The U.S. – Chile Partnership Presentation Kit
AmCham Chile Presentation KitSeptember, 2009
www.amchamchile.cl
The U.S. – ChilePartnership
Presentation Kit
AmCham Chile Presentation KitAugust 20112
Presentation Kit Overview
1. Chile Geography & Demographics
2. Chilean Political & Economic System
3. U.S. – Chile Trade
4. Investing in Chile
5. Chile Rankings
AmCham Chile Presentation KitAugust 20113
Presentation Kit Overview
1. Chile Geography & Demographics
2. Chilean Political & Economic System
3. U.S. – Chile Trade
4. Investing in Chile
5. Chile Rankings
AmCham Chile Presentation KitAugust 20114
Geography of Chile
Chile is a country on 3 continents:1) Continental Chile (South America)2) Chilean Antarctica3) Easter Island (Oceania)
Continental Chile is divided into four maingeographical regions:
1) Northern Atacama Desert2) Fertile Central Valley3) Lakes Region4) Islands and Fjords
Total Area: 469,756 sq. miles756,950 sq. km
Capital: Santiago – Ranked 2nd out of 140 Latin American cities in the Economist IntelligenceUnit´s 2009 Liveability Survey.
AmCham Chile Presentation KitAugust 20115
Northern Chile
AmCham Chile Presentation KitAugust 20116
Central Valley
AmCham Chile Presentation KitAugust 20117
Lakes Region
AmCham Chile Presentation KitAugust 20118
Southern Chile: Fjords
AmCham Chile Presentation KitAugust 20119
Demographics
• Population: 16.889 million (July 2011 est.)
• Labor Force: 7.6 million (2010 est.)
• Infant Mortality Rate: 7.34/1000 (2011 est.)
• Language: Spanish
• Religion:- Catholic 70% - Evangelical or other Christian 15% - None 8% - Other 5%
Sources: CIA World Factbook(www.cia.gov)
AmCham Chile Presentation KitAugust 201110
2010 UN Human Development Index
1 Norway4 USA
26 UK45 Chile46 Argentina54 Panama56 Mexico63 Peru75 Venezuela77 Ecuador79 Colombia89 China
Source: United Nations Development Program (www.hdr.undp.org)
The United Nations Human Development Index synthesizes four primary development statistics, which measure health, education, and income. Some of the values for Chile are:
• Life expectancy at birth: 78.8 years
• Adult literacy rate: 96.9%
• Combined primary, secondary and tertiaryeducation enrollment ratio: 82.5%
AmCham Chile Presentation KitAugust 201111
Presentation Kit Overview
1. Chile Geography & Demographics
2. Chilean Political & Economic System
3. U.S. – Chile Trade
4. Investing in Chile
5. Chile Rankings
AmCham Chile Presentation KitAugust 201112
Chile’s Political System
A representative democracy, divided into three branches:
Executive
Legislative
Judicial
AmCham Chile Presentation KitAugust 201113
Public Order and Safety in Chile
+21.5%49,40640,655Drug Law Violation Arrests 2010
-3.9%34983641Serious Offense Case Rate 2010 (per 100 thousand inhabitants)
-32%12.2%17.8%Fear Rate- “High Level” Fear
-12%33%37.5%Victimization Rate
Variation
20102009
Source: Ministry of the Interior and Public Security (www.seguridadpublica.gov.cl)
Fundación Paz Ciudadana (www.pazciudadana.cl)
AmCham Chile Presentation KitAugust 201114
Chile: A Strong Economy
• Sustained long-term economic growth – resumed strongly in 2010, despite earthquake
• High domestic savings rate• Political and institutional stability• Prudent economic policy• Solid banking system• Foreign capital concentrated in medium and long term
investments• Most pro-market economy in Latin America
AmCham Chile Presentation KitAugust 201115
2010 GDP Per Capitaat Purchasing Power Parity
Source: International Monetary Fund (www.imf.org)
Purchasing Power Parity (PPP) calculates GDP so that it takes into account the relative cost of living and inflation rates of countries, rather than using currency exchange rates which may distort the real differences in income. Thus, PPP GDP provides a measure of relative purchasing power of per capita GDPs.
