Major Economic Activities In Chile

By | September 20, 2023

Major Economic Activities In Chile – Chile’s main markets for mining and agricultural products are the European Union, the United States, China, Japan and South Korea. Most imports come from the US, China, Brazil, Argentina and Germany. The balance of payments, generally unfavorable, improved from time to time after 1976, but with significant fluctuations due to increased foreign spending and the repayment of foreign loans since the 1950s. In the early 2000s, Chile signed several free trade agreements, including an agreement with the United States that came into effect in 2004. Non-traditional exports (seafood, fruit, wine, wood products, food) have also contributed to economic growth in the early 21st century.

The peso is the national currency of Chile. The Central Bank of Chile, founded in 1925, is the country’s official bank; It implements the internal banking policy of the government and also conducts foreign trade. In 1989, the Bank became an autonomous institution with full responsibility for the country’s monetary and foreign exchange policy. The State Bank of Chile is also a public institution, but operates as a private commercial bank. National private banks and international banks from Europe, America and Asia operate freely in the country.

Major Economic Activities In Chile

Major Economic Activities In Chile

Chile’s economic system consists of cooperation between the private and public sectors, with the private sector accounting for about 10 percent of total annual investment. Private enterprises are usually organized as joint-stock companies (like US corporations) that participate in all areas of economic activity.

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The length of the country and physical barriers impede communications and traffic flows. Only the sea offered faster means of transportation, thanks to which, in the 19th century, Chile owned one of the largest merchant fleets in Latin America. In the early 20th century, shipping declined due to the general economic downturn in Chile and overland financing of maritime transport. Finally, only international transport was carried out by sea. The main port of entry is Valparaiso. San Antonio, the port of Santiago, exports copper and agricultural products. Other ports such as Antofagasta and Arica handle trade with Bolivia. Chañaral, Huasco, Guayacán and Tocopilla export minerals The port of Talcajuno serves the industrial complex of Concepción.

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The land transportation system began to develop in the early 20th century with two rail systems, a northern network between La Calera (near Valparaiso) and Iquique, now defunct, and a southern network between La Calera and Puerto Montt. . The most visited sections connect Santiago to Valparaiso and Santiago to Puerto Montt. Both segments are electrified, which makes them more competitive compared to road transport. The railway system is under the control of the Empresa de los Ferrecarriles del Estado (State Railway Enterprise). International railways connect Arica and La Paz (Bolivia), Antofagasta and Oro (Bolivia), Los Andes and Mendoza (Argentina). The railway transports passengers on a short route between Arica and Tacna (Peru).

The rapid motorization of Chile led to an improvement in the road transport of passengers and goods. The backbone of Chile’s road system is the American paved highway that connects Arica to Puerto Montt near Chilo Island, over 2,100 miles away. Minor routes to this main artery connect several cities, including Santiago with San Antonio and Valparaiso, Bullens Concepción and Los Lagos with Valdivia. The most important international paved road connects Santiago with Mendoza (Argentina). All-weather roads connect Iquique with Oro (Bolivia), Antofagasta with Salta (Argentina), La Serena with San Juan (Argentina), Osorno with San Carlos de Bariloche (Argentina) and Punta Arenas-Rio Gallegos (Argentina) ).

Air transport mainly serves cities both on the border of the country and to some of the more complex cities such as El Salvador and the Côte d’Azur. The main airline is Linea Aria Nacional de Chile (LAN; National Airlines of Chile). The cruise service is maintained by LAN between Santiago and Easter Island in the Pacific Ocean and continues to Papeete, Tahiti. All major South American lines, as well as other lines from the US and Europe, handle the flow of international passengers to Arturo Merino Benitez Airport near Santiago. Chacaluta, northeast of Arica, is another major airport.

