Introduction
For this assignment on Globalization, the country that our group chooses is Chile. There are a few reasons why we choose Chile as our selected country for this assignment. All of these reasons make us want to know more about Chile especially on the globalization. There many statements and rumors state that Chile is the globalization star of country in Latin America.
The reasons are:
1. According to Ernst and Young, Chile is the most globalized economy in Latin America. (Guion, 2012)
2. Globalization in Chile: A Positive Sum of Winners and Losers. (Tokman, 2010)
3. Chile was an early starter on opening trade and financial services in the early seventies. (Tokman, 2010)
Background
Chile has the driest desert in the world along
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However, under the center-right Alianza coalition, which took power in 2010, President Sebastian Piñera has raised corporate taxes and personally intervened to stop the construction of a coal-fired electric plant that had cleared all regulatory hurdles. None of that has satisfied the left, and large street protests have become an ongoing problem for the government. Despite Piñera’s clumsy political leadership, Chile still has the region’s best reputation among foreign investors. It is the first South American country to join the Organization for Economic Co-operation and Development. Chile is the world’s leading producer of copper. The economy is very open to imports but is also an export powerhouse in minerals, wood, fruit, seafood, and wine. (Kilburn, 2014)
Rule of Law
The constitution provides for an independent judiciary, and the courts are generally free from political interference. In the past decade, the Chilean Congress passed significant anti-corruption, transparency, and campaign-finance laws that contributed to Chile’s reputation for good governance. Property rights are strongly respected, and expropriation is rare. Crime rates have declined significantly in the period from 2009 to 2013. (Kilburn, 2014)
Limited
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Minimum wage increases have exceeded overall productivity growth in recent years. Government price supports for agriculture are less than 5 percent of total farm receipts, one of the lowest rates among OECD countries. (Kilburn, 2014)
Open Markets
Chile has a 4 percent average tariff rate. It recently joined the Pacific Alliance, which, if counted as a single country, would be the world’s ninth-largest economy. Foreign investment is welcomed. The dynamic financial system facilitates high levels of bank usage and provides relatively efficient access to financing. Reforms to improve capital market liquidity and enhance access to financial services for small companies have progressed gradually. (Kilburn, 2014)
TORY EFFICIENCY
Chronology
On September 18, 1810, Chile broke from Spanish rule, declaring their independence (although they still were theoretically loyal to King Ferdinand VII of Spain, then a captive of the French). This declaration eventually led to over a decade of violence and warring which did not end until the last royalist stronghold fell in 1826. September 18 is celebrated in Chile as Independence Day.
Benitez, Gerardo, Latin American Perspectives: The Maquiladora Program Its Challenges Ahead, THE WHARTON JOURNAL, December 11, 1995.
...a of Latin America: The Age of Globalization 3 (2010). Modern World History Online. Web. 11 May 2014.
Earlier in Chilean history, according to the Central Intelligence Agency, the Inca controlled its northern portion, while central and southern regions were held by the Mapuche (n.d.). In the 16th century, Spanish conquistadors arrive, probing the country for gold and silver. Briney discusses a plethora of historic events: Spanish established settlements: Santiago, Chile's capital was founded in 1541 and Concepcion in 1550 by Pedro de Valdiva. But after being under Spanish control for centuries, in the early 1800s, Chile yearns for independence. The country’s independence was originally declared in 1810, making Chile an autonomous republic of the Spanish monarchy. However, total independence was not claimed until the Chilean victory against the Spanish on February 2 of 1818. This victory came about with joint efforts from Bernardo O'Higgins and Jose de San Martin. Thus Chile officially became independent under O'Higgins' leadership as first president (History of Chile section, para. 2).
Hudson, Rex A., and Hanratty, Dennis M., Ed. Bolivia a country study. Federal Research Division, Library of Congress. 1989. Print.
Its economy is the largest in Latin American nations and the second largest in the western hemisphere.
Mignolo, W. D. (2005). The Idea of Latin America (pp. 1-94). Malden, MA: Blackwell Publishing.
Mignolo, W. D. (2005). The Idea of Latin America (pp. 1-94). Malden, MA: Blackwell Publishing.
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...
“Capitalism is a world system. But some of its parts have more than their share of leadership.”(Cardoso xxi). Latin America, like much of the third and second world has received far lesser dividends from the fruits of capitalism. In fact due to its close geographic location to the united states and its strong early history of colonialism Latin America is a shining example of how economic dependency has evolved. From its moment liberation Latin America has been seen as a economic tool by the west, particularly by the USA, and continues to be economically dominated to this day. From the Eve of conquest the region has used its economic power mostly to the benefit of another nation.
Globalization is a series of social, economical, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. (Harris 5-23) The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress. The social effects of globalization are clearly illustrated in Peru. Once a third-world country filled with poverty and oppression, Peru is now transitioning into a developed nation. In Peru, globalization has raised the human development index, empowered women, and created a stronger country. (Leon 90-91)
Globalisation has been crucial to the economic and social development of Brazil. In the late twentieth century Brazil face years of economic, political and social instability experiencing high inflation, high income inequality and rapidly growing poverty. However after a change of government in the 1990s and large structural changes in both the economic and social landscapes, the brazilian economy has been experiencing a growing middle class and reduced income gap. Since the start of the 21st century, brazil has benefitted from the move to a more global economy.
Most Latin America countries are known as third world countries because the economic structure still in development. To overcome such judgment the countries had been developing different policies since the 1970s. The policies promise to help the countries to obtain a healthier economy and have an economic growth. The author Franko explains in the book The Puzzles of Latin America Economic Development how the economist Paul Rosenstein “believes that in order to achieve sustained growth, an economy must develop various industries simultaneously, requiring a coordination of investment or a big push.” (pg. 19) But to accomplished economic growth countries need to reduce the government control over the economy and start developing a market-base economy. Market-base economy would not only guarantee positive results of development, but will also create a more stable economy. Mexico is one of the countries that have integrated new policies and other economic change which have been giving the country positive results mainly on its economy.
Science Initiative Group Institute for Advanced Study, 2007, Globalization: Trends and Prospects, Available from: http://sig.ias.edu/files/Egwang-_Welcome.pdf
...top three nations in the Latin America region when it comes to technology and Internet penetration” (STAFF, 2010). Panama has thrown Chile from his second place and has grown a lot within the wireless section.