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Production Transformation Policy Review of Chile

Reaping the Benefits of New Frontiers

image of Production Transformation Policy Review of Chile

Chile is a relatively stable, well-connected, open economy. Over the last decade the country has managed to increase its participation in global value chains and to export new products. However, its knowledge base is limited, productivity is stagnating and economic opportunities are still concentrated in a few places and limited to a few activities and firms. Today’s global production revolution offers a window of opportunity for Chile to “update” its growth model to become more inclusive and sustainable.

 

The Production Transformation Policy Review of Chile (PTPR) uses a forward-looking framework to assess the country readiness to embrace change, with perspectives on solar energy, mining and agro-food, and identifies priorities for future reforms. This review is the result of government-business dialogue and rigorous analysis. It benefitted from peer learning from Sweden, Germany and the Emilia Romagna Region in Italy through the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development.

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Executive summary

OECD Development Centre

Chile is a relatively stable and open economy. Sound macroeconomic management, coupled with effective penetration in global markets (trade equals 60% of GDP, a figure that is 20 percentage points higher than in Australia and 40 percentage points higher than in Argentina) and Chinese appetite for raw materials, enabled the country to enjoy sustained and relatively stable growth since the early 1990s. This reality also insulated Chile from the more volatile growth patterns of other economies in Latin America (Chile has been growing on average 4% since 2000 whereas Latin America at 2.8%). As a consequence, Chileans today are better off than in the past.

English

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