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"From the center of the Earth
Upon hearing the signal,
We, the metal Lazaruses rise to dance
We were asleep,
It was hard to wake up,
When the Lord and Owner
summoned his minerals.
Halá Halá!
The metal Lazarus!
Fast or slow dance they
The metal bears:
The black butts, the red and white,
The saffron.
It goes...comes and goes!
The metal Lazarus!
Copper is a sudden fit,
Silver is maternal,
Iron is Pelayo;
And gold is Abderrahman.
The mineral people
Dance by a flashing blaze:
Lightning comes and goes
As in a tempest."
-Gabriela Mistral
It's hard to believe. Chile, a country which in 1973 was brought to revolution because of a dying economy, is today looked upon as a Latin American economic role model. With the help and guidance of "The Chicago Boys," a group of men trained in Economics in the United States in the late 1950's, Chile has managed quite a change in a very short time. While agriculture, fisheries, and tourism certain have played a vital role, mining has perhaps had the greatest impact:
| Mine | Location | Exploitation | 1979 Production (Metric Tons) |
|---|---|---|---|
| Chuquicamata | II Region | Open Pit | 507,200 |
| El Teniente | VI Region | Underground | 278,200 |
| El Salvador | III Region | Underground | 78,100 |
| Andina | V Region | Underground | 46,700 |
| Mantos Blancos | II Region | Open Pit and Underground | 35,700 |
| Disputada | V Region and Metropolitan Region | Underground | 20,900 |
| Lo Aguirre | Metropolitan Region | Open Pit | 17,000 |
| Sagasca | I Region | Open Pit | 14,000 |
| Mine | Location | Exploitation | 1979 Production (MT's) |
|---|---|---|---|
| El Algorrobo | III Region | Open Pit | 2,800,000 |
| El Romeral | IV Region | Open Pit | 3,550,000 |
| Los Colorados | III Region | Open Pit | 1,000,000 |
| Plant | Location | 1979 Production (Metric Tons) | ||
|---|---|---|---|---|
| Nitrate | Iodine | Sodium Sulfate | ||
| María Elena | II Region | 180,000 | 900 | 70,000 |
| Pedro de Valdivia | II Region | 460,000 | 1,600 | -- |
| Mine | Location | Exploitation | Production (Tons/Day) |
|---|---|---|---|
| Lota | VIII Region | Underground | 1,500 |
| Schwager | VIII Region | Underground | 800 |
| Colico | VIII Region | Underground | 350 |
| Leu | VIII Region | Underground | 400 |
| Trongol | VIII Region | Underground | 250 |
| Mine | Location | Probable Exploitation | Estimated production (MT's) |
|---|---|---|---|
| Los Bronces | Metropolitan Region | Open pit | 240,000 |
| Los Pelambres | IV Region | Open pit | 150,000 |
| Quebrada Blanca | I Region | Open pit | 100,000 |
| Andacollo | IV Region | Open pit | 75,000 |
| Cerro Colorado | I Region | Open pit | 30,000 |
| El Indio | IV Region | Open Pit and Underground |
12,000 |
The Chilean monetary unit is the Peso. The current exchange rate between the Chilean peso and the US dollar is approximately 400 to 1, although it fluctuates on a regular basis. In Chile, many prices for more expensive services are actually quoted in dollars. I was told the reason for this is that the dollar is a much more stable benchmark.
The reasons for Chile's economic success are complex, but several key factors seem to be evident. These include:
- Privatization of the Economy
- Privatization of the Social Security System
- A Free Trade Ethic
- Sound Fiscal Management
- Independent Monetary Policy, and
- Political Stability
The chart below shows the significant growth in Chile's real Gross Domestic Product (GDP) over the past six years. While the percent has fluctuated, a real economic growth pattern has definitely emerged.
Another positive factor has been Chile's well-balanced exports to various regions of the world. This provides great stability in the fact of an ever-changing world market.
Chile's annual merchandise exports have also shown an impressive growth spurt over the last five years, climbing from $2.5 billion in 1992 to $4.1 billion in 1996. Inward foreign investment experienced an even larger gain, soaring from $981 million in 1991 to $4.5 billion in 1996.
As can be seen by the graph below, according to the percentage of annual increase in Chile's Consumer Price Index, the country is now enjoying greater price stability.
Finally, the overall economic policies of the past years have achieved an impressive reduction in Chile's poverty rate.
Since the military takeover of 1973, Chile has experienced the extremes of transition. On the one hand, violence, suppression, and loss of human rights took a great toll on the Chilean people. On the other, it cannot be denied that the policies of the Pinochet regime have brought Chile up from its financial disasters of the 1960's, and set the country on a pedestal as a shining economic example of the potential of a developing nation. Nevertheless, one of the great unanswerable questions remains: Will the good fortune be lasting? Or is the current economic boom only a temporary respite from more problems and conflict?