Chile's President Sebastián Piñera on "Renaissance" of Chilean Economy

“We want to create a society of opportunities,” said Chile’s President Sebastián Piñera during September 22 remarks at the Americas Society and Council of the Americas. During his presentation Piñera outlined his administration’s goals to combat poverty, boost economic growth, and improve development. As AS/COA Honorary Chairman William R. Rhodes noted in his opening remarks, the new Chilean president was forced to “hit the ground running” when he took office in March, a few short weeks after the country was battered by the fifth largest earthquake on record. In spite of that disaster that cost the country $30 billion (or 18 percent of Chile’s GDP), Piñera said his government’s goal is to achieve 6 percent GDP growth during his four years in office.

The president delivered the speech less than a week after the Chile’s bicentennial and said “we want to take advantage of the spirit” felt in the country during the celebration. Looking at more recent history, he stressed that the time has come for Chile to wake up from an economic slumber. He compared Chilean growth between 1986 and 1997—when GDP rates averaged 7.8 percent—to the 1998 to 2009 period, when growth rates fell to 3.4 percent. “We are living a real renaissance in our economy,” said Piñera, who pointed out that Chile is now on track to rank twenty-fourth in the world, second in Latin America, and first among OECD countries in terms of growth. 

“We want to create a society of opportunities,” said the president, who forecast that Chile would see the creation of 300,000 jobs in 2010 and one million jobs by the end of his term in order to combat poverty and promote entrepreneurship. Moreover, in the first four months of the Piñera administration, real salaries rose by 2.1 percent, unemployment dropped during the second quarter from 9 percent to 8.3 percent, and crime related to drug trafficking dropped while arrests rose.
 
Piñera focused on education and health improvements to improve social development. Government initiatives and achievements include:

• Cutting hospital waiting lists by 37 percent during a 60-day period.
• Doubling public investment in education, including direct educational subsidies for students in need to allow them to attend schools of choice.
• Creation of a network of schools of excellence.
• Access to laptops for all students by the end of 2012 to help students “join a society of knowledge and society of innovation.”

The president touched on the crises of the earthquake and the 33 trapped miners facing prolonged rescue. Despite the need for reconstruction, he said Chile, a creditor country, would not borrow funds for its reconstruction plan. He compared the trapped miners to the tale of Jonah in the whale and said their release would be secured as soon as November.

During a question and answer session following the remarks, Piñera commented on China’s rising importance as an economic partner, not only for Chile but also for Latin America in general. China represents 25 percent of exports for Chile—the world’s biggest copper producer—and is on target to become Latin America’s top investor, he said. Piñera noted that Chile decided long ago to have a “free, open, competitive economy” and, as such, has a trade agreement with Beijing. He suggested the United States catch up by approving the languishing trade accords with Colombia and Panama. “At the end of the day if United States doesn’t take those opportunities then someone else will do it,” he said, suggesting China could fill the gap.