The Future of Chile: Economic Vision and Goals" with José Ramón Valente, Chilean Minister of Economy

The Future of Chile: Economic Vision and Goals

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I've been taking place we appreciate you coming. Now. We have will started off immediately with our Dean's Delaney - welcome. Thank. You sir but. Do you need everyone and welcome, I'm John. Delaney Dean of cobots. School of Business at AU. I'm. Delighted. The trainer's to join us this evening for, a very, special event. Featuring. Jose, Ramon Valente. Minister, of Economy for. Chile. At. American, University, and at the Quahog School of Business we. Believe in creating. Meaningful, change, through, our work. We. Want to make the world a better place through. What we do our. Vision, is that by, pursuing, worthwhile. Professional. Paths we. Can improve the lives of others. Who. Better to welcome, to campus this evening, then, the, Minister Jose around Valente. He. Took office just, recently in March and. As Minister, the economy, of. Chile, and he, works closely, with, the. President, to shape the economic. Future of the country. His. Job is to foster, economic stability, and, growth. Goals. That directly, improve, Chilean, citizens, quality. Of life. Outside. Of his new role the. Minister has openly, supported, businesses. That strive, for, social, good, just. This week he recognized. Five -, in companies. That were finalists. For, the International, World Summit, award, an award. That celebrates. Social. Impact, through. Digital, innovation. Businesses. Including, all green, yupi. An app that helps you measure your environmental, impact, and, laboratory. Ax attacks. Social, enterprise that empowers. Young women, were, among those recognized. By the minister. He. Noted that they required, a lot of work and, little glamour. Also. Acknowledging. A key, of socially, minded ventures. Mr.. Walenta is interested, in the award and supporting. Businesses, pursuing. Social, change is, just a small example of. His investment. In the greater good. The. Bigger picture, is his commitment, to his country. And desire. To create meaningful, change through. His work, goals. I'm sure we'll hear more about this, evening. Thank. You Minister, Atlantic, for being, here this evening. For, sharing, your, vision with us and for sharing our, vision, of the, importance. Of fostering, meaningful. Change, in the world we. Look forward to learning more about your work, insight. That will help us become, stronger. Students. Professionals. And global. Citizens. I now. Wish to turn things over to Professor, Thomas Markowski. Chair. Of our international, business department. Who, will say a few words before. Presentation. Thank. Sarah. Mady who, is actually going to be leading the, group of MBAs. Just. So, many weeks, but. Also I want to extend thanks to the staff of the Chilean embassy which. Helped, facilitate, and, make, happen. This, quite, unique, event, this. Evening now. Most. Of us love, the. Products. That Chile exports. The wonderful wines. The. Grapes, the, salmon. And it, is a is. A great, success, story. Of. Developing. A very competitive export, industry. But. There are, also other reasons why, Co. God is now, I think, going, to chill it for the fourth time so. In a way we can say we are close, friends of cheetah we are sending our students, there more. Or less than a regular basis, why I would do we send our students, to Chile, because. Among, all the Latin American, countries, it, is perhaps, the most successful. Economy. It. Is number, one on. The. Capita GDP. It. Is number. One in terms of its innovation. Index and it distinguished, itself, also. As the. First constraint. Latin America, that was admitted, to the OECD. Later. On another country joined that was Mexico, but there are only two as far as I know that, our man our members is the exclusive. Club of, so-called. Rich countries, developed, countries, so.

