Chile is a relatively stable, well-connected, open economy. Over the last decade the country has managed to increase its participation in global value chains and to export new products. However, its knowledge base is limited, productivity is stagnating and economic opportunities are still concentrated in a few places and limited to a few activities and firms. Today’s global production revolution offers a window of opportunity for Chile to “update” its growth model to become more inclusive and sustainable.
The Production Transformation Policy Review of Chile (PTPR) uses a forward-looking framework to assess the country readiness to embrace change, with perspectives on solar energy, mining and agro-food, and identifies priorities for future reforms. This review is the result of government-business dialogue and rigorous analysis. It benefitted from peer learning from Sweden, Germany and the Emilia Romagna Region in Italy through the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development.
Latin America and the Caribbean’s (LAC) GDP will shrink by between 0.9% and 1% in 2016, according to the latest estimates, the second consecutive year of negative growth and a rate of contraction the region has not seen since the early 1980s. According to the Latin American Economic Outlook 2017, the region should recover in 2017, but with modest GDP growth of between 1.5% and 2%, below expected growth in advanced economies.
This year’s OECD Ministerial Council Meeting (MCM), chaired by Chile, is devoted to productivity. Ministers will discuss what governments, firms and individuals can do to improve productivity with the aim of fostering inclusive growth.
For Chile, it is a great honour and opportunity to chair the 2016 OECD Ministerial Council Meeting. It is an opportunity to celebrate Chile’s first five years as a member of the OECD and is yet another demonstration of the increasing relevance of emerging and developing economies, which today account for more than half of world GDP.
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This OECD report lays an empirical foundation for structuring economic policies to facilitate Chile’s participation in global value chains and to maximise the associated benefits for national firms and workers.
Chile's Foreign Investment Committee (CIEChile) and the OECD are partnering to improve CIEChile's role as an investment promotion agency, enabling the country to attract more and better investment.
This report provides recommendations on the design and implementation of a new investment promotion strategy for the Government of Chile. The work took place in a context of a series of investment policy related reforms in Chile, which finds itself needing a modern investment promotion strategy and instruments, particularly as its competitors for foreign direct investment are sharpening their investment promotion.
Chile has been very successful in turning its natural resource endowments into a generator of growth and modernisation. However, its mining regions, including Antofagasta, face the challenge of developing a critically important primary sector in a manner that contributes to both economic growth and broader measures of well-being. Antofagasta's long term sustainability goals include a more diversified economic base, supported by a city that is lived in for its high quality of life and the opportunities it offers. To achive this, it will need to make the most of its natural endowments, improve the city's physical attractiveness and ensure better urban policy outcomes. It will also require regional and local actors to act in a strategic and innovative manner. This study focuses on economic diversification, urbanism and governance in the city of Antofagasta. Consideration is given to: economic and socio-economic trends such as those associated with labour markets and skills, as well as quality of life factors; opportunities for specialisation, diversification and innovation within and beyond the mining cluster, including throught its port network; urban policy challenges especially in land use, waste management, environment and public transport; and to the role of public governance in helping the city realise its economic and quality of life objectives.
Start-ups are gaining momentum in Latin America's innovation strategies. Start-up Latin America: Promoting Innovation in the Region analyses the role of policies in promoting the creation and expansion of start-ups. It provides a comparative snapshot of recent initiatives in six countries in the region to identify good practices and foster knowledge sharing to improve innovation policy design and implementation.
Chile's OECD membership presents challenges both in the context of changing patterns of production and consumption, and in the framework of a more sustainable economy. Specifically, green growth emphasizes improving growth rates, particularly through greening existing industries, as well as through new eco-businesses.