Chile’s sustained growth over the past few decades has reduced poverty and substantially improved living conditions. The country stands out for having the highest Human Development Index in Latin America, as well as having made progress towards shrinking the income gap with OECD countries. This achievement is largely related to capital deepening as well as robust growth in labor force participation, while total factor productivity (TFP) growth has been meager, stalling after 2000 (OECD, 2017). In terms of labor productivity, Chile has only reached 40% of US levels, and 55% of OECD levels (McKinsey, 2015). Further income convergence with the OECD will require faster TFP growth, given the pressures of demographic transition, the end of the …show more content…
We draw on the framework developed by Syverson (2011) and used by the World Bank to offer a private sector perspective on these challenges. We distinguish between firm ‘levers’ (managerial practices; quality of inputs; innovation, R&D, and learning by doing) and ‘external’ factors (competition and input market flexibility). Then we prioritize a subset of private sector mechanisms where the intersection between critical gaps and IIC comparative advantage presents strategic opportunities to contribute to Chile’s productivity agendas. II- Challenges Firm Levers A) Chilean firms’ subpar managerial practices reduce productivity. Chile has some of the longest working hours in the OECD, yet it ranks near the bottom in terms of GDP per hour worked (OECD, 2015), suggesting problems in leadership and making an efficient use of workers’ talents. Among the studies linking leadership to TFP, Bloom and Van Reenen (2007) show that higher quality management practices are correlated with several measures of productivity and firm performance; in China, India and Brazil they find that low management scores are driven by a large left tail of very poorly managed firms. Despite being a top regional performer, Chile lags behind the OECD in the World Management Survey areas of monitoring, targets, and human resources. The shape of
The government also advocated the development of domestic industry in order to protect Chile from future external economic shocks. Thus, Chile, like many other Latin American nations at the time, adopted a policy of import-substitution industrialization. Its aim was to “encourage the creation of homegrown industries to replace Latin American dependence on foreign manufactured goods” (Berliner) which was done in part by establishing quotas, licenses, and higher tariffs on imports and a strict exchange rate in Chile.
In every corner of a successful organisation, management and leadership has a strong connection, cannot divide one from another because both has to complement each other in many ways. Many authors and theorists argued that management is completely different skill than leadership and others just insist that leadership is a skill of a management studies in which needed to be updated with the world permanent variables of globalisation. In hard hit Journalism (Management Today, Haymarket Business Media, 2014) has contributed to expose many faults in high profile companies management and expose their lack of managerial skill.
With the adopting of a free market, Chile has reduced the government’s role in the economy, and many businesses run by the government were sold to private sectors. However, the government continues dialog with the private sectors through The Council on International Economic Relations; this council is made up of representatives from the private sector and the organizations involved in the creation of trade policy. The Ministry of Foreign Affairs is primarily involved in the creation of trade policy, but it also includes other organizations such as the Ministries of Finance, Economy, and Agriculture. The main objective of the Council on International Economic Relations is to facilitate trade and increase exports.
The country of Chile is located in western South America. The conditions vary with the mountains, deserts, and beaches.
The South America has evolved as the one of the most dynamic region of the world so much development taking place. In 2005 Latin American economies managed to grow at average of 5.5% while inflation is in single digit which shows that it has created the economic prerequisites to deal with the aforementioned problems.
During the movie No, the general environment in Chile was both repressive and free. This can be seen through multiple examples throughout the movie, however, for the purpose of this report, I will focus on two examples. The first example I will consider is the raid on the rally for No in which Renee’s wife was arrested. The second example I will consider that illustrates the freedom within Chile was the ability for the No campaign to even occur. I will then conclude with how this parallels to the democratization of Chile in being both free and repressive.
Chile stretches along 2,672 miles with an average width of 112 miles. More than one out of every three Chileans live in Santiago metropolitan region which is the capital of Chile. Two Chilean poets have won the Nobel Prize in literature. Chile’s population sits around 17,363,894 ranking Chile 63, they have a human development index of 41 of 187 countries. GDP per capita is $19,100 with an adult literacy at 99% for both males and females. The general attitudes are friendly and warm, but they might be shy and reserved when first meeting someone, they are also known for their sharp, witty and somewhat cynical sense of humor. Chileans are extremely patriotic and take pride in their nation’s cultural, educational, and economic achievements. Chile has a large middle class, and their educational system enables many poorer people to excel. When it comes to Chilean appearance they closely follow European styles, North American fashions are also popular especially among the youth. Greetings in Chile are important because they stress that one is welcome and recognized. The most common greeting among friends and relatives is the abrazo, consisting of a handshake and a hug. Chileans eat their main meal in the middle of the day and a lighter meal between 8 and 10pm, they typically have a tea time around 5 or 6pm where beverages, small sandwiches, and cookies or cake are served. In restaurants a server can be summoned with a raised finger; meal checks are not brought to the table until
In the “Race and Ethnicity” PowerPoint, the history of race stood out to me. Especially when the PowerPoint says, “It wasn’t ‘race’ that gave rise to inequality but inequality that gives rise to ‘race’” (slide 13), race was brought up to be used as an excuse for inequality. This stood out to me since it showed the terrible lengths Europeans went to excuse their behavior. Before Europeans arrived in the Americas, indigenous people only identified themselves based on ethnic groups, villages, genders, but race was a concept that had not existed. Once Europeans arrived, they needed a concept to understand the differences amongst them. Race was then established, to make themselves seem superior to the indigenous and then to the Africans.
As a leader in free trade and open markets, Chile is participating in negotiations with the U.S. and nine other countries to sign a Trans-Pacific Partnership. Under the leadership of President Sebastián Piñera, Chile is dedicated to a limited government, and respect for the rule of law” (Larroulet). Chile is an example of how Government is working to decrease the rate of income inequality.
Southern regions of Chile. All three regions are different in their own way and have their own
According to Lopez (2000), the poverty level in Latin America is far worse in rural areas like Mexico and the Andean countries. Government agencies, organizations and intellectuals across the world have expressed unease about the extreme amounts of poverty in Latin America (Mamalakis, 1996). The exact level of poverty in Latin America can only be projected because of the high number of people living in rural areas. This problem is only exacerbated by the number of countries in the Latin America region. Lopez (2000) projects that over sixty percent of citizens beneath the poverty level live in rural areas across Latin America. Those rural areas are more susceptible to poverty because there is less access to jobs and resources. Whole families, including children, are impoverished because they are forced to live off of the
Although Latin America has faced many social, political, and economic issues within the last three centuries, inequality remains one of the most important, historical, and omnipresent aspects of the region’s culture. As Europeans took over Latin America during the time of colonization, they implemented many elitist social structures that have held strong and are evident today (Harris). Income inequality is the most visible and greatest disparity that the region faces; yet inequality between gender, ethnicities, and education remain strong and significant problems with a necessity for improvement. Inequality of wealth and disparity of power and influence are Latin American’s greatest curses and are at the root of many of the
Throughout the ensuing paper we will dive into a country of rich heritage, beautiful landscape, and an extraordinary people with a very promising future. Chile is the longest country in the world geographically speaking with a majority of the population residing in the central region, specifically Santiago, the capital, and Viña del Mar. The official language is Spanish, although in some regions a couple of other languages are still prevalent.
Low income countries have a GNP per capita of $995 or less, this translates into stark poverty on a massive scale.(de Haan, 1996) With populations experiencing income at this level most of their potential productivity is not
In the face of intensified global competition and liberalised trade, productivity has emerged as a key indicator of successful restructuring and upgrading by firms and industries. Traditionally, productivity growth has been regarded as one of the main sources of income growth, along with the factors such as capital accumulation and the deepening of human capital development. Over the past two decades, liberalisation has become an important part of many countries' development strategies. The present study analyses the review of earlier studies on productivity