shown to act as an agent tion of 10% of their salary (up to spur economic growth, as to an established maximum) to pensions depend on workers’ one of six AFPs. Workers may own efforts, and help Chilean also make additional voluntary companies expand by providing contributions, within limits. fresh capital. The pension fund adminis- “The key to the development trators are privately owned that Chile has experienced is and their investment policies based on a system of private sav- CODELCO IS THE LARGEST COPPER PRODUCING and operations are closely reg- ings through the pension funds, COMPANY ON EARTH, BOASTING CLOSE TO 20% ulated and supervised by the which has given companies ac- OF THE WORLD’S RESERVES government. cess to sources of very long- On reaching retirement age, term financing,” says Andres the accumulated lump sum is Olivos, executive vice president converted into a pension (most of Parque Arauco, Chile’s pre- the company enhances shop- leasable area (GLA), and it aims Codelco produced 1.78 million dustry laws and regulations, commonly by the acquisition mier shopping mall developer. pers’ experiences by creating to double this by 2014. metric tons of refined copper thus creating a more favorable of an annuity from an insur- Parque Arauco’s shopping retail, social and entertainment “We have been able to di- – equivalent to 11% of global business climate. ance company of the individ- centers are innovative land- venues where people want to versify our portfolio by invest- production. Another success story that ual’s choice). marks that have positioned the spend time. ing in project developments in Although the state-owned spans the region is Chile’s na- The architect of the priva- company as an industry yard- The company’s first center, different countries, becoming copper mining company was tional carrier, LAN Airlines. tized system, which has been stick. “The key is to provide Parque Arauco Kennedy, a shopping center operator with established in 1976 from the Formerly LAN Chile, it oper- hailed as a model for the world, shopping experiences that are opened its doors in 1982, adding a pan-regional presence,” says foreign-owned copper compa- ates in Chile, Argentina, was Dr. Jose Piñera, the then different and better, because at the country’s first food court in Mr. Olivos. nies that were nationalized five Ecuador, Peru and Colombia, Minister of Labor and Social the end of the day, retail offer- 1989. Since then, more devel- Mining has for decades been years prior, today the mining and is part of the global alliance Security of Chile. Dr. Piñera, a ings are more or less the same opments have been added to an economic mainstay of Chile. sector is open and the govern- oneworld. It is also currently Harvard and University of everywhere. There are small its portfolio in Chile, Argenti- Codelco is currently the largest ment strongly supports foreign merging with Brazil’s TAM to Chicago-trained economist and differences, but 90% of the re- na and Peru. Parque Arauco copper producing company on investment. In fact in recent create LATAM, Latin Ameri- the elder brother of President tail offer is relatively similar,” currently operates around 6.5 Earth, boasting close to 20% of years the Ministry of Mining ca’s largest airline and one of the Sebastian Piñera, is a distin- says Mr. Olivos, who adds that million square feet of gross the world’s reserves. In 2009, has modified the mining in- 10 largest in the world.

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040 Friday, September 16, 2011 CHILE Distributed by USA TODAY FDI quadruples in seven years Foreign direct investment reached US$15 billion last year in Chile

Four main pillars underpin al recognition of two decades resources and new markets, but Chile’s appeal as a destination of democratic reform and also through technological de- for foreign investment: politi- sound economic policies in velopment. Modern Chile is a cal and economic stability, a Chile. crucible of innovation, renew- wide network of international Unsurprisingly, Chile has able energy and services, which A launch pad for investors trade agreements, legal security seen a boom in foreign direct now account for 60.5% of FDI. and stability, and a high stan- investment (FDI), which has In January 2009, Wal-Mart Corfo aims to turn Chile into the regional hub of entrepreneurship and innovation dard of transport and com- quadrupled over the past sev- acquired 58.2% of Distribucion munication services. en years, totaling US$15 billion y Servicios (D&S), Chile’s lead- Corfo (Corporacion de Fo- costs, you have to find places meet Chilean customers and Its tax-friendly environment in 2010. FDI has been running ing supermarket chain – one mento de la Produccion de that are interesting markets, enter the international market has also caught investors’ eyes. at 6.5% of the country’s gross do- of the largest U.S. investments Chile) was established in 1939 and at the same time provide through the region. Instead of According to the Ministry of mestic product and more than in Chile outside the mining to promote economic growth a platform to serve other taking an aggressive stance like Foreign Affair’s International 5,000 companies from 60 coun- sector. Wal-Mart’s biggest in- in Chile. From its origins as an countries – and we think that some of their neighbors, Chile Economic Relations Office tries around the world have set vestment ever in Latin Amer- organization devoted to in- Chile has a great advantage is more concerned with the (Direcon), the corporate in- up shop here. ica was a significant vote of dustrializing the country, Cor- for that.” fundamental training and come tax rate is 17% (tem- This growth in FDI has confidence in Chile and gave fo has evolved into one that In addition to having a com- working capacity of its citizens. porarily increased to 20% in helped to bolster Chile’s com- the retail giant a strategic po- creates good conditions for en- mon time zone with the east- Corfo even has a scholarship 2011 and 18.5% in 2012 to help petitiveness not only through sition in the continent. trepreneurs, innovators and program to train people in Eng- finance Chile’s earthquake re- Chilean SMEs, improving pro- ‘OUR DREAM IS TO lish, and other useful develop- construction program), which ductivity, competitiveness, and HAVE ELIMINATED mental programs. is one of the lowest corporate helping to establish foreign POVERTY AND “Our dream is to have elim- income tax rates in the world. companies within the country. CROSSED THE inated poverty and crossed the It also has bilateral agreements “Today, thanks to advances THRESHOLD OF threshold of development by with 22 countries to avoid dou- in information technologies, DEVELOPMENT BY 2018. We want to do that with ble taxation, with others to be all many companies have to 2018’ higher growth and higher pro- soon ratified. do is find a place to locate cen- ductivity. We want to turn In 2010 Chile formally be- ters that have lower operat- ern U.S., Mr. Cheyre affirms Chile into the regional hub of came the first South Ameri- ing costs. In Chile this scheme that “the rule of law” works in entrepreneurship and inno- can country to enter the has great advantages for any Chile, putting the investor in vation,” says Mr. Cheyre. “We Organization for Economic international company that a central position. Through do not want to replicate Sili- Cooperation and Develop- wants to be successful,” says Corfo-based investment pro- con Valley, we do not replicate ment (OECD). Acceptance as Hernan Cheyre Valenzuela, motion agency InvestChile, in- Israel, but we want to learn the 31st member of the orga- vice-president of Corfo. “If ternational companies are able from the best of each region, nization marked internation- Chile now ranks third in Latin America for FDI you are looking for lower to use Chile as a platform to and connect to the world.” Gateway to Chile’s dynamic economy

Since its creation, InvestChile has brought US$2.4 billion in foreign investment to the country and “It is important for InvestChile US$143 million last year alone. The outlook for 2011 looks even better, with a growing network of to bring good foreign talent and foreign offices and specialized support team helping to strengthen Chile’s growth capacities to install some major companies in the country to close the gap,” Chile may be “hidden behind the have contacts with all other pub- that add value to the industry at says Mr. Figueroa. Andes,” as Juan Antonio Figueroa, lic agencies, authorities, with in- production level, the issue is Chile has the highest average head of InvestChile says, but he dividuals, with potential partners, biotechnology and new process- annual growth rate in Latin emphasizes that it is a very com- real estate companies, with head- es through more efficient ma- America, with an annual growth plete and varied country which hunting companies, etc.,” says chinery in harvesting, producing, rate from 1985 to 2009 of 5.5%, people should invest in and see Mr. Figueroa. “Materializing in- or agribusiness.” and leads the world in number for themselves. vestment for us is not simply a As mentioned, offshoring is of free trade agreements, with “Chile chose a development forum to invite you to come, tell also a sector Chile can con- 58 countries. The U.S. is the third model that is open to the world, us your idea, and we tell you how tribute to, as the country holds largest bilateral trading partner one which is based – like many good it is for you to invest in high industry rankings in this for the country, as trade has dou- other emerging economies today Chile. Instead, we make an agen- regard. In this vein, InvestChile bled since the two countries – on natural resources, and that da and we assign an account ex- has a scholarship program in signed a free trade agreement. is what we want to change,” says ecutive to guide you.” English for 4,000 trainees this “The United States is a key part- Mr. Figueroa. “We want to make year, with 8,000 students having ner in the areas of entrepre- that leap from being a natural- completed the program in the neurship, innovation and resource-based economy to one past three years. attracting talent,” comments Mr. that is more supported by tech- ‘WE WANT EACH “We want each and every com- Figueroa. “Attracting investments nology, services and products of AND EVERY pany that is set up in Chile to feel is what allows us to call ourselves high added value, which ulti- COMPANY THAT IS that they have all the human re- an economic development mately is the key to enabling sus- SET UP IN CHILE TO sources they need, and that if agency.” tained growth over time.” FEEL THAT THEY HAVE they require anything, we can He adds, “We have much to An agency of Corfo, the ALL THE HUMAN help them to acquire profes- offer. When people first come to Chilean government’s economic RESOURCES sionals in the industry – from Chile they are very surprised, development agency, InvestChile THEY NEED’ engineering, architecture, de- due to our economic and polit- helps investors recognize the sign, financial services and bank- ical stability, economic success country’s full potential in order At the moment, InvestChile ing – who are trained in areas story, free trade agreements, and to facilitate and promote do- sees opportunities in five sec- like the English language.” quality of life. In Santiago, not mestic and foreign investment. tors: the food industry, mining InvestChile promotes these in- only are you just an hour from the InvestChile mainly targets supplies, global services, biotech- vestment opportunities through mountains, but you also have the specific private-sector invest- nology, and manufacturing and fairs, meetings, and offices sea, wine trails an hour and a half ments and serves as an initial assembly of components and abroad. They currently have of- away, the northern desert, the entry point for foreign investors parts. “We are always thinking fices in Spain, Italy, Germany, clearest of nights and amazing in the country. of new technologies to attract Nordic countries, India and Chi- astronomy, as well as Patagonia “We must help the enterprise investors,” says Mr. Figueroa. “In na, and together with ProChile, etc. In short, it is a very complete JUAN ANTONIO FIGUEROA, or the investor to navigate the food industry, we are very they will open additional offices and exceptionally varied country. Head of InvestChile through the local economy, to focused on attracting companies in the U.S., Brazil, and France. Come and see it for yourself.”

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Distributed by USA TODAY CHILE Friday, September 16, 2011 5 Latin America’s center of medical THEY and pharmaceutical prowess SAY In the 2011 IMD World Competitiveness Report Chile tops the list for Latin America. The country has come a long way in a short period of time; whereas not long ago Chile was practically 100% dependent on its natural resources for revenues, today it exports more and more finished products, innovation and talent “Chile is... One of the areas in which Chile dards have earned it certifica- truly stands out in the region tion from the University of G The best country in Latin America is in pharmaceuticals and Maryland, which testifies to and third best in the Americas medical research. Some 40 the quality and efficiency of (Newsweek, 2011) companies are active in phar- CFR’s products. maceutical production and lo- Mr. Weinstein highlights G The emerging country with the cal laboratories account for CFR’s attention to innovation lowest default risk (BlackRock In- over half of the total market in – a product not only of finan- vestment Institute, 2011) value terms. According to the cial investment but also of the Economist Intelligence Unit, quality of its human resources. G The most competitive country in the value of pharmaceutical “Creativity is as important as Latin America (IMD World exports totaled around reading and writing in innov- Competitiveness Yearbook 2011) US$105 million in 2009 – a ative companies,” he says. relatively small figure – yet The CEO adds that CFR has G The only politically risk-free Chilean laboratories are mak- Chile’s first biotechnology con- Latin American country ing headway in innovative sortium in association with (Aon Risk Solutions, 2011) products and are increasing the Pontificia Universidad their international activities. Catolica and the government, G The least corrupt country in “Chile has a disadvantage as well as an agreement with Latin America that it has converted into an (Transparency International, 2010) advantage: our size. We have ‘IN ORDER FOR a small population like Israel, G Home to Latin America’s best tax Singapore or Norway. At 17 COMPANIES TO system (Latin Business Chronicle) million, our population rep- DEVELOP AS THEY HAVE HERE, THEY resents a small domestic mar- G Latin America’s most open ket. In order for companies to NEED A GLOBAL economy for foreign investment develop as much as they have VISION, WHICH IS (World Bank) here, they need a global vision. WHY YOU SEE SO MANY CHILEAN This is why you see so many G The digital economy leader of COMPANIES, SUCH Latin America (The Economist) Chilean companies, such as AS CFR, ACTIVE CFR, active elsewhere in Latin ELSEWHERE IN G America and even in South- LATIN AMERICA’ The Latin American number one east Asia,” says Alejandro We- in broadband penetration instein, CEO of Corporacion ‘CREATIVITY IS AS (DatosClaros) Farmaceutica Recalcine IMPORTANT AS (CFR). “This has been done READING AND G Potentially the “best place in the through hard work, climbing WRITING IN world” for producing solar energy up the ladder – not taking the INNOVATIVE (BusinessWeek) elevator – and doing things COMPANIES’ well, bit by bit. I think this char- G Home to the most interconnected acterizes Chilean business- ‘OUR economy in Latin America (WEF) people in general.” PUBLICATIONS CFR is a leading local phar- CONCENTRATE ON G Ranked among the top 5 devel- maceutical manufacturer that AREAS OF INTEREST oping countries for student does its own R&D and has in- IN MOLECULAR achievement (Save the Children) ternational agreements, pres- BIOLOGY, tigious certifications, modern BIOMEDICINE G The best country to live in Latin plants, and a long history as AND MOLECULAR America (Newsweek) one of Chile’s most reliable PHYSICAL sources of medicines. CHEMISTRY. G Chilean executives are the most Established in 1922 by Nico- QUALITY PREVAILS trustworthy in South America las Weinstein Rudoy, son of OVER QUANTITY’ (PricewaterhouseCoopers) Ukrainian immigrants and grandfather of the current ALEJANDRO WEINSTEIN, CEO of Corporacion Farmaceutica Recalcine (CFR) G Patagonia is one of the top 10 CEO, CFR – originally called destinations for 2011 (Lonely Botica Italiana – started off dis- the Institut Pasteur. “We have dents with campuses in Santi- Planet) tributing imported products a joint venture with Institut ago, Viña del Mar and Con- and also manufacturing a few Pasteur to develop a new drug cepcion. Moreover, it has of its own. CFR’s first medicine called monoclonal antibodies. already established itself in was called Recalcine, a calcium- This is the new revolution in ‘top-of-mind’ polls among pri- “Santiago is... based product. Soon after, Dr. medicine. They’re biotechnol- vate universities. Weinstein’s company devel- ogy products that are no longer Though private, the uni- G The top place to visit in 2011 oped another product, Alivi- produced through chemical versity prides itself on repre- (New York Times) ol, which became the most synthesis, but rather through senting “Chile’s socio- commonly used analgesic in genetically modified bacteria. economic pyramid in its class- G The Latin American city of the Chile. So popular was Aliviol Institut Pasteur chose CFR as rooms,” as UNAB’s rector Dr. future (Financial Times, 2011) that Germany’s Bayer decided their Latin American partner,” Pedro Uribe puts it. to buy the rights to the prod- explains Mr. Weinstein. UNAB offers 63 under- G The second most livable city in uct as its own aspirin products Aside from human medi- graduate programs, 45 mas- Latin America (The Economist) simply couldn’t compete. cine, CFR has ventured into ter’s degrees and seven The 1940s marked a decade veterinary and farming sciences doctorates, all in a wide vari- CFR’s hyper-modern laboratory G Among the 10 most economical of paramount importance for and marine biotechnology. ety of areas ranging from jour- cities in terms of price per square both the company and the Feeding Chile’s knowledge- nalism to psychology to law to important, or “Q1”. Dr. Uribe Member of the Laureate In- meter, along with Concepcion country, as it was the first time based industries, such as these, architecture to engineering. explains this high success rate: ternational Universities (LIU) (Global Property Guide) penicillin was introduced. are its universities, whose In 1993, the university intro- “Our publications concen- network, UNAB receives From here on, CFR’s growth graduates are meeting with duced Chile’s first program in trate on areas of interest in hundreds of students annually G Home to the Hotel W Santiago: was unstoppable. Today, the ever more interesting profes- aquaculture, in which students molecular biology, biomedi- from abroad, including some the best hotel in the world company’s products are sold in sional opportunities. team up with small business- cine and molecular physical 150 from California, the Uni- (Travel + Leisure, 2011) 20 countries in Latin Ameri- Universidad Andres Bello es to propagate more sustain- chemistry. Quality prevails versity of Chicago and Co- ca and Southeast Asia, and it (UNAB) is a private Chilean able fishing practices. over quantity.” lumbia University. has eight pharmaceutical university, founded in 1988 af- Today, UNAB’s strength lies plants located in Chile, Ar- ter the Law of Higher Educa- in research – indeed, UNAB gentina, Colombia and Peru. tion of 1980 allowed for the is the most research-inten- Another two are currently un- entrance of private universities sive private university in Chile der construction. and helped raise enrolment (in today, as seen in the univer- CFR’s largest factory, the 1980 there were just 110,000 sity’s publications. Pharmafuturo complex, is the students at the university lev- In research and informa- most modern in the Southern el; today, this number is flirting tion analysis group SCImago’s Cone and was designed under with the 1 million mark). institutions rankings, half of Good Manufacturing Practice Even though UNAB is just UNAB’s journals and publi- (GMP) guidelines. Moreover, over 20 years old, it has an en- cations are considered among Pharmafuturo’s rigorous stan- rolment of some 40,000 stu- the top 25% most relevant and

