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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







5. Chile Rankings


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.


Northern Chile


Central Valley


Lakes Region


Southern Chile: Fjords


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)


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%







5. Chile Rankings


Chile’s Political System

A representative democracy, divided into three branches:

Executive

Legislative

Judicial


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)


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


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


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.


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

*

%


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.


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.


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)


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)


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.


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)


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


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)


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.







5. Chile Rankings


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.)


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.


-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)


$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)


2010 Chilean Export Destinations

Source: Lexis-Nexis (www.legalpublishing.cl)

Japan11%

Taiwan3% Mexico

3%

Holland4%

Italy4%

Brazil6%

USA10%

South Korea6%

Other30%

China23%


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%



Chilean Imports by Country2010

Argentina9%

Brazil9%

South Korea6%

Japan6%

Mexico4%

Others32%

China16%

USA18%



Top 10 Imports From the U.S.2009 vs 2010


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%


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%)








5. Chile Rankings


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)


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)


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


Double Taxation Agreements

24 Implemented Tax Treaties


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


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.


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)


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)


FDI in Chile 1998-2009(Under DL600)


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


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)


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


1974-2009 U.S. Materialized FDIin Chile by Sector (Under DL600)


* 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


2009 U.S. Materialized FDIin Chile by Sector (Under DL600)


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


Others9%

Australia1%

Panama1%

Mexico1%

United States7%

Brazil20%

Argentina29%

Colombia14%

Peru18%

1990-2010 Chile Outbound FDI Destinations

Total Invested: US $56.8 billion








5. Chile Rankings


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)


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)


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)


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.


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


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.


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)


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)


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.


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.


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.


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


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.


The U.S. – ChilePartnership

www.amchamchile.cl

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