Chile is a state on the South American continent. Located on the southwestern edge of South America. It has an elongated form from north to south, located in various climatic zones. It borders on the Pacific Ocean in the west, Argentina in the east, Peru in the north, and Bolivia in the northeast. The length of the state of Chile is 6435 km. Also, the property of the country is the vast adjacent waters of the Pacific Ocean. The state of the economy of Chile is considered the most successful in Latin America. Of greatest importance is the export of copper.
History of Chile
In antiquity, starting from the 11th century BC. e., the country was inhabited by various Indian tribes. Between them there were armed clashes related to the intention to seize foreign territory. After about 1500 AD, the Spaniards gradually conquered the territory. First of all, they conquered the northern lands, where resistance was weak. The southward movement was more difficult due to fierce resistance from the Indian tribes.
The state economy has been developing poorly for a long time. The Spanish conquerors did not find deposits of rare valuable metals, so they engaged in farming. This happened in the XVII-XVIII centuries. Development was carried out in the central part of Chile. Here they began to grow grapes, barley, wheat, hemp. As well as sheep and cattle.
Starting from the 18th century, the extraction of fossil copper began to exert a decisive influence on the country's economy. Active mixing of the local and foreign population led to the fact that at the beginning of the 19th century 4/5 of the total population were Hispanic Indians, who are called mestizos. During this period, Chile became an independent state.
Before World War II, economic growth was observed here, first associated with the extraction of copper and nitrate, and then - coal and silver.
After 1970, the country was going through difficult times. The economic crisis has developed. It was accompanied by high inflation and a shortage of goods, as well as strikes and riots. In many ways, this crisis was associated with external pressure, as well as internal conflicts. At that time, the country was ruled by Salvador Allende, against which the CIA was opposed.
Pinochet regime and the economy of Chile
The crisis ended in a military coup, during which dictator Augusto Pinochet came to power illegally . In addition to his repressions and the mass destruction of those who disagree, there was a sharp increase in prices for basic products, as well as an increase in poverty in the country. This, most likely, was connected with personal ambitions and selfish interests of the dictator himself, his family members and other figures of that regime.
But so far there is no single point of view on the impact of the Pinochet regime on the economy of Chile. The authors of the right orientation speak of significant economic successes during his reign. Now the economy of Chile is considered the most effective among the countries of Latin America and there is a low level of corruption.
In 1989, the country moved from a dictatorship to a democratic regime.
Economics after Pinochet
But the current state of the economy of Chile may be associated with reforms carried out after the reign of Pinochet. Thanks to them, it fits well into the global global economy and has become more open. In the 2000s, free trade agreements were signed with the EU and the USA. During this period, poverty was reduced, health care reform was carried out, unemployment benefits began to be paid, pension provision, housing construction improved, public transport and sports infrastructure developed.
The crisis of 2008-2009, despite the coincidence with the earthquake, was passed by the country easily and almost without consequences. Unemployment continued to decline, and salaries grew.
Modern achievements
Chile's economic development course today is aimed at ever greater openness. According to analysts, Chile has a fairly efficient economy. The country ranks first in terms of competitiveness among South American countries and 27 in the world in terms of this indicator. And also refers to the number of countries with minimal payment risk.
In terms of GDP, the Chilean economy is in sixth place among Latin American countries, and in first place in terms of per capita income. Chile is a high-income country. The country ranks 53rd in the world in terms of GDP per capita. The inflation rate is only 1.3% per year. The unemployment rate is 6.9%, and the poor are only 11.7% of the total population. In 2018, state GDP growth amounted to 3.3%.
It is also one of the fastest growing economies among Latin American countries. Here, the lowest level of corruption in South America, and the social situation does not worsen over the years.
Government debt is 17.4% of GDP, and external debt is $ 145.7 billion. Government spending is in the region of $ 56 billion, while revenues are $ 48 billion.
Features of the economy of Chile
Now the services sector is of the greatest importance for the country's economy. It gives 61.6% of GDP. In second place is the extraction of fossil raw materials. Associated with it is up to 15% of GDP. The main sectors are: extraction and processing of raw materials, agriculture and forestry, fishing, cement and light industry.
Chile ranks first in the world in the production of lithium, copper, iodine. A lot of iron ore is mined. Salmon, trout, grapes, plums, blueberries, dried apples are exported in large quantities.
A small amount of oil, gold, silver. Due to the sharp increase in global demand for lithium, which is required for the development of electric transport, the Chilean economy may receive an additional impetus for development.
Agriculture
Of great importance for the country is winemaking. Chile is one of the largest exporters of wine products. Here, traditionally developed grape growing in the mountains.
In Chile, only 8% of the country's total area is used for agricultural purposes. The main part of this territory is reserved for the cultivation of vegetables and crops. The most common are wheat, sugar beets, barley, oats and potatoes. Wheat yields, despite the lack of mechanization, are quite high. Especially common crops of this crop in the middle of Chile.
Livestock is focused on the domestic consumer. Sheep are raised in the far south, and cattle and dairy cattle are raised to the north.
In total, 15% of the population is involved in agriculture.
The presence of forests in the south led to the development of the forest industry. The export of beech, laurel and pine wood predominates.
Chile has 2 free economic zones: in the extreme south and in the northern port of Iquique.
Trade relations
The most important in trade relations is the export of copper. Currently, the export of lithium, which is used for the production of batteries for smartphones, electric vehicles, etc., is becoming increasingly important. Mineral exports account for about half of total product exports. Chile's economy is heavily dependent on global copper prices.
Wine, fish and its processed products, paper and pulp, chemicals, fruits are also exported.
Oil, oil products, gas, cars, various types of equipment, chemicals are imported into the country. The most important trade links are maintained with countries such as China, the USA, South Korea, Argentina and Brazil.
Economic Development Forecast
The calculation of future economic indicators of the state shows multidirectional trends for the coming years. The most important forecast data are presented in the table:
Conclusion
Thus, the economy of Chile has come a long historical way, starting from the time the first Europeans appeared on its territory. At first it was agrarian and underdeveloped, and then it became more diversified and oriented, first of all, to the extraction of resources. Since the 90s, much attention has been paid to social policy and trade relations with other countries.
The Chilean economy is now considered the most successful in Latin America. But it also has a weak point - a high dependence on world copper prices. Because it is the country's main export product. The role of Chile in world trade will grow due to the rapid growth in demand for lithium, whose reserves are the largest in the world.