Chile: from Early Liberalisation to ‘Secondphase Export-led Growth’

Abstract

The Chilean economy displays the weaknesses that the small Latin American countries have in common: low levels of physical and human capital per caput, a small domestic market, and dependence on a single major export product: copper. However, what sets the Chilean case apart from other Latin American countries, are the early and radicalliberalisations that have been put into effect since 1973. The import-substitution industrialisation strategy was abandoned radically, and an export-led growth policy was implemented. The government did not assume an active role to stimulate this open industrial development pattern as was the case in the Asian NICs.