Chile's Finance Minister Alberto Arenas de Mesa gave a presentation on the challenges to continue the economic growth and stability that helped the country do so well over the past two decades. [Download his presentation.]
While the commodities boom brought great benefits to Chile, the world’s biggest copper producer, it also masked a lack of investments in other sectors of the economy, especially manufacturing and industrial exports. Now, with a slowdown in China’s economy, Chilean commodity exports are seeing a secular slowdown. This, as well as rising energy costs, saw less mining investment coming to Chile, said the minister.
Arenas de Mesa said Chile’s main challenges to increasing growth are:
- To increase productivity and diversify the economy;
- To increase and improve human capital;
- To make investments more "dynamic;"
- To reduce energy costs and guarantee adequate future supplies;
- To improve infrastructure.
En seminario @ASCOA ministro Arenas dice que ref. educacional tiene como objetivo central aumentar y mejorar calidad de capital humano
— Diario Financiero (@DFinanciero) June 27, 2014
To take on these challenges, the government is creating a $1.5 billion productivity fund to foster innovation, entrepreneurship, and competitiveness, with a focus on public-