 | This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these template messages)
|
Chile joined the International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD), the founding branch of the World Bank Group, on December 31, 1945. [1]
Chile was part of the original 44 member countries at the 1944 Bretton Woods Conference who signed its Articles of Agreement which pegged the world currencies to the dollar and established the IMF and the IBRD for short-term and long-term capital projects, respectively. Chile joined other branches of the World Bank Group relatively soon after their creation, they joined the International Development Association (IDA) on December 30, 1960, the International Finance Corporation (IFC) on April 15, 1957, and the Multilateral Investment Guarantee Agency (MIGA) the day it was established (April 12, 1988). [1] The exception is the International Centre for Settlement of Investment Disputes (ICSID) which Chile joined on October 24, 1991, 25 years after its establishment. [1]
As of their June 2019 report, the World Bank considers Chile an emerging market and developing economy, defined by an economy that is 30% or more dependent on a single-export commodity. [2] Copper ore (at $16.6B) and refined copper (at $14.9B) represent 45% of all Chilean exports. [3]
Despite being rich in natural resources, wealth is poorly distributed, with [ clarification needed ]
Since independence, Chile's economy has mainly followed the principles of economic liberalism, whether it be classical liberalism or its 20th century revival "neoliberalism". Almost immediately after a CIA-sponsored coup d'état that deposed Salvador Allende and propped up the Military Dictatorship of Chile 1973-1990, a group of Chilean economists known as the Chicago Boys, as they were alumnus of the University of Chicago and Milton Friedman, published a study called El ladrillo.
The outcomes of these policies were praised by then Milton Friedman as the Miracle of Chile.
Chile suffered 1997 Asian financial crisis
Due to global The World Bank predicts a slowdown in GDP growth from to 3% in 2021, [4]
Current President and billionaire Sebastián Piñera
(2015-) Chile Vamos party
a series of 2010-2012
Low approval rating
The World Bank frequently espouses Chile as a success story within Latin America. "Chile has been one of Latin America’s fastest-growing economies in recent decades, enabling the country to significantly reduce poverty. Between 2000 and 2017, the population living in poverty (on US$ 4 per day) decreased from 31% to 6.4%." [5]
 | This section is empty. You can help by adding to it. (February 2021) |
In October Strengthening State Universities in Chile, project [6]
In December 2017, the World Bank Group established an office Santiago, Chile. [7]
Chile had generally been considered a model for stability and order within a tumultuous region through the economic model of Neoliberalism, a set of economic policies that advocate for a return to free-market capitalism and laissez-faire governmental policies toward the market
President Pinera
2019 Chilean protests, where a 4 cent increase in metro fare expanded into an expression of general discontent towards growing economic inequality, such as high costs of living, stagnant wages and meager pensions. [8]
According to Cadem, a
In response to the mass discontent, Piñera announced a major cabinet reshuffling, firing the Interior Minister Andrés Chadwick and Finance Minister Felipe Larrain. [9]
The Economy of Chile is a market economy and high-income economy as ranked by the World Bank. The country 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. Although Chile has high economic inequality, as measured by the Gini index, it is close to the regional mean.
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Formed in 1944, started on 27 December 1945, at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international monetary system. It now plays a central role in the management of balance of payments difficulties and international financial crises. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money. As of 2016, the fund had XDR 477 billion. The IMF is regarded as the global lender of last resort.
The economy of Uruguay features an export-oriented agricultural sector and a well-educated workforce, along with high levels of social spending. Tourism and banking are also important sectors; Uruguay acts as a regional hub for international finance and tourism. The country also has a history and representation of advanced workers-rights protection, with unions and the eight-hour work-day protected at the beginning of the 20th century.
The International Bank for Reconstruction and Development (IBRD) is an international financial institution, established in 1944 and headquartered in Washington, D.C., United States, that is the lending arm of World Bank Group. The IBRD offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group. The initial mission of the IBRD in 1944, was to finance the reconstruction of European nations devastated by World War II. The IBRD and its concessional lending arm, the International Development Association (IDA), are collectively known as the World Bank as they share the same leadership and staff.
The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom were educated at the Department of Economics of the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at the Pontifical Catholic University of Chile. After they finished their studies and returned to Latin America, they adopted positions in numerous South American governments including, prominently, the military dictatorship of Chile (1973–1990), as economic advisors. Many of them reached the highest positions within those governments. While The Heritage Foundation credits them with transforming Chile into Latin America's best performing economy and one of the world's most business-friendly jurisdictions, critics point to drastic increases in unemployment that can be attributed to counter-inflation policies implemented on their advice. Ronald Reagan and Margaret Thatcher were influenced by Chile's policies and economic reforms.
Neoliberalism, also neo-liberalism, is a term used to signify the late-20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent factor in the rise of conservative and right-libertarian organizations, political parties, and think tanks, and predominantly advocated by them, it is generally associated with policies of economic liberalization, including privatization, deregulation, globalization, free trade, monetarism, austerity, and reductions in government spending in order to increase the role of the private sector in the economy and society. The defining features of neoliberalism in both thought and practice have been the subject of substantial scholarly debate.