This Is a model, of success that. We, need to study so. Thank. You for coming, step. Island the floor is yours. Okay. Right okay, well thank, you very much professor and thank, you all for being here. Tonight. Them it's, a quite a impressive. To have you here this is a very. Small country very, far away very funny looking but. Long. And narrow in, today we joke that we, have to build our our soccer. Fields. From. North to south because, then they wouldn't fit there from. So. But, that's, what we have an answer that's a very interesting certainly, my first from Spain but I grew up in Chile and I, became, Chilean very fast so they had a patient of people. To to, love and. Live in this country it says very rapidly. My. Wife is from. Her. Parents are from Germany and she, also feels rich again so somehow. Because, we're. Far away or because we love this at. These countries that we, really all feel Chilean, very, very soon so when. I talked a little bit about, what. Our view is on, the Chilean economy, and the, future of the Chilean economy I won't be able to tell you what we did because we just started the government a month. Ago if. You invite me next year or in, a couple of years maybe I could, tell you then what, we couldn't do. Or. What we really, do. Now. Let. Me well. Professor said that this, was a successful. Story in natin America, and it is this is a small, country set 70 million people seventeen. Eighty million people, but. We do have the highest income per capita in the region with $25. Per, thousand, dollars per capita GDP, and on, a purchasing, power parity, and. That's that that is quite a success, if. You consider. That only 30 years ago Chile, was in the middle of the table among. Latin American countries with three. Point three thousand. Five hundred dollars. Per capita income so we really. Jumped, a lot and. Now. Let me start with this because he said I was in in, Cambridge, visiting a son, a, couple, of months ago and I bought the book by the last, book by Daniel Rory which, is a very. Distinguished professor, at the Harvard Kennedy, School of Government, and. Inside. The book he has this. Quote and. It says a poor person in rich country, is three times better off than a rich person, in a poor country which. Commutation. Because we. Have this. Image. That. Of. A person driving like a BMW. In. A, dirty place but they're having a very good life in a very poor country and that's, the image we have of like. Rich. People in a poor country living very well but, the numbers, study. By Braddock which is basically, taking the five percent of the richest population, and the five percent of the full of postage you would show this picture which is the real is. Very profound this. Is that is, contra to hit first because, he said that he always asked his students. What. They think and they naturally. 60 70 percent of the class would say that they would prefer to, live in a country and that is poor but they are rich in that country, but they don't realize that that, that's only poor probably the point, seriously 1%, that's the image they have but not a 5%, but, this is this is important, because it gives. You a. Very. Clear you, and makes, you think how, important, growth is, and for. A part especially, for, the poor and middle-income economies, growth is very, important, even when you think that. Your, ultimate goal, is not, the money, but, it's, a, happiness. Or its well-being, grows. Confuse to be very, important, especially as, I said if you're like, in, the middle, and.

Low, Income range. This, is this, is a grand room for. The. United Nations and. This. Is the Human Development Index. Done. By the United Nations and you can see they take the clear correlation between the. Human Development Index, and the, income per capita, it's. Ever, more, difficult to get more. More. Happy, in that case or or all better off in this case as you go up. In. The. Income level but the. Correlation is pretty clear in the case of Latin maker that. Triangle the greater angle there is Chile. You. Think that still. Has them to be the highest income, per capita in, the region it's also the, country are according, to the United, Nations they consider has the highest Human Development Index, since, not just and. Money, is will, be in this will be that, has been shared with the population, you will you. Will that there will be allegations, lots of allegations, that Chile's are, not. A very quality and, country, that. We, have disparities, in big, disparities, in income but, having. Leave there I can tell you that what. Roddick said is is true. Probably. The. Poor people today until live even, better than they, did their wealthy. 3040. Years ago matter. Of fact there is research, that shows that. 90%. Of the people today, has. A better, living. Standard, than. That 10% enriches. Part, of the population in Chile in 89, that's. Myself you've sure and, if. You want to look at the reference it's, a, good, analyst from Maryland, University but, he. Did a study with it with, the set. Which is CEP. Which. Is think, I'm into so. It shows you that this, is a this is a really important factor and you cannot forget. About and, sometimes when. When, people, in government there are many conflicting and. Many goals, that you can pursue and then. You, give growth. As. Granted, you say well this is this is there and you. Don't have to foster. Growth, you don't have to be. Careful, about growth, and you can do, like different. Public. Policies, and forget, about this. Which seems, to be like probably, the most important, one especially for. Poor. Or middle