Changes In Chile

These reforms saw Chile rise from a depressed economy to a great, top rank in the South American economy. One of the reforms which led to improvement of Chile economy was the opening of the Chile market to the foreign trade. Chile is a small country which is found away from the business center or where most businesses are carried out, due to these there was need to create a market where foreign traders were able to access the market increasing export and imports. By 1974 major changes were made on the import charges by the government, the tariffs on imports were reduced and in 1979 the charges were reduced to a flat rate of 10 percent. This factors increased competition for Chile companies which enabled the country to compete on international
The first one was during the 1975 to 1981 which prioritized on banks which were under public sector. The economists saw banks being sold from public sector to private owners who solely bought the businesses. Most individuals who bought these businesses were the minority rich families who dominated the economy of Chile from the previous years. Also there was sale in industrial companies, mines and real estate. This reforms were undertaken to give a push to the private sector and due to the expansion of the previously public owned companies by private
The country still do not value regulation and limited government interference. Due to these the market has not been freed as in the case for Chile, which has limited increase in privatization. The economy is characterized by capital controls, price controls, control on imports through exchange rates control and inflation. Argentina experiences very high level of corruption due to political interferences and rise in violence and very high corrupt judges (Dreher 775). This has led to low productivity due to rise in unemployment leading to more government expenditure. Due to control financial systems the country as the worst investment destinations as people fear uncertainty as trade restrictions are very