Our World Friday, September 16, 2011
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CHILE USAT pages 1-4 ok.qxd 6/9/11 20:26 Página 1 Our World Friday, September 16, 2011 DISCOVER CHILE AT worldfolio.co.uk CHILE Latin America’s great success story This supplement to USA TODAY was produced by United World Ltd.: Suite 179, 34 Buckingham Palace Road - London SW1W 0RH - Tel: 44 20 7409 3106 - [email protected] - www.unitedworld-usa.com SPECIAL 20-PAGE SUPPLEMENT INDUSTRY FINANCE COMMUNICATIONS INNOVATION TOURISM EDUCATION FOOD WINE CULTURE ENVIRONMENT 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? Cquired 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. Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content CHILE USAT pages 1-4 ok.qxd 6/9/11 20:27 Página 2 020 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.