income countries. So. Having, said that is that when, we. See. When. We think on how we see the our, country for, the future and the, policies, how. The our policy, will be inspired, and economic. Policies will be inspired. We put, growth as something. That is fragile and it's, something that needs to be take, care of and foster because, encouraged. Because it's very important, for the well-being of the population that's our ultimate goal, to, increase and improve the well-being of the population so. Gross is at the top of our our, goals. And. Now. There's. Been another. Discussion, in the country lately and and whether business, plans are good or bad guys. Where, whether, the private sector is important, or important, for, to, achieve, growth and to achieve well-being, and our. Our thinking your, business months are of, course you have exceptions, but at the end business. Investment, and, the private sector is very important. And they have to go to work, together with the government government government, cannot, provide by its own all the solutions, our country needs so we need cooperation, among private sector and public sector and, in, that sense businessman's, are part of the solution and not part of the problem in. Getting. This, country to be better. Another. Discussion, that we have had is whether China's. Economic. Will be no future depends, only on copper price. For. The ones that do not know, Chile, it's, a very intense big copper, we. Have where the main. Producer of copper in the world number one and number one exporter, of copper also and, then, we have huge, copper reserves, and copper itself. About 50 percent of our exports. So. It is very very important, for the country. It's. Such. That people say well. They. Have this pessimistic. View they, say well we will be good, if copper prices are high will be bad if copper prices are down that's. Not the way we see that's. Not the way I see. I. Think, at. The end our. Future, depends really on on, the way on the possibilities, that the chileans is seventeen eighty million people in Chile can develop, new.

Ideas New markets, new companies, and and, that's gonna be at the end they will. Make us better, or worse in the short term of course the, potentially, copper price will, damage our income, or will improve our our whirring company in the long term I don't see that correlation between copper. Prices and and. And the long-term trend of growth in Chile as a matter of fact if. You look at the the figure side I'm having here but if you look at the figures the the. Period where Chile grew the most was between ninety and ninety eight before. The Asian crisis that survey, the. Golden period of growth for Chile and a half percent on average for that period and copper prices were very low during that, and. Then we had a very radically. Good copper prices in the last couple, of years and then. The gross has been only one and a half percent so we, have had them periods, of both and, certainly. Between 2003. And. 2008. We had that good run commodity, prices went to roof copper prices really, doubled and and, that helped, our, growth too because we had a lot of investment, so but, it's not that it's not a, clear. Correlation. Certainly. Not one, on one correlation. Copper prices. And. They were being of Chile so in. The last 20 years Chile has created, new, industries, in. New. Companies, that didn't existed, and there. Are today, industries. And companies. Among. The best and the, biggest in, the world so, we have copper, but we have lithium that, you know is a very important for the future of electron. Mobility, and, very very important for for, batteries and if, Tesla. At the end dominates. The world or or, companies. Like this level medium will be really very important Chile holds 50, percent of the leading research so the world so that's an important, thing that, we, have it as a natural resource but that we have developed a technology to. Produce it at a rail of course and because, that Chile's today also they they. Largest. Work producers medium we. Have much more than that us in the north I said, that these funny-looking country, that's in the nose in the nose we have in the desert we have maybe, the desert copper lithium, but we have astronomy, Chile. Today, has 60, percent of the, capabilities. Of the world to. Look at this guy's sixty percent of all the world. Communities. To see. What's out there are, in Chile but. Also we have the highest radiation in. The world in the north so. Chile, is the best place to build, solar. Energy. Plants, around. The world so so, we have copper we have lithium we have astronomy and we have, solar, energy, all in, the desert which I mean. People. People. Argue about this people like the Texas and some others do not I am and, the ones that I'd, prefer not desert, and. But, but, something, we have had a lot of our wealth, there in the center Tina would have a, grapes. Wine, and. Blueberries. So. Chile, is the largest. Exporter. Of grapes, table. Grapes in the world is the. Chilean. Company produced 25%. Of all the blueberries is that, there are commercial. Eyes in the world and. And. We have we are the fourth largest, exporter. Of wine after France Italy, in Spain and. That did, exist, and. In the south we have wind, power plants, and, we'll fish, farming. And we have forest products, so, really. Chile's much, more, than, copper and, so. To keep up with copper, all. This, the other sectors, have to really. Develop. In the last 20 years to. Say that at least 50%. Relationship. In export and certainly. The. Country is much more