Despite outstanding general economic results, Chile continues to struggle with a variety of socio-economic problems, including the highest level of economic inequality among developed countries, a high level of dissatisfaction with health care and education services, and a troublesome marriage of high cost of living …

What challenges does Chile face?

Chile faces a multitude of environmental issues, both urban and rural, including air, water, and noise pollution, garbage disposal, wildland conservation, and soil degradation.

What is Chile’s economy like?

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Copper is Chile’s top export and provides 20% of government revenue.

Why is Chile so rich?

Since its free‐​market reforms began in 1975, Chile has quadrupled its income per capita, making it the most prosperous country in Latin America. Chile’s improvement on the whole range of indicators of well-being—e.g., maternal mortality, access to proper sanitation, etc.

Why is Chile so poor?

Chile is currently struggling with its finances and education system. A public charity called Hogar De Cristo conducted a survey concluding that 58 percent of Chileans found that a lack of opportunities and education were the leading causes of poverty in Chile.

Is Chile Poor or rich?

The economy of Chile is a market economy and high-income economy as ranked by the World Bank, and is considered one of South America’s most prosperous nations, leading the region in competitiveness, income per capita, globalization, economic freedom, and low perception of corruption.

What kind of economic problems does Chile have?

Despite recent efforts to diversify its economy, Chile remains vulnerable to international copper prices, international demand (particularly from China), climate and earthquake risks, inadequate R&D, vulnerable road network and energy grid, high energy prices and a poor educational system (Coface).

Where does the Chilean economy rank in the world?

The World Bank on Chile. Chile’s pension system ranks 10th globally in a study by Mercer. The Council of Foreign Relations on Chile’s economic success and growing discontent. The OECD’s country page for Chile compiles data on the economy and quality of life, showing the country ranks dead last for civic engagement.

How can Chile reduce its vulnerability to commodity price cycles?

Another key issue to curb the country’s economic vulnerability to commodity price cycles is reducing copper dependence. Although this would require either diversifying or adding value to the current export portfolio, it certainly would be very hard to achieve without a competitive exchange rate.

How are copper prices affecting the economy of Chile?

The long-term outlook for copper prices, therefore, has far-reaching ripple effects for employment, wages, government revenue, and national income in Chile, so the major issue to be tackled by the government in order to revive economic growth is to reinforce commercial cooperation with new trade partners, particularly in Asia.