This report provides a comprehensive analysis of the challenges confronting Chile’s centralised growth model and recommendations towards developing a more integrated territorial approach, capable of mobilising regional productivity catch-up potential in order to strengthen the role of regions and municipalities.
The Chilean government has launched an ambitious decentralisation agenda, aimed at empowering municipalities by providing them with the legitimacy, financial resources, human capacities and tools required to improve their autonomy and performance. This study seeks to assist the government by covering several dimensions, looking at municipal responsibilities, fiscal and human resources, equalisation mechanisms, local public service performance, citizen participation, and co-ordination mechanisms across levels of government.
Chile’s planning and governance framework has supported the roll-out of high quality and efficient infrastructure that has been a key enabler of the country’s rapid development over the past two decades. However, changing circumstances such as climate change, decentralisation and a greater focus on social and territorial equity now require a change in how infrastructure needs are identified and addressed. This review examines Chile’s infrastructure stock and governance standards in light of the country’s 2030 growth agenda and OECD benchmarks, and sets out how such change can be achieved, with a special focus on transport and water infrastructure.
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When the global financial crisis began in 2008, the unemployment rate in Chile was 3.5 percentage points above the OECD average while the employed share of the population ages 15-74 years was 6.1 percentage points below the OECD average.
This OECD review underlines the success of Chile’s infrastructure policies which have served as a backbone for it's rapid economic development and social welfare reforms - but also highlights the need to update public investment processes to reflect a more integrated approach to long-term development.
Public procurement is a critical element of sound governance and countries implement diverse tools and strategies to increase its efficiency and cost effectiveness. Framework agreements, in particular, aggregating public demand and streamlining procurement processes are increasingly used by central purchasing bodies in OECD countries. This report examines the use of framework agreements and their developments in Chile, benchmarked against the practices in other OECD countries. Implementation of framework agreements in Chile have provided business opportunities to a growing number of suppliers and a wide variety of goods and services to public entities. Yet, the steady increase of the number of suppliers and contract management activities now question the sustainability and the effeciency of the system. This report analyses different policy options that ChileCompra could consider and suggests ways to streamline processes, improve the effectiveness of the system and increase efficiencies while promoting inclusiveness.
The Government of Chile has set out a vision to develop a more inclusive society, and sees public sector innovation as a means to achieve it. But in order to achieve these ambitious goals, the Government will need to improve the innovation-related skills and capabilities of the Chilean public service. This report, the first of its kind on an OECD country, assesses the abilities, motivations and opportunities in Chile’s public service for contributing to innovation, and provides recommendations on how to further develop them.
The tax burden on labour income is expressed by the tax wedge, which is a measure of the net tax burden on labour income borne by the employee and the employer.
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Chile had the lowest tax wedge among the 35 OECD member countries in 2016. The country occupied the same position in 2015. The average single worker in Chile faced a tax wedge of 7.0% in 2016 compared with the OECD average of 36.0%.
These country specific notes provide figures and commentary from the Taxation and Skills publication that examines how tax policy can encourage skills development in OECD countries.
As part of the STI Outlook 2016, the OECD has released policy profiles by country. These include cross-country analyses that draw on the first joint EC-OECD survey on STI policies. They focus on major STI policy areas, instruments and trends.