It evaluates the situation in Chilean economy about getting equilibrium between economic growth and lower inequality.-

1. Erico Wulf B
University of Lodz 2014
Poland

2. Chilean economy has been focused for more than 30
years ,on economic growth .
Markets have a decisive role in growth prospect.The
state ,complement market providing the
institutional framework, policy rules and
regulations.-
Public policies has made a strong effort to solve
social inequalities, based upon available financial
resources and efficiency.
The current market –State mix ,has not been good
enough to fullfill expectations of citizens, and to
move away from copper dependency.

3. Chile is in the 33 th position up from last year, but 11 places
below 2004-2005.
 Strong institutional framework (28th),Corruption
levels(25th), efficient government (21th(18th)),
macroeconomic stability(22nd), markets competition
(32nd) , openess to foreign trade (28th).-
The CGI suggest stagnation with the current
competitiveness status. Education quality ranks 71st( 70th)
, Mathematics and science ranks 99th(107th). Innovation
investment (58th),Innovation capacity (63rd,(76th)).-
The report 2014-2015 ,suggest that Chile has to diversify its
economy toward knowledge - based activities

11. Poverty rate (2011) 14,4%
Literacy rate (20111) 98,9%
Gyni Coefficient (2011) 0,52
GDP (2012)(billions of US dollars) 266,3.
GDP (p/c) USD 15302
Expenditures in education
2006-2012 :

12. Average Chilean disposal income is 60% that of OECD
Chile has 1 out 4 individuals in poverty , while OECD has 1
out of 10.
1 out of 4 chileans do not have money to sustain their own
food, which out pass OECD (34 countries) average.
Social expenditures in Chile is 10,2% of GDP , while
OECD is 21,9%.
Women employment grew at a strong pace between 2007-
2012
Gini coefficient : Chile 0,509- OECD 0,313
Public health expenditures( p/c) Chile USD 1600-
OECD USD 3100

14.  Economic perception outlook is not a positive one,
even before the financial crisis of 2008. The downward
trend has not changed lately.-
 The Financial crisis, did not have a lasting effect,
other than the expected.
 There is a gap between Chile and its OCDE partners,
concerning social indicators ( Education and health)
 The chilean economy exports, still depends upon
Mining sector. There is not strong share for
manufactured sector
There is a gap bewteen expectations and reality
concerning education and public health services

15. 1.- Is the chilean economic model as a
whole, a failure?
2.-Is the state keeping the pace with
economic growth requirements?.
3.- Is it feasible an equilibrium between
economic growth and lower
inequality?
4.- Does the current reforms solve
anything?

16.  So far ,Chilean economy path, has not been enough to solve
inequalities, to foster stronger manufactured goods for exporting, to
improve the quality of services , and to boost regional economies
potential.
 It follows that the current status of chilean economic model, suggest it
is necessary to do some rectifications to overcome the perception that
it deals more with the management the allocation of better
opportunities. among a few
 The mix Market-State in the chilean economy, is moving toward more
state than before, up to 20% of GDP.The proposed reforms are
necessary but not sufficient, unless the state is also part of such
reforms, to improve its effectiveness such that to get redistribution
goals without weakening economic growth.-
 The main dilemma is how to get better distribution outcomes without
affecting growh. Thus.the proposed approach should also include a
better state to imporve productivity.-

17. Chilean economy model ,faces a dilemma in terms of
making possible the equilibrium between economic
Growth and reducing inequality.
The state reforms have a lag concerning the timing
for it. So far ,The state has failed to provide a better
and wider approach to its complementary role for
markets outcomes, in such a way to get stronger
improvement in productivity and competitiveness
That equilbrium is feasible but considering the State
reforms as relevant as the others ones.-