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6 Friday, September 16, 2011 CHILE Distributed by USA TODAY Colbun looks to hydro-power for greater self-sufficiency in energy generation

Chile’s third-largest energy producer is working to better utilize the country’s water potential, and to decrease its reliance on imported gas and coal

Although rich in other natur- Matte Group, Colbun has 21 ‘WE HAVE TO generate an enormous al resources, Chile does not power plants with a total in- IMPORT GAS AND amount of electricity in an ex- boast vast reserves of petrole- stalled capacity of 1,268 COAL. SO AS AN tremely small flood area.” um. Therefore, the country has MW of hydroelectricity and ENERGY BASE, “Hydroelectricity is the traditionally relied on coal, im- 1,347MW of thermal power. HYDRO-ELECTRIC main source of renewable en- ported natural gas, and hy- It boasts a market share of ap- POWER IS WITHOUT ergy there is in the world. Any droelectric dams for energy proximately 25%, making it A DOUBT THE WAY other alternative in Chile in- production. Chile’s third-biggest power FORWARD FOR volves importing fuel. As we While Argentina was Chile’s company. CHILE’ don’t have gas, we have to main source for gas, internal Colbun was originally cre- bring it from far away. We problems and energy crises in ated as a public company in coal plant in the coastal city of have very little coal and it’s that country have sometimes 1986, operating just two hy- Coronel (some 330 miles south not enough, so we have to im- resulted in exports being cut, droelectric stations (in Colbun of Santiago), the 340MW hy- port it from Australia, Colom- thereby creating energy short- and Machicura). In 1997 the droelectric station at Santa bia, the U.S. and so on. So as ages in Chile. Furthermore, re- company was privatized and Barbara, and a smaller hydro- an energy base, hydroelectric cent droughts have highlighted eight years later, the Matte electric plant (144MW) at San power is without a doubt the hydroelectric power’s depen- Group acquired it and greatly Pedro, in the Lake District. way forward for Chile.” dence on rainfall. expanded it. The fourth and most fa- Aside from running high- Operating in the Central In- “We’ve already doubled the mous project is the HidroAy- ly successful companies in a terconnected System (SIC) – size of Colbun and we have sen project (in collaboration variety of sectors, the Matte Chile’s largest network that projects that will double it with Spain’s Endesa), with Larrain family is a great bene- supplies electricity to 90% of again in the next seven to 10 2,700MW of capacity. “It com- factor of education. One of the total population and runs years,” says Bernardo Matte prises five stations in cascade the family’s projects is the SIP, over 1,300 miles from Taltal in Larrain, company chairman. formation: two in one river or Primary Instruction Sys- the north to the island of Four specific projects Col- and the other three in anoth- tem, which provides some Chiloe in the south – is ener- bun currently has under con- er,” explains Mr. Matte. “It’ll 20,000 needy children with gy giant Colbun. Part of the struction include the 700MW BERNARDO MATTE LARRAIN, Chairman of Colbun be very efficient in that it will quality education. Mining and energy go hand in hand Mining is Chile’s most important economic activity, requiring enormous amounts of energy

Chile produces over a third of away from sodium nitrate pro- mines. “We have an enormous the world’s copper and rheni- duction as global demand desert in the north, and as soon um, and ranks third in molyb- dropped, and instead began de- as technology allows for a bet- denum, fifth in silver and 15th in veloping potassium nitrate, or ter use of solar energy, Chile will gold. In terms of non-metallic saltpeter. “Today, we produce have a huge comparative ad- mining, Chile also leads the half of the world’s saltpeter,” says vantage,” explains Bernardo world in natural nitrates, lithi- Patricio Contesse, general man- Matte Larrain, president of Col- um carbonate and iodine. ager of SQM. “We’ve built a new bun (see article above). Founded in 1968, SQM is and highly modern factory that Current power generation Chile’s top non-metallic mining produces 300,000 tons. This sits at 15,000MW yet this is ex- company. In iodine production, makes us the biggest producer pected to double over the next it is Chile’s largest company and and the only one with installed decade in step with growing third worldwide. It also controls capacity for potassium nitrate demand. While Chile remains one-third of the global market on a global level.” dependent on imports of en- for chemical lithium, and over SQM, Chile’s fourth biggest ergy resources (especially nat- one-quarter of the mineral lithi- company in terms of market val- ural gas and coal), it is working PHOTO: Central Hidroeléctrica Pangue / Endesa Hidroeléctrica Pangue Central PHOTO: um market. ue, boasts its own trading house, to raise the capacity of renew- With US$2 billion in sales ex- which not only sells to the final ables and alternative sources. Chile aims to reduce its dependence on imported fossil fuels by raising its capacity of hydroelectric and other renewable pected for 2011, SQM has plen- user, but also serves to keep a fin- “The key is to have a sufficiently power sources ty of room to move and invest. ger on the pulse of the market. diversified energy grid,” com- This year it’s injecting US$500 Luckily for SQM this is in- ments Cristian Arnolds, gen- reliable supply to the zone’s company. After passing through Brazil’s Electro,” says Mr. Arnolds. million in its SQM Salar plant, creasing non-stop as industry eral manager of Chilquinta. growing population, which it a series of owners, in April this Although the February 2010 which annually produces around the world grows and a With origins dating back to will do through investments in year, California-based Sempra earthquake’s epicenter was in 300,000 tons of potassium chlo- mushrooming global popula- 1889, Chilquinta is the elec- infrastructure. The other ob- Energy completed its buyout of Concepcion, destruction was ride and 10,000 tons of lithium. tion demands more fertilizers tricity distributor for Valparaiso jective Chilquinta has adopted the Chilean company, which it widespread for hundreds of miles By 2014, the company expects for greater food production. and the V Region. According is to seek out growth opportu- partially owned since 1999. up and down the coast. However, to have raised these figures to 2.5 Feeding Chile’s mining in- to Mr. Arnolds, Chilquinta’s sup- nities beyond its traditional line “Sempra’s presence has helped within a few hours, Chile’s elec- million tons and 50,000-60,000 dustry is no easy task, as the ply indicators are excellent, of business and enter energy us to see new ideas, to improve tric energy supply was restored, tons respectively. country is far from rich in fossil much higher than those man- generation. our business. They also own oth- and once the interconnected sys- Fertilizers – or “specialty plant fuels and hydroelectric plants dated by local regulation. The Up until 1986, Chilquinta er operations in Latin America, tem was reestablished, Chilquin- nutrition” – are SQM’s forte. Be- are concentrated in the south – company’s goals are therefore to (known previously by various so we’ve been able to swap notes ta managed to restore supply to ginning in 1988, SQM moved far, far away from the northern continue offering a steady and other names) was a state-owned with Peru’s Luz del Sur and 80% of its clients.

SQM’s newly built sodium nitrate plant in Coya Sur, Antofagasta, has allowed the company to reduce energy consumption, raise the quality of the final product, and improve safety conditions

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Distributed by USA TODAY CHILE Friday, September 16, 2011 7 A first-class, first-world financial system Underpinning foreign confidence in Chile is the meetings of the OECD and continued solid performance of its financial sector. The other international forums.” strength of its institutions, efficient regulatory system It is not only Chile’s pension and successful reforms have allowed Chile to create a scheme that is expanding robust financial framework abroad, but also the expertise of its financial institutions. In Chile’s advanced communica- FOR YEARS, THE 2010, Larrain Vial, a Chilean tion and transportation infra- CENTRAL BANK HAS investment banking and secu- structure has helped it connect FOLLOWED A VERY rities brokerage firm with 77 to international markets and PRUDENT, AUSTERE years experience in its home bridge distances with other FISCAL POLICY OF market, became the first global business centers. A low- ‘YOU SPEND ONLY Chilean broker-dealer to be au- cost business-friendly envi- WHAT YOU HAVE’ thorized to operate in the U.S. ronment, along with a high AND PURSUED AN Last year the group was rec- quality of life and a talented INFLATION TARGET OF ognized by The Banker as the and educated work force, has BETWEEN 2% AND 4% Most Innovative Financial Firm attracted record levels of for- in Latin America, and was re- eign direct investment (FDI). LAST YEAR, CHILEAN cently awarded the Best In- According to the World In- FINANCIAL GROUP vestment Bank in Chile 2011 vestment Report 2011 by the LARRAIN VIAL BECAME award by Global Finance. United Nations Conference on CHILE’S FIRST BROKER- “By any measure, Chile has a Trade and Development DEALER TO BE very large and very important (UNCTAD), last year Chile AUTHORIZED TO capital market in relation to the was the world’s 19th largest re- OPERATE IN THE U.S. economy,” says Fernando Jose cipient of FDI (up from 26th AND WAS HAILED ‘THE Larrain, director of Larrain Vial. place in 2009). International- MOST INNOVATIVE “For example, if we consider ly, FDI inflows grew by 5% to FINANCIAL FIRM IN bancarization or financial pen- US$1.24 trillion in 2010, but LATIN AMERICA’ etration (defined as private in Chile US$15.1 billion poured credit as a percentage of GDP), into the country, representing rain says, “The goal we have set it is 80% in Chile, in Peru 30%, a rise of 17% and confirming its for this government is to grow and in Colombia 32%. Anoth- status as one of the best places 6% annually on average, create er measure is market capital- in the world to invest. 200,000 jobs per year on aver- ization relative to GDP. The In December 2010, Standard age and defeat poverty, and thus Chilean market cap to GDP is & Poor’s upped the nation’s fu- lay the groundwork for Chile to almost 1.5 times, so we have a ture to positive because its become a developed country.” very large capital market rela- “strong financial profile, grow- Chile’s economic framework Larrain Vial recently received the Best Investment Bank in Chile 2011 award by Global Finance and has more than 700 employees tive to the size of the country, ing economic stability, and includes an independent cen- which is a very important fact.” good growth prospects sup- tral bank, whose monetary pol- “Chile stands for the strength of has brought more financing al- tendent of pensions at the Headquartered in Santiago port the positive outlook”. Both icy is carried out based on its institutions, rule of law, low ternatives to the market. Also, Chilean Pensions Supervisor and with more than 700 em- Moody’s and Fitch also laud inflation targets and a flexible corruption, and respect for pri- Chile’s pioneering pension sys- (Superintendencia de Pen- ployees in 10 offices across Chile’s resilient financial sec- exchange rate. “For many years vate property rights, and legal tem – which has also increased siones), says, “We receive del- Chile, the company also offers tor and share S&P’s confidence. Chile has had a very prudent, issues are resolved in indepen- sources of long-term financ- egations from China, African brokerage, asset management The government aims to use even austere, fiscal policy: you dent courts.” ing for companies looking to countries and even from Eu- and investment banking ser- prudent financial planning to spend only what you have,” says In recent years, competition expand – continues to attract rope who are interested in the vices to private, corporate and create opportunities for all. Jose de Gregorio, president of among banks has increased and attention from overseas. Chilean pension system, and its institutional clients in Peru, Bo- Minister of Finance Felipe Lar- the Central Bank of Chile. a greater willingness to lend Solange Bernstein, superin- issues are brought up in the livia, Brazil and Mexico.

‘OUR GOAL IS TO ‘CHILE STANDS ‘WE RECEIVE ‘CHILE HAS A GROW 6% FOR THE DELEGATIONS VERY LARGE ANNUALLY ON STRENGTH OF FROM CHINA, CAPITAL MARKET AVERAGE, CREATE ITS INSTITUTIONS, AFRICA AND IN RELATION TO 200,000 JOBS PER RULE OF LAW, EVEN EUROPE THE ECONOMY. YEAR, DEFEAT LOW THAT ARE BANCARIZATION POVERTY, AND CORRUPTION, INTERESTED IN IS 80% IN CHILE, LAY THE GROUND- AND RESPECT THE CHILEAN COMPARED TO WORK FOR CHILE FOR PRIVATE PENSION 30% IN PERU TO BECOME A PROPERTY SYSTEM’ AND 32% IN DEVELOPED RIGHTS’ COLOMBIA’ COUNTRY’ FELIPE LARRAIN, JOSE DE GREGORIO, SOLANGE BERNSTEIN, FERNANDO JOSE Minister of Finance President of the Central Superintendent, Chilean LARRAIN, Director of Bank of Chile Pensions Supervisor Larrain Vial

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8 Friday, September 16, 2011 CHILE Distributed by USA TODAY Applying world Top 10 leadership to Chile’s 1 Dynamic economy The average annual growth rate of the Chilean savings market economy 1985-2009: 5.5%. With a wealth of experience, the Chilean division of Principal Financial Group has risen to the top of the industry, offering its clients savvy savings instruments and trust 2 Highly When people think of insur- plains Pedro Atria Alonso, Prin- competitive ance, they usually think of poli- cipal Chile’s country head. “This Chile is ranked 30th among cies, premiums and savings. generates a chain reaction for all 139 countries in the WEF Yet there is a lot more to it, and of the economy, from compa- ‘IN CHILE, PRINCIPAL PEDRO ATRIA ALONSO, Chile Country Head of Principal Financial Group 2010-2011 Competitive- one could even say that insur- nies that can easily find financ- WAS CHOSEN BEST ness Ranking. ance companies form an im- ing, either through bonds or APV FUND tools and strategies to ensure Barron’s annual ranking of top portant pillar of a country’s other financing instruments – MANAGER IN 2009 return on investment, all under mutual fund companies (Feb- economic growth. These in- which results in the creation of AND 2010, AND BEST the company’s solid and trust- ruary 2011). 3 Globally stitutions have a great deal of a very large market of institu- INTERNATIONAL ed name. Principal conducts Present in Chile since 1995, savings accumulated and must tional investors – all the way to STOCKS MANAGER four main business lines: mu- Principal won Best APV Fund integrated invest this somehow – often insurance and mutual fund IN THE 2007-2008 tual funds, pension plans, pay- Manager in 2009 and 2010 at the The country has more providing financing alterna- companies.” PERIOD’ out annuities, and asset Fund Pro Platinum Performance than 20 trade agreements tives for local businesses. He adds, “Chile’s investment management. Awards, and was #1 in the risk- with 58 countries that rep- In Chile, private companies rate has risen considerably and working population have The group has racked up a adjusted performance awards resent 90% of global GDP. such as Principal Financial with time, this investment im- opened an APV account (a vol- list of awards and recognitions, for mutual funds, not only in Group are, in addition to proves the unemployment rate, untary retirement savings ac- including being named one of number of funds but also in per- mandatory social security plans, salaries and the country’s de- count with tax benefits). the World’s Most Ethical Com- centage of funds awarded (April 4 Financial offering complementary sav- velopment.” Principal, the Chilean arm of panies in four opportunities by 2011). ings tools, which in turn repre- Education has played an im- the U.S.-based global financial Ethispheremagazine, top record “In this business, trust is fun- strength sent more possibilities for portant part in this, says Mr. services company of the same keeper in the number of defined damental,” says Mr. Atria, “be- Economic stability, mone- greater savings and more com- Atria, as saving and investing name, is one of Chile’s leading contribution plans, profit shar- cause we’re asking people to tary discipline and a strong fortable futures for retirees. are not concepts with which insurance providers. With more ing plans, SEP and SIMPLE hand over their money. For this political and fiscal environ- “The funds that people are many Chileans are familiar. than 130 years of experience, plans (PLANSPONSORmaga- reason, we have to be extreme- ment make Chile a low- saving allow for a significant de- There is still a long way to go, Principal offers its customers in zine’s Recordkeeping Survey, ly trustworthy and assure our risk bet for investors. velopment in the market,” ex- however, as only 8.5% of the Chile the ultimate investment June 2010), and ranked third on clients that their money is safe.” 5 Tax-friendly economy A corporate income tax Claro invests in Chile’s telecoms rate of 17% is one of the Business at Claro Chile is booming, thanks to its ambitious growth plan and a strong focus on quality and customer care lowest in the world.