diversified, when when you look at no export but the. GDP. In total well, and finally in terms of in. Terms of these principles. We. Really believe that well. Chile's is a very a quite open economy, and because, I thought we do compete with the rest of the world and we need to be competitive to be, successful, like, any other open, country, and so. Our competitors. Our rivals, are outside. Chile I said this is like a relatively, obvious but, I say this because we, fight a lot internally like in many countries, big. Fights among. Chilean. Brothers. And you, because. Of those fights you sometimes forget that you're your, rival side outside not inside and so, what do you have to look it's a work, together, inside. To see how we compete, with the rest of the world and not be fighting, among us for, pieces of smoking. So. With, that in mind is that that we're building the, public. Policies, and economic policy, that we want to implement in, Chile for the next four years and hopefully, for more more, years. Than that so. What what, are the economic, goals that we, in, the program and as part of the, Priscilla. Panera government. Well growth ups as you can see spin very. Low for the last four years that's. Very, unusual, for. The history for the recent history of Chile average.

Rose As I said before is 5% for 30 years, including. This this. Last, four years so. So, to have a one and a half percent growth rate it's. Been and something of a shock, for Chile. And. To have four years in rope growing, at, less than two percent average it's been a real, shock for the Atilla that were used to progress at a more rapid pace than. That so, first. Goal. Is to take, grows, back to around, four to four and a half percent. During. This government, I mean when I say four percent I say growth in, a sense that this, is the measured. Growth but, also we want potential, growth so we want growth to be sustainable, at that at those levels we're gonna have growth this year already. I call, it to the MF about. Three. And a half percent three point four percent that, would be double of last year so it, would be a great success, but, we don't want that to be one year so that that's gonna be this year but when you look at the alignment figures, that were released when they were gonna make out the couple, of days ago you, see the EM F but, it. Is, forecasting. Close to be until three, point four percent but then when, when they talked about 2020. They put us at three percent that, means that. They. Think, that a long-term growth in Chile being. Growth, potential, Chile is around three percent so, one percentage, point below what. We're saying there so, we need, to work a lot really. To. Increase one percent that point our potential, growth and not, just a one-year growth and that, that we need of course to work in the three areas. But. That you need to to create growth you, need to have Labor, qualify, labor and I create the labor opportunities, for, worker for people you need investment, deliberately, because those are the three areas really the three components. Of growth. So. So. Because. Of that in. In the Ministry of economy we have were taking very seriously. The, goal of increasing. Investment. Investment. Great investment, in Chile's business coming down for four years in a row after growing, very fast in. The previous two decades so, we need to revert that and, instead. Of having this four, years of reduction. In investment, we lost fifteen. Billion dollars when you compare investment investment, in, dollars, 2017. With. 2013. And. So, we want to grow investment. At around six. To seven percent per year to achieve 25, percent of GDP in. 2022. Point this is, a very. Difficult. Goal, but, we're, doing all that we can to, streamline. The process of. Investment, to make it easy in terms of permitting. And, basically. To. Reduce the, time, that we're taking to approve, or to. Say no to. An investment we. Don't want to reduce, standards, we don't want to make it easier, from an environmental, point of view at all but, we want the government to work better and more coordinated, to. Make investment, easier in the country so some. People ask me whether we're, where we're encouraging one. Type of investment, or the other whether we want. Solar, whether we want copper, whether we won't meet him whether we want our industry. And frankly. That that's, been the approach in the past I know it is approached for many scholars. To say that you, you, have to find where your competitive, advantages, are and then, to try, to focus on on those sectors I I. Was, a, student, at the University of Chicago so I don't believe in that I. Believe. That that you have to create, good. Institutions. An. Open, market, and a free economy and. Respect. Property. Rights intellectual. Property, and have. A neutral, position in, terms of sectors the, market, the. Innovation. The, innovators. Entrepreneurs will, know where to go and we're open to receive everybody, that, will respect our laws our our. Institutions, no matter what sector they want to. To invest in. I, received. Some complaints about that that's true but let, me tell you an anecdote who, would have thought that, one. Of the most innovative. And successful, companies. In Chile was. Funded only, 12. Years ago probably 15, years ago and is called crystal lagoons, operates. In 60, countries and, creates. Artificial, lagoons, out of, salty, water it's. A chemistry, multi. Billion dinner, now and it's a Chilean company, and I, wonder, if they're worth in the plan of any bureaucrat. In the government, that that company would exist.

