Rebuilding Business after the Chilean Earthquake
Rebuilding Business after the Chilean Earthquake
Artisans and local producers are reaping the benefits of the increased market access that comes through a new model of reconstruction and income recovery.
The 8.8-magnitude earthquake and ensuing tsunami that hit Chile on February 27, 2010, left local micro-enterprises in a dire situation. In the southern coast, where the effects were most severe, entire fishing villages and towns were wiped out. Small entrepreneurs saw their businesses literally crumble to the ground.
In the most affected areas, 98 percent of businesses are micro-enterprises. Mostly owned by self-employed businesspeople, micro-enterprises are one of the cornerstones of the Chilean economy, providing the largest portion of jobs in the country. On average, the monthly household income for those that rely on micro-businesses ranges from $580 to $780. So, for them and the Chilean economy, one of the first steps was to rebuild their workplaces and re-establish not just their lives but also their supply chains.
The Chilean government estimated the reconstruction cost at $30 billion, or 18 percent of national GDP. Fortunately the government had revenues to cope with a disaster of this magnitude. Yet, for many micro-entrepreneurs—local producers and artisans—the earthquake meant the end of their livelihoods and the beginning of hardships that continue today.
Access the full story at AmericasQuarterly.org.
Nicole Etchart is NESsT’s CEO and co-founder based in Santiago, Chile.
Loïc Comolli is NESsT’s Director of Client & Investor Relations based in San Francisco, California.
