bUSiness CHILE THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE N°265, JANUARY 2010 OECD: Joining the Club SPECIAL REPORT TRADE TESTIMONIAL SPOTLIGHT The Business Women’s AmCham Prepares of the Beautiful Game Entrepreneurship for the Bicentennial CONTENTS 6 TRADE TESTIMONIAL Women’s Entrepreneurship Juggling work and family life can be tough but five Chile-based women are becoming role models for LIFE IN THE SLOW LANE entrepreneurship. 42 How High the Mountain? GOVERNMENT Economic SNAPSHot 8 37 As Chile scales Cleaning Up Bling Bling Bubble? the summit of Environmental Investors have rushed to development, Santiago 12 Regulation buy gold amid economic Joining the Club Will a new environment uncertainty and the weak Eneldo looks for signs Chile has become the ministry and other U.S. dollar, but could the pointing up or down. second Latin institutions resolve gold bubble be about to American country the problems they are burst? after Mexico to join designed to fix? the OECD, but with the seal of approval comes responsibility COVER StorY 39 BREAKFast to raise standards 12 Joining the Club Lessons from the North and improve public Chile’s invitation to join Star State policies. the OECD recognizes its Minnesota Governor Tim economic success and Pawlenty’s state has much political stability, but do in common with Chile and © 2010 AMCHAM CHILE SPECIAL REPORT Reproduction in whole or in part is the benefits outweigh the has shown innovation is 20 strictly forbidden without permission costs? key to success in today’s from the publisher. Opinions expressed in bUSiness CHILE are those of the authors markets. The Business of the and do not necessarily reflect those of Beautiful Game AmCham or bUSiness CHILE. We accept no SPotligHT INTERVIEW responsibility for the accuracy of the articles 28 40 Football fans are eagerly and any unforeseen errors. bUSiness CHILE is published monthly, 10 months a year AmCham Prepares for Successful awaiting La Roja’s and mailed free of charge to AmCham the Bicentennial Entrepreneurship participation in the World members. Letters are welcome. They should bUSiness Chile reports Amazon executive, Diego be accompanied by the author's name Cup, but the game is far and daytime telephone and sent to on AmCham’s strategy Piacentini, talks to bUSiness [email protected] For reasons of for 2010 and the status of CHILE about his company’s from realizing its economic space limitation, AmCham reserves the U.S.-Chile relations. potential in Chile. right to edit letters published. success and lessons for Latin Advertising inquiries should be addressed American entrepreneurs. to AmCham's Sales Department: Paulina Dellafiori: E-mail: cristina.ordenes@ amchamchile.cl; Phone: 290 9700 Fax: 212 2620 Av. Presidente Kennedy 5735, Torre EDITORIAL BOARD BUSINess CHILE 2010 Poniente, Of.201, Las Condes, Santiago de CHAIR, Kathleen Barclay, Asesorías KCB; PAST CHAIR, Michael Combes, Marco Chilena; VICE CHAIR, Manuel José Vial, Vial y Chile; E-mail: [email protected]; www.amchamchile.cl; www.businesschile.cl Palma Abogados; GENERAL EDITOR, Julian Dowling, AmCham Chile; ASSISTANT EDITOR, Daniela Valda, AmCham Chile. MEMBERS ProductioN Jaime Bazán, AmCham Chile; Andrés Bianchi, Bci, Empresas Copec; Ruth Bradley, The Economist; Mateo Budinich, Insape; K & D Comunicaciones Ltda. Olga Kliwadenko, John Byrne, Boyden Consultores Chile; Francisco Courbis, Empresa Eléctrica Pilmaiquén; Paulina Dellafiori, AmCham Chile; General Manager, 11 de Septiembre 1945 - Richard Diego, Royal Bank of Canada; John P. Dill, Project Management; Francisco Garcés, Banco de Chile; Claudio Hohmann, Of. 213, Providencia. Phone: 481-6940 / 481-6941, Cell: (09) 874-0619; D&S; Charles Kimber, Celulosa Arauco y Constitución; Olga Kliwadenko, K&D Comunicaciones; Gideon Long, BBC; Vincent e-mail: [email protected]; McCord, Asesorías e Inversiones CarCon; James Newbold, Business News Americas; Patricia O’Shea, AmCham Chile; Roberto [email protected];www.kyd.cl Ossandón, Ossandón Abogados; Karen Poniachik, Chilean Finance Ministry; Rodrigo Silva, Silva & Asociados; Mitch Larsen, U.S. Embassy; Mauro Valdés, BHP Billiton. Printed in Quebecor World Chile www.businesschile.cl bUSiness CHILE January 2010 3 bUSiness CHILE SPONSORS PLATINUM GOLD SILVER BRONZE AMCHAM GLOBAL SPONSORS PLATINUM GOLD BRONZE 4 January 2010 bUSiness CHILE Editorial Celebrating Chile’s Bicentennial This year marks 200 years since Chile’s corporate governance, transparency and taxes. Higher independence from Spain and, having come through standards will have other benefits as well. For example, a tumultuous 2009 with barely a scratch, Chile has a law to make the bank information of residents much to look forward to in its Bicentennial. available to foreign authorities in cases of