Claro Chile is the Chilean unit (US$276 million) in the first quar- of Latin American telecom giant ter of this year. At the end of 6 High America Movil, which has more March, Claro had just over 5 mil- than 230 million cellular cus- lion wireless clients, an increase transparency tomers in 18 countries through- of 33.9% from a year earlier. Chile is in 21st place among out the region. Last year Claro Chile and 178 countries and top in Claro recently unveiled its in- Telmex Chile merged, uniting Latin America, according vestment plan for the next four to form a company that can of- to the Perceived Corrup- years, which foresees spending fer its clients the so-called Quad tion Index. US$2 billion during that period play of mobile, Internet, tele- to expand its international voice phone and television services. and data network, to add an- Claro can now provide them all, 7 Economic other 280 miles of fiber-optic ca- individually or as a package, or bles and to increase coverage in a simple fixed-line telephone ser- freedom rural areas of Chile. vice for clients that want it. Chile is in 11th place among “We believe we should offer a 179 countries worldwide, ‘WE’LL BE PREPARED wide range of products,” says Mr. and top in Latin America. TO OFFER MORE AND Muñoz. “There are still clients BETTER SERVICES, who just want a telephone ser- MORE PRODUCTS, vice at home, and we offer them 8 Outstanding MORE BROADBAND that. But we also want to be ready INTERNET ACCESS, for clients who welcome tech- quality of life AND MORE nological changes, so we can tell According to the Quality CAPACITY’ them ‘we have smartphones, we of Life Index 2010 (Inter- have voice and broadband ac- national Living), Chile is in “We’re concentrating on our cess, we have mobile Internet, 71st place out of 194 coun- infrastructure plan, we want to and we have television and val- tries. add capacity and coverage in the ue-added services.’” whole country,” says Gerardo Since the merger last year, GERARDO MUÑOZ, General Manager of Claro Chile Muñoz, Claro’s general manag- Claro is working on remaking 9 Skilled er in Chile. “This is an important itself into a new company. For ex- 2,653 miles north to south, yet Movil’s regional philosophy.” the region, they are offering challenge, we’re making sure to ample, the new company is its average width east to west is Claro and America Movil clients a chance to improve their workforce concentrate on investment so proud to be the first telecom- only 110 miles, between Ar- work together to not only offer lives. Chile is in first place in the we’ll be prepared to offer more munications provider in Chile gentina and the Pacific Ocean. services in as big an area as pos- “Communication is the same Latin American Talent In- and better services, more prod- to offer a wireless version of a “It’s a very big country, very sible, but also to make sure clients as education, and Chile’s gov- dex Ranking 2009. ucts, more broadband Internet triple-play bundle. The main ad- long, where it’s difficult to con- have access to high quality ser- ernment very correctly is plan- access, and more capacity.” vantage is to be able to sell the nect in some areas and reach- vices. They want to make sure ning to continue pushing for The company needs to make service all around the country, ing all the population can be that quality improves every day, more connectivity, to give more 10 Modern this huge investment to keep up even in remote and rural areas. difficult,” explains Mr. Muñoz. Mr. Muñoz says. and more Chileans the chance with the strong demand for its A quick look at a map shows “We want to be in the north and Claro and its parent compa- to get connected,” says Mr. infrastructure services. Claro Chile’s revenue just how difficult it is to reach the in the south, in small towns and ny also share the philosophy that, Muñoz. “That will offer people Chile boasts cutting-edge grew 27.9% from a year ago to whole country. Chile is a long, in big cities. That’s our Chilean by extending telecom services a higher level of education and telecoms and logistics, and 129.2 billion Chilean pesos narrow nation that stretches philosophy and it’s America around the country, and around greater opportunities.” top ports and airports.

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Distributed by USA TODAY CHILE Friday, September 16, 2011 9 Getting the right work/life balance Chile scored highest within Latin America on the The Economist’s Quality of Life index for 2010

Chile’s financial system, healthcare network, infra- structure, competitiveness, and respect for rule of law have all combined to create a transparent and dynamic country where, quite simply, life is pretty good. In fact, Chileans seem to combine the best of both worlds: the slower pace of life for which Latin America is fa- mous and the go-get-’em atti- tude of the developed world. Chileans take time to enjoy life and spend time with fam- ily and friends (any occasion is a good enough excuse for a backyard barbecue). This was true in its more economical- ly depressed times, and it still holds true today. A hard working nation, Chile has recently been reap- ing the benefits more than ever, and now enjoys a grow- ing economic prosperity that has enabled better health in- frastructure. According to the Economist Intelligence Unit: “Rising real incomes and fur- ther upgrades to sanitary and healthcare facilities will result in a continued improvement in life expectancy and infant mortality rates, keeping Chile within the healthcare para- meters of most OECD coun- tries. The virtually universal access to safe water and san- itation is a major factor con- tributing to the country’s success in disease prevention in recent decades.” while providing medical at- focus on four areas: the com- ulation. The entry of the pri- Chile’s healthcare system is tention en route back to the munity and our contribution; vate sector in hydraulic re- mixed, with the public sector hospital. By the year 2013, the the customers (which is clear- source management just over providing some 70% of health system will be more than dou- ly the most important area, as a decade ago was a huge step services and the private sec- ble in size thanks to a US$180 logically we try to gain more forward, as investment and tor providing the rest. One of million investment. client loyalty and market plans for blackwater treat- Chile’s best private facilities is Chile’s pharmaceutical mar- share); the shareholders; and ment were thus facilitated. Clinica Las Condes (CLC), lo- ket, estimated at US$1.7 bil- the employees,” explains Mr. Founded in 1969 and par- cated in the upscale Las Con- lion in 2009, is the sixth-largest Belloni. tially privatized in 1999, Aguas des neighborhood of Santiago. in Latin America. Three lo- Ranked among Chile’s top Andinas serves 6 million peo- CLC was opened in 1982 by cal chains account for 90% of 35 great places to work, Sal- ple in the metropolitan region a group of physicians whose pharmaceutical retail distri- cobrand is more than just a of Santiago and is one of Latin vision was a hospital built up- bution and two-thirds of to- pharmaceutical chain. Aside America’s most important wa- on excellence, quality, innova- tal pharmacies. The from owning two laboratories ter companies. Its wastewater tion, leadership and efficiency. competition among Chile’s and an extensive Recetario treatment plant is the fifth This multidisciplinary, state- pharmacies has fueled a fierce Magistral, or ‘Master Medi- largest in the world. Boasting of-the-art clinic was the first price war, resulting in more cine Compendium’ – which state-of-the-art equipment Chilean hospital to be certi- affordable medicine, espe- allow it to better personalize and technology, it treats 8.8 fied by Joint Commission In- cially compared with other medicines according to cus- cubic meters per second. “San- Pharmacy chain Salcobrand opened a unique vintage pharmacy in celebration ternational in 2007 and last South American countries. tomers’ needs – Salcobrand tiago’s water is completely de- of Chile’s bicentennial in 2010 year, was accredited yet again. “Chile is one of the coun- is also a retail outlet for beau- contaminated, something very “This shows that we maintain tries with the widest variety of ty and wellness products. few other regional capitals can our quality; it’s not solely about brands on the market, and I After last year’s earthquake claim,” says Mr. Villarino. reaching the certification, but believe that being such a small Salcobrand mobilized its re- “In terms of water, Chile is rather about maintaining it and country has created a culture sources and launched the Sol- a developed country. The lev- continually improving,” says of pro-competition,” says idarity Bracelet campaign with els of coverage we now have Gonzalo Grebe, general man- Roberto Belloni, general man- the Chilean Red Cross to raise are similar to those you’ll find ager of CLC. ager of Salcobrand. money to help victims. The in European nations and in From the outset CLC’s fo- Salcobrand, the second sale of nearly 54,000 bracelets the U.S.,” he adds. cus on innovation and lead- largest pharmacy chain in contributed funds to supply Aguas Andinas was taken ership has been fruitful; the Chile with over a quarter of to- clean water and rebuild hos- over in 1999 by Spain’s Grupo clinic has set the standard in tal market share, has 331 out- pitals. Salcobrand also in- Agbar and France’s Suez, a variety of areas and has been lets spread throughout the stalled temporary pharmacies whose expertise sped things at the forefront of cutting- long, coastal country with alongside army camps from up tremendously in the edge medical procedures in some 4,600 employees. Sal- which it donated medicines. Chilean company. Chile. In 1990, for example, it cobrand (the result of a merg- Chile’s top marks for qual- “Without their technolog- initiated the country’s first er between Farmacias Salco ity of life also owe a great deal ical support, knowledge, hu- ever laparoscopic cholecys- and Farmacias Brand in the to its quality of water. “When man resources and access to tectomy program. More re- year 2000) has been fully people first get access to a network of information and cently, in 2007, the hospital owned since 2007 by Grupo clean water, they go from a R&D, undoubtedly our work incorporated the Mayo Clin- Yarur (which also includes state of absolute poverty to would not be as successful In 2007, Clinica Las Condes became the first hospital in Chile certified by the ic’s new method for treating BCI Bank, BCI General In- a dignified life,” says Joaquin as it is today,” explains Mr. Joint Commission International prostate adenomas. surance, BCI Life Insurance, Villarino, outgoing president Villarino. In 2010, CLC put its pio- and various wineries). Grupo of Aguas Andinas. “And a neering logistical platform in- Yarur took over the shares of country with wastewater to full swing when it sent its the pharmacy’s former own- treatment services is a de- very own fully-equipped he- ers and turned, what was a veloped one.” licopter to the coast to rescue huge yet slowly fading com- Chile’s extreme topography victims of the devastating pany, around. – the dry north versus the wet earthquake in February of that “Over these years, the com- south – presents challenges year. CLC boasts an aeromed- pany has undergone a funda- to water distribution, yet the ical system that allows it to mental change. On one hand country’s urban areas enjoy quickly respond to emergen- we unified the company poli- nearly 100% clean water cov- cies (including skiing acci- cies and established a five- erage, and a sewer system that dents in the nearby Andes) year vision; on the other, we reaches about 98% of the pop-

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10 Friday, September 16, 2011 CHILE Distributed by USA TODAY In harmony with Chile’s environment Companies that have discovered how to capitalize on the country’s natural beauty over the decades from its orig- he says. “I’m not interested in do- father purchased 30 years ago, without damaging it are reaping rich rewards inal focus on foreign com- ing something that 30 people and is the first of a series of of- merce to include tourism, real have already done.” fice buildings to be built. This Still off the beaten tourist track, ulation have kept most harm at so many foreigners. Two ex- estate, bottled water, malt and He adds that in the tourism one is notable for its curved Chile preserves some of the bay, and Chile remains an ecol- amples are Empresas Trans- barley, a port, and investments area, people today have moved shape, and energy efficient air planet’s most beautiful native ogist’s delight. oceanica and Crystal Lagoon. and finance. on from seeking out the conditioning system. “While forests, cleanest desert air, and Many developers and busi- Empresas Transoceanica is Mr. Schiess has left his mark Hiltons, Sheratons and Mar- the system required 40% more untouched coastlines. Despite nesspeople choose to adopt en- a highly diversified family hold- on the company by broadening riotts around the world. In- investment than a normal encroaching urban develop- vironmental sustainability as a ing, established in 1954 by a its business lines, always with a stead, they want “a unique building would, we estimate ments and controversial busi- pillar of their activities, know- German immigrant. Today his view to innovation and origi- experience that cannot be that energy consumption will ness proposals, the sheer size ing fully well that it is precisely son, Christoph Schiess leads nality. “I’m attracted by every- copied – something nobody be 75% lower,” he explains. of the country and its small pop- Chile’s ‘greenness’ that lures in the business, which has grown thing different and unexplored,” else offers. This is why I con- The building has received centrate on looking for this the Leed Gold Construction type of business. I’m concerned certificate, the highest certifi- with entrepreneurialism,” says cation of any ecological build- Mr. Schiess. ing in Chile. One of Empresas Trans- Another one of Chile’s other oceanica’s flagship properties, most remarkable real estate de- and its first foray into the velopments is San Alfonso del tourism sector, is a hotel at the Mar, in Algarrobo, due west of Puyehue thermal springs. Lo- Santiago. Built by the Crystal cated in Chile’s beautiful Lake Lagoons Corporation, San Al- District and nestled in the sur- fonso del Mar is a residential rounding forests, the New Ter- complex of pyramid-shaped mas Puyehue Wellness & SPA towers overlooking the Pacific Resort is the first 5-star all-in- Ocean and features the largest clusive complex in Chile. swimming pool in the world. Other noteworthy proper- This Guinness World Re- ties Mr. Schiess points out are cord holding pool employs the

PHOTO: San Alfonso del Mar / CrystalPHOTO: Lagoons Teatro del Lago – a wooden most advanced and environ- theater in Frutillar built over mentally friendly technology the clear blue waters of Llan- to draw in and purify salt wa- quihue Lake, boasting views ter without causing damage of the Osorno, Puntiagudo, to the surrounding aquatic Tronador and Calbuco volca- life. Crystal Lagoons CEO Fer- noes – and also the compa- nando Fischmann developed ny’s brand new headquarters a low-energy system of sen- in Santiago. sors and pulse-based injec- The building that Empresas tors to use 100 times fewer The world’s largest swimming pool at San Alfonso del Mar is Transoceanica now calls home chemicals than a normal over half a mile long, and holds 66 million gallons of water is located in Business Park, a 7- swimming pool and 10 times hectare plot of land Mr. Schiess’ less water than a golf course. For VTR, impossible is not an option The telecommunications company, 80% owned by Liberty Global, continues growing as it readies to enter new segments