These 2010 values are IMF estimates.
1 Qatar US$ 88.5597 USA US$ 47.248
27 Spain US$ 29.74251 Argentina US$ 15,85456 Chile US$ 15.00159 Mexico US$ 14.43070 Venezuela US$ 11.82971 Brazil US$ 11.23983 Colombia US$ 9.56685 Peru US$ 9.33093 Ecuador US$ 7.776
AmCham Chile Presentation KitAugust 201116
Poverty Reduction in Chile
3933
2823 22 20 19
14 15
05
1015202530354045
1990 1992 1994 1996 1998 2000 2003 2006 2009
%
Poverty as % of Population Indigence as % of Population
Sources: Chile Ministry of Planning (www.mideplan.cl/casen/)
Chile considers an individual to be living in poverty if his or her income is below that needed to obtain basic necessities, and to be indigent if it is below that needed to obtain a
minimal caloric intake level. In 2009, 3.7% of the population met this measure of indigence.
AmCham Chile Presentation KitAugust 201117
Chile GDP Year Over Year Growth by %
* Año 2011 sólo 1er trimestre. Source: Banco Central de Chile (www.bcentral.cl)
4,53,4
2,2
6,0 5,64,6 4,6
9,8
3,73,93,2
-0,8-1,7
6,65,2
-4
-2
0
2
4
6
8
10
12
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
*
%
AmCham Chile Presentation KitAugust 201118
Chile Unemployment & Inflation
9,7
7,1 7,2
4,7
7,86,4
9,9 10,09,3
7,8
7,1
9,89,710,19,5
7,8
3,0
-1,4
2,4 2,63,7
7,1
2,82,6
4,5
2,31,1
-2
0
2
4
6
8
10
12
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 June2011
%
Unemployment InflationSource: Banco Central de Chile (www.bcentral.cl)
*The data series use different methodologies over time and there is currently no official combination.
AmCham Chile Presentation KitAugust 201119
Chile National Budget Surplus & Deficit
-6.000.000
-4.000.000
-2.000.000
0
2.000.000
4.000.000
6.000.000
8.000.000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
CH
P$ M
illio
n
Source: Chile Ministry of Finance, Budget Directorate (www.dipres.cl)
The 2006 Fiscal Responsibility Law mandates that Chile maintain a 0.5% of GDP long-term structural budget surplus. 2005-2008 yearly surpluses were applied to Sovereign Wealth savings funds.
AmCham Chile Presentation KitAugust 201120
Chilean Peso vs. US Dollar
460509 539
635689
610 560 530 522 522 559 510457
691
1
201
401
601
801
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
August 1, 2
011
Peso
s to
US$
(Ye
arly
Ave
rage
)
Source: Banco Central de Chile (www.bcentral.cl)
AmCham Chile Presentation KitAugust 201121
Unidad de Fomento (UF)
• The Unidad de Fomento is a monetary Unit of Account. The UF was created in 1967 to help track the over-all cost of international loans, and was later extended to domestic bank loans, private financing, and other investments or contracts.
• The exchange rate between the UF and the Chilean peso is constantly indexed to inflation so that the value of the UF remains constant. (UF value as of August 9, 2011: CLP $21, 960)
• The UF has become the predominant measure for determining the cost of construction, values of housing, and any secured loan.
• A similar currency unit, generally used for the payment of taxes, fines, or customs duties, is the Unidad Tributaria Mensual(UTM) – literally, monthly tax unit. (UTM value for August 2011: CLP $38,518)
AmCham Chile Presentation KitAugust 201122
Chilean Pension System
• Implemented in 1980, it was the first comprehensive retirement and welfare system managed primarily by the private sector.
• Workers’ pension accounts are managed by Administradoras deFondos de Pensiones (AFPs), which receive a mandatory 10% of monthly pre-tax earnings. The self-employed may contribute voluntarily, and salaried workers can add additional contributions.
