OECD Territorial Reviews: Chile 2009

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Chile has achieved strong economic growth during the last 20 years. Nevertheless, its economy depends on a few resource-based sectors located in a small number of regions. The performance of Chilean regions varies significantly and regional disparities in GDP per capita are very high compared to those in OECD countries. Chilean regions have thus far so not fully utilised their assets and reached their potential for growth. This report recommends moving towards a territorial approach to development in Chile in order to better adapt public management to the different opportunities and needs of the diverse territories of the country. Chilean regions would particularly benefit from context-specific policies to boost productivity, such as those targeting innovation and entrepreneurship, and to improve education and training.

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Regional Development in Chile

Trends, Achievements and Challenges

chile’s macroeconomy has been well managed, but the government is looking to enhance performance in a number of key areas, especially productivity, innovation, human capital and economic diversification. Furthermore, Chile’s economy depends on a few resource-based sectors located in a small number of regions which receive much of the private and public investment. This reinforces economic concentration and causes regional imbalances to persist and even amplify. In this respect Chile could benefit from deepening economic diversification while continuing to add value to established sectors. It needs to seek out growth potential in its regions by identifying and developing the accumulated skills, practices and assets of different territories as potential sources of competitive advantage. All this calls for moving towards tailored place-based policies, in order to better adjust public management to the different opportunities, strengths and needs of the country’s diverse territories.


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