In 2008, Mauricio Ramos pro- telecommunications compa- was launching a higher band- posed to the executives, man- ny offering broadband Inter- width of Internet: 120 Mbps. agers and employees at the net, fixed and long distance “This has no equivalent in company he heads that they telephony, and digital televi- Chile nor in Latin America,” all climb Aconcagua, the high- sion, Mr. Ramos welcomed said Mr. Ramos in a recent in- est mountain in the Americ- this hallmark decision be- terview with a Chilean news- as. Why? To prove that cause it meant that his com- paper. “And we’re not just nothing is impossible, of pany could once again venture talking about a network that course, and that whatever one into new territory. And once covers a few thousand cus- sets out to achieve must be again prove that nothing is tomers in Santiago. This is a done with great preparation impossible. coaxial fiber-optic cable net- and perseverance. Back in the 1980s and 90s, work that will be in 2 million Of the 45 people who ac- VTR was mostly focused on homes in Chile.” cepted the challenge, 25 cable TV. In the late 90s, how- In this regard, the CEO reached the top in January ever, the former CEO an- holds that Chile is a reliable 2009 and hoisted both the nounced – to much criticism destination for international Chilean flag and the compa- and skepticism within the in- investors like Liberty Global. ny’s banner. On their way dustry, mostly due to the glar- “Chile decided on a develop- down the mountain, Mr. ing fact that penetration was ment model based on free Ramos received a phone call already near 100% – that VTR competition, that is a com- via satellite that would set would enter the world of fixed petitive advantage over oth- the pace and strategy for his telephony and broadband In- er countries in the world and company over the next few ternet. After a merger with there is no doubt that it cre- years. Metropolis, VTR managed to MAURICIO RAMOS, CEO of VTR Chile ates a favorable scenario for The message Mr. Ramos grow into the second largest investment and innovation,” was given and that he shared player, putting the pressure company is number one in ket knowledge. Lastly, VTR is television (today, nearly half he comments. with his fellow 24 hikers was on the number one compa- PayTV, fixed broadband and backed by the expertise of its a million customers subscribe VTR has invested around that the Chilean Supreme ny, Spain’s Telefonica. fixed telephony within its foot- owner Liberty Global, which to the ‘triple-play’ package). $400 million over the last two Court had reformed the cel- VTR once again faces this print in Chile. VTR, ranked with over 20,000 employees Eight years later, VTR years, and a further $300 mil- lular phone industry, allowing challenge: the cellular market among Chile’s top 10 Great globally, is one of the world’s launched South America’s lion are earmarked for this year. for number portability and is saturated, with 21 million Places to Work, is also one of largest media companies. first-ever high definition The coaxial fiber optic net- opening spectrum space for customers in a country of un- the most well known and high- VTR had previously made channel, called Vive HD, and work, which is already in place new competitors in addition der 18 million. Yet what skep- ly regarded telecoms compa- huge waves in Chile when, in last year released the coun- between Arica in the north and to the three existing ones that tics ignore is the fact that today, nies and has its own call center, 1999, it became the first in try’s first 3D channel. Porvenir in the southern tip, had held on to their oligopy VTR boasts an impressively a very large portfolio of loyal Chile to offer ‘triple-play’ The innovation doesn’t will also serve as the founda- for 10 years. strong fixed network, as well clients, a wide network of com- packages combining tele- stop there. In March this year, tion for VTR’s upcoming cel- As CEO of VTR Chile, a as ‘soft infrastructure’. The mercial offices, and local mar- phone, Internet, and digital the company announced it lular phone network.

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Distributed by USA TODAY CHILE Friday, September 16, 2011 11 A flagship company, naturally Present in Chile for 77 years, Empresas Copec has contributed significantly to Chile’s history and success. The giant company provides products and services that drive the economy, while cleverly using the country’s natural resources in a sustainable manner

It takes many successful, re- ership stance as the most im- vesting – and the transportation sponsible companies and busi- portant supplier to industries of raw materials and finished nesses to sustain a country’s such as mining and power gen- products. The amount of car- economy. Often, however, there eration. bon sequestered in biomass and is one particular enterprise that Another one of Copec’s re- finished products was also de- stands out, whether in scope, cent growth strategies in the en- termined. Mr. Navarro explains: in its financial figures, or even ergy sector is its entry into other “If there were three more forest in its community involvement. Latin American markets. Copec companies like Arauco in Chile, Empresas Copec shines in all of bought part of Terpel Colombia the country would be neutral in these areas, making it one of in 2010, achieving control of the terms of emissions.” Chile’s flagship companies. company and not just taking the With such a pivotal role in Initially established as a fuel lead in the country’s fuel market, the economy, it has long been distribution company, Copec but also ensuring its entry to clear to Empresas Copec’s man- soon expanded into other ener- Panama, Ecuador, Peru and Mex- agement that the group’s activ- gy sectors and natural resources, ico, where Terpel also operates. ities must go beyond business namely forestry and fishing. The Empresas Copec also distrib- and into the social sphere. A Copec group of companies is utes liquefied petroleum gas and Pines grow faster in Chile than any- long-term vision has charac- now making incursions into natural gas, through subsidiaries where else in the world terized the corporate social re- mining as well. Today, 70% of the Abastible and Metrogas. In ad- sponsibility policies of this group group’s income stems from nat- dition, the former is entering of companies, as was demon- ural resources, and the remain- Colombia, with the objective of ARAUCO, THE strated after the earthquake that der from energy-related activities creating value in a market that GROUP’S LARGEST affected Chile in 2010. – two very different yet com- is following the steps of Chile in SUBSIDIARY, MAKES Copec’s supply network was plementary activities, according terms of regulation and industry SOME 25,000 PULP seriously damaged, particularly to Eduardo Navarro, CEO of Em- structure. With this in mind, AND WOOD in the south, but was able to de- presas Copec. Copec recently acquired a 51% PRODUCTS AND WAS liver to the affected areas in just From the very beginning, it stake in Inversiones del Nordeste, THE FIRST COMPANY a few hours, showing enormous was clear that the group’s path the leader in the Colombian liq- IN THE COUNTRY TO logistic capabilities and, above would be closely linked to that uefied gas industry, with a 34% MEASURE ITS all, a fierce commitment to the of the country. Founded in 1934, market share. CARBON FOOTPRINT country during the catastrophe. Copec’s first president, Pedro “We’ve grown a lot in Chile For its part, after the earth- Aguirre Cerda, was elected Pres- and now it’s time to deepen our EDUARDO NAVARRO, General Director of Empresas Copec quake, Arauco carried out the ident of Chile just four years lat- productive steps abroad,” ex- “Sustainable Reconstruction er. Current numbers speak for plains Mr. Navarro. “It’s time to presas Copec has invested a to- “Pines grow faster in Chile than begin operation, aiming to chal- Plan for Constitucion” – an ini- themselves: Empresas Copec’s have production platforms in tal of US$12.9 billion, making it anywhere else in the world, and lenge leading Nordic producers tiative focused on the recon- activities generate a US$2 billion Uruguay, Brazil, Argentina and one of Chile’s largest investors. their versatility as a raw materi- of omega-3 oils who look to Pe- struction of the city of a year operational cash flow, its Colombia. The task at hand now The group will invest a record- al allows for the production of dif- ru and Chile for raw materials. Constitucion, one of the most sales are equivalent to 5% of is to internationalize our busi- breaking US$1.2 billion in a wide ferent varieties of pulp, wood “The difference with other affected by the earthquake and Chile’s GDP, the company’s mar- ness beyond commercialization, range of projects in 2011 alone. panels and lumber.” players is that we will be located subsequent tsunami. Arauco ket capitalization represents 10% into productive areas.” The largest it has underway (and Copec’s Corpesca is Chile’s at the source, accessing fresh raw has also made one of the most of Chile’s stock market and it em- Abroad, Copec is already indeed the largest project ever principal fishing company, with materials with a high concen- powerful academic contribu- ploys a total of 19,000 people. known for its forestry and fish- undertaken in the group’s his- an 80% share of the capture quo- tration of omega-3’s two main tions by a Chilean company to Counting direct and indirect em- ing products, which are export- tory) is in Punta Pereira, tas in the northern part of the components,” says Mr. Navarro. society in the past 20 years. It ployees, between 0.6% and 0.7% ed to more than 70 countries. Uruguay, where Arauco has country. In addition to produc- One of Empresas Copec’s fea- assembled a board of directors, of Chile’s workforce works for Thanks to a deep understanding joined up with Stora Enso, a ing fishmeal and products for tures is the strong environmen- a management team and con- Empresas Copec. of the markets, a talented team Swedish-Finnish forestry com- human consumption, Corpesca, tal and social commitment that struction specialists, and de- At home in Chile, Copec is a of workers, and constant inno- pany, to build a US$2 billion together with the company’s oth- it puts into its operations. The veloped a roadmap that was household name for gasoline and vation, research and develop- plant with a capacity for 1.3 mil- er fishing company, Orizon, are company supports many differ- delivered to the public sector for service stations, with a market ment, the group – especially lion tons of pulp per year. developing the Golden Omega ent initiatives related to the im- the construction of a sustainable share of more than 50% in an in- through Arauco, its largest sub- This investment will raise project, aimed at the production provement of education, social city that faces earthquakes and dustry where companies such sidiary, which operates in the Arauco’s total capacity to 4 mil- of omega-3 fatty acids for the housing and the promotion of re- tidal waves efficiently. as Shell and Petrobras are in- forestry industry– manufactures lion tons per year, consolidating world’s nutraceutical and phar- search and development, among Empresas Copec’s support for volved, according to Mr. Navar- some 25,000 different pulp and the company as the world’s sec- maceutical markets, thus taking others. Arauco, for example, was the country’s goals is the corpo- ro, who adds that this is due to wood products. ond largest pulp producer. This the Chilean fishing industry to a the country’s first company in rate policy’s leitmotif and the rea- Copec’s focus on service as its “Innovation and the desire to position has been achieved new level of scientific research its category to measure its car- son for which it has become one most important strategic driver. be market leaders in our sectors through subsequent investments and value creation beyond raw bon footprint as part of its cor- of the most prestigious and rel- “It is our vocation,” he says. are embedded in the DNA of in productive capacity, many of materials. Golden Omega is col- porate policy for the protection evant companies locally, as well Copec’s current position is im- the entire company,” says Mr. which have taken place over the laborating with Harvard Uni- and care of the environment. as internationally, standing out pressive, with more than 600 Navarro. “We try to transmit to last 10 years. versity to study the properties of The measurement included all for its social and environmental sales points throughout Chile, our work teams that today we can “Chile’s competitive advan- omega-3 and produce cancer- of the company’s operations and commitment, and its focus on in- import terminals and storage fa- do what we did yesterday, but tage in forestry is enormous, sus- prevention products through the parts of the value chains in Chile, novation as the fundamental el- cilities which allow for stable and much, much better.” tainable and very hard to Bioambar society. At the end of Argentina and Brazil – includ- ement for the development of diversified sourcing, and a lead- Over the past 20 years, Em- replicate,” says Mr. Navarro. 2011, the omega-3 factory will ing emissions originated in har- Chile and its people. Forestry sows a sustainable future Forestry exports rose 19% industry’s timber needs. Radi- lion – a mere 15% of last year’s in the promotion of long-term between 2009 and 2010, to ata pine and eucalyptus com- figure. The remarkable growth sustainability of forest ecosys- US$5.6 billion. Pulp, which prise the vast majority of these in the sector over the past two tems. “Although there are ex- represents about 40% of all plantations, which provide the decades is due in large part to ceptions, in Chile no tree is felled wood exports, leapt 49.9% raw timber for more than 400 government policies aimed at unless it is controlled, regulat- to US$1.8 billion in the first different products. After pulp, expanding the industry while ed and authorized by CONAF,” half of 2011 alone wood-based panels and lumber protecting sustainability through explains Mr. Vial. are the most important exports. programs such as land degra- CONAF, which also admin- The Chilean forestry industry Chile’s forestry industry cur- dation recovery. isters Chile’s national parks and is the second most important rently accounts for 8% of all glob- Eduardo Vial, executive di- natural monuments and re- sector of the economy after al forestry exports. The main rector of CONAF, the National serves, is now focusing on as- mining, contributing 3% to export markets are China, Japan, Forest Corporation, believes that sisting and incentivizing small GDP. It is also the most export- South Korea, the U.S., Taiwan, Chile has reached a balance be- landowners as well as stopping oriented wood industry in Belgium, Argentina, and Ger- tween preserving and exploit- desertification, a phenomenon South America: 70% of pro- many. Increasing demand from ing native forests. “I think that that has taken hold in the more duction is shipped abroad, ac- China and other emerging Asian there’s a consensus that envi- arid parts of the country. cording to the Chilean timber countries will continue to drive ronmental and social issues must Today, wood is the most con- industry association, Corma. growth in Chile’s forestry in- be taken into the consideration sumed raw material in the world. More than 20% of Chile’s to- dustry far into the future. Mean- in the productive process. To- Consequently, Chile has based tal land area is forested, or some while, major Chilean timber day, no company can get away its industry on highly produc- 15.5 million hectares (38.3 mil- producers such as Arauco and without considering these issues tive cultivated forests, where over lion acres), with plantations Masisa have begun to expand in their operations.” the past 33 years the annual plan- covering over 2 million their production activities into Operating under the Min- tation rate has far exceeded that hectares – up from just 300,000 the rest of South America, par- istry of Agriculture, CONAF With an annual plantation rate exceeding that of its of felling. “In the past 10 years, hectares in the 1970s – main- ticularly Brazil and Uruguay. has played an important part in felling, Chile is one of only two Latin American we’ve planted 500,000 hectares ly along the southern coastal re- In 1990, Chile’s forestry prod- the legislation concerning countries with a net expansion in their forested areas of forest,” says Mr. Vial. “I think gions, supplying 98% of the uct exports netted US$850 mil- forestry sector investment and we’re doing a good job.”

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12 Friday, September 16, 2011 CHILE Distributed by USA TODAY

Captivated by Chile

Chile is a vast country waiting to be explored. Its people, landscapes, delightful food and myriad destinations make for a fantastic vacation. However, choosing where to go and what to do can be difficult...