So. That's why I am more. Sectors. In particular. So. As. I told you we invest we need total productivity, productivity has, has, been coming, down for three. Years in Rauscher there produce 2017. It also came down we need to, increase, procure at least at one percent per year to achieve this four percent growth and and. Well I mentioned already that we. Want to streamline investment. If. We are able to do this we, are going to increase. Job. Creation more. Rapidly than what we're doing right now and we will achieve nine million people probably. Employed. In in Chilean, 2021. This, is important, we win, investments. When. You foster investment, lots, of new things lots, of good things happen. New, investments, are less. Energy-intensive. New, investments, are pollute, less also, so they are more environmentally, friendly and new, investments, that create good jobs instead, of creating like, a. Jobs. Without contracts. Joe with no jobs with no social security and. Informal. Jobs that the investment, tend to create a good, jobs and they create direct jobs and they create indirect, jobs and. They, are decentralized. Typically, when will you see investments. Around A&R, big projects, they are decentralized, so, instead of all the jobs being created in Santiago, in Chile the capital of Chile then then you have, jobs. Being created all. Character. So there. Is a lot of positives. And positive, externalities. When you thinking in creating, an investment. Shot in the country and. That's what we are working, for. We're going to create a major. Major. Projects, office which will, will basically try, to coordinate, the efforts of the governmental to, make this investment process, simpler and achieve, our goals, there. In. Terms of Finance, for the for the country. Well. Any, of you that have study, the. Balance sheet of countries, around the world will, say that will. Agree, with me that to have a 2% fiscal, deficits, not that much I agree. To but Chile was used to have surface. For more than 20 years and we have a 2% now. And. That. 2%, that live will it means, that we are accumulating, that. Rapidly. Lately. We don't want that because. We we have copper and we have other other commodities. That we export, we're a relatively. Cyclical, economy we, need to have lower levels of debt otherwise. We're. Gonna sucker one when there is a crisis, so it has a note the level of that the. Government. Debt is only. Four, point four percent of, GDP when you get that if you take it account, for that as net net, of day of the liquid research that are sitting, there surgery. Is really, low compared, to the hundred percent figure. For the US or many. Of the European countries and we not want to stay there so. We. Were, gonna do, like a big effort in terms of. Reducing. The the, increase, in the expenditures submitted.

