Regions and Cities at a Glance 2018 – CHILE http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-14 Unemployment rate, 15-64 years old, 2007-16

GDP per capita in USD PPP rate (% ) 80 000 16 Highest region 70 000 Highest rate Antofagasta 14 60 000 Atacama 52 686 USD 12 50 000 10 8.2% 40 000 Second highestChile region 8 Chile Atacama 25 214 USD OECD 30 000 6 6.8% 20 000 Chile 4 21 257 USD Lowest rate 10 000 2 Los Lagos 0 Low est region 0 4.1% 2000 2005 2010 2016 Araucanía 10 139 USD 2007 2012 2016

Regional economic disparities showed the largest reduction among OECD countries since 2010. Between 2010 and 2016, the region with the lowest GDP per capita in the country, Araucanía, grew by 5.8% per year in terms of GDP per capita, while in Antofagasta, the richest region, GDP per capita decreased by 4% per year during the same period. Although regional economic disparities between the richest and poorest 20% of regions decreased by 38% in 2000-2016, Chile still has larger regional disparities than the average of OECD countries. The unemployment rate of 6.8% in Chile was close to OECD average in 2016. Regionally, differences in unemployment have narrowed since 2009, but remain significant. The unemployment rate in Atacama was twice as high as in Los Lagos in 2016.

Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions 2016 2000 Ratio 4 Small regions Large regions (TL2) (TL3)

3

2

1

Country (number of regions considered) Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Chile is composed of 15 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available.

Updated the 5th of March 2019

Differences in well-being across regions

Top region Bottom region Santiago Regions Metropolitan

Aysén Aysén Aysén

top top 20% (1 to (1 to 402)

Coquimbo

Coquimbo Antofagasta middle middle 60% Antofagasta Magallanes y Magallanes y Antártica Santiago Antártica Santiago Metropolitan Ranking Ranking of OECD regions Antofagasta Metropolitan Maule Santiago Arica y Magallanes Arica y Atacama Tarapacá

Metropolitan Parinacota Aysén Maule Aysén y Antártica Parinacota bottom bottom 20%

Environment Life Jobs Community Health Access to Education Safety Housing Civic Income Satisfaction services Engagement Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below. Large regional disparities in Chile are found in the well-being dimensions of environment, life satisfaction and jobs. In each of these dimensions, at least one Chilean region ranks among the top 20% of OECD regions and at least one region among the bottom 20% of OECD regions. All Chilean regions are among the bottom 20% of OECD regions in terms of safety, civic engagement and income. The high performing Chilean regions fare better than the OECD median region in air pollution, self-assessed life satisfaction and mortality rate. In the low performing regions, the share of households with broadband connection is 35 percentage points lower than the OECD average.

Country OECD median Chilean regions Average region Top 20% Bottom 20% Environment Level of air pollution in PM 2.5 (µg/m³), 2015 16.3 12.4 5.9 24.8 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 6.4 6.8 7.2 6.3 Jobs Employment rate 15 to 64 years old (%), 2017 62.2 67.7 65.8 58.7 Unemployment rate 15 to 64 years old (%), 2017 6.8 5.5 4.7 7.8 Community Perceived social netw ork support (%), 2013 83.5 91.4 88.2 78.6 Health Life Expectancy at birth (years), 2016 79.2 80.4 79.7 78.4 Age adjusted mortality rate (per 1 000 people), 2016 8.3 8.1 7.9 9.1 Access to services Households w ith broadband access (%), 2017 54.0 78.0 63.7 43.1 Education Labour force w ith at least upper secondary education (%), 2017 68.4 81.7 73.4 57.8 Safety Homicide Rate (per 100 000 people), 2016 8.9 1.3 7.0 10.0 Housing Rooms per person, 2016 1.2 1.8 1.3 1.2 Civic engagement Voters in last national election (%), 2017 or lastest year 46.7 70.9 48.5 42.1 Income Disposable income per capita (in USD PPP), 2016 6 871 17 695 8 562 5 094 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Chile is composed of 15 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 UnitedChile States OECD average people outside cities people 24% outside cities people in cities people in cities 30% 1.2 billion 18.2 million with population with population people - 70% 55% people - 76% 51% above 500 000 above 500 000 people in cities with live in cities live in cities population between 13% people in cities with 6% 50 000 and 250 000 population between 50 000 and 250 000 9% people in cities with 12% population between people in cities with population 250 000 and 500 000 between 250 000 and 500 000 Source: OECD Metropolitan Database. Number of cities: 26 in Chile and 1 138 in the OECD.

In Chile, 76% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 51% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16

Chile OECD average % % Chile OECD average 80 80 68% 70 63% 70 58% 60 50% 51% 60 50 50 48% 40 40

30 30 areas 20 20

10 327metropolitan

10 Santiago 0 0 % of national % of national All metropolitan1 areas Largest contributor2 GDP population Metropolitan areas in Chile account for 50% of national GDP. Between 2000 and 2016 they generated 48% of the national GDP growth. The metropolitan area of Santiago accounted for 40% of national GDP growth. The three Chilean metropolitan areas are among the 20% metropolitan areas with lowest GDP per capita in the OECD. Santiago and Concepción is among the 20% most polluted (in terms of levels of PM 2.5) metropolitan areas across the OECD.

OECD Metropolitan areas ranking Cities above 500 000 people

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas

Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: three in Chile compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019

Subnational government finance

Subnational governments play a subordinate role in Chile in terms of public finance and expenditure. Their expenditure amounts to USD 846 per capita compared to an OECD average of USD 6 817. In Chile, this is equivalent to 0.1% of total public expenditure and to 0.04% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. In Chile, 12.5% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%.

Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Chile OECD average 1 400

1 200 Total public investment 1 000 USD 1 278 per capita Total public investment 3.0% of GDP 800 USD 549 per capita 2.4% of GDP 600 Subnational government 400 Subnational government investment investment USD 727 per capita 200 USD 69 per capita 56.9% of public invest. 0 12.5% of public invest.

Source: OECD Subnational Government Structure and Finance Database.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019