Chile Economy: Population, Gdp, Inflation, Business, Trade, Fdi, Corruption

The Republic of Chile, proclaimed in 1821, has a long history of representative democracy, with few exceptions. Historically, Chile is famous for its political freedom. From September 1973 to March 1990, a military junta led by General Augusto Pinochet Ugarte ran the longest authoritarian dictatorship in Chile’s history. The country is governed under a 1981 constitution approved by a plebiscite called by General Pinochet to replace the 1925 constitution. The President appoints the Minister of State. A 2004 constitutional amendment reduced the presidential term to four years (from the 16 years adopted in 1994) and abolished the life seats in the Senate.

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The bipartisan National Congress was dissolved in the 1973 coup, after which the legislature was run by a junta assisted by the Legislative Commission. The 1981 constitution allows for a bicameral legislature consisting of an upper house, or Senado, and a lower house, or Camara de Deputados, elected by direct popular vote. These two bodies were inactive until the December 1989 elections.

Judges and lawyers of the Supreme Court are appointed by the President from a list of candidates recommended by the Supreme Court. Judges are career officials of the Ministry of Justice. The composition of the lower courts is fixed in a similar way.

Major Economic Activities In Chile

Local government operates through 15 administrative regions, including the metropolitan municipality of Santiago. These regions are divided into provinces, which in turn are divided into communities. President appoints

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) who are the administrative heads of the regions Objectives are regulated by a regional council, which may include the provincial governor and representatives of other private and public institutions in the region. As expected, provincial governors serve exclusively in the interests of the president. Communities are managed by a municipal corporation.

) and community council The mayor is appointed by the regional council from a list of three candidates submitted by the municipal council; In some major urban centers, mayors are appointed directly by the president. Board member (

Chile’s traditional political spectrum runs from the extreme right to the extreme left. During the September 1973 coup, the junta banned Marxist political parties and suspended all activities of traditional parties (in order to return to a competitive party system). New opposition movements formed under the Pinochet regime, but were suppressed by his government. Towards the end of the 1970s, a group of centrist and leftist parties coalesced into the Democratic Alliance (Alianza Democrática; AD), actively opposing the regime and promoting democracy. After Pinochet’s defeat in the 1988 plebiscite that officially ended his power, the group was renamed the Coalition of Parties for Democracy (Concertación de los Partidos por la Democracia; CPD). In 1989, negotiations between the KKE and the Pinochet government led to the lifting of the ban on Marxist parties, one of the amendments to the 1981 constitution voted in a national referendum. Parties under the CPD umbrella include the Christian Democratic Party (Partido Democrata Cristiano; PDC), one of Chile’s most influential parties; Social Democratic Radical Party (Partido Radical Social Democrata; PRSD), formerly known as the Radical Party (centrist PRSD moved to the left after 1965, was suppressed in 1973 but returned under its new auspices in the mid-1990s . Name) ; Socialist Party of Chile (Partido Socialista de Chile; PS); and the Party for Democracy (Partido por la Democracia; PPD). The Communist Party of Chile (Partido Comunista de Chile; PCC), condemned by the Pinachet regime, was restored by 1990. ) and the Independent Democratic Union (Union Democrata Independente; UDI). Chile also has parties representing the Mapuche people and other social and environmental interests. South America is the largest consumer market for US exporters. Rising wealth, low barriers to entry, and a modern Chilean economy provide opportunities for increased agricultural trade as COVID-19-related restrictions and social and political tensions ease. This economic recovery has caused increased competition, especially from the European Union, Brazil and Argentina; But premium US products such as beer, spirits, pork and pork products, cheese and specialty cuts of beef have potential for Chili’s growth in the retail sector, as well as in the hotel, restaurant and institutional sectors.

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In 2021, the United States became the fourth largest supplier of agricultural products to Chile after Argentina, Brazil and the European Union (EU).

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U.S. agricultural exports to Chile trailed both Brazil and the UAE as they increased the value of their total agricultural exports by 55 and 65 percent, respectively. The top U.S. products exported to Chile in 2021 were beer ($178.2M), feed and feed ($143.7M), pork and pork products ($111.4M), and dairy products.