More Compatible with the growth of the economy and try to reduce that public. Structural. Balance to, zero. Well. One, of the big success, that I didn't mention before is that in, in the last 30 years. Chile, reduced property. Through a portal a measure. With a lock with a with a local, or the national. Poverty. Line from, 50 percent to 11, percent so it was a, huge. Reduction. In in poverty and, we want to reduce that farther and. To take it a third, lower but, by, 21, and to. A half of what it is now in twenty five that's. A lot when. I when. You think that this, forward poverty. Line of course is as I said it's the national poverty line if you measure it by the international, poverty line which is set by the World, Bank and. That. There are certain ranges, but for. People that are really poor they they say well people. That earn less than two dollars. A. Day with. That standard Chile has only one point three percent of, people living in poverty today, all right so by bystanders of, the World Bank there are almost no ports in Chile by our local. Standards, that we. Still have this this, number, which which, is similar to say that I think that the, other bar that woman, has is four dollars I think that I will be more similar to what we have with four dollars I think it's seven percent but. Still would. Growth and and, the effort of vocalizing. The. Government. In in, going to a sector that are more in need in in the society I think we can, achieve this poverty. Reduction, now. Action plan and. With this I'm going to finish action. Plan I mentioned. Already the, mayor office the. Mayor project office we have a comprehensive, plan to improve, competitiveness. And. Productivity. We, want, China to be part of the, economy. Of the future and, for that of course will. Invest, more in digital. Infrastructure, and in, created. In, creating, also, human. Capital there is. Rightful. For the economy of the future so, we need to teach, our our, kids more, English which is basically, the language. Of the of the Internet and we need, to also. Change. Our our, education. Systems, who have adapted to the to the new needs of the, economy of the future 5g. Is. Around. The corner in, 2020. That is going to be this new technology, we don't want if, I did - we. Don't want to lack the, adoption, of 5g, in. The past and I always tell this anecdote but, in the past in, Chile and in Latin America we closed our economies, to what was going on in the, rest of the world that, happened during the 20 century and, much, much in the 20 century all that the Omega was a very closed, continent. What, the, world economy we did that because we suffer, a lot during the, crisis of with, the Great Depression in the thirties and, to. Make, it to the 40 so the, Argentinian. Solution, for that I have to say this appalling the solution. For that was. Run by an Argentinian how many Argentinians, in the. Solution. Then today, to. The to. The depression, was that we had to close, to our economies, and I get, industrialization. From, within and that, created a, lot, a lot of divergence. From, Latin. America. At the local countries, I mean that the local Latin America and the rest of the world we we got poorer compared.

To The developed countries, we can not repeat that and, frankly, that's, what we want to do in a sense of eighty putting. Our our economy. Connected. With the rest of the world so. That's. That's our plan and a part of that plan we are gonna do a day in the, permanent, that I'm running and then one when you talk to the Minister of Finance which is also here in Washington, these days he. He, will, tell you that he. Wants to take. Corporate. Taxes down to 25 percent raise, 27. When. It went up from 20 to 27, we want. To take it to 25, and. Make an effort there to make our companies, more competitive, 25. Is a little, bit above the average of the OECD countries. That's. Without, counting, the with the recent reduction in, the US corporate, taxes are going down around the world. And. So, it's a forum, per minute like, material, economic for, companies in TV is difficult, really, to compete if, you not competitive, in taxes. And. Interconnects, every said it sorry lies public debt and, we. For many years have been a very well rated economy, the, highest rating in emerging markets with utterly -, we lost that we. Lost because, of the, increase in debt and because of the public. That we lost one notch and we're, now a a eight plus in the international, ratings we want to relieve. That position. To, keep our, financing. At a low, rate and being, able to finance, investment. Boom of course, in. In other areas. There. There is we, want to do a lot, in terms of Public Works. And. With investments, of nine million nine million dollars, in. The next four, years it. Says nine million there there is nine billion dollars, o minutes, of videos. And. I. Think. That that does basically they don't want to extend, myself, well if we do it we're successful, what, that will go into chip it were successful, we're. Successful we're going to achieve, to. Be the. First Latin American country to be part of the, this, exclusive. Club, of developed. Economies, it's. Exclusive, because we have seven point seven billion, people living in our world and only 1 billion lives in developed, economies so, it is very exclusive only one out of seven, one, out of eight citizens.