Extreme, challenging, inhos- This is what Chile looks like are reminiscent of North Amer- borhood, known as an artists’ Central Valley, where wineries Flanked on one side by the pitable, arid and harsh. Spec- on a map. Discovering it on land ica and Europe’s most beautiful haven and the location of one have little to envy of Napa Val- Andean mountains and the Al- tacular, endless, diverse and is even better. cities. of Pablo Neruda’s several homes, ley or the Bordeaux region. tiplano (high desert plains) to colorful. Freezing, humid, lush The local flavor is apparent, and Cerro San Cristobal, a hill Due west of Santiago is Val- the east and the Pacific Ocean and impenetrable. Exotic, Central Chile however, in the slower pace of rising nearly 1,000 feet above paraiso, a World Heritage Site. to the west, northern Chile’s unique, delicious, traditional When flying into Santiago, life, the unique Chilean dialect Santiago, offering excellent In this most unique and color- most famous destination, the and modern. Chile is quite sim- some of the finer details of and Santiaguino slang, and in views of the city and its sur- ful port city, funicular eleva- Atacama Desert, is the most ply, captivating. those Andes mountains can be the Mercado Central, where rounding mountains. tors (a type of cable car) arid spot on the planet. Never- To say that Chile is a land of seen close-up as the plane dips one can buy all manner of food In January, the New York transport residents and visi- theless, this harsh and inhos- contrasts would be a total un- down soon after crossing them downstairs and eat in one of the Times named Santiago the #1 tors to the quirky neighbor- pitable environment provides derstatement. No other coun- to land at the Comodoro Ar- simple restaurants upstairs, or travel destination for 2011. The hoods precariously hugging the some of the most magnificent try in the world comes close to turo Merino Benitez Interna- enjoy a pisco sourno matter the city offers everything from top steep hillsides. Viña del Mar, backdrops imaginable. When a exhibiting Chile’s extreme and tional Airport. time of day. The fast food joints luxury and boutique hotels and just 40 minutes north, is a pop- trace of rain does fall, Ataca- unique geography in a single Mind you don’t attempt to are fun too: try the completos fine dining establishments, to ular beach city with white ma’s desert floor transforms it- land area. For example, this bring in any animal, dairy or – hot dogs with bountiful top- backpackers’ hostels and eater- sandy beaches and a vibrant self into a blanket of color, vivid skinny – the term narrow sim- fruit products, however. Chile’s pings, including avocado and ies to fit every budget. nightlife. Viña is home to one with a bewildering assortment ply doesn’t do it justice – re- strict policies at its borders may sauerkraut – or the chacareros A short drive to world-class of the oldest casinos in South of wildflowers. By night, Ata- public on South America’s seem harsh to some, yet they’ve – meat sandwiches piled high ski resorts in the nearby moun- America, a prestigious Latin cama becomes a paradise for western coast boasts 4,000 served to keep the national with tomatoes and green beans. tains is a must for enthusiasts in American song festival, and stargazers: 345 clear nights per miles of coastline (compare to agricultural industry (and es- Meanwhile, Chile’s rather the winter months of June several old palaces. year and a phenomenally trans- California’s measly 840 miles). pecially its cherished wine and saucy side can be experienced through September, or for hik- parent atmosphere combine to Chile spans 2,700 miles from fruit sectors) healthy and free at a cafe con piernas, literally a ers during the rest of the year. The North make the heavens more visible its northern tip and border with from the harmful viruses and cafe with legs, where coffee is Valle Nevado Ski Resort – South An attempt to “see” Chile all in here than from any other place Peru down to its southern is- insects that have wreaked hav- served by scantily clad wait- America’s largest ski center – is one go is virtually impossible. on Earth, which is why it is home lands that appear to reach out oc in other nations. resses. in the heart of the Andes, yet just Given its geography a simple to some of the world’s largest to Antarctica. Once on the ground, Santia- The capital city’s more fa- 30 miles from Santiago. At an solution is to divide Chile into telescopes. Not impressed yet? Consid- go’s modern infrastructure, ex- mous sites include Palacio de altitude of over 9,000 feet, Por- north and south. For those seek- One of the more emblemat- er then, that Chile’s width is just tremely friendly people and La Moneda, the 18th century tillo Ski Resort is only 100 miles ing green forests, icebergs and ic towns in the far north is San 109 miles on average. That’s less comfortable climate welcome presidential palace where for- from the capital and within varied flora and fauna, the south Pedro de Atacama, whose at- than the distance between Los you to discover this booming mer President Salvador Allende reach of Mount Aconcagua (on is the answer; for desert-lovers tractions – such as an archeo- Angeles and San Diego, Albany metropolitan area and gateway died during the 1973 military the Argentine side of the bor- and sun seekers, the north is the logical museum, an enormous and Yonkers, or Omaha and Des to Chile’s 15 regions that in some coup d’état; Cerro Santa Lucia, der), the tallest mountain in the best choice. Limiting oneself to salt flat, geysers, hot springs, the Moines. Now, pick two cities of cases are as different as night a delightful park on a hill in the southern hemisphere. just the northern half is not with- Valley of the Moon, flamingos, your choice and stick between and day. center of the city that played a The superb quality of Chilean out its surprises however: while stargazing and sandboarding – them a mountain range that in- Dubbed ‘Latin America’s city historic role as far back as 1541; wine is no longer a secret, and Chile’s cold ocean currents lure in plenty of visitors, despite cludes some of the highest peaks of the future’ by British publi- the Cathedral of Santiago; the wine connoisseurs and enthu- make a dip in the sea an expe- its remote location. Sitting on a in the Americas. Oh, and throw cation Financial Times and the Church of San Francisco; and siasts interested in visiting the rience not for the faint of heart, high plateau at nearly 8,000 feet in some active volcanoes for ‘second best city to live in’ in the aforementioned Mercado bodegasneed not travel far from they also guarantee penguin elevation, San Pedro lies east of good measure, as well as some Latin America by The Econo- Central. Other popular visits Santiago either. Just south of the sightings as far north as the bor- Antofagasta, the region’s capi- 5,000 or 6,000 islands. mist, parts of Santiago de Chile include the Bellavista neigh- capital city lies Chile’s fertile der with Peru. tal and affluent coastal city, and

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Distributed by USA TODAY CHILE Friday, September 16, 2011 13 Exquisite experiences Several hotels, resorts and adventure companies offer the chance to experience Chile’s considerable natural beauty at first hand

Few countries in the world clinic, and a wine cellar hold as much potential for stocked with the region’s finest. tourism as Chile. Unforget- Operating out of Chile’s table experiences await the Lake District, Nomads of the traveler, both on and off the Seas is a unique company of- ‘CHILEAN beaten track. Extreme skiing fering unparalleled levels of PATAGONIA IS ONE in the Andes (during the personalized services, re- OF THE MOST Northern Hemisphere’s sum- volving around exclusive WONDERFUL mer season), fishing in virtu- exploratory fly fishing ad- PLACES ON EARTH’ PHOTO: Fundación Imagen de Chile / Pablo Valenzuela ally virgin fjords, relaxing in ventures, ecotourism and luxury in the world’s driest cruises through the Chilean southeast of Calama, one of the surprisingly cosmopolitan el- er, especially for fans of nature desert, or meandering through Patagonia’s most isolated, pris- a stunning work of architec- driest cities in the world and ement. Pucon is also one of the and sport fishing. enormous stone torsos on an tine and magical niches. ture that offers the perfect base gateway to the Atacama Desert. most popular bases for adven- Further south, just north of island thousands of miles from Bird watching, dolphin and for exploring the desert. It is no A tour around Chile’s north- ture activities, such as river the Tierra del Fuego and where anywhere are all possible. whale sighting, heli-skiing and wonder that National Geo- ern half would not be com- rafting, water and snow skiing, the country’s land mass seem- For those skiers for whom outings to lost hot springs and graphic named Alto Atacama plete without a trip to the zip line rides, and hiking (in- ingly disintegrates into thou- regular runs and lifts aren’t glaciers complement the No- one of the best properties in coast. Unexploited beaches cluding exhilarating guided as- sands of islands, is the Torres enough, South America’s sole mads of the Seas fly-fishing South America. await the intrepid traveler who cents of the still-active del Paine National Park. One snowcat ski resort, Ski Arpa, expeditions. Onboard the ver- Another award-winning ventures beyond the more Villarrica volcano). Also found of Chile’s most emblematic and offers true backcountry skiing. satile ship ‘Atmosphere’ hotel in Chile is the Posada de popular destinations of in these regions full of rivers breathtaking destinations Nestled in the shadow of (ranked among the planet’s Mike Rapu on Easter Island, Antofagasta, Arica, La Sere- and lakes are various hot where jagged, rocky ‘horns’ dra- Mount Aconcagua, Ski Arpa top 10 explorer yachts by Su- which Travel + Leisure mag- na, Mejillones and Iquique. springs, some of which are matically peak up from Tech- provides more than 4,000 acres per Yacht magazine), Nomads azine named Best Resort in Likewise, no visit to Chile rugged and free, while others nicolor lakes and relatively flat of off-piste skiing and riding. guests sail through gentle Central and South America would be complete without have been developed and con- and treeless plains, the park is An unforgettable Ski Arpa fjords and crystal clear lakes in 2011. Opened in late 2007 trying one of Chile’s nation- verted into health resorts. easily accessed by road from experience can be booked while viewing primeval forests as part of the small and ex- al drinks, pisco. This wood- Southwest of Puerto Montt Puerto Natales, a charming through Santiago Adventures, and enjoying delicious Chilean clusive boutique explora group aged grape brandy – drunk on (the starting point for the sev- town with ample choice of ac- an agency that offers tour pack- cuisine and wines as well as (which also owns hotels in the its own or combined in the eral-day long inland passage commodations. ages to other exciting cultural Thalassotherapy treatment. heart of the Torres del Paine more palatable pisco sour cruises to the Laguna San Rafael Hard-core hikers can choose and adventure destinations Nomads of the Seas’ National Park and in San Pe- cocktail – also comes from National Park and the magnif- between the popular ‘W’ route around Santiago and through- founder and former invest- dro de Atacama), Posada de the north, specifically from icent San Rafael glacier) lies (in five to six days) and the full out the country. ment banker, Andres Ergas, Mike Rapu is situated on a hill the Elqui Valley, south of the Chiloe, Chile’s largest island. circle (eight to nine days) Those seeking an even more says, “Having flown and sailed in the Te Miro Oone area over- Atacama desert. Dotted with painted wooden around the park. The former extreme snow experience need endless hours and scouted var- looking the ocean. The hotel’s churches (16 of which are gets its name from the five look no further than Puma ious lands, I have concluded design is intended to have min- The South World Heritage Sites) and points the trail hits, namely Lodge. Inaugurated last June that Chilean Patagonia is def- imal impact on the surround- Southern Chile is as humid as crowned by a colony of Mag- Glacier Grey, Refugio Pehoe for the 2011 season, Puma initely one of the most won- ings and the site itself was the north is dry. As you make ellanic and Humboldt pen- on Lake Pehoe, Valle del Lodge is Chile’s newest heli- derful places on Earth. Its purposely chosen as it was your way south from the Cen- guins, the misty archipelago of Frances, Hosteria las Torres, skiing destination and fully magical surroundings are the deemed inappropriate for agri- tral Valley, the landscape be- Chiloe is famous for its archi- and the Torres del Paine them- equipped 5-star resort. Locat- perfect setting for a vacation, cultural use and has no arche- comes progressively greener, tecture and cuisine. If fish and selves. ed just 90 minutes south of where passion and technolo- ological remains. and more akin to Northern Eu- shellfish are staples on this isle Santiago’s airport, Puma Lodge gy combine to create an un- While the private sector is rope. In the 19th century, the of fishermen, the flagship dish The Islands is the world’s heli ski destina- paralleled adventure in the doing plenty to offer rich Chilean government encour- is curanto (meat, vegetables, As if searing desert temper- tion closest to an internation- planet’s southernmost lands.” experiences and exquisite ac- aged middle and upper class potatoes and shellfish tradi- atures in the north and eternal al airport. In stark contrast to the lush commodations, the govern- Europeans, many of whom tionally stewed in a deep hole snows and glaciers in the south The area, dubbed the ‘Pow- green of the south, northern ment is also doing its part. were German or Austrian, to in the ground). Also worthy of weren’t enough, Chile’s ex- der Capital of the Andes’, sees Chile’s landscapes feature Unlocking Chile’s potential as settle between Valdivia (the mention is the Chiloe potato: tremities are further diversi- an average snowfall of 39 inch- ocher, gold, russet, sienna and a top tourist destination is Ser- northern limit of Chile’s grand- evidence indicates that the fied by its islands. es of champagne powder per dozens of other shades of natur, the National Tourism daddy of sites: Patagonia) and world’s most widely cultivated Discovered by Dutch ex- storm and is the largest pri- brown. The Atacama Desert’s Service. Jacqueline Plass, Un- Puerto Montt. variety of potato originally plorer Jacob Roggeveen on vate helicopter domain in the unforgiving environment is su- dersecretary of Tourism at Ser- The most visible result of came from this green isle. Easter Sunday 1722, Easter world. Puma Lodge boasts perbly offset by some of the natur, says that the government this demographic change is the Opposite Chiloe on the Island or Rapa Nui is the more than 1,900 square miles area’s hotels and resorts, such has identified the sector as a predominance of colorful mainland the lush mountains, most remote inhabited is- of terrains and long runs, av- as Alto Atacama Desert Lodge cornerstone for the country’s wooden buildings, central and volcanoes and forests are cut land on the planet and forms eraging 4,000 feet vertical per & Spa. Tucked away in a val- future development and at the northern-European foods, and through by just one main artery: part of Polynesia. With its run. The stunning lodge itself ley of serene beauty and di- same time, is working to ensure a curious linguistic mixture of the Carretera Austral. Access over 850 giant stone heads offers guests spa facilities, an rectly in the shadow of the tourism products and desti- first and last names. In this area to the towns south of Puerto called moai, Easter Island is outdoor Jacuzzi, a business pre-Colombian Pukara de nations in Chile remain envi- you’ll find places like Frutillar, Montt is easiest by air and sea. also a “certified member” of center, an in-house medical Quitor ruins, Alto Atacama is ronmentally sustainable. Puerto Varas, and Pucon, de- Reaching these remote areas is lightful lakeside towns with a well worth the hassle, howev- Continued on page 14 www.explora.com www.altoatacama.com www.pumalodge.cl www.nomadsoftheseas.com www.santiagoadventures.com www.chileanheliski.com

Puma Lodge Posada de Mike Rapu

Alto Atacama Desert Lodge & Spa Nomads of the Seas

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14 Friday, September 16, 2011 CHILE Distributed by USA TODAY

tons. Where the greatest mys- turquoise waters. The beaches fauna (including Juan Fernan- the islands – at the time unin- periences. No other country on Continued from page 13 tery lies is in how the statues at Hanga Roa, Vaihu and Tahai dez hummingbirds and fur habited – in the early 1700s af- Earth boasts moon and Mars- were transported from the quar- offer waves for surfers of all lev- seals), are also to be found in ter a dispute with the ship’s like landscapes at one end, and the Stonehenge and the Naz- ry to their current positions and els, and curiously enough, as far Chile’s Juan Fernandez Archi- captain. He survived there for mountains and valleys remi- ca Lines. in the purpose of their creation back as hundreds of years ago pelago, located some 325 miles more than four years before be- niscent of the Alps at the other. The monolithic moai, which and erection. Even with wood- historians recorded the natives off the coast of Valparaiso. The ing rescued and returned to Eng- Indeed, Chile feels like sev- stand gazing inland with their en sleds and rollers, moving 80- using a kind of bodyboard, called chain’s three main and sparse- land. It was his story that served eral countries rolled into one. backs to the sea, were created ton stones was no easy task, and haka nini. Scuba diving is an- ly populated islands – Robin- as inspiration for Daniel Defoe’s And while contrasts in vegeta- by the early Rapa Nui people a many modern experiments to other popular activity on East- son Crusoe, Santa Clara and famous literary work of 1719. tion and topography are stark few hundred years after their replicate the moving process er Island, owing to the clarity of Alejandro Selkirk – certainly From head to toe, Chile is fas- as you travel the length of the arrival on the island, which ended in failure. its deep waters, caves, coral and make for an off-the-beaten- cinating, distinctive and de- country, Chile has some com- probably occurred as early as Apart from the Moai Route, multicolored fish. track excursion, where tran- lightful. From the landscapes to mon threads running through- 300 A.D. The tallest moaierect- visitors to Easter Island can al- World-class diving and fish- quility and nature reign. the people to the food and drink, out, including hospitable ed reaches 33 feet high, and the so see caves, extinct volcanoes ing, as well as breathtaking cliffs Alexander Selkirk was a Scot- each and every corner holds people, natural beauty, and a heaviest one weighs some 86 and sandy beaches lapped by and unique endemic flora and tish sailor marooned on one of surprises and memorable ex- love of life and food.

