How Chile May Lose All The Ground It Has Gained

Economic and political reforms put in place by Chile's military government under General Augusto Pinochet during the 1970s and 1980s have created a constitutional democracy and a thriving economy that are the envy of Latin America. Chile privatized not only its state industries but also the social security system. This created a vast capital market, gave Chileans an equity stake in the economy, and boosted the savings rate to 26% of gross domestic product. In an era when emerging countries depend more and more on capital infusions, this means unusual financial independence for Chile. The crisis following the Mexican meltdown barely touched it.

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