• Upon a worker’s retirement, their AFP finances their pension, either through gradual withdrawals or the purchase of an annuity.
• AFP funds may gain or lose value depending on market conditions,but 2008 reforms enhanced the government safety net forretirees outside the system, and for retirees whose fundpayments fail to meet minimum income standards.
AmCham Chile Presentation KitAugust 201123
Chilean Labor Supply
Chile balances strong protection for workers’ rightswith market flexibility for management.
• Chile receives an score of 18 on a scale of 0-100 (lower score =more favorable for business) in the World Bank´s Doing Business 2010 Rigidity of Employment Index, which measures difficulty of hiring, rigidity of hours and difficulty of redundancy. The Latin American average is 40, and the OECD average is 26.
• According to the World Bank, the Cost of Redundancy in Chile is 52 weeks of salary. The Latin America average is 64 weeks of salary, and the OECD average is 27 weeks.
• Chile has fully adopted all conventions of the International Labour Organization’s Declaration on FundamentalPrinciples and Rights at Work.
Source: World Bank: Group (www.doingbusiness.org), International Labour Organization (www.ilo.org)
AmCham Chile Presentation KitAugust 201124
Innovation & Entrepreneurship
Chile invests in its future by encouraging public and private business innovation and creativity.
• The InnovaChile program from the Chilean Economic Development Agency (CORFO), which provides:
o Subsidies to support and encourage innovation in new and existing companies
o Programs to enhance technical research and training in a wide variety of sectors, including high-tech manufacturing, energy and environment, food production, telecom, and tourism
• The Innovation Forum (“Foro Innovación”)o A nonprofit business-university partnership encouraging
innovation through high-impact public initiatives• Many other nonprofit groups...like AmCham Chile
AmCham Chile Presentation KitAugust 201125
Energy Production
• Public electricity production and transmission is 100% owned and operated by the private sector, with the Chilean government offering cash incentives for new investment.
• Heavy reliance on renewable energy: 38% of electrical production capacity comes from hydroelectrical sources, as of December 2008.
• Renewable Energy Act of 2008 mandates that 10% of all energy sold by 2024 come from Nonconventional Renewable Energy (NCRE), like biomass, mini-hydro, geothermal, wind, and solar.
• Right to sell to the national power market is guaranteed for allrenewable energy projects, and limited-size NCRE projectsare exempted from transmission tolls.
Source: Chile National Energy Comission (www.cne.cl)
AmCham Chile Presentation KitAugust 201126
Chile Joins the OECD
• In January, 2010, Chile joined the Organization for Economic Cooperation & Development – one of only 7 countries to join since 1973, and the first in South America.
• Recognition of the economic, financial, regulatory, and environmental gains made by Chile over the past 15 years.
• Provides higher international prestige and lower perception of country risk, leading to greater international investment and lower borrowing costs.
• Gives Chile an “equal voice” at the table with regard to macroeconomic policymaking, and access to innovativenew ideas on education, job creation, and many others.
AmCham Chile Presentation KitAugust 201127
Presentation Kit Overview
1. Chile Geography & Demographics
2. Chilean Political & Economic System
3. U.S. – Chile Trade
4. Investing in Chile
5. Chile Rankings
AmCham Chile Presentation KitAugust 201128
Trade Agreements
12 Free Trade Agreements
Free Trade Agreements Under Negotiation or Pending Implementation (P.I.)
Source: Govt. of Chile General Directorate for International Economic Affairs (www.direcon.cl)
Chile has 21 trade agreements with 58 nations with 87% of World GDP
9 Other Trade Agreements
• United States• China• South Korea• Mexico
• Panama• Colombia• Peru• Turkey
• European Union (27 members)• P4 (3 nations) • Mercosur (4 full members)
• Cuba• Ecuador• Venezuela
• Australia• European Free Trade Assn. (4 nations)• Central America (4 nations)• Canada
• Bolivia• India• Japan
• Vietnam (under negotiation)• Malaysia (P.I.)