Of The world live, in an economy that is considered, or their country that is cause you to have, developed. Startup, so developed stop no Latin American country has ever achieved is except for we. Cannot dent in at the beginning of the at, the end of the nineteenth century. But. But, that's too far away in the past but. So. That's. What, we hope we, have to to do policies. And to help our people to. Achieve just under and and and to come back probably, in ten years from now and say well that we we did it and. And we can create. Something. That could be copy. Or mirrored by other Latin American countries and eventually this. Continent, that has 500. Million people this is a huge, part of the of the, world but it's relatively poor, and unsuccessful. Really by, historical, standards in. Terms of achieving prosperity, for, the people if. We if we create, these institutions, if we create the policies, that, will allow at least one country to get there eventually. Some, other countries will join and will copy, whatever, we, have done well and improve whatever we have done badly, and and. Also do. Good. Things for their, people thank, you very much. No. No it's, how, you the bed. The. World Bank has different. Standards the more use one is a two dollar range that's, how they make sure poverty, around the world but, then they have like a, higher. Standard. What. I said was that with, four dollars Thunder and, she has like seven percent a forty, right now with our national, standard, which is even higher. Than that we have 11 percent. Let. Me tell you that in, out. Of the investment in, 20, percent is done by the. Government and. 80 percent is done by us so. We need the private sector engine really to, foster investment, it's. Not enough with the with, whatever, we do in the public sector and also. In the public sector we divide into the, ones that are directly, financed by the government and the, ones that are financed, through, what. We call the cons sessions law which is a scheme, that allows, for, a private sector to invest in family, infinitely. Infrastructure. Roads. Hospitals. It, could be jails. It could be airports, to deport all, those have been. Done. In in the last twenty years with this concession law we hope to really. Shadows for, ideological reasons they, have been coming. Down lately, and. I think those were very good solution, public, private solution, really, fell for this so we have to bring, Nate that and. And achieve, those nine billion dollars, with that, but. It's and, if. You ask me what's, the highest in this broads prolly size. Connectivity. Well. You know Chile has already, free. Trade agreements, sign, with. Many. Countries. 36. 36. 36. 54. Countries I think 36, agreements, something like that but in English, what's important, is that we, have agreements. With, the. 85. Percent of the GDP, of the world ok, so we almost have three trade agreements with, the whole world. So. What typically. Means for us is more. On. Improving. What. We have and making, it our Mon eyes still, having this different, arrangement with different countries with TPP then. We were going to armor eyes these, regulations for, many, with many other countries and that of course is not so it's not just having. Low. Tariffs, she retired for. Example with the US with, the u.s. is your choice, but. But, also our, Marines are memorizing regulation, having similar, regulations in many many other aspects, like a patent, zone or intellectual.

Property To each other. So. Having the us out in. The case of Chile or signing. Or not signing the TPP in the case of Chile is not that, important, but, it's a signal, to the ones to foster, a free, trade is, the signal for the world probably. The most important, miss, if we don't sign will be our, the, agreements we have with Japan, Japan, is as you know is a relatively closed economy, they, had open, up during, the negotiations, for the TPP for example, their cultural, sector in Japan which has been traditionally very close with, the TPP negotiation. Will, open, up for many countries so it that, would be one. Example that probably, for. Chile is very important so if we don't sign we, won't have access to to the agricultural sector in the pan that will be the biggest, miss probably, but in general we, have accomplished, this and but it was very good to have to. Have this agreement, in a sense that, to. Continue with this openness. On. The on the world economy this is a huge, correlation I don't know if you've seen the, the. Figures by I am, Madison. This economist. By the oil OCD he he built the. GDP. Growth. Figures, for. 2000, years and the. Biggest correlation, of all he found was trade, and JP, growth so clearly. More trade means, hybrids. For the world high growth for the row means, that we are very tense in in emerging, markets you had to go out of that category. Yeah. We have we have a very successful program. That is called startup, Chile mirroring, what what, was done in Israel. Startup. Nation I don't know if you remember, sounds, familiar that that, book that was written