Dynamic Business Environment
Political and social stability, together with the existence of open and competitive markets, guarantee a secure business environment. Stable and transparent rules, an efficient and independent judiciary and a dynamic and innovative private sector, which constitutes the main engine of growth, are all factors that further enhance the country’s position as an extremely competitive economy.
Sound Macroeconomic Fundamentals
Despite adverse external conditions, the Chilean economy has continued to grow while maintaining low inflation, stable external accounts, a low level of public debt and strong international reserves. A rules-based approach to macroeconomic management and an autonomous Central Bank ensure fiscal and monetary discipline.
An Outward-looking, Open and Competitive Economy
An extensive network of international trade agreements gives Chile privileged access to markets around the world. In addition, the gradual reduction of the country’s flat-rate import tariff to 6% as from January 2003 has further consolidated the country’s position as one of the world’s most open economies. Boosted by international integration, exports expanded at an average annual rate 5.7% in the decade to 2002 and more than 5,600 companies export almost 4,000 different products to 185 countries.
High-Quality Human Capital
According to the United Nations Development Program (UNDP), Chile has achieved a high level of human development and scores particularly well on healthcare, life expectancy, education and housing. Spending on education currently represents over 6% of GDP and has helped to create a highly-qualified professional, technical and blue-collar workforce.
Solid Guarantees for Foreign Investors
Foreign investment is legally guaranteed by the Foreign Investment Statute (D.L. 600), which establishes clear and permanent rules based on the principles, established in Chile’s Political Constitution, of non discrimination, neutrality and equal treatment for national and foreign investors.
High Marks from International Institutions
Chile leads Latin American countries and most other emerging economies in the rankings of different credit ratings agencies, such as Moody’s and Standard & Poor’s, and of other international organizations such as Transparency International, the World Economic Forum, The Economist Intelligence Unit, and the Heritage Foundation, as well as in the reports of most international investment banks. The accurate and impartial picture of the country’s economic and financial performance, provided by these institutions, has helped to position Chile as one of the world’s most secure locations for foreign investment.
Modern Business and Technological Infrastructure
Chile’s modern telecommunications and transport infrastructure, advanced logistics, internationally competitive and efficient banking sector, high computer and Internet penetration and excellent quality of life are key features of the country that are highly valued by foreign investors.
Multinational Investor Satisfaction
Some of the world’s leading multinational companies have chosen to invest in different sectors of the Chilean economy. These include: Nestlé, ABN Amro, Alcatel, Motorola, Placer Dome, AT&T, Beiersdorf, BHP Billiton, Mondavi, JP Morgan Chase, McDonald’s, Hydro-Québec, Telefónica de España, Unilever, Dresdner Bank, Ferrovial, Mitsubishi, Suez, Carrefour, Thames Water, Methanex, Endesa España, Santista Têxtil, Dragados, General Electric, AngloAmerican and Skanska.
Springboard into New Markets
Many foreign investors, drawn by Chile’s stability and its attractive business environment, are increasingly using it as a base from which to export to, or provide services for, other Latin American markets. As a consequence, Chile is becoming the main regional business center for multinational companies operating in Latin America. Praise and Recognition from Foreign Investors who know Chile have only favorable opinions about their experience: “Chile has emerged as a very competitive regional business platform” (Unilever); “Chile is South America’s most competitive country on price, services and quality” (Beiersdorf); “Chile has one of the world’s most advanced telecommunications industries” (Motorola); “We find the Chilean government accessible and supportive” (BHP Billiton);“Chile’s foreign investors get the same treatment as local competitors” (Cintra).