Successful Free Market Democracy

Chile is not only geographically isolated but it is a successful free market democracy set amongst Latin America’s otherwise turbulent development. Chile’s continued success has been founded on democratic stability, market liberalisation, open markets and a secure business environment.

The Chilean economy is set to grow by between 5.5%-6.5% in 2005, well above the United Nations projection of 4% for the rest of Latin American. According to the latest Business Environment Rankings published by The Economist Intelligence Unit (EIU), Chile will be the best country in Latin America in which to conduct business over the next five years

The 2005 Index of Economic Freedom, compiled yearly by the conservative Heritage Foundation and The Wall Street Journal, ranks Chile as having the 11th best economic environment out of 155 countries surveyed, surpassing the United States for the first time and far exceeding its South American neighbors. And Santiago, Chile’s capital, has grown to become Latin America’s best business hub, ahead of Miami, according to the magazine América Economía.

Chile has high levels of transparency and low levels of corruption. The global watchdog Transparency International ranked Chile 20th in 2004, putting it above countries such as Japan, Spain, Italy and China. Brasil ranked 59th, Mexico 64th and Argentina 108th.

Chile’s progress is partly reflected in its Free Trade Agreements – it currently has agreements with the United States, The European Union, Canada and South Korea, whilst exploratory meetings are already underway with Japan and China.





Go Back