suspected The year began with elections in mid-January and, tax evasion, a key condition to join the OECD, will at the time this issue went to press, the possibility allow progress on a double taxation agreement with of the first democratically elected right-of-centre the United States. Our Cover Story this month, “Chile government in over 50 years. Many feel a change, Joins the Club,” finds the benefits of belonging to the after four consecutive governments of the center- OECD far outweigh the costs. left Concertación coalition, will consolidate Chile’s But membership is not a free ride. It also comes democracy. But the manner in which the elections with responsibility to improve standards in areas such are held – orderly, serious, with never a hint or as intellectual property rights and the environment. suggestion of electoral tampering – says more about Chile has already made progress on the environment the strength of democracy in Chile than the outcome. with Congress passing legislation in November to Even if the political pendulum swings right, very little create an Environment Ministry. is likely to change, which is a complement to Chile’s Chile’s athletes will also have a chance to shine on stable economy, strong institutional framework and the world stage this year. The football World Cup in commitment to democracy. South Africa kicks off in June, and Chile’s team ‘La The government of President Michelle Bachelet is Roja’ has gone from a doubtful qualifier at the start of set to finish on a high note after achieving one of its key the contest, to one of its rising stars. Even if La Roja foreign policy goals of membership in the Organization falters in the early rounds, simply qualifying is enough for Economic Co-operation and Development (OECD). reason for Chileans to be proud of their country’s Chile was invited to join the OECD in December and achievements. Our Special Report this month, “The becomes only the second Latin American member after Business of the Beautiful Game,” takes a look at the Mexico. To its great credit, Chile is the first to join of money side of Chile’s favorite game. five countries including Estonia, Slovenia, Russia and Even if La Roja returns empty handed from South Israel that began accessions negotiations in 2007. Africa, 2010 is shaping up to be Chile’s year. The Presuming Chile’s accession is ratified byC ongress economy is back on track with the Central Bank this year, it will not only allow the exchange of best expecting GDP growth of between 4.5% and 5.5%, practices with other countries but also give Chile a and a new government will take over in March with voice on the world stage and the opportunity to shape renewed energy to carry on the good work of the OECD policy, not just follow it. last two decades. Congratulations to everyone in Chile worked hard to earn its place, passing this wonderful country from the AmCham team and legislation to comply with OECD standards on Prospero Año Nuevo! BOARD OF DIRECTORS EXECUTIVE COMMITTEE PAST PRESIDENT Javier Irarrázaval, The Walt Disney Company Alfredo Ergas, Enersis Mateo Budinich, Insape Chile CO CHAIR FINANCE AND ADR PRESIDENT GENERAL MANAGER CHAIR LABOR & HUMAN CAPITAL COMMITTEE COMMITTEE Ricardo García, Seguros Interamericana – Jaime Bazán, AmCham Chile Mitch Larsen, Embajada de los E.E.U.U. Mauricio Ramos, VTR ALICO EX OFFICIO Global Com VICEPRESINDENT; CO CHAIR CORPORATE AFFAIRS DIRECTORS Luis Marcelo Moncau, Microsoft Chile COMMITEE Kathleen Barclay, Asesorías KCB Enrique Ostalé, D&S AmCham Mission Statement Charles Kimber, Celulosa Arauco y Constitución CHAIR EDITORIAL COMMITTEE Luis H. Siles, IBM de Chile To promote free trade and investment S.A. Andrés Bianchi, Bci, CHAIR TRADE & INTERNATIONAL BUSINESS COMMITTEE between Chile an the United States, TREASURER Pamela Camus, American Airlines and to be an effective voice for the Julie Beamer, General Motors Chile CO CHAIR CORPORATE AFFAIRS COMMITTEE ADVISORY COUNCIL membership while facilitating related SECRETARY; CHAIR LEGAL COMMITTEE Fernando Concha, Citigroup Chile Rubén Covarrubias, Rector, Universidad Mayor services. Michael Grasty, Grasty Quintana Majlis & Cía. CO CHAIR FINANCE AND ADR COMMITTEE www.businesschile.cl bUSiness CHILE January 2010 5 TRADE TESTIMONIAL Women’s Entrepreneurship: A Pathway to Prosperity After attending a conference in Washington, five Chile-based women are seeking to realize their potential as role models for entrepreneurship. By Ruth Bradley ntrepreneurship can be a the Pathways to Prosperity initiative going on,” she says, “but this conference lonely business, confesses launched in September 2008 when was focused and well directed.” Isabella Jaras, co-founder of leaders of Latin American countries It helps that Pathways to Prosperity