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CHILE: . Economic, Political and Social Performance January 2005. Contents. Background Political System Economic Performance International Integration Equality and Social Cohesion. Background. Basic Facts. Population: 15.6 million Population growth rate: 1.2%
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CHILE: Economic, Political and Social Performance January 2005

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Contents Background Political System Economic Performance International Integration Equality and Social Cohesion

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Background

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Basic Facts Population: 15.6 million Population development rate: 1.2% Population thickness: 20.1 tenants/km 2 Life anticipation: 76.7 years Per capita wage (ostensible) 2005: US$ 5,741 Per capita wage (at PPP*) 2005: US$10,981 Language: Spanish Source: National Census 2002 (www.censo2002.cl); Central Bank of Chile (www.bcentral.cl); IMF (www.imf.org) *Purchasing power equality

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Political System

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Political System The Chilean State is partitioned into three unmistakably separated and autonomous forces: The Executive, headed by the nation\'s most elevated power, the President of the Republic The Judiciary, inside which the most noteworthy court is the Supreme Court The Legislature, containing the House of Deputies and the Senate

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Political System Executive Branch Chile has a presidential arrangement of government in which Executive power is held by the President, who goes about as Head of State and Head of Government The President holds office for a long time and can\'t be re-chosen for a moment successive term There are 18 services Chile\'s present President is Ricardo Lagos, an individual from the Concertación de Partidos por la Democracia , a middle left coalition

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Political System Legislative Branch The Legislative Branch is spoken to by the National Congress, involving the House of Deputies (120 individuals) and the Senate (49 individuals), with authoritative and supervisory forces

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Political System Judicial Branch The Judiciary is free of alternate forces of state. The most noteworthy court is the Supreme Court, with 21 individuals who, every three years, choose their President. Moreover, there are Appeals Courts and Civil and Military Courts An expansive change of Chile\'s arrangement of equity was propelled in 2000. This change - the principal auxiliary alteration of the framework since the mid-nineteenth century-intends to build access to equity and to lessen trial times, and in addition reinforcing individual and common freedoms

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Political System Main Characteristics Democratic foundations that capacity appropriately; add up to regard for common and human rights Firmly-established political steadiness, with solid organizations and an abnormal state of straightforwardness An autonomous and effective Judicial System Modernization of the State in progress through changes that expansion the effectiveness of people in general organization and guarantee straightforward government

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Economic Performance

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Electricity, gas & water Personal administrations 3.1% Construction 11.5% 8.4% Transport & broadcast communications Home proprietorship 7.8% 8.4% Agriculture & ranger service Financial and 4.7% Fishing business administrations 1.4% 13.5% Retail, eateries & inns 11.5% Mining Public organization 8.6% Manufacturing 3.9% 17.1% GDP by Sector, 2003 (%) Source: Central Bank of Chile (www.bcentral.cl) In 2003, GDP totaled US$71.4 billion, or US$154.7 billion in PPP

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Macroeconomic dependability Full operation of business sectors, joined by the direction required to guarantee their proficiency Openness to exchange and worldwide speculation Wide scope of social approaches to advance uniformity and social union Pillars of Chile\'s Economic Strategy

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Gross Domestic Product (GDP) Source: Central Bank of Chile (a large number of 1996 pesos), 1996-2003, www.bcentral.cl.

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GDP Average Annual Growth Rate (Selected Countries) Source: International Monetary Fund, 1990 – 2004 (www.imf.org)

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(e) Fiscal Surplus/Deficit (% of GDP) Source: Central Bank of Chile , 1994 – 2003 ( www.bcentral.cl )

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Evolution of Inflation in Chile (%) Source: Central Bank of Chile , 1994 – 2004 ( www.bcentral.cl ),

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Unemployment Rate (%) Source: National Statistics Bureau, INE, 1996-2003 (www.ine.cl). Global Monetary Fund, 2004-2005 (www.imf.org)

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Sovereign Spreads

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Competitiveness Ranking Source: World Economic Forum, 2004 – 2005 (www.weforum.org)

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Index of Economic Freedom Source: Heritage Foundation, 2005. Beat 20 positions. (www.heritage.org)

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Transparency Source: Transparency International, 2003 (www.transparency.org)

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Business Climate Source: Economist Inteligence Unit, 2004-2008 (www.eiu.com)

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International Integration

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International Integration Trade Policy Unilateral Multilateral Bilateral and Regional Foreign Investment

