Chile’s economy
Overview:
Chile’s economy is based on the export of minerals, which is worth about half of the total export of the country. The most valuable resource is copper, and the country is considered the world’s largest producer. Agriculture provides jobs for about 15% of the population; it accounts for about 6% of the national wealth, but produces less than half of the domestic needs. The country’s primary agricultural area is The Vale of Chile; its vineyards are the basis of Chile’s wine industry. Grapes, apples, onions are among the chief crops. The economy also relies on beef and poultry production, sheep rising is very common, and produces wool and meat for domestic use and for export. Fishing and lumbering also are important; the country also exports chemicals, paper and pulp.
The dependence on copper prices and the production of an adequate food supply are among the major economic problems. Chile’s main imports are petroleum, chemicals, electrical equipment, vehicles, machinery and natural gas. Most of the trade takes place with the United States, Argentina, South Korea, and China.
Augusto Pinochet was a dictator who gained control over Chile in 1973. Although thousands disappeared or got executed under his command, but he brought free market policies and transformed Chile’s economy from bankruptcy to the most prosperous in Latin America.
Economic Progress
After years of impressive economic growth, specifically in 1999, Chile began to experience an economic downturn. These unfavorable economic conditions were related to the Asian crisis that occurred two years earlier. In 2003, the economy began to show signs of recovery, with 3.3% growth in real GDP. In 2004, the GDP nearly doubled to 6.1% growth, and a growth of ...
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...s. When the recession hit in 2008, it caused a discouragement in exports, which led Chile to suffer greatly, because they were mostly dependent on exporting. Investments fell and unemployment increased during the great recession as well. There were great losses in that recession; loses that were estimated to be around 30 trillion dollars. The years to come have brought wellness, as the unemployment rate started to decline once again. Some graphs are also included to demonstrate graphically how the economic state was. In 2010, a devastating and destructive earthquake hit Chile, and it brought nothing but loses and ruins. The Chilean government suffered as well as the GDP of the country. Even after these natural disasters and economic unfortunate events, Chile remains on its feet fighting to strive, as it is almost the fastest growing country in Latin America.
The depression in the 1930’s in the country of Argentina was one of the most devastating internationally. In 1929, Argentina had the fourth highest gross domestic product; however a few short months later, this would no longer be considered the case. Considering that the economy heavily depended on foreign trade for daily essential produces, the economy was deficient of vital goods and thus lacked important industry. Mainly dependent on the foreign capital from Great Britain at the time, domestic industry was severely affected by the market crash due to the halt of British domestic capital investment. Through the Domino Effect, mass and widespread unemployment was a major and constant theme in the Argentinian culture at the time. This further affected the government revenue dropped significantly as the export of the country faulted investment and imports were decreased exponentially due to the international depression. As a result of the decline in national revenue, grand deficits began to appear. To repair the shortage of the countries’ profits, the government began to borrow mo...
Before the 1960s, four thousand six hundred nine miles southeast of Texas, Chile was known as a stable country compared other Latin American countries until 1962, when the Cold War took effect on this enormous country and Chile became a part of the Alliance for Progress. The Alliance for Progress was created to keep socialistic revolutions out of Latin American countries. In the 1960s, the president of Chile, Eduardo Frei was endorsed by the Johnson administration. Frei was required to pass a radical reform but with Chile becoming more industrialized, Labor Unions requested for higher and reasonable wages. In the end, the Labor Unions were not pleased with the wages that they were receiving which, lead to inflation and higher prices for man made items and labor. With an economic change occurring, the Chilean youth adopted a Leftist view and began to protest against the government with the labor unions. Both ...
Gustman, A. L., Steinmeier, T. L., & Tabatabai, N. (2012). How Did The Recession Of
In December 2001, Argentina was in the bottom of the economy , which was pushed by the ...
Many years of war made Latin America’s economy suffer, and made it almost impossible to be able to recover from their debt. A stable economy was crucial to be able to gain credibility, from other countries so that investments would continue. In Peru, for example the silver mines and machinery where destroyed beyond repair. “Horrendous economic devastation had occurred during the wars of independence. Hardest hit were…Peruvians silver mines. Their shafts flooded, there costly machinery wrecked.” 120(Chasteen ). This made Peru suffer greatly because this was one of their main trades. In Mexico, one of their largest economic struggles was the lack of transportation infrastructure, meaning that Mexico did not have railroads. Mexico also lacked navigable rivers which made it much harder to be able to...
Augusto Jose Ramon Pinochet Ugarte also known as Augusto Pinochet was born on November 25, 1915 in Valparaiso, Chile, and died on December 10, 2006 in Santiago, Chile. He was a murderous Dictator who ruled in Chile from 1973 to 1990. He was Commander-in-Chief of the Chilean Army from 1973 to 1998 and president of the Government Junta of Chile between 1973 and 1981. Pinochet managed to attain full power by overthrowing Salvador Allende, a socialist government, by using military force. His years in power were defined by inflation and poverty leaving behind a legacy of abuse that took successive government years to catalogue. Numerous years after Pinochet stepped down, he was charged with several crimes from the time when he was president, but he died before he could be convicted of anything.
