Contemporary Economic Policy of Chile

• Main Authors: Day, Wan-Jung, 戴婉蓉
• Other Authors: Juan Hung Hui
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/61728389232806020152

碩士 === 淡江大學 === 拉丁美洲研究所 === 85 === Although Latin American countries became independent and started theircapitalism economics in the early nineteen centries, the whole Latin Americaneconomy stumbled during the world economic crisis in the 1970''s. This mayattribute tto the defect of their economic policies and the substantialdeclining in the commodity prices. As the ratio of foreign debts and exportdeteriorated, the Latin American economy experienced the negative economicgrowth that they never had. The continuing inflows of foreign loans no longerexist, but the governments did not cut spending or increase revenueaccordingly. The inflation rate went sky high. Facing the build up of foreigndebts and the high inflation, Latin American countries were forced to reformtheir economics and adpot an liberal and open free-market economic policy.Among the economic reforms of the Latin American countries, the stabilityand effectiveness of Chile''s economy was exceptional. This success mayattribute to the adoption of the "Chicago School" economic policies by theChilean officials. Chile''s economic growth started to show positive afterChile adopted free-market consistently higher than 5% since 1985 and was ashigh as 10.4% in 1992. This high growth not only was the highest amongLatin American countries but also set the Chile''s record in 27 years. Chileclaimed herself as the most open economics in foreign trade among allAmerican countries. In order to spread out her international trade market,Chile emphasized her role as a Pacific basin country. In December 1994,Chile became the 18th member of the APEC. Furthermore, Chile''s economicperformance also attracted the eyesight of members of NAFTA (USA, Canada,Mexico) and was currently under negotiation to be the next member. At thesame time, Chile is expanding her trade relation with MERCOSUR and EuropeanUnion. In view of Chile''s role in international economics. Someeconomists predicted that Chile will enter the club of developed countriesearlier than any other Latin American countries. As the potential and the ambition exhibited by Chile''s economics can notbe ignored, this thesis aims to analyzed the impacts of the changes in Chile''spolitical systems on her economic development. The thesis first examines theorigin and the process of Chile''s liberal free-market economic policies andtheir impact on Chile''s domestic economics, and then analyzed Chile''s inter-national trade policies and her intention with major economics and regionaleconomic organization in the world.