about the, successful of evil Israel in terms of innovation. Of startups so, that, that was that was done in Chile and some years ago. It's. A very successful product we have a one, government agencies, call Corvo. That helps entrepreneurs. Help. Small, companies and innovation. And that, that's where you. If you ask me for classroom, that that's probably the government institution, that supports this. System. Of. Innovation. And entrepreneur. Intrapreneurs. And venture, capital we. Will keep that and, we'll foster that but. As I said before, our. General. View is, more. Neutral, in terms of sectors we, don't want to build something to compete with, with, Silicon Valley we don't want to, artificially. Foster one sector, we, recognize, that, it's. Very difficult for. For people, that are, in the in the innovation. Phase to, get the money to finance sometimes so we help them with that at. A certain, extent. And then they have to leave by their own otherwise, it. Doesn't work so. So, that we, focus, a lot in the very very early, stage and helping the, intrapreneurs. And the people that are innovating, in a very very early stage and then, we will let them to try. The market and see whether they are successful, in writing the the money, from the market otherwise they, will have to try. Something else. Sorry. Yeah. Well. Population is know that, diminishing. Rate in, the world so probably, feeding the population, won't be a problem. If. You've seen em let me let me answer. To you but that it's. Your, right with the figure it's 9 billion by, 2050. But we're on 7 point 7 and we, have in the last hundred 50 years we have gone from 1 billion to 7.7. And we've been, avian and the biggest problem, now is obesity, and not hunger. So. I don't think really I think that there, is no reason. To believe that we're not going to be able in the world to, be able to keep increasing productivity. In, agriculture. To, feed, people, now, there, are other problems we want, to, you to use. Agriculture. That there will be I mean good for the environment and, you, used to probably. Use a lot of technologies so that people. Could do. More. Interesting things than that I'm being working at with with the landed also. Of course is very interesting. Which it is a big challenge, when. You when you when you compare, a winery, in Chile with a winery in California, we use 10 times more labor than in California that. Gap cannot, continue, of course because, you want to grow, richer. Then. We're not gonna find workers. That. Work in the winery with. That value opportunity there's no way we will be able to pay them, what. Other industries, pay for, them and we're gonna lost them and work a lot about the industry so either in the industry, adapts. And and, become more, more productive, otherwise that. Industry is going to disappear, now what the government does. With, the government does again, we, have a, lot. Of. Programs. Through, this course. For institution that depends on the economy their, department, and basically we were. Basically. At the small, producers, we are trying to bring them up in terms of their their productivity, so. It's more, companies, basically where, the lower productivity is. In, the in the larger companies productivity, is very similar to any, large company, around the world it's small companies, where you have people, that have not enough.

Education, Enough. Time to get to, get educated, in new techniques so you help, them. Internet. Again. Well. That's. Good too it means that he. Will. Fill, in whatever, the teachers did. That's. That's our approach I think it, is probably a, little. Bit knee but. It has worked so, far and. You. You. Had a. Yeah. Well. The first and most important, and more difficult, one is that when, you try to make changes to. Regulation. To open up a market, when, you try to make changes in. Terms of cutting. Bureaucracy. Or cutting red tape or modernizing. The government, so any of any of these changes at the. End you're you're, touching. The interests of some people some group of interest, so. I. Redid. A reduction, in a barrier of entry to an industry could be very good for the country but, will be very damaging for that specific, group where you're lowering, the barrier of entry that. Group if it is well organized will. Make it very difficult for you to do it same. For, the. Digitalization. Digitalization. Is like an obvious thing to do inside the government probably, that would mean that we need less government people. So. The, union's. Of government will oppose digitalization. Inside the government so, I think that the how, to deal with the political, reality. That, any. Change, that you want to produce, will. Create some problem for small but, very. Well-organized, population. That will try to not. To do that change that's the main problem by. Fine. Okay. Thank. You for the insightful, questions and of course thank you for the wonderful presentations. And then we have had a long day and you're ready to run thank, you.

2018-04-24 04:27

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