If you attend a Spanish immersion course in Santiago, Chile, you may indeed feel like your experience was rather miraculous! However, in the event that you hear the term “The Chilean Miracle” it identifies different things altogether. This economic term identifies the free market reorientation in Chile’s economy. Whenever you study Spanish in Chile, it only makes sense to know the country’s economic history. This information is designed to give you some insight into this matter.
Milton Friedman, who’s a Nobel Prize winning economist, coined the term “Miracle of Chile “.The reason that he was so interested in the country’s economy is that it demonstrates the advantages of economic liberalism. The former military junta in Chile was replaced by democracy that so long as free markets. Based on Friedman, this was a rather big deal. He points out this change brought about the country’s free society.
Throughout your Spanish immersion course in Santiago, you will likely see a nation that appears quite financially stable. However, to know more about Chile’s current economy, it’s useful to have a go through the country’s history. In 1973, hyperinflation was very high at 700%. The economy was in shambles. Chile’s economy was extremely protectionist as well.
Later for the reason that same decade, economists who sought economic liberalization drafted reforms, privatization of state owned companies, and stabilization of inflation. These reforms took place in various stages up to 1990. Section of what took place over these years was that the government began accepting foreign investments and got rid of trade barriers. Additionally, companies were permitted to begin developing new mines.
Conditions have continued to improve in the country for many different reasons. For instance, Chile made a major handle the EU in 2002 that encompassed free trade, and agreements which were both political and cultural. In 2003 and 2004 respectively spotify david hoffmeister, the country signed agreements with the US and South Korea. A free of charge trade agreement was even signed with China in 2006, and this is the very first time that China has already established a free-trade agreement with a nation in Latin America. These accomplishments all spurred on the economic development of Chile.
Section of what’s so interesting about these policies is which they dramatically decreased poverty in the country. More and more, people had jobs as well as housing. Also infant mortality levels fell and life span increased considering that the 1970’s. Poverty levels were reduced by a lot more than half. Friedman noticed that Chile was the “best economic success story” in most of Latin America.
Whenever you study Spanish in Chile, you may hear the term “The Miracle of Chile” described at some point. After reading this information you likely have a much better idea what this refers to. Even though economics isn’t a subject that interests you, this change of financial tides is really a significant part of the history of the country.