The "Miracle of Chile" was a term used by economist Milton Friedman to describe the reorientation of the Chilean economy in the 1980s and the effects of the economic policies applied by a large group of Chilean economists who collectively came to be known as the Chicago Boys, having studied at the University of Chicago where Friedman taught. He said the "Chilean economy did very well, but more importantly, in the end the central government, the military junta, was replaced by a democratic society. So the really important thing about the Chilean business is that free markets did work their way in bringing about a free society." The junta to which Friedman refers was a military government that came to power in a 1973 coup d'état, which came to an end in 1990 after a democratic 1988 plebiscite removed Augusto Pinochet from the presidency.
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states. The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates, with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold. It also envisioned greater cooperation among countries in order to prevent future competitive devaluations, and thus established the International Monetary Fund (IMF) to monitor exchange rates and lend reserve currencies to nations with balance of payments deficits.
Globalization and Its Discontents is a book published in 2002 by the 2001 Nobel laureate Joseph E. Stiglitz. The title is a reference to Freud's Civilization and Its Discontents.
Structural adjustment programs (SAPs) consist of loans provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experience economic crises. Their purpose is to adjust the country's economic structure, improve international competitiveness, and restore its balance of payments.
The economy of Chile has shifted substantially over time from the heterogeneous economies of the diverse indigenous peoples to an early husbandry-oriented economy and finally to one of raw material export and a large service sector. Chile's recent economic history has been the focus of an extensive debate from which neoliberalism acquired its modern meaning.
Economic liberalization is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical liberalism and neoliberalism. Liberalization in short is "the removal of controls" to encourage economic development.
The economic liberalisation in India refers to the opening of the country's economy to the world with the goal of making the economy more market and service-oriented, thus expanding the role of private and foreign investment. Indian economic liberalisation was part of a general pattern of economic liberalisation occurring across the world in the late 20th century. Although some attempts at liberalisation were made in 1966 and the early 1980s, a more thorough liberalisation was initiated in 1991. The reform was prompted by a balance of payments crisis that had led to a severe recession and also as per structural adjustment programs for taking loans from IMF and World Bank.
Directly after World War II saw many countries adopt policies of economic liberalization in order to stimulate their economies.
The Crisis of 1982 was a major economic crisis suffered in Chile during the military government of Chile (1973–1990). Chile's GDP fell 14.3%, and unemployment rose to 23.7%.
China originally joined the World Bank Group (WBG) on December 27, 1945. However, after the Chinese Civil War, the World Bank recognized the Republic of China as its member, until the relationship ended in 1980, when the membership was replaced by the People's Republic of China. The People's Republic of China (PRC) did not become involved with the World Bank group until 1980, when it first joined the World Bank in April due to the market reforms known as reform and opening-up. Prior to the economic reform and its relation with the World Bank, according to CRS, "China maintained policies that kept the economy very poor, stagnant, centrally controlled, vastly inefficient, and relatively isolated from the global economy". Since its entry into the World Bank, China has transformed into a market-based economy and has experienced rapid economic and social development. Currently, although China has become the world's second largest economy with 1.4 billion population, it still has a close relationship with the World Bank in areas such as poverty, environmental protection and new challenges from the reform.
Progressive capitalism is an approach to capitalism that seeks to improve the current neoliberal American capitalism that emerged in 1980. Progressive capitalism aims to improve economic results through four defining beliefs, namely the vital role businesses play in the economy by creating jobs, fostering innovation, enabling voluntary exchange, and providing competitive goods and services; the recognition of the important role public goods, public institutions, public services and public infrastructure play in supporting businesses including: research, schools, health care, social insurance, taxation, labor law and regulation of markets; the need for the state to be involved in design and oversight of the playing field; and the integration of social justice, stewardship of natural resources and responsibility to all major stakeholders. It is being advocated by Ro Khanna and Joseph Stiglitz.
After separating from the World Bank and other International Financial Institutions for decades due to pressure from the Soviet Union, Poland rejoined the World Bank on June 27, 1986. The World Bank was instrumental in financing and providing technical assistance for Poland as it transitioned from a Command Economy into a Market-Oriented Economy. As a middle income country, Poland has worked primarily with the International Bank for Reconstruction and Development since it is not eligible for loans from the International Development Association. Additionally, Poland has had a few projects with the Multilateral Investment Guarantee Agency and the International Finance Corporation. Currently, most of Poland's engagements with the World Bank Group concern environmental concerns and public finances.
The island nation of Grenada is the smallest country in the Western Hemisphere. A sovereign state that is located in the West Indies in the Caribbean Sea towards the southern end of the Grenadine island chain, the nation is composed of the island Grenada along with six smaller islands that lie north of it. Grenada is known as the "Isle of Spice" for its production of nutmeg and mace crops, for which it is one of the world's largest exporters and contributes vastly to the country's GDP. Grenada is a developing country that relies heavily on the support of other nations and organizations to finance many of its government projects. One of Grenada's partners is the International Monetary Fund.
Malaysia's independence in 1957 was a catalyst for growth. As the nation took charge of managing its own affairs, it continued to develop the goals and means necessary for a financial structure conducive to the economic growth observed today. Critical to the transition of Malaysia from a low-income country to one of high-income status has been the expansion of its economy. From a commodity and agricultural-based economy, the Southeast Asian nation is transitioning to a leading exporter of more complex goods. As the nation opens up to trade and investment, the World Bank and the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) continue to assist with its development.