• Nicaragua (P.I.)
AmCham Chile Presentation KitAugust 201129
U.S. – Chile Free Trade Agreement (FTA)
• Signed in 2003 and entered into force on January 1, 2004.
• Eliminated tariffs on 87 percent of bilateral trade immediately, with 100% duty-free trade within a maximum of 12 years (2016).
• Includes committments by both countries on non-tariff issues, such as intellectual property rights, services, investment, temporary entry of business/ technical workers, and telecommunications.
• Result: Bilateral trade tripled in the first five years.
AmCham Chile Presentation KitAugust 201130
-4.000-2.000
02.0004.0006.0008.000
10.00012.00014.00016.00018.00020.000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US$
Mill
ion
-40%-20%0%20%40%60%80%100%120%140%160%180%200%
Total Bilateral TradeTrade Balance with the U.S.% Change in Bilateral Trade From 1997
Bilateral Trade Chile-U.S. 1997-2010
FTA
Source: Govt. of Chile General Directorate for Export Promotion (www.prochile.cl)
AmCham Chile Presentation KitAugust 201131
$7.945
$14.510$15.688
$12.830
$15.789
$5.974
$18.733
$10.956
$ 0
$ 4.000
$ 8.000
$ 12.000
$ 16.000
$ 20.000
2003 2004 2005 2006 2007 2008 2009 2010
US
$ M
illi
on
Exports to US Imports from US Total Bilateral Trade
Bilateral Trade Chile-U.S. 2003-2010
FTA
Source: Govt. of Chile General Directorate for Export Promotion (www.prochile.cl)
AmCham Chile Presentation KitAugust 201132
2010 Chilean Export Destinations
Source: Lexis-Nexis (www.legalpublishing.cl)
Japan11%
Taiwan3% Mexico
3%
Holland4%
Italy4%
Brazil6%
USA10%
South Korea6%
Other30%
China23%
AmCham Chile Presentation KitAugust 201133
Top 10 Exports to the U.S.2010
2010Rank Description 2010 (FOB)
US$ 2009 (FOB)
US$PercentChange
1 Copper 2.159.975.933 1.485.656.112 45%
2 Grapes and Raisins 489.347.670 501.943.583 -3%
3 Fish 428.939.261 521.951.707 -18%
4 Wine 243.009.363 241.580.361 1%
5 Gold 216.241.241 226.462.078 -5%
6 Other Fresh Fruit and Nuts 212.223.067 135.462.798 57%
7 Cut Lumber 149.776.135 118.645.402 26%
8 Service Exports 137.968.872 150.039.918 -8%
9 Fresh Stone Fruit (apricot, cherry, plum, peach, e 117.130.603 99.799.864 17%
10 Corn 111.839.715 92.483.255 21%
Source: Lexis-Nexis (www.legalpublishing.cl)
AmCham Chile Presentation KitAugust 201134
Chilean Imports by Country2010
Argentina9%
Brazil9%
South Korea6%
Japan6%
Mexico4%
Others32%
China16%
USA18%
Source: Lexis-Nexis (www.legalpublishing.cl)
AmCham Chile Presentation KitAugust 201135
Top 10 Imports From the U.S.2009 vs 2010
Source: Lexis-Nexis (www.legalpublishing.cl)
2010 Rank Description 2010 (CIF)
US$2009 (CIF)
US$Percent Change
1 Refined Oil 2.026.221.268 1.860.701.649 9%
2 Vehicles for Goods or Materials Transport 606.485.289 402.707.395 51%
3 Excavation and Earth-moving Machinery 378.431.905 202.062.504 87%
4 Passenger Vehicles 218.678.560 103.368.475 112%
5 Computers and Electronic Equipment 166.935.519 156.475.450 7%
6 Polymers of Ethylene 166.635.522 92.394.666 80%
7 Parts for Excavation & Earth-moving Machinery 154.980.609 141.196.640 10%
8 Wheat 116.893.353 53.005.466 121%
9 Shafts, cranks, gears, clutches, flywheel, pulleys etc 116.676.423 107.436.156 9%
10 Automotive Parts 114.631.652 98.887.736 16%
AmCham Chile Presentation KitAugust 201136
Top 5 Exporters and ImportersChile - U.S. 2010
Top Chilean Importers(% value of imports)
1) Copec (12.42%)2) Enap (9.98%)3) Finning (7.77%)4) Codelco (1.70%)5) Komatsu (1.60%)