Myths, food and Phenomenal and Humberstone and Valparaiso, a churches on the unique Rapa Nui Santa Laura Saltpeter ‘testimony to early island of Chiloe National Park Works globalization’ Around 112 miles long and just over 30 Famous for its giant stone statues, known Located in northern Chile in the remote According to UNESCO, the beautiful city of miles wide, the Isla Grande de Chiloe (Big as moai, and reputedly one of the most iso- Pampa desert, one of the driest areas on Valparaiso “is an exceptional testimony to Island of Chiloe) is the second-largest island lated inhabited places on Earth, Rapa Nui Earth, Humberstone and Santa Laura Salt- the early phase of globalization in the late in South America after Tierra del Fuego and – the indigenous name for Easter Island – peter Works are two former saltpeter re- 19th century, when it became the leading is the biggest in the Chiloe archipelago. This was also Chile’s first inclusion on UN- fineries that processed the largest deposit of merchant port on the sea routes of the Pacif- group of islands evolved independently ESCO’s World Heritage List, being admit- saltpeter in the world. They comprised more ic coast of South America” and therefore its from mainland Chile and developed its own ted in 1995. than 200 former saltpeter works that pro- historic quarter fully deserved the organiza- history, from its architecture and mythology Settled around A.D. 300 by Polynesians duced sodium nitrate for explosives and fer- tion’s protection in 2003. (of witchcraft and ghost ships) to its culture who brought with them a Stone Age cul- tilizers to transform agricultural practices in One of the largest cities in Chile, Val- and cuisine, such as its meat, potato and ture, the island’s history embodies fascinat- North and South America, and also in Eu- paraiso boasts impressive, well preserved in- seafood stew curanto. ing social and cultural phenomena that rope. During the boom years, this “white dustrial features, such as the numerous The island features distinctive houses have intrigued generations of historians gold” generated great wealth for Chile. elevators on its slopes, as well as impressive mounted on stilts along the water’s edge, and tourists. From 1880, workers from Chile, Peru and colonial architecture. The oldest elevator, on called palafitos. It also boasts more than 150 A unique, imaginative society evolved, Bolivia lived in company towns and forged a Concepcion Hill, was inaugurated in 1883 iconic wooden churches, 16 of which have totally free from external influences, and distinctive communal culture for over 60 and is still in use. been UNESCO World Heritage Sites since from the 10th to the 16th century it created years. The saltpeter works’ isolation gave After Chile’s declaration of independence 2000, as the organization believes the shrines and erected the famous moais. way to the development of a unique urban in 1810 ended its colonial links with Spain, a churches of Chiloe “are outstanding exam- Over the centuries, these stone figures community, with its own language, customs, new era of open commercial transactions ples of the successful fusion of European evolved in style, form and size. creative expressions, and even technological with Europe and North America began. Val- and indigenous cultural traditions to pro- As well as reflecting the effect of Euro- entrepreneurship. paraiso rapidly became the most important duce a unique form of wooden architecture.” pean arrivals, Rapa Nui also shows the The two towns were declared a UNESCO harbor town on Chile’s Pacific coast. Commissioned by the Jesuit priests on the consequences of over-population and en- World Heritage Site in 2005 for representing Today, however, Lonely Planet describes island, the emblematic churches were all vironmental deterioration. Today, the pop- “the combined knowledge, skills, technolo- vibrant Valparaiso’s feeling of “anything built between the mid-18th and early-20th ulation is around 2,000 people, about one gy, and financial investment of a diverse goes” as a legacy of its artistic heritage. Pablo centuries. Crafted from native timber, the third of whom are from Chile and the re- community of people who were brought to- Neruda’s house on a hill, La Sebastiana, is churches have weathered Chiloe’s extremely mainder being descendants of the original gether from around South America, and open to the public and boasts a 360-degree humid climate well over the years. Polynesian settlers. from Europe.” view of the city and its port. Corporate travelers can rely on Travel Security The exclusive representative of American Express in Chile, Travel Security caters to the corporate segment, adding value through expertise and personalized service

As the most economically free and politically clients, and this is also reflected in the profile number of Chileans who trav- stable country in Latin America, Chile receives of Travel Security’s clients.” ‘GRUPO SECURITY IS ‘IN CHILE, BOTH THE el outside – and the inbound plenty of business visitors, who often return to Thanks to a partnership signed with Amer- FOCUSED ON OUTBOUND AND THE markets have grown marked- the country for a longer and more pleasurable ican Express Travel in 2009, Travel Security is SERVING COMPANIES INBOUND MARKETS ly. In the last few years, they’ve stay, not satisfied with their few meeting-filled the exclusive representative of the world’s largest AND HIGH-END HAVE GROWN seen double-digit growth. Trips days. travel agency in Chile. At the signing, Mr. Cor- CLIENTS, AND THIS IS MARKEDLY. IN THE suddenly became a first ne- One particular company, Travel Security, rea said that “this alliance consolidates Travel ALSO REFLECTED IN LAST FEW YEARS, cessity thanks to the country’s specializes in corporate tourism as a logical ex- Security’s leading position in the corporate THE PROFILE OF TRAVEL THEY’VE SEEN DOUBLE- economic development.” SECURITY’S CLIENTS’ DIGIT GROWTH’ tension of its parent company’s other business client segment and allows us to offer new ben- One specific area in which activities. Travel Security is part of the Chilean efits to our customers, who require superior Mr. Correa, who is also the financial conglomerate Grupo Security, which quality standards.” in Chile but also around the world. Moreover, president of ACHET (the Chilean Association also participates in finance, investment, insur- Where the company excels is in providing an it has both Chilean and foreign clients. of Tourism Companies), would like to see more ance and real estate. integral service, one that goes beyond a com- “In our line of business, we work with a net- “aggressive and focused” inbound growth is “This group is well positioned within the fi- petitive and comprehensive offering of prod- work of operators for our budding receptive tourism related to sectors such as medicine. nance sector, enjoying a 3% market share in ucts and providers, but also includes expert tourism operation, which seeks to bring foreign This sector, he says, reinvests a large part of its banking,” explains Guillermo Correa, execu- consultancy backed by extensive experience. tourists in,” says Mr. Correa. “Another goal of sales in incentive trips, congresses and events. tive president of Travel Security. “Grupo Security Travel Security offers travel packages, flights, ours is to encourage Chileans to travel abroad. “Our target is to attract these kinds of groups is focused on serving companies and high-end hotels and assistance for destinations not only In Chile, both the outbound – that is to say, the to Chile,” he says.

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Distributed by USA TODAY CHILE Friday, September 16, 2011 15 A way with words The Argentineans may be known as the philosophers of South America, but the Chileans are considered its poets

Chile’s cultural movements the southern town of Frutillar. have produced some of the Chile is also renowned re- Spanish-speaking world’s great- gionally as an artistic center est artists, especially in terms thanks to its National Museum of poetry and literature. For ex- of Fine Arts (MNBA is its ample, the two Chilean recip- Spanish acronym). Founded ients of the Nobel Prize, Pablo in 1880, the MNBA is the old- Neruda and Gabriela Mistral, est museum on the continent were both writers. and its current building, the Pablo Neruda – whose “Palace of Fine Arts”, sits along- charming homes in Valparaiso, side the University of Chile’s Santiago and Isla Negra have Museum of Contemporary Art been lovingly preserved and in the capital’s pleasant Par- opened to the public – was a que Forestal, or Forest Park. writer, poet and politician Santiago’s newest museum, whose political activism and the Museum of Fashion, has support for the Communist been described by The New party landed him in self-exile York Times as “the most re- during the 1940s. Later de- markable cultural space that scribed by Colombian writer Left: VIOLETA PARRA, one of Chile’s most influential singer-songwriters of the 1950s and 60s. Right: Teatro del Lago on the banks of Lake Llanquihue in Frutillar has opened in recent years.” Gabriel Garcia Marquez as “the This private museum was greatest poet of the 20th centu- CHILE BOASTS TWO THE ‘NEW SONG ONE OF THE WORLD’S SANTIAGO’S MUSEUM opened by Jorge Yarur Bas- ry in any language,” Neruda and NOBEL LAUREATES IN MOVEMENT’ THAT MOST WIDELY READ OF FASHION IS ‘THE cuñan, who was inspired by his works have inspired musi- LITERATURE: GABRIELA INSPIRED A NEW SPANISH LANGUAGE MOST REMARKABLE his socialite mother’s collec- cians, writers and filmmakers MISTRAL AND PABLO GENRE WAS BORN IN WRITERS IS CHILEAN CULTURAL SPACE IN tion of fabulous designer dress- around the world. NERUDA CHILE ISABEL ALLENDE RECENT YEARS’ es and suits. His childhood One of Neruda’s mentors home, a rehabilitated 1960s growing up was Gabriela Mistral, are renowned for dealing with American songs in history, rein- Victor Jara, another proponent abel Allende (now a U.S. citi- modernist mansion, plays host 15 years his senior. The first Latin difficult subjects – from mater- vented Chilean folk music and of the “New Song Movement”, zen), who in 2004 was induct- to a permanent collection of American woman to win the nity, love, death and sorrow to be- extended its popularity far be- became a symbol of the struggle ed into the American Academy some 10,000 pieces of couture Nobel Prize in Literature (1945), trayal and the Latin American yond Chile’s borders as part of for human rights across the re- of Arts and Letters. Best known and memorabilia that also in- she was also a poet, as well as a identity – in a broader yet more the “New Song Movement” gion after he was brutally tor- for her book “The House of the clude apparel worn by Arnold teacher, diplomat and feminist. profound manner than her con- (“Nueva Can- tured and killed during the Spirits”, Allende is one of the Schwarzenegger (as the Ter- An acquaintance of various Latin temporaries. cion”). This new political upheaval of 1973. world’s most widely read Span- minator), John Lennon, and American leaders and of Eleanor Chile’s two most beloved genre of socially Although many master ish-language authors. Princess Diana. Roosevelt, Mistral lived singer-songwriters, famous committed folk recordings of Jara’s music So ingrained are literature, much of her adult life throughout the Spanish- music soon took were destroyed by Pinochet’s music and art in the Chilean between Europe speaking world, were also hold in Argenti- regime, his wife, Joan Jara, es- way of life that the business and North Amer- poets in their own right na, Cuba, Spain caped Chile with some tapes, world jumps at the opportu- ica. Her poems known not only for their and other coun- which were copied and dis- nity to back various cultur- music but also for their tries under mil- tributed globally. al projects that showcase political views. Violeta itary Chile’s most Chilean culture. Parra, whose 1966 song dicta- prominent A beautiful example “Gracias a la Vida” was lat- tor- writer still of this is Empresas er recorded by Joan Baez in ships. alive today is Transoceanica’s brand 1974 and still holds the title as undoubt- new Teatro del Lago one of the best-known Latin edly Is- (Theater of the Lake) in PHOTOS: Pablo Neruda Neruda; - Fundación Pablo Violeta Violeta - Fundación Parra Parra PHOTOS:

Left: PABLO NERUDA and GABRIELA MISTRAL, Chile’s most internationally acclaimed poets. Right: VICTOR JARA, singer-songwriter, poet and political activist. The Chile Stadium, the place of his controversial execution, was renamed Victor Jara Stadium in 2003

Chile’s diverse topography gives Dakar Rally competitors an range of extreme challenges, from the massive Andes Mountains to the desolate Atacama Desert PHOTO: IND / Max Montecinos PHOTO: INTERNATIONAL EVENTS Dakar Rally and Lollapalooza head south

Taking the global center stage in areas such as astronomy, viniculture and commercial competitiveness, Chile is also in the spotlight for its international music and sporting events

Chile’s ability to stage major in- Dakar themselves. Unlike pre- Sebastian de la Barra of Lo- ternational events has been vious years’ loops, in 2012 dri- tus Productions, who produced demonstrated to great effect by vers will embark on a 5,600-mile the festival with Lollapalooza’s its hosting of the Dakar Rally, pan-American odyssey through founder and lead singer of Jane’s which passes through Chile for Argentina, Chile and Peru, start- Addiction Perry Farrell, told the fourth time in a row next ing in Mar del Plata on Ar- The New York Times: “Festi- year. The annual off-road en- gentina’s South Atlantic coast vals like this one are a window durance race first took place in and heading west, over the An- to the world for Chileans.” 1979 from Paris, France, to des, across the Atacama, and This year, Lollapalooza is cel- Dakar, Senegal, but the course, finishing in the Peruvian capi- ebrating its 20th anniversary and including its origin and desti- tal of Lima. expanding its brand beyond U.S. nation, has varied over the years. borders. But why choose Chile In 2009 it was held for the first and not, for example, the U.K. time outside Europe and Africa ‘ARGENTINA AND or continental Europe? Aside when Chile and Argentina CHILE ARE THE from the plethora of festivals joined forces and offered to stage MOST WELCOMING that are already established over the event with the perfect, chal- TERRITORIES FOR the pond, Mr. Farrell reckoned lenging terrain, free from the THE DAKAR... it was because people in Chile security threats that have AND FOR THEM “were available and were de- dogged some of the African [THE RACE] IS A sirous, and we were available routes in the past. GLOBAL and we were desirous… I only This year’s 16-day Dakar Ral- SHOWCASE’ want ’em if they want me.” ly started on January 1 in Buenos The festival proved to be a Aires, with the 5,976-mile route Meanwhile, O’Higgins Park great success, with superb sound looping through Chile’s deso- in Santiago played host last April and performance schedules late Atacama Desert to its Pa- to the first Lollapalooza festival running largely on time, and cific coast before returning to held outside the U.S. The event Lollapalooza Chile is set to be the Argentinean capital. also marked Chile’s first ever an annual event – the 2012 dates According to the race’s deputy large-scale international rock are set for March 31–April 1, director Frederic Lequien, “Ar- festival. Leading musicians from 2012. The party will then move gentina and Chile are the most Chile and across Latin Ameri- the following weekend to the welcoming territories for the ca opened each day’s 11-hour east coast, with the organizers’ Dakar... and for them [the race] lineup, which saw more than foray into a second Latin Amer- is a global showcase.” Such has 50 acts perform on five stages, ican country. The inaugural Lol- been its success that Peru, Bo- with headline shows from lapalooza Brazil will be held at livia and Brazil have expressed Kanye West, the Killers, the the Jockey Club in Sao Paulo interest in hosting a part of the Deftones and Jane’s Addiction. on April 7-8, 2012.

