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Country analysis about Chile

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Florian Witt

on 28 June 2013

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Transcript of Country analysis about Chile

Reaction of a Peruvian friend:
"Are you kidding me. You can't take this stupid country!"
After hearing the political situation you may understand his reaction ...
1. Introduction
2. PESTEL Analysis
3. SWOT Analysis
4. Conclusions
Political Situation
Official: Republica de Chile
capital: Santiago de Chile
President: Sebastián Piñera
BBC: "South America’s most stable and prosperous nation"
1971 - 1988: coup d'état
Economic Situation
Social / Ethnic Situation
Population: 17,200,000
Multiethnic country:
Gini coefficient:
(worst in OECD)
Educational system is a major problem
Population below poverty line: 15.1% (2009 est.)
Education almost privatized
appr. 800 US$ per student invested in education system
70% of students have to take a loan for their educations
45% of students have to go to public schools
only 4.4% of GDP spent in education (UN recommends 7.0%)
Chilean students protesting
Technological Situation
maritime terminals in every region except of Santiago
Environmental Situation
Legal Situation
giant copper (17.5 % of GDP) sources
40% of the world’s copper is in Chile
Civil law system influenced by several West European civil legal systems
producing four times more than the 2nd biggest copper producer
other export goods
timber, iron ore, nitrates, precious metals, wine and hydropower
Natural Hazards
Volcanos along the Andes Mountains
Severe earthquakes
working hours: maximum of 48 hours per week; 10 hours per day
bad relationship between these countries to this day
« only 10% of Chileans think the administration is handling education policy well »
extensive employment laws; low level of income
Employment laws
Legal system
mostly from Italy
800,000 with Asian descend
Chilean universities are regarded as the best in Latin America
the average Chilean is in debt 22.4 times of his monthly income
Socio-economic facts
GDP: $319,4 billion (#43 in the world)
GDP per capita:
- richest country in Latin America (#37 in the world)
strongest sovereign bond rating in South America
economic growth: 5%
Public debt: 10.1% of GDP
Inflation rate: 2,8%
Exports: $83.66 billion
market - oriented economy
Median household income:
distribution problem!!
3. SWOT Analysis
many resources
trade agreements
free market economy
ports in each region
natural hazards: volcanos, earthquakes, tsunamis
border conflicts with Peru and Bolivia
good telecommunication
dependence of resources
renewable energy: wind, water, sun
public education
distribution of wealth
prohibition of forced or compulsory labor and child labor
Economic facts
National accounts
mature telecommunication market
pioneer in new telecommunication technologies
world leader in the use of Facebook
International airport in Santiago
Only 0.6% of GDP invested in R&D
violation of human rights
country profile
Republic of Chile
by Florian Witt, Jan Henking & Philip Lindenblatt
highly developed public law
red = connectivity rate
Chile 2010
Chile 2011
Argentina 2011
Brazil 2011
Government spending in education
Bolivia claims a corridor to the Pacific Ocean
Renewable energy
Hydro energy (Andes)
Wind energy (Pacific coast)
Sun energy (Atacama desert)
water pollution
air pollution
smog in Santiago
5. Discussion
... but ...
Palace of Justice (Santiago)
Augusto Pinochet
Salvador Allende
Judicial review of legislative acts by the Constitutional Tribunal
6 days per week
minimum income: 58,900 CLP (100 €)
4. Conclusions
Attractiveness for companies (+)
free market oriented economy
many resources
well-trained employees
outstanding private universities
liberal employment laws
cheap production of energy
Difficulties in Chile (-)
permanent threats due to natural disasters
extensive segregation in education
bad relationship to neighbor states
major inequality
1878 - 1883: War of the Pacific
winning northern territories from Bolivia and Peru
5. Discussion
Thank you for your attention!
Do you have any questions?
General facts
against Salvador Allende and following Pinochet dictatorship
but also a reason for the present
7,082 km of railways
77,764 km of roadways
Metros in Santiago and Valparaíso
first South American country in OECD
Biotech innovations
mining industry
salmon fishing
less expensive and environmentally destructive
trade agreements with the European Union,
the United States and Asian countries
unemployment rate: 6.4%
Chicago Boys
Recent decision: building a bridge over the Chacao Channel - costs: $740 million
dependence of exports
air and water polution
Setting up a business :
22 days
lowest in Latin America, corporate income tax rate: 17%
unemployment youth between 15 - 24: 22,6%
income tax from 5 to 40 %
low taxes
Piñera: tourism strategy to raise share from 3% up to 6% of GDP
Full transcript