Chile has the freest economy in Latin AmericaPublished: March 27, 2009
The country also ranked 11th worldwide in the 2009 Index of Economic Freedom published by Heritage Foundation and the Wall Street Journal.
Source: The 2009 Index of Economic Freedom
Available at www.heritage.org
Source: The 2009 Index of Economic Freedom
Available at www.heritage.orgWith an overall score of 78.3 (out of a maximum of 100), the 2009 Index of Economic Freedom placed Chile among the world's freest economies. The country also enjoys the highest degree of economic freedom in the South and Central America/Caribbean region.
The Index, produced by the Heritage Foundation and the Wall Street Journal, covers 183 countries, and evaluates ten specific freedoms. This includes trade freedom, business freedom, investment freedom and property rights.
According to the authors, "Chile's record of economic reform includes transparent and stable public finance management and strong protection of property rights." The publication also highlights that Chile's stable long-term growth is due to the macroeconomic stability and openness to global trade and investment.
Chile excels in Government Size, with a score of 90.1. Indicators within this category include low government expenditure, including consumption and transfer payments, government commitment to sound budget management and a new fiscal transparency law.
Private property is well protected in Chile, and this is highlighted by the Index: "contracts are secure, and courts are transparent and efficient. Expropriation is rare, and owners receive compensation." Due to these factors, Chile obtained a score of 90.0 in the Property Rights category.
The Index of Economic Freedom also emphasizes the performance of Chile in Trade Freedom and Investment Freedom, with scores of 85.8 and 80.0 respectively. The country surpassed the average scores in all ten components of the Index score.
Despite a strong performance overall, Chile's weakest scores are in business freedom, fiscal freedom, and labour freedom. Personal income tax is high, with a top rate of 40 percent. The Index also indicates that Chile's financial system is diversified and stable compared to those of other regional economies, with a sound regulatory and supervisory framework.
For further information on Chile's economic freedom score, please visit
www.heritage.orgFor further information on the 2009 Index of Economic freedom, please visit
www.heritage.orgSource: The 2009 Index of Economic Freedom