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16 Friday, September 16, 2011 CHILE Distributed by USA TODAY A global agricultural powerhouse Over the past decade, joint public-private efforts to build a thriving agro-industry, and complementary trade policies that have given Chile’s agricultural sector access to more markets than those of any other country, have resulted in the creation of a major food-producing and exporting nation

Chile is said to be one of the world’s global market), plums ‘OUR AGRO-INDUSTRY IS NO THE GOVERNMENT AND THE He adds that Chile’s free trade naturally cleanest environments for (23%), and fresh fish fil- LONGER CONTENT WITH THE PRIVATE SECTOR ARE ALSO agreements allow companies to food production. Some 2,700 miles lets (22%); second-largest MERE EXPORT OF NATURAL LOOKING TO DEVELOP NON- redirect their exports according to long and uniquely narrow (average exporter of frozen Pacif- RESOURCES. THERE IS A NEW TRADITIONAL EXPORTS WITH market fluctuations, which has been width is just 109 miles), its remote- ic salmon (30%), avoca- DYNAMISM WITH REGARDS POTENTIAL, SUCH AS DAIRY a big advantage, and that the growth ness and extraordinarily diverse ge- dos (16%), and other TO ADDING VALUE TO THESE PRODUCTS’ of the country’s value-added ex- ography not only allow it to produce frozen fish (10%); and the PRODUCTS, AND MOVING ports has been a key factor in the a wide range of products in excep- fifth-largest exporter of BEYOND BEING JUST A JOSE ANTONIO GALILEA, industry’s success. tionally fertile soils, but also free it wine (5%) and frozen COMMODITIES EXPORTER. Minister of Agriculture “Our agro-industry is no longer from diseases and parasites common pork meat (5%). content with the mere export of nat- to most other agricultural areas, such Chilean farmers use ural resources. There is a new dy- as the fruit fly. significantly less agro-chemicals than currently employ over a million work- World-Class Food Producer campaign, namism with regards to adding value Registering annual export growth of most food producing regions due to the ers, or some 20% of the workforce. By which aims to position Chile as a glob- to these products, and moving be- 10% over the past decade, which makes country’s uniquely isolated location, 2030, the agro-industry is expected to al leader in food exports (it now holds yond being just a commodities ex- it the world’s fastest growing food ex- and Chilean foods consistently receive account for more than 35% of total 17th position). porter,” he comments. porter, Chile today supplies 174 coun- international awards for their quality. GDP, and employ one in three work- Minister of Agriculture Jose Anto- Moreover, according to Mr. Galilea, tries with premium fresh and Combined food industry exports ers in the country. nio Galilea says that the convergence the Chilean government and the pri- processed food products. It is cur- now total over US$10.5 billion per The Chilean government is active- between the goals of the agro-indus- vate sector are also looking to further rently the world’s largest exporter of year, representing some 24% of GDP. ly involved in the development of the try and those of the government has develop non-traditional exports with fresh grapes (controlling 29% of the The agriculture and fishing sectors sector, and has launched the Chile created a “very promising synthesis.” potential, such as dairy products. Dramatic rise in food exports Chile is a leading producer and exporter of some of the world’s finest fruit, vegetables, fish, meats and wines With strong support from Min- ister of Agriculture Jose Anto- nio Galilea, Chile’s leading agro-businesses are enjoying a period of rapid expansion, po- sitioning themselves on the global stage. Prochile PHOTO: Chile’s Agrosuper is now one of the world’s largest pork pro- ducers and also boasts sizeable poultry exports. Agricultural giant Olave – which produces the Best Organic Olive Oil in the world, according to Italy’s Biol competition – is also one of the country’s largest grape producers, and has conquered a range of international mar- kets, including the U.S., Cana- da, Japan, Mexico, Brazil, Venezuela, Guatemala and Colombia. In addition, producer David Del Curto currently ex- ports US$160 million of fruit per year to the U.S., Canada, Eu- rope, Middle East and Asia. David Del Curto’s executive JOSE ANTONIO GALILEA, Minister of Agriculture AUGUSTO GROB, President of Colun 85% of the grapes consumed in the director, Julio Fernandez, ex- U.S. come from Chile plains how the company pio- neered the growth of Chile’s Colun is Chile’s largest pro- continually replacing equip- bonated beverages per day to expand globally has driven the vision and the quality of our fruit exports: “We started ex- ducer of cheese, and a major ment and modernizing our fa- hundreds of thousands of out- growth in the agro-industry. business leaders,” Mr. Garcia porting onions, garlic and producer of milk products and cilities,” he says. lets in Chile, Brazil and Ar- “About 17 years ago, Andina says. legumes in the 1960s. In the butter – one of the country’s An example of value-added gentina. Through subsidiary Rio saw that there were opportu- Finally, no discussion of 1970s, the government began promising new industries. It export growth is Chile’s wine de Janeiro Refreshments, the nities in the world, and a cer- Chile’s agro-industry would be to promote exports, but there currently exports to countries industry, which now boasts company produces both alco- tain restlessness to develop and complete without mention of was a problem with the preser- throughout the region, as well more than 300 vineyards that holic and non-alcoholic drinks, expand was born. So we en- its fishing sector, and in par- vation of the fruit being ex- as to the U.S., Japan, Russia, have positioned the country as mineral water, juices, syrups and tered Brazil and Argentina, and ticular, its aquaculture indus- ported, since Chile is quite far China and Korea. the world’s fifth largest wine energy drinks in Brazil. started looking for new options try, which produced over from the main markets. In this Colun president Augusto exporter (between 1995 and Listed on the Chilean and to grow because our domestic 300,000 tons of fish last year. sense, David del Curto, the com- Grob agrees that the agricul- 2007, exports increased by New York stock exchanges, Em- market is small. In the future, Indeed, Chile is today the pany’s founder, was really a pi- tural industry’s success is due 373%), and 10th largest pro- botelladora Andina boasts we also want to enter new mar- world’s second-largest pro- oneer. He began to question the to “the willingness of Chilean ducer. The country’s flagship more than a 60% share of the kets. There are always new op- ducer of farmed salmon after products that were being ex- companies to innovate, to de- company, Concha y Toro Vine- markets in which it operates. portunities in the world, and it Norway (bringing in revenues ported, and from then on, Chile velop non-traditional prod- yards, Latin America’s leading Executive vice-president Jaime is important for us to be pre- of US$2.1 billion in 2009), a began to export more particu- ucts, and definitely to position wine producer and exporter Garcia says that the willingness pared to take advantage of testament to the remarkable lar products, such as grapes. the industry on the global mar- and one of the world’s top 10 of Chile’s business community them. Consequently, one of the growth the sector has enjoyed “Today, more than 85% of the ket,” as well as to “strong gov- wine companies, has a pres- to take calculated risks and to factors in our success has been over the past two decades. grapes that are consumed in ernment support.” ence in over 135 countries. the U.S. are Chilean. Later, we Mr. Grob also believes that Embotelladora Andina (An- began to export other prod- attention to quality has been a dina Bottling Company) is ucts such as kiwis and cherries. significant contributor. “For us, another example of the entre- The first sector to experience having a food product of indis- preneurial spirit of Chile’s agro- Grown in Chile with love a boom in Chile was the fruit putable quality is essential. To industry. A Coca-Cola franchise, sector. Later, it was wine and to- achieve this, new technologies the company now manufac- For SUBSOLE, every step along the way, from growing through distribution, must be day it is salmon.” must be applied throughout the tures, bottles and distributes carried out with care for the people, the environment and quality Dairy products cooperative production process, so we are more than 8 million liters of car- Over the years, consumer de- time through delivery, its prod- multinationals, they’re not mands evolve. In this day and ucts gather five important vari- branding companies, nor mega- age, there is a greater emphasis ables: high quality, care for the businesses. Instead, they’re peo- on trading in a fair way, for ex- environment, residue-free fruit, ple deeply rooted in agriculture,” ample, with product origin and traded in a committed fair way, he explains. traceability. and an ever shorter link between Consequently, SUBSOLE – SUBSOLE S.A. is a 20-year grower and consumer. Indeed, which also places quality above old Chilean fruit exporting com- British supermarket chain Tesco quantity – ensures that the busi- pany whose business model cov- has named SUBSOLE best ness of agriculture is profitable ers production assistance, quality provider from the southern for the growers, and not just the control and traceability, R&D, fi- hemisphere for the past two middlemen and retailers. nancial assistance, logistics, best years, an accomplishment no SUBSOLE began 20 years ago practices and certifications, and other company has ever with table grapes, but soon in- social and environmental re- achieved. The company was al- cluded many more fruits in its sponsibility. Ranked among the so among the first to receive the repertoire – including avoca- top 10 fruit exporters in Chile, Sedex certification for labor is- does, kiwis, clementines, oranges, SUBSOLE delivers clean and sues and Leaf certification for pomegranates and cherries – healthy fresh fruit from many environmental practices. thanks to Chile’s favorable growers in every growing area in Jose Miguel Fernandez, CEO Mediterranean climate and long the country. of SUBSOLE, speaks tenderly of growing seasons. With such tight control over the company’s relationships with The company exports to more the entire chain, SUBSOLE can the producers, who also double than 50 countries around the offer the unique guarantee that as partners. “All SUBSOLE part- world, although the U.S. market from bud-break, early in Spring ners are producers. They’re not takes in just over 50% of exports.

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Distributed by USA TODAY CHILE Friday, September 16, 2011 17 Top marks for a highly palatable paradise

Steeped in over 460 years of history, Chilean expertise in the wine industry clearly travels well as the nation’s wines score highly with international palates in publications worldwide

Chile is a viticultural paradise. Chile’s vast geographical di- clean agricultural practices. va Reserva Carmenere 2009, Moderate rainfall and cooling versity results in a tremendous Many wineries are organic, even which exemplifies a cutting- breezes from its 2,700-mile diversity in the wines the biodynamic, and the Chilean edge grape coming into its own. coastline are complemented by country can produce. Wine- wine industry as a whole has From the hot, dry desert the magnificent Andes moun- makers and growers have made a strong effort to become north to the cold, damp glacial tain range to the east, which worked closely together in re- sustainable in every area, from south, the extraordinary diver- provides a constant supply of cent years to seek out the ar- the vineyard to the glass. sity of Chile comes out in the irrigation water that flows down eas and conditions best suited Carmenere is the nation’s expressive and innovative wines the country’s 14 major wine- for each variety. legendary “lost grape of Bor- from its variety of producers, producing valleys. The result New vineyards climb higher deaux.” It disappeared from such as Cono Sur, Anakena and is an annual crop of consistently into the mountains and creep European vineyards in the mid- Requingua, which apply new high quality grapes that create ever closer to the sea, and we 19th century, but the deepest, ideas and technologies to tra- a wide selection of wines ap- now see a wide array of fresh, darkest, and purplest of all red ditional winemaking methods preciated around the world. cool-climate whites and Pinots grapes was rediscovered thriv- with outstanding results. “Chile has a long winemak- from the coast, multi-dimen- ing among Chile’s Merlot vines Viña San Esteban, with vine- ing tradition. We have been sional reds from the Andes, and 100 years later. yards spread over the foothills producing wine for over 460 rich and luscious offerings from Carmenere is Chile’s em- of the Andes, is a pioneer in years, ever since the Spanish the area in between. blematic variety and today sym- hillside-vineyard planting tech- arrived, so wine has been part The country’s geography has bolizes the nation’s wine industry niques. Errazuriz produces its of Chilean culture for cen- also isolated it from the phyl- in much the same way as Zin- finest wines by controlling turies,” says Juan Somavia, man- loxera louse that razed vine- fandel does in California, or Mal- every stage of the winemaking aging director of Wines of yards across Europe in the bec in Argentina, and Shiraz in process, and the biodynami- Chile, the international arm of 1890s and altered wine grow- Australia. Rich in berry fruits cally grown Seña blends six the nation's largest wine grow- ing practices around the world, and spices, with smooth, well- classic red varietals to create a ers’ association, Vinos de Chile. except in Chile, where vines rounded tannins, Carmenere is complex world-class wine. San- “However, in the last 30 years continue to thrive on their own a delight to drink and well ta Rita and Viña San Pedro cre- Chile has emerged very pow- ungrafted roots. matched to a wide range of ate ranges that are extremely erfully onto the international Weather also plays an im- foods, particularly hearty, full- popular overseas, and boutique markets, essentially based on portant role, and having rainfall flavored, well-seasoned dishes, winery Casas del Bosque fo- having very privileged geo- concentrated in the winter such as Indian curry. cuses on high quality premium graphical conditions for pro- months followed by a long, dry A fine example of Chile’s sig- wines that are limited to select Combining new ideas and technologies with centuries of winemaking experience ducing high quality grapes.” growing season encourages nature varietal is the Casa Sil- quantities. has enabled Chile to impress connoisseurs with its signature Carmenere varietals

Wine Wine International The The The Wine Wine Wine The Enthusiast Enthusiast Wine Cellar Wine Advocate Wine Advocate Wine Advocate & Spirits Enthusiast & Spirits Wine Advocate 90 91 90 94 90 90 93 94 96 POINTS POINTS 91 POINTS POINTS POINTS POINTS POINTS POINTS POINTS POINTS

Cono Sur Anakena Casas del Bosque Casa Silva Errazuriz San Esteban Requingua Santa Rita San Pedro Seña 20 Barrels Anakena ONA Red Gran Reserva Casa Silva Reserva Don Maximiano In Situ Potro de Piedra Santa Rita 1865 Limited Edition Icon Blend Cabernet Sauvignon 2008 Sauvignon Blanc Carmenere Founder's Reserve Laguna del Inca Cabernet Sauvignon Casa Real Cabernet/Syrah 2007 2007 2010 2009 2006 2008 2008 2007 2007 Wines of Chile represent a world of taste The 94 member wineries of Wines of Chile represent over 90% of the country’s bottled wine exports, and meet with experts from around the world to assess global tastes Over the past three decades, Chile’s wine industry has un- dergone many deep-rooted transformations that have en- abled a new generation of tal- ented grape growers and winemakers to emerge and pro- duce world-class wines of unique character and person- ality. Technological advances in the 80s and an export boom in the 90s have helped elevate Chile’s international standing to make it now the eighth largest wine producer and the fifth largest wine exporter in the world. In 1989, Chile exported 28,000 liters of wine; in 2009 it sent 694,000 liters overseas. Over the past five years Chile has produced an average of 887 million liters (234 million gal- lons) of wine per year, 70% of which is exported to 150 coun- tries worldwide, with the U.S., the U.K. and Canada being the top three destinations. innovative program of ‘online The nation’s wine industry is CHILE PLANS TO BE blogger tastings’ with virtual led by Vinos de Chile and its THE NUMBER ONE bloggers across the U.S. and a international branch Wines of NEW WORLD panel of winemakers who are in Chile, which promotes the qual- PRODUCER OF Chile. The invited bloggers re- ity and image Chilean wine both SUSTAINABLE AND ceive a box of wine to taste, at home and abroad. DIVERSE PREMIUM along with technical informa- “Chilean wines are of the WINES, TARGETING tion on each wine, recipes, olive highest quality, and the chal- EXPORTS TO REACH oils, merquen (a ground mix- lenge today is to get that mes- US$3 BILLION BY ture of dried, smoked and sea- sage across to international 2020 soned Chilean pepper), and markets,” says Juan Somavia, then there are activities that managing director of Wines of (China, Korea, and Japan). It al- give us a very wide range of Chile. “We work in various ar- so works closely with ProChile feedback,” says Mr. Somavia. eas of education and promo- to develop and offer promo- More than any other product, tion. For example, every year tional and educational programs bottled wine puts the country’s we organize the Wines of Chile in Asia, Latin America and Eu- image into the hands of con- Awards, which is the industry’s rope. Its Puro Chile store in New sumers around the world. In main competition, where we York brings gourmet products 2009, Chile exported the equiv- bring judges from around the from Chile directly to Manhat- alent of 510 million bottles of world and give them the op- tan, while its associated Puro wine. Based on conservative es- portunity to not only taste over Wine boutique offers the most timates suggesting three people 600 wines from Chile, but also diverse range of fine Chilean see each bottle, the brand to get to know our vineyards, wines available in the U.S. “Chile” reaches 1.5 billion peo- our country, and our cuisine.” Active on Twitter and Face- ple each year, and Wines of Wines of Chile has offices in book, Wines of Chile is making Chile wants to use this exposure Santiago, London and New the most of social networks and to develop the country’s image York, and runs programs in the the Internet to establish direct and convey its positive attrib- USA, Canada, the U.K., north- dialogue with its consumers. utes to connoisseurs around ern Europe, Brazil, and Asia “We have developed a highly the world.

