Forbes publishes annually a list of the largest companies in the world. In Latin America, Brazil and Spain obtained the largest share, with 64 companies between them. However it is noteworthy that Chile, whose economy is smaller in terms GDP and markets, get on the list to 9 companies from 2000, while Colombia only six. In Colombia a significant development considering that last year only classified 3.
No doubt developments in Colombia are significant economic and must necessarily be reflected in all decisions that support the business climate. In a chaotic and troubled nation to one that projects a determined government action to favor investment through a strong military intervention against irregular armies who submitted the Colombian state for years, legal certainty investors, capital tax exemptions and unusual political stability in a troubled country. The Colombian market is striking for its size and to some extent by their average level of income per capita, largely located in a city market and the projected growth prospects. However the business climate has been more appropriate in Chile, with a much smaller market than Colombia, and Chilean companies are much more competitive than those in Colombia, why?
The answer is generally sound macroeconomic management, stable democracy and a coherent institutional environment. In the Most indicators of transparency in governance Chile is very close to the developed countries and far ahead of their Latin American counterparts. However, to understand the context that has allowed Chilean investment and business climate much more favorable than in Bogota Santiago has a higher background. While Chile grew in the years 1980 and 1990 on par with a select group of Asian countries, the rest of Latin America grew by an average of 2.6% and adopted reforms and recovering from the debt crisis. If between 1980 and 1985 Chile's per capita income was $ 2795, between 1996 and 2001 the same income came to $ 8498. Clearly, a change greater than the average countries in the region.
in fight against poverty, Chile shows some relevant characteristics. If in 1981 18% of Chile's population was in extreme poverty, that figure early in the century had halved in a combination of social and economic policies successful. Destitution in the southern country is less than 2%, which means that Chileans were able to meet one of the Millennium Development Goals: halving the population living on less than $ 1 a day. With few exceptions, businesses thrive in markets where poverty is reduced, where the purchasing power increases and revitalizing social and economic policies of private property, the state's action and efficiency of institutions, something that shows some form Chile.
Income distribution is a different matter. Uneven income may be associated with wealth and poverty, in a first approximation, one might say that the goal of economic policies should be focused on poverty reduction rather than income redistribution. However, as demonstrated in numerous studies (important Persson and Tabellini), inequality is political turmoil, social and saves a significant negative relationship with economic growth. In this regard, without exception, all Latin American countries report a markedly skewed distribution of income and stable for decades. The richest quintile of the population, compared to the poorest quintile in Brazil has a size 29 times, 12 times in Bolivia, U.S. 9 times, 4 times in Sweden and 19 times in Chile. An important variable for policy makers, no doubt.
on the good business climate in Chile can be explained by a lucky level of economic growth. I shall first analyze the capital human: on the one hand, human capital is a direct factor of production but can also act as a buffer for diminishing marginal productivity of physical capital and natural resources. Noteworthy is the role of human capital in the creation of technologies and their adoption. Chile has achieved in terms of literacy, infant mortality and nutrition outcomes comparable with that of high-income countries. While health has shown a performance superior to the Latin American bloc, its $ 303 of health expenditure per person in contrast to U.S. $ 2481 for high-income countries.
However, at the macroeconomic stability and financial market development and the results are greater determinants perhaps comparatively better business environment than in countries like Colombia, Ecuador and Venezuela. During the last decade of the twentieth century, Chile achieved a stable inflation rate, low and similar to that of developed countries, a surplus in government accounts, powered by a fiscal rule based on achieving a structural surplus of 1% of GDP. This is how Chile has managed to incorporate an anti-cyclical policy has helped to consider the Chilean economy as one of the most stable in Latin America. In the past 20 years, Chile has experienced significant developments in its financial system with a size comparable to that of developed economies, which would result from the combination of market policies implemented since the mid-seventies and a proper regulatory framework in place in the eighties.
is no secret, on the other hand, Chilean trade policies are more pro-opening of the region and that doubling the volume of Chilean exports to the United States signature product NAFTA, for example, is a very good example of this assessment. While Chile is far from the trade performance (exports plus imports) from countries like Singapore, with a ratio of Trade Openness as a percentage of GDP of almost 400%, it is well above the average for Latin America and the United States itself, almost equivalent to 70% versus 50% average American region.
Chilean business climate is, undoubtedly motivated by an acceptable but still low level of human capital development, macroeconomic and political stability has yielded significant results in the fight against which has focused on poverty and rapid economic growth and household income and a degree of trade openness substantially higher than the rest of the neighborhood, the privileged position on the Pacific Rim and the quality of institutions, which deserve a separate chapter.
Regarding Colombia the gap is evident when one considers that in the first decade of the twenty some weaknesses of the Chilean economic development have come to be served, such as the provision of infrastructure, improved strengthening human capital, but is pending the issue of income inequality still strong. Having thereby increasing participation of Colombia in the top of the world's largest companies can be minimized por la consolidación del modelo chileno de desarrollo. Sólo así podríamos explicar por qué una economía más chica como la chilena posiciona empresas más competitivas y grandes que Colombia. Finalmente, la visita al aeropuerto Merino de Santiago me resultó mucho más placentera que mi estancia en Eldorado de Bogotá. Y en el mundo de los negocios eso es más que una percepción, puede determinar una decisión.
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