OECD Economic Surveys: Chile 2010 - ISBN:9264075755

OECD Economic Surveys: Chile 2010

Date: 23 May 2011, 17:18

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Product Description: OECD's 2010 survey of Chile's economy. This edition focuses on four key issues currently challenging Chile: overcoming the crisis; strengthening fiscal policy; fostering productivity growth, and improving the quality of Chile's schools. The survey finds that Chile is now emerging from the crisis and that the financial system has held up well, but that some areas of regulation and the fiscal framework need to be strengthened. Chile needs to enhance productivity growth, broaden innovation policy beyond basis research, and improve the quality of education. Table of Content : Basic Statistics of Chile (2008 Unless Noted Otherwise) Executive summary Assessment and recommendations Chapter 1. Overcoming the crisis -The crisis hit Chile mainly through a strong terms of trade shock -Monetary authorities faced complicated decisions -Vigorous monetary policy easing throughout 2009 was well justified -The fiscal stimulus was bold, timely and well-targeted -The recovery is expected to be relatively fast, but there are risks to the short-term outlook -The effect of the crisis on potential ouput has consequences for the timing of the stimulus withdrawal -The withdrawal of the macroeconomic stimulus should be gradual -Measures to avoid a credit crunch are welcome but supervision should remain prudent -Weaknesses in financial market regulation need to be addressed -Persistent unemployment remains a risk, as after the Asian crisis -Annex 1.A1. Progress in structural reform Chapter 2. Fiscal policies for enhanced resilience and equity -Further increasing Chile''s resilience against shocks -Making protection against unemployment more efficient and effective -Strengthening tax revenues for targeted social spending Chapter 3. Need for speed: Boosting productivity growth by strengthening competition, entrepreneurship and innovation -Background on recent productivity developments -Policies to enhance product market competition -Policies to foster entrepreneurship and business innovation -Concluding remarks -Annex 3.A1. Ten main export products Chapter 4. Climbing on giants shoulders: Better schools for all Chilean children -Educational attainment hasa increased fast but quality is still lagging behind -Improving teacher quality would raise education outcomes for all students -School competition has been insufficient to reach the desired quality improvements -The functioning of competition could be improved, but more state intervention is needed as well -Equity issues need to be addressed

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