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18 Friday, September 16, 2011 CHILE Distributed by USA TODAY Chile admits lessons still to be learned In order to increase competitiveness and continue its socio-economic progress, Chile must create more equitable access to quality education

In an interview with McKin- sey last July, President Piñera said, “For a long time, I thought there were three basic pillars for the government: to have a stable, legitimate, democratic system; to have a free, open market economy, unencum- bered by fiscal imbalances; and to have a state that works. But I don’t think that’s enough for what’s coming now. In the so- ciety of knowledge and infor- mation, we need at least four new pillars: to give a quality ed- ucation to everyone, to invest in technology, to promote in- novation and entrepreneurship, and to have a very flexible so- ciety and economy.” ‘ALTHOUGH THERE Consequently, the President ARE SCHOOLS went on to say that Chile has EVERYWHERE, THEY embarked on a major educa- ARE NOT OF SUFFI- tion reform in an attempt to CIENT QUALITY TO “fix a system that hasn’t worked ENSURE EQUAL well because it was caught up OPPORTUNITY FOR by all kinds of interest groups.” THE DIFFERENT SO- The reform is timely, though CIO-ECONOMIC much debated. Since May, thou- SECTORS OF sands of Chilean students have CHILEAN SOCIETY.’ taken to the streets in protest of a system they believe is root- ed in inequality (and skewed es, which only some can afford, source of pride for us, and I ing because they cannot find decades. The challenge, he ernment was listening to their against the working class and then these students score much am convinced that this is go- qualified professionals. The says, is that “among the upper demands. While President poor), asking for far-reaching re- higher on the PSU. This is why ing to create a completely dif- government is trying to reform classes, this average is 95%, Piñera had stopped short of forms. Among their demands it is difficult to speak about high- ferent country in 10 years or the system; it may not be the while among the more vul- making university education is an end to Chile’s system of pri- er education without first less,” he says. largest or the only reform need- nerable segments of the pop- free for all, the government vate profit-making universities, speaking of significantly im- Patricia Matte Larrain, pres- ed, but it is a start. ulation, the average is 15%.” had made a number of con- in place since the time of proving secondary education ident of the private, non-prof- “Chile has progressed a lot; “Consequently, our country cessions, including dropping Pinochet, and the implemen- and finding ways of breaching it SIP network of primary and it is something to be proud of, has a level of inequality that interest rates on student loans tation of free universal higher the gap that exists given the secondary schools, which has and this progress took place be- must be addressed. The truth from 5.6% to 2%, increasing education, as well as improved huge difference between pri- been providing top class edu- cause a lot of people worked is that there are people living grants and loans to cover 60% secondary education. vate and semi-private high cation to children without eco- towards it. Now, we will work off very little and other people of the most vulnerable students Chile offers 25 traditional uni- schools and public ones.” nomic means for over 150 years, towards breaking the stagnant who live very well, and this is (up from 40%), and creating a versities (both public and semi- Still, Dr. Uribe says that pri- says that although Chile is well quality of our educational sys- a challenge for Chile,” says Mr. US$4 billion education fund. private), and a growing number vate university figures con- covered as far as education in- tem in order to take the next Sanchez. He points out that The government also offered of private universities. Rector tradict the student protesters’ frastructure goes, it must im- great leap forward.” Chile is one of just two coun- a constitutional amendment of the private Andres Bello Uni- claims that private universi- prove quality. She agrees that Ignacio Sanchez, rector of tries in the world in which the that would guarantee a quali- versity, Dr. Pedro Uribe, feels ties lead to further inequality. children from wealthier back- the Catholic University of costs of university education ty education. Innovation, it that problems underlying the Since 1980, the number of uni- grounds have much better Chile, one of the country’s are carried more by families would seem, has truly found its educational system stem from versity students has multiplied schooling options than those most prestigious universities than by the government. And way into Chile’s educational unequal secondary education, tenfold. “Ironically, the rise of from poorer families, and that and its second oldest after the while the Catholic University system. which leads to disparate results private higher education has “this is very serious, because University of Chile, says that has been producing a good ma- As the President said in the on the country’s university ac- permitted a previously un- what we are really talking about Chile’s higher education sys- jority of the country’s top grad- McKinsey interview, equality cess exam, the PSU. thinkable number of new stu- is the fact that although there tem is facing both difficult chal- uates for decades, the rector of opportunity is a national goal, He comments, “The exam is dents access to university are schools everywhere, they lenges and great opportunities. admits that only those who and now is the time for Chile set up to measure knowledge, education. Andres Bello Uni- are not of sufficient quality to There are now a million stu- score well on the PSU get in. to deal with the situation. and not ability or aptitude for versity aims to represent ensure equal opportunity for dents attending university in In August, Chile’s new edu- university level study. As knowl- Chile’s socio-economic pyra- the different socio-economic Chile, which has a total popu- cation minister, Felipe edge is something that one be- mid in our classes, and we have sectors of Chilean society.” lation of just 17 million, mean- Bulnes, gave a televised gins to acquire at the dining a high number of students who “We have to make a massive ing that 45% of adults between address directed table of an educated family, in come from lower-income change in our education sys- the ages of 19 and 25 are in col- at the student a well-run high school (and the backgrounds. Of our 40,000 tem. I believe that this is Chile’s lege. This, says the rector, is a protesters, better ones nowadays are those students, roughly 65% come most pressing issue,” says Mrs. great achievement and bodes assuring that boast well-paid teachers), from public or semi-private Matte. “Today, we have many well for the economic future of them that and even in extra-support class- high schools. This is a great companies that are complain- the country over the next the gov-

UNEQUAL SECONDARY ONE MILLION STUDENTS, THE ONGOING STUDENT THE PROPOSED REFORMS EDUCATION IS BELIEVED OR 45% OF ADULTS PROTESTS ARE CALLING INCLUDE LOWERING TO BE ONE OF THE BETWEEN THE AGES OF FOR AN END TO FOR- INTEREST RATES ON PROBLEMS UNDERLYING 19 AND 25, ARE PROFIT EDUCATIONAL STUDENT LOANS BY THE EDUCATIONAL ENROLLED INSTITUTIONS MORE THAN HALF SYSTEM IN COLLEGE Quality teaching for all An educational The SIP network of primary schools reaches out to Chile’s underprivileged children Education has long been a SIP’s president today is Pa- 230,000 students have grad- backbone priority of the Chilean gov- tricia Matte Larrain of the uated from SIP schools, many ernment, yet few public ini- powerful Matte family, which of whom have gone on to The PUC-Chile is one of tiatives have been as has always extended its in- study at Chile’s best univer- the most influential groundbreaking and long terests beyond business and sities. institutions in Chile’s lasting as the SIP school net- into philanthropic missions. “SIP’s philosophy is to ap- recent history work. SIP, which stands for SIP schools are donated – ply the best practices avail- “Primary Instruction Cor- the latest one was endowed able in the private sector to Although it was over a centu- poration” in Spanish, is a pri- by the Matte-Larrain family the world of education,” says ry ago that the institution took vate non-profit institution themselves – and renowned Mrs. Matte. “The financial its first steps, it was at the be- founded in 1856 by a group for their methodology, high administration has also been ginning of the 1960s that the of young intellectuals who quality of teachers, and the carried out efficiently, which university became more sought to establish a system values of hard work, disci- explains why SIP has been prominent. It started when a that would tend to the needs pline and respect they im- around for more than 155 group of outstanding gradu- of the less fortunate. part to their students. Over years.” ates from the fields of science and economics, who were and are still Pontificia Universidad Catolica de Chile (PUC-Chile) professors, went abroad to study PhDs. On their return, they were given the opportu- nity to apply their new knowl- edge, develop successful research areas, and teach Ignacio Sanchez, rector of PUC-Chile, believes that the academic methodologies in the fields of economics, medicine and en- and ethical development of students will guide Chile’s future gineering, making a relevant contribution to what is still the lic service is demonstrated create new products, services key basis of Chile’s success. through teaching in our 18 fac- or solutions required by soci- “These are huge contributions ulties that range from theolo- ety. This is a pioneering cen- of the university toward Chile’s gy to engineering, all of which ter in Latin America which will development,” says Ignacio strongly value the belief that combine the academic world’s Sanchez, rector of PUC-Chile. culture and humanities are es- drive with industry’s needs and These achievements con- sential for a nation’s integral ambitions to help Chile reach tinue to attract the very best development. We really want a fully developed status. Chilean students to PUC- to enrich our society.” PUC-Chile has hundreds of Chile. Yet on top of their ex- With over 25,000 students, student-exchange agreements cellence in academic terms, PUC-Chile looks towards the with 45 countries so that its they are driven by Catholic future. Placing a strong focus graduates head out into the principles and the promotion on high quality teaching and world and make a strong con- of knowledge through faith, advanced research, the uni- tribution. “Our engineers who thus creating the perfect versity is building new infra- do their doctorates in foreign launch pad for responsible structure, including a 12- story universities are always in the leaders. building designed to accom- top 10% of their class. This Mr. Sanchez also describes modate technology and inno- means we’re doing something the PUC-Chile as a public-ser- vation research centers, where well,” comments Mr. Sanchez. vice-oriented, non-state uni- faculty, students and private PUC has a great story to tell, versity that develops projects institutions will work togeth- and an even greater one yet to for the country’s benefit. “Pub- er and cooperate in order to be written by today’s students.

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Distributed by USA TODAY CHILE Friday, September 16, 2011 19 Spreading the word around the world A new foundation, coordinating the efforts of various government agencies, aims to influence the world’s perception of Chile From battleships and bou- public bodies; nature, science tiques to broadband-based and environment; and pro- competitions, raising Chile’s duction and innovation. The international profile embraces foundation is divided into five many different methods of departments: Administration; communication to expose a Media Center responsible Chile to the widest audience for the global dissemination possible. Until a few years ago, of information about Chile; the nation’s promotion abroad an Ideas Factory comprising was a fairly disjointed, piece- creative directors and experts meal affair, carried out by var- in communications and mar- ious independent agencies. keting; an Inter-institutional In December 2007, how- Coordination Department, ever, the government re- which maintains dialogues be- solved to take the reins of tween private and public sec- Chile’s global image and di- tors; and Chile Global – an rect it with a more targeted international network of and unified approach, subse- Chilean entrepreneurs, exec- quently announcing the cre- utives and professionals who ation of the Proyecto Chile – live abroad and are keen to Imagen Pais office to posi- contribute to the country’s de- tion Chile as a unique and velopment. competitive country. A wealth of information The agency’s first move was about Chile comes together to launch Fundacion Imagen online at its official website de Chile on July 5, 2009, a www.thisischile.cl, providing public-private foundation an invaluable resource re- headed by the Minister of garding the country, with Foreign Affairs. The new links to social networking me- body coordinates the work of dia such as Twitter and Face- different state institutions book. The foundation’s own promoting Chile’s image website www.fundacionima- abroad, among them the For- gende-chile.cl keeps people eign and Economy Ministries, up to date with perceptions of Corfo, ProChile, Sernatur, Chile – its latest project is a The Esmeralda, the second tallest and second longest sailing ship in the world, serves as a floating embassy for Chile Dirac and the Foreign In- quiz about Chile that it will vestment Committee. launch on Facebook in Octo- on and offline. For example, year of operation. The state- and the Chilean Navy is high- couver, Victoria, Pearl Har- Fundacion Imagen de Chile ber, with the aim of reaching Wines of Chile offers a quiz sponsored initiative offers lighting Chile’s cuisine abroad. bor, Papete, Hanga Roa, Cum- aims to influence the world’s a massive global audience in (www.winesofchile.org/chile- successful applicants This year, the four-masted Es- berland Bay and will return to perception of Chile in four an entertaining way. basics/wine-fun/quiz/) to test US$40,000 of equity-free seed meralda barquentine tall ship Valparaiso on November 6, main areas, namely culture Private enterprises are also people’s knowledge of the na- capital, and a temporary one- set sail northwards with its 2011 – a journey of 15,117 and society; institutions and expanding their profiles both tion’s wine industry. Offline, year visa to develop their pro- “Tastes of Chile” program. nautical miles. its boutique Manhattan shop jects for six months, along Some 100 importers and While in San Diego and brings the Chilean grape and with access to the most potent Chilean distributors partici- San Francisco, the ship was a other fine fare directly to the social and capital networks pated in the showcase to pro- physical representation of the Big Apple. in the country. Start-Up Chile mote Chilean products. links between Chile and Cal- According to former Min- has gained impressive inter- The naval training ship is ifornia, which have become ister of Economy, Develop- national recognition, having the second tallest and second stronger after the signing of ment and Tourism Juan been publicized in Forbes, longest sailing ship in the the Chile-California Plan in Andres Fontaine, “Instead of The Economist, Business- world and serves as a floating 2008 which is designed to changing the world through Week, and TechCrunch, embassy for Chile, showcas- boost academic and com- revolution, we can change the among others, inspiring spin- ing various aspects of the mercial ties, as well as en- world through innovation.” offs around the world, such country from port to port. It courage knowledge sharing To encourage high-poten- as Startup America, Britain, embarked on its current culi- and technology transfer. tial foreign entrepreneurs to Greece, and Italy. nary voyage on May 16. Dur- The plan is to be consoli- come and bootstrap their Another particularly inno- ing the 175-day trip the dated further between 2011- businesses in Chile, last year vative promotional project Esmeralda will visit the ports 2015 to develop collaboration the government piloted its comes from the national of Iquique, El Callao, in areas such as energy, agri- Start-Up Chile program, tourism service Sernatur, Guayaquil, Acapulco, San culture, education, environ- www.fundacionimagendechile.cl which is now in its first full which along with ProChile Diego, San Francisco, Van- ment and innovation.

The dry, cloudless atmosphere over the Atacama Desert produces skies clearer than any in the northern hemisphere

ASTRONOMY Stars in their eyes Class-leading observatories and natural advantages make Chile an astronomical success The clear skies of northern feet in Llano de Chajnantor is first in the world to have a com- Chile are among the best in the Atacama Large Millime- puter-controlled main mirror the world for astronomers. The ter Array (ALMA), an inter- – a technology developed at dark, unpolluted and excep- national collaboration between ESO and now applied to most tionally transparent atmos- Europe, North America and of the world’s current large tele- phere above the dry, cloudless Japan, which is one of the high- scopes, such as ESO’s Very Atacama Desert creates ideal est astronomical observatory Large Telescope (VLT), the conditions for stargazing. sites in the world and the world’s most advanced visible- Around Coquimbo, for exam- largest ground-based astrono- light astronomical observato- ple, there are 345 clear nights my project in existence. ry, and VISTA, the world’s per year. As a result, the region The ALMA project is over- largest survey telescope, both has become home to some of seen by the European South- at Cerro Paranal. the most advanced optical as- ern Observatory, ESO – the The technology will also be tronomical installations on foremost intergovernmental used at ESO’s latest project 12.5 Earth and draws astronomers, astronomy organization in miles from Cerro Paranal to engineers, photographers, Europe – and provides state- create the “world’s biggest eye tourists, students and teach- of-the-art research facilities on the sky” on the 10,040-foot ers from around the globe in for astronomers and astro- Cerro Armazones mountain. search of unsurpassable views physicists. Last year, the ESO Council se- of heavenly bodies such as the In Chile, ESO operates three lected Cerro Armazones as the Magellanic Clouds, Southern unique world-class sites in the baseline site for the planned Cross and the spectacular Atacama Desert region at La 138-foot European Extremely Milky Way. Silla, Paranal and Llano de Large Telescope (E-ELT). Con- Chile has attracted some of Chajnantor. struction of the US$1.45-bil- the most important astro- ESO’s first foray into Chile lion E-ELT project is expected physical organizations in the was at La Silla, a 7,874 foot- to begin in 2012 and opera- world that, in partnership with high mountain around 370 tions are slated to begin early the Chilean government and miles north of Santiago de in the next decade. researchers, have developed Chile. The observatory is Increasingly, tourists are one of the largest concentra- equipped with several optical venturing to Chile to see these tions of international obser- telescopes featuring mirror di- cutting-edge facilities and vatories in the world. For ameters of up to 11.8 feet. Its spectacular skies for them- example, around 310 miles 11.5-foot New Technology selves, and several local com- north of Santiago is the Cerro Telescope (NTT) was inaugu- munities have responded to Tololo Inter-American Ob- rated in 1989 and broke new this opportunity by building servatory (CTIO), and locat- ground for telescope engi- small public observatories to ed at an elevation of 16,400 neering and design. It was the bolster further “astrotourism.”

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