Top Chilean Exporters(% value of exports)
1) Codelco (19.22%)2) Minera Spence (4.60%)3) Molibdenos y Metales (2.90%)4) Anglo American (2.30%)5) Panales Arauco (2.10%)
Source: Lexis-Nexis (www.legalpublishing.cl)
AmCham Chile Presentation KitAugust 201137
Presentation Kit Overview
1. Chile Geography & Demographics
2. Chilean Political & Economic System
3. U.S. – Chile Trade
4. Investing in Chile
5. Chile Rankings
AmCham Chile Presentation KitAugust 201138
General Investment Environmentas measured by the World Economic Forum
4,4 4,4 4,2
3,4 3,1
5,6
4,5
0
1
2
3
4
5
6
Chile Mexico Brazil Colombia Peru Bolivia Venezuela
The General Investment Environment is a component of the World Economic Forum’s Infrastructure Private Investment Attractiveness Index for Latin America, most recently published in 2007. Chile is also ranked highest in the overall Index.
Source: World Economic Forum (www.weforum.org)
AmCham Chile Presentation KitAugust 201139
A Springboard into Latin America
• Chile offers the best business environment and infrastructure in the region. The government aggressively promotes offshoring and Foreign Direct Investment (FDI).
• AT Kearney ranks Chile 10th worldwide for offshoring attractiveness (2011 Global Services Location Index).
• Over 4000 companies from 64 countries have investments in Chile (300+ U.S. companies in Chile)
• Business clusters in Chile: shared services, corporate headquarters, IT development & support, call centers
• 45+ companies use Chile as a platform for servicesin the region
Sources: Chile Foreign Investment Committee (www.inversionextranjera.cl), AT Kearney (www.atkearney.com)
AmCham Chile Presentation KitAugust 201140
Multinationals with RegionalOperations in Chile
Many multinationals use Chile as their platformto enter Latin America:
• Altec• Citigroup (software development)• Delta (call center)• General Electric• IBM (on demand solution Center)• International Paper• James Hardie• BHP Billiton (shared business
center)
• Kodak• Miller-Heiman Consulting• Motorola• Nestlé• Packard Bell (assembly plant)• RR Donnelley• Sodexho• Unilever• Oracle
AmCham Chile Presentation KitAugust 201141
Double Taxation Agreements
24 Implemented Tax Treaties
Source: Govt. of Chile General Directorate for International Economic Affairs (www.direcon.cl)
Bilateral tax treaties limit the double taxation that would otherwise occur on international business and personal income.
• Argentina• Belgium• Brazil• Canada• Colombia• Croatia• Denmark• Ecuador
• France• Ireland• Malaysia• Mexico• New Zealand• Norway• Paraguay• Peru
• Poland• Portugal• South Korea• Spain• Sweden• Switzerland• Thailand• United Kingdom
8 Tax Treaties Under Negotiation
• Australia *• Austria*• Germany
• India• Italy• Russia *
• United States *• Uruguay
* Signed, pendingimplementation
AmCham Chile Presentation KitAugust 201142
A Liberal Investment Environment
Outside investors have a choice of 2 main regulatory mechanisms:• The Foreign Investment Statute, or Decree Law 600 (DL600).
• Investors sign a formal contract with the State of Chile which guarantees extensive contractual rights.
• Allows 100% foreign ownership, with profit remittance any time, and capital remittance after one year.
• Minimum investment of US$2.5 to 5 million• Of the total US$103.7 billion in FDI between 1974 and 2008,
67% (US$69.9 billion) was made under a DL600 contract.
