Os desafios econômicos do desenvolvimento democrático no Chile

Abstract

The new democratic government in Chile starts from a strong economic base: a stable macroeconomic situation, a growing economy open to world markets and a dynamic entrepreneurial activity. It faces, however, some important challenges: a high proportion of the population living in poverty, an insufficient level of investment, a relatively low amount of saving and the burden of a still significant external debt. This paper analyzes these challenges and suggests different options to confront them Long term success in these goals can only occur if the basic macroeconomic equilibria are preserved, setting an appropriate environment for the development of private initiative. A postcript at the end of the paper discusses the three principal economic developments during the first year of the democratic government: the adjustment program aimed at checking aggregate demand and inflation; the tax reform to finance a higher level of social spending and the reforms to the labor code on issues such as collective bargaining and unionization.