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International Integration Unilateral Trade Policy A level rate import levy of 6% Procedures for outside exchange that are straightforward, straightforward and for all time being modernized Chile\'s Flat-Rate Import Duty

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International Integration Multilateral Trade Policy Chile partakes effectively in the multilateral exchanging framework and was an establishing individual from GATT and the WTO Multilateral exchange assentions are incorporated into Chilean enactment and have legitimate status

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International Integration Bilateral and Regional Trade Policy Agreements in constrain ECAs with Mercosur and the Andean Community nations; FTAs with Canada, Mexico, Central America, the European Union, South Korea, the United States and EFTA Agreements under transaction FTAA, New Zealand-Singapore (P3), India, and China Preliminary study for a conceivable concurrence with Japan Other fora: APEC, Observer status at the OECD

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International Integration Bilateral and Regional Trade Policy The universal inclusion accomplished through respective exchange arrangements implies that organizations situated in Chile have particular access to a potential market of 1.2 billion customers (80 times the nation\'s populace), speaking to a GDP of US$ 22,149,200 million, equal to 270 times Chile\'s yearly yield moreover, 74% of Chile\'s remote exchange (sends out + imports) is secured by tax decrease projects Chile\'s broad system of exchange understandings places it in a favored position to serve as a stage from which to get to this vast potential market

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Chile\'s Foreign Trade 1991-2003 (US$ million) Source: Central Bank of Chile, 1991-2003 (www.bcentral.cl)

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Exports of Goods Source: Central Bank of Chile, 2003 (www.bcentral.cl)

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Exports of Goods by Market, 2003 Exports that are always expanded…   6,024 organizations (up from 200 in 1975) send out 3,854 items (200 in 1975) to 165 nations (50 in 1975)

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(Jan-Oct) Foreign Investment More than 3,000 organizations from 60 nations have put over US$ 64 billion in Chile. Somewhere around 1996 and 2003, yearly remote speculation found the middle value of 7.3% of GDP Nominal US$ billion Includes DL600, Chapters XIV and XIX

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Materialized Foreign Investment by Country of Origin Source: Foreign Investment Committee, 1974-2003, (www.doingbusinessinchile.cl)

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Foreign Investment by Sector Source: Foreign Investment Committee, 1974-2003 (www.doingbusinessinchile.cl)

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Chile, A Platform for New Markets Chile\'s Investment Platform (Law Nº 19.840) permits outside speculators to set up organizations as a vehicle for interests in different nations, without being subject to Chilean tax collection on comes back from these ventures By mid-2004, around 40 multinational organizations with a main position in global markets had chosen Chile as an area for call focuses, mechanical bolster focuses, back and front office operations, shared administrations focuses, programming advancement, and provincial home office

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Equality and Social Cohesion

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Social Concerns Along with monetary development and modernization, Chile has additionally accomplished critical advance in building a nation of more prominent reasonableness, solidarity, and balance of chance This has been accomplished through a broad and proficient social assurance arrange Since 1990, enhanced get to and more prominent productivity in instructive and medicinal services programs have been scratch needs for the legislature, alongside projects to battle destitution

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Education Public use on training expanded from 2.4% of GDP in 1990 to 4.3% in 2002 and this has, among different advances, permitted Chile to: twofold the quantity of youngsters accepting auxiliary instruction triple the quantity of college understudies begin presenting a full school day in state schools as from 1997 (a procedure that the administration means to finish in 2006)

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Increased Educational Coverage

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Healthcare Chile\'s human services framework consolidates a coordinated open framework with a private guarantor/supplier framework made in 1981, and both the State and the private division take an interest in giving protection and human services administrations Public wellbeing consumption spoke to 2.9% of GDP in 2002, up from 1.9% in 1990 In 2004, another general health care coverage arrange - known as Plan Auge - was propelled in an offer to guarantee that all the nation\'s natives have convenient and viable access to restorative care, autonomously of their budgetary circumstance, sexual orientation or age

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Employment Free-decision benefits and medical coverage Minimum wage set up by law Introduction in 2002 of an unemployment protection conspire, giving fundamental scope to five months Reduction of the lawful working week from 48 to 45 hours as from January 2005

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Chile Solidario This program expects to lift the nation\'s 225,000 poorest families out of outrageous neediness by 2005 It gives essential support to these families by making a system of open administrations and projects that are custom fitted to their requirements; it looks to embed them in this national, territorial and nearby system and to guarantee that they get to all t

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