• Chapter XIV of the Compendium of International Exchange Regulations (CFER). Investment is made under a looser regulatory framework, with fewer specified contractual rights. Minimum investment is $10,000.
AmCham Chile Presentation KitAugust 201143
FDI as Percentage of GDP Avg. 2006-2009
24,9% 30,3% 27,6% 26,2%
62,0%
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
Perc
enta
ge
World DevelopedEconomies
DevelopingEconomies
Latin America Chile
Source: World Investment Report, United Nations Conference on Trade and Development (www.unctad.org)
AmCham Chile Presentation KitAugust 201144
FDI in Chile by Country 1974-2009(Under DL600)
US27%
Switzerland2%
UK9%
Spain19%
Canada17%
Australia5%
Other11%
Italy2%
Japan4%
The Netherlands
2%
France2%
Source: Chile Foreign Investment Committee (www.foreigninvestment.cl)
AmCham Chile Presentation KitAugust 201145
FDI in Chile 1998-2009(Under DL600)
Source: Chile Foreign Investment Committee (www.foreigninvestment.cl)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
US$ M
illion
s
TotalUS
AmCham Chile Presentation KitAugust 201146
Mexico41%
Brazil24% Chile
9%
Argentina6%
Venezuela6%
Colombia3%
Other5% Panama
3%
Peru3%
2009 U.S. FDI in Latin America
Source: U.S. Bureau of Economic Analysis (www.bea.gov)
AmCham Chile Presentation KitAugust 201147
1974-2009 Worldwide Materialized FDIin Chile by Sector (Under DL600)
* Services include financial, commerce, hospitality, business services, insuranceSource: Chile Foreign Investment Committee
(www.foreigninvestment.cl)
20%10%
9%
6%
4%
3%
3%
3%
2% 8%
32%
Mining
Electricity, gas & water
Financial services
Communication
Wholesale and retail trade
Chemicals
Food, beverages and tobacco
Insurance
Other manufacturing industries
Construction
Other
AmCham Chile Presentation KitAugust 201148
1974-2009 U.S. Materialized FDIin Chile by Sector (Under DL600)
Source: Chile Foreign Investment Committee (www.foreigninvestment.cl)
* Services include financial, commerce, hospitality, business services, insurance
28%
16%
14%
9%
8%
5%
4%
4%
4%2%
6% Mining & quarrying
Wholesale & retail trade
Electricity, gas & water
Communications
Financial services
Chemical, rubber & plastics
Food, beverages & tobacco
Insurance
Other Services
Wood & paper products
Other
AmCham Chile Presentation KitAugust 201149
2009 U.S. Materialized FDIin Chile by Sector (Under DL600)
Source: Chile Foreign Investment Committee (www.foreigninvestment.cl)
Forestry
Mining & quarrying
Chemical, rubber & plastics
Wholesale & retail trade
Communications
Financial services
Insurance
Engineering & business serv.
Other Services
US$ (in thousands)
0 20.000 40.000 60.000 80.000 100.000 120.000 2.640.000 2.680.000 2.700.000
AmCham Chile Presentation KitAugust 201150
Others9%
Australia1%
Panama1%
Mexico1%
United States7%
Brazil20%
Argentina29%
Colombia14%
Peru18%
1990-2010 Chile Outbound FDI Destinations
Total Invested: US $56.8 billion
Source: Govt. of Chile General Directorate for International Economic Affairs (www.direcon.cl)
AmCham Chile Presentation KitAugust 201151
Presentation Kit Overview
1. Chile Geography & Demographics
2. Chilean Political & Economic System
3. U.S. – Chile Trade
4. Investing in Chile
5. Chile Rankings
AmCham Chile Presentation KitAugust 201152
Chile: The Safest Place to Investin Latin America
• Highest Sovereign Risk Rating in Latin America from each of the 3 primary ratings agencies (S&P, Fitch, & Moody’s).
