Posted on 12/04/2009 5:38:10 PM PST by Kaslin
Wealth: Chile is expected to win entry to OECD's club of developed countries by Dec. 15 — a great affirmation for a once-poor nation that pulled itself up by trusting markets. One thing that stands out here is free trade.
At a summit of Latin American countries last week in Portugal, Chilean President Michelle Bachelet suddenly became the center of attention — and rightly so. She announced that her country was expected to win membership in the Organization of Economic Cooperation and Development, an exclusive club of the richest and most economically credible nations.
Chile is the first country in South America to win the honor, and in a symbolic way its OECD membership card seals its exit from the ranks of the Third World to the First.
For the rest of us, it's a stunning example of how embracing free markets and free trade brings prosperity.
It's not like Chile was born lucky. Only 30 years ago, it was an impoverished country with per capita GDP of $1,300. Its distant geography, irresponsible neighbors and tiny population were significant obstacles to investment and growth. And its economy, dominated by labor unions, wasn't just closed, but sealed tight.
(Excerpt) Read more at investors.com ...
Chile, thank Pinochet.
*Bump*
"In the Cato Institute's 1975 Economic Freedom of the World Report it ranked a wretched 71 out of 72 countries evaluated."
"Today it's a different country altogether. Embracing markets has made it one of the most open economies in the world, ranking third on Cato's index, just behind Hong Kong and Singapore. Per capita GDP has soared to $15,000."
"Besides its embrace of free trade, other reforms — including pension privatization, tax cuts, respect for property rights and cutting of red tape helped the country grow not only richer but more democratic, says Cato Institute trade expert Daniel Griswold."
Exactly. They also privatized their social security while leftist Argentina recently confiscated people’s private pensions for the “common good.”
Chile and Argentina/Venezuela are at opposite poles. A sucessful free market country and two leftist sinkholes.
>> thank Pinochet <<
To be sure, he played an important role. But he couldn’t have done it without the help of numerous young Chilean economists, who were trained over many years by Arnold Harberger at the University of Chicago.
And even Harvard gets a tiny tad of credit! The reason? That’s where José Piñera, designer of Chile’s fabulously successful social security reform, got his economics Ph.D.
Wonder when Cuba is going to get membership?
Some quick Googling finds that Chile has shifted its healthcare away from a public system towards a market based system. They currently have a mixed system.
Good for Chile for moving in the right direction!
Olé!
Well... that's nice, but this could turn on a dime. As I recall, President Michelle Bachelet stabbed Honduras in the back.
So much for supporting freedom. I am still boycotting products from Chile.
I am considering Chile as a fall back home. I have actually been looking at jobs in Santiago.
Now, Washington DC has taken over that enviable reputation.
>> President Michelle Bachelet stabbed Honduras in the back <<
She’s well-known as a leftist and as a member of the international socialist movement.
But not to worry because Chile’s next President will be Sebastián Piñera, a billionaire who is a thorough-going capitalist, an apparent friend of the free market and a self-declared “Christian humanist.”
Not only that, but years ago Chile led the way in transferring the management of social security retirement accounts away from government and back to the individual savers. We never hear any stupid lock-box or empty-fund talk from the Chileans.
Must be nice not to have one’s intelligence insulted by those kinds of terms.
Amen!
A potential Galt’s Gulch?
That's good news. I will buy a bottle of Chilean wine to celebrate.
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