Chile Won’t Become a Developed Country If It Doesn’t Change Course
For many years, Chile was the exception in Latin America, with an unprecedented model of sustained economic development. Contrary to populism and demagoguery, the Chilean recipe for the last forty-five years was respect for private property and entrepreneurial freedom. Indeed, the phrase “Chilean miracle” was even used by economist Milton Friedman to describe the Chilean economy’s reorientation in the 1980s from socialism to a free market economy. Many other commentators looking at Chile’s remarkable growth in recent decades have come to a similar conclusion. Twenty years ago, it looked like Chile was well on its way to joining the world’s developed countries as the wealthiest in the world. However, this predicted path looks less and less likely as Chile’s reputation, as a country of freedom and opportunity is coming to an end.
One year after the so-called Social Outbreak—a new movement of riots and leftist activism designed to undo recent decades of promarket reform—it is possible to conclude that Chile will NOT become a developed country in the coming decades if it continues down this path. With the current system the country cannot end the political, economic, and social decline that has lasted more than a decade. It is a cultural problem, reflected in many areas, including rampant violence and crime, that along with economic hibernation and politicians’ irresponsibility has contributed to the collapse of the Chilean economy.
International indicators explain the debacle of the Chilean economy in the last decade:
1. The Index of
Article from Mises Wire