• Ranked 18th (tied) in the Economist Intelligence Unit Risk Ranking as of Feb. 2010 – highest in Latin America, and higher than the U.S., Japan, and the U.K.
Sources: Chile Ministry of Finance (www.hacienda.gov.cl); Economist Intelligence Unit (www.eiu.com)
AmCham Chile Presentation KitAugust 201153
2010 Corruption Perceptions Indexfrom Transparency International
Source: Transparency International (www.transparency.org)
7,2 7,1
3,7 3,5
6,1
2,83,1
9,3
012345
6789
10
NewZealand
Chile USA Spain Brazil China Mexico Bolivia
The Corruption Perception Index ranks 180 countries by their perceivedlevels of corruption, as determined by Transparency International
using expert assessments and opinion surveys. (Higher Score = superior)
AmCham Chile Presentation KitAugust 201154
97,0
83,4 80,6 76,871,4
56,3
42,2
Brazil Mexico Chile Peru USA Bolivia China
2010 Revenue Watch Indexfrom the Revenue Watch Institute
This index measures government disclosure in the management of oil, gas, and minerals. It is an assessment and comparison of information published by governments about revenues, contract
terms and other key data. It is an important tool for increased public disclosure about natural resource management, and greater government accountability. Chile was placed in the highest
group with “comprehensive transparency”.
Source: Revenue Watch Institue (www.revenuewatch.org)
AmCham Chile Presentation KitAugust 201155
2010-2011 Survey of Mining Companiesfrom the Fraser Institute
1 28
3540
49
60
78
Alberta Nevada Chile Mexico Colombia Brazil Argentina Venezuela
This index measures investment attractiveness in the mining sector taking into account such factors as taxation, and regulation. The survey measures 79 jurisdictions throughout the world. Chile ranks 8th in the survey and is the only country outside of North America to consistently
rank in the top 10.
AmCham Chile Presentation KitAugust 201156
Information & Communications Technology
2010 E-Readiness Rankingfrom the Economist Intelligence Unit
2010 ICT Development IndexFrom the Int´l Telecom. Union
1 Sweden19 USA
25 Spain
49 Argentina
54 Chile60 Brasil
61 Venezuela
63 Colombia
75 Peru
77 Mexico
These studies rank the quality of a country’s Information and Communications Technology (ICT) infrastructure, and the ability of its population to use it effectively.
Different methodologies result in different scores.Sources: Economist Intelligence Unit (www.eiu.com) and the International Telecommunications Union (www.itu.int)
1 Sweden3 USA26 Spain30 Chile41 Mexico42 Brazil46 Argentina50 Colombia53 Peru55 Venezuela
AmCham Chile Presentation KitAugust 201157
2011 Ease of Doing Business Rankings(Latin America subregion)
Source: World Bank: Group (www.doingbusiness.org)
1 2 3 4
2226
32
Mexico Per
u
Colombia
Chile
Argen
tina
Brazil
Venez
uela
This World Bank survey provides objective measures of business regulations and their enforcement across 181 world economies. The subregion of Latin America
contains 34 countries in Central and South America and the Caribbean.
AmCham Chile Presentation KitAugust 201158
2010-11 Global Competitiveness Rankingfrom the World Economic Forum
30
42
5866 68
73
87
4
USA Chile Spain Brazil Mexico Colombia Peru Argentina
This widely-cited ranking defines competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in
turn, sets the sustainable level of prosperity that can be earned by an economy.
Source: World Economic Forum (www.weforum.org)
AmCham Chile Presentation KitAugust 201159
2011 World Competitiveness Scoreboardfrom IMD, Geneva
2
25
3843 44 46
5459
USA Chile Mexico Peru Brazil Colombia Argentina Venezuela
The IMD World Competitiveness Yearbook (WCY) is the world’s most renowned and comprehensive annual report on the competitiveness of nations, ranking and analyzing
how a nation’s environment creates and sustains the competitiveness of enterprises.
Source: Institute for Management Development (www.imd.ch)
AmCham Chile Presentation KitAugust 201160
Logistics Performing Indexfrom the World Bank
3,20
3,10 3,093,05
3,02
2,91
2,77
2,68
Brazil Argentina Chile Mexico Panama Costa Rica Colombia Venezuela
Source: World Bank (www.worldbank.org)
The Logistics Performance Index (LPI) is a weighted average of scores in six key dimensions: Efficiency of customs clearance, Quality of related infrastructure, Ease of
arranging competitively priced shipments, Competence and quality of logistics services, Ability to track and trace consignments, and Timeliness of shipments’ arrival.
AmCham Chile Presentation KitAugust 201161
Latin American Venture Capital Scorecard Ranking - 2011
7572
6360
47 4743
38
Chile Brasil México Colombia Panamá Peru Argentina RepúblicaDominicana
The LAVC Scorecard ranks 12 countries based on the following indicators: laws on PE/VC fund formation/operation, tax treatment of funds/investments, protection of minority shareholder rights, restrictions on local institutional
investors, protection of intellectual property rights, bankruptcy regulation, capital market development, registration/reserve requirements on inward investments, corporate governance, strength of judicial system, perceived
corruption, use of international accounting standards, quality of local accounting industry, and entrepreneurship.
AmCham Chile Presentation KitAugust 201162
Rule of Law Index 2011The World Justice Project
2/191/1227/660.59Effective Criminal Justice
1/191/1218/660.65Access to Civil Justice
1/191/1220/660.63Application of Rules & Regulations
1/191/1216/660.63Size of Government
1/191/1218/660.75Fundamental Rights
10/191/1245/660.67Order and Security
1/191/1218/660.76Absence of Corruption
1/191/1217/660.74Limited Government Power
Ranking by Income Group**
Regional Ranking*
World Ranking
PointsWJP Rule of Law Index Factors
Source: World Justice Project (www.worldjusticeproject.org)
*Region: México, Chile, Colombia, Argentina, Bolivia, El Salvador, Jamaica, Brasil, Perú, Venezuela, Guatemala y República Dominicana.
**Albania, Argentina, Brasil, Bulgaria, Chile, Colombia, República Dominicana, Irán, Jamaica, Kazajstán, Libya, Malasia, México, Perú, Rumania, Rusia, Sudáfrica, Turquía y Venezuela.
AmCham Chile Presentation KitAugust 201163
Heritage Foundation Index of Economic Freedom
Ranking of Selected Countries 2011
175138114
484641119
1
Hong Kon
gUnite
d Stat
es
Chile
PeruColombia
Mexico
Brazil
Argen
tina
Venez
uela
Ran
king
The Heritage Foundation is a conservative think tank dedicated to promoting free enterprise, limited government and individual freedom. Its measure of Economic Freedom combines 10 components: business, trade, fiscal, monetary, financial, investment, and labor freedom, as well as freedom from corruption, protection of property rights, and low government spending.
Rankings of Selected Countries Over Time
30405060708090
1995
1997
1999
2001
2003
2005
2007
2009
2011
ChileBrazilArgentinaUSAColombiaVenezuela
AmCham Chile Presentation KitAugust 201164
Chile in 2010
• January: Chile joins the Organization for Economic Cooperation and Development.
• January: United States – Chile Convention on Double Taxation signed.
• February: 8.8-magnitude earthquake near Concepción and associated tsunami leave between 450 and 550 dead, 500,000 homeless and US$30 billion in damages. Economic activity is severely impacted and reconstruction costs total $30 billion.
• March: Sebastián Piñera inaugurated as new president
• September: Celebration of Chile’s Bicentennial.
• October: 33 Miners are rescued from the San José copper mine, focusing world media attention on Chile .
• December: Copper prices reach record highs, causing government to intervene in USD exchange rate.
• Throughout 2010: Economic recovery continued to be strong despite the global recession and earthquake setbacks.
AmCham Chile Presentation KitAugust 201165
The U.S. – ChilePartnership
www.amchamchile.cl