By the mid-nineteenth century, Chile had become a major leading producer of copper, and the Chilean defeat of Peru and Bolivia in the War of the Pacific in the late nineteenth century resulted in the conquest of additional nitrate mines. Through the exports of its copper and nitrates, Chile became one of the wealthiest countries in Latin America by 1910. After World War I, however, decline in demand for nitrates, which were used in the making of explosives as well as fertilizer, commenced, as explosives were generally no longer needed. In addition, the fabrication of a synthetic fertilizer by the Germans greatly increased competition with Chile and presaged the prospect of mass production ...
In recent years, the Gross Domestic Product/capita (PPP) in Paraguay has increased significantly in the last decade, with $6,136/capita around $40.9 billion. Paraguay has been one of the fastest growing economies in Latin America, mostly due to an increase in exports of agricultural produce. According to Banco Central del Paraguay, reported “From 2008 until 2013, Paraguay GDP Growth Rate averaged 1.3 Percent reaching an all tim...
Pinochet was born November 25, 1915 in Valparaiso, Chile. His religion is Roman Catholic and his ethnicity is Hispanic. His occupation is head of state which is a very big role. His nationality is Chile and in summary he overthrew Chile with the help of CIA. His military service is the Chilean Army, which is a very strong army considering it’s past. Pinochet attended French Father's School in his high school years which is located in Valparaiso, Chile. His mother was Avelina Ugarte Martínez and his wife was Maria Lucía Hiriart Rodríguez. Later, Pinochet attended military college and was vastly promoted and continued studying at the Chilean War Academy. For two long years Pinochet commanded a concentration camp which could have influenced him to become the brutal dictator that he is. In 1970 Salvador Allende, who was a socialist, became president of Chile. Secretly, the U.S. Central Intelligence Agency created obstacles and highlighted weaknesses to rush Allende out of office as soon as he was put in. This drained millions of dollars to put such act together. Soon, the plan was successful and in years time the economy was facing major decrease and was in chaos and CIA spent $11 million dollars. Surprisingly Allende gave Pinoch...
It has a free-market economy that has a combination of traditional and modern agriculture and industry (Miller, 2015). The economy is also interesting being dominated by the private sector due to the welcoming conditions that are favorable to investors. State protectionist policies and regulation were the norm before the 1980s. However, privatization, internationalization, and deregulation have occurred which has improved the economy (Gallo, 2016). The number of parastatals has also decreased, from a high of 1000 in 1982 to less than 200 by 1998. Economic restructuring was also backed by international and national groups in responding to the financial and economic crises that were occurring in the late twentieth century.
Pinochet ordered a removal of all that was left in Chile. Over the next few years more than 3,000 supporters of the Allende regime were killed. Pinochet was also responsible for thousands of Spanish citizens being tortured. Pinochet’s period of power is described as a nightmare of killing and repression.
The military dictatorship promoted free enterprise and the creation of a new entrepreneurial class, but Chile saw little economic improvement. Pinochet’s regime caused unemployment, decreased wages, and in turn Chile suffered lower standards of living within the middle and lower classes. After a heavily controlled vote in 1980, a new constitution was adopted and Pinochet’s term was extended by eight years. The constitution forbid a transition to civilian government during this term and established a referendum at the end of the term to dictate Pinchot’s second term. Economic and political instability ensued in late 1980s, with increasing pressure for governmental change. A coalition between leftist and centrist parties formed the Command for No (Comando por el No) and then on October 5, 1988, voters rejected Pinochet. Negotiations commenced between Command for No and the government for constitutional changes that national referendum later approved in July of 1989.
Colombia is one of the oldest democracies in Latin America with solid functioning institutions, progressive laws, an active civil society, and one of the most ecologically diverse countries in the world. Economically speaking, Colombia has had a surprisingly turnaround over the past decade due to the confidence and business opportunities that the investors have found in its emerging market. However, the improvements made in the economy are not sufficient to ensure sustainable economic development. On May 15, 2012, the U.S.-Colombia Free Trade Agreement (FTA) went into effect, and after almost two years its effects have had a negative impact in Colombia’s economy, mainly in its agricultural sector, which constitutes 11.5% of the country’s GDP (Cámara Colombo Coreana). The farmers complain that cheap imports from the United States are hurting their sector leaving some of them almost in bankruptcy. During August and September 2013, the country was in a nationwide strike against the Free Trade Agreement, which had different areas of the country paralyzed specially in Bogota, the capital city.
...cy loan to Mexico in January 1995. However, the economic crisis was the worst in Mexico since the global economic depression of the 1930s, and resulted in negative economic growth in the country in 1995 and 1996. The economic crisis led to a serious decline in the standard of living for most Mexicans, as well as an increase in extreme poverty. The nation's gross domestic product (GDP), the value of all goods and services produced domestically by a country, declined 6.2 percent from 1994 to 1995. Since then the economy has been recovering. In 1998 the GDP was $393.5 billion.
dictatorship and the actions that he made led to his assassination. Trujillo was known as “El