Why Chile?
Your best partner
Chile's attractive and dynamic business environment is the result of a policy-driven strategy that has focused on building sound macroeconomic fundamentals and strong institutions, promoting competition and international integration, and creating a fairer society in which all citizens benefit from economic development.
Some reasons:
- Chile is the most competitive country in Latin America, according to the 2004-2005 Global Competitiveness Report, released by the World Economic Forum. The yearly figures released by the Geneva-based Economic World Forum show that Chile is ranked the 22nd most competitive country in the world, a rise of six places from last year. The index -which was first released in 1979 and evaluates the potential for sustained economic growth of 102 economies and ranks them accordingly- was led by Finland (1st), the US (2nd), Sweden (3rd) and Taiwan (4th).
- Its Standard and Poor’s rating is the highest in Latin America. Standard & Poor’s Ratings Services raised long-term foreign currency sovereign credit rating on the Republic of Chile to ‘A’ from ‘A-’ and confirmed its ‘A-1’ short-term foreign currency sovereign credit rating. At the same time, Standard & Poor’s also affirmed its ‘AA’ longterm local currency sovereign credit and senior unsecured debt ratings and its `A-1+’ short-term local currency sovereign credit rating on the republic. The outlook on the long-term ratings is stable.
- Free Trade Agreement with the U.S. and with more than 30 countries
- Social Security Agreement with U.S.
- Chile has the freest economy in Latin America and the Caribbean, according to the 2005 Index of Economic Freedom, published jointly by the US-based Heritage Foundation and The Wall Street Journal. Chile ranked 11th among 155 countries, as compared to the 13th place it took in 2004. .
- Chile is now Latin America’s most competitive economy, ranking 19th worldwide, according to a study by the Swiss-based Institute for Management Development (IMD).
- Additionally, because Chile has had such successful growth over the last 15 years, other Latin American countries are trying to copy its economic environment. As such, operating in Chile may provide good experience for operating in the rest of Latin America in the future.
- Many multinationals use Chile as their springboard for entering Latin America (for example: Altec, BHP Billiton (Shared business center), Citigroup (software development center), Delta (call center), General Electric, IBM (on demand solution Center), International Paper, James Hardie, and many others.
- A.T. Kearney's 2004 Offshore Location Attractiveness Index ranked Chile as 9th out of the 25 best destinations in the world. And the Economist Intelligence Unit ranked Chile among the top 15 countries for offshoring in 2005.
- Greatest supply of skilled labor in Latin America according to The World Economic Forum.
- Labor relations (in the private sector) are the most conducive to competitiveness in Latin America according to the Global Competitiveness Report.
- According to the Digital Access Index of the International Telecommunications Union 2004-2005, Chile has the most advanced information infrastructure in Latin America.
- Extremely low levels of corruption
- According to the World Bank’s “Doing Business in 2005”, it takes 203 days of paperwork to open a company in Haiti, 152 in Brazil, 116 days in Venezuela, 77 in Costa Rica, 58 days in Mexico, 32 days in Argentina and 27 days in Chile. By comparison, it takes five in the United States.
According to the World Bank’s “Doing Business in 2005”, it takes 203 days of paperwork to open a company in Haiti, 152 in Brazil, 116 days in Venezuela, 77 in Costa Rica, 58 days in Mexico, 32 days in Argentina and 27 days in Chile. By comparison, it takes five in the United States.
As you can see, Chile is your best partner.
Related Links:
U.S. Department of State
Foreign Investment Committee (Chile)
Source: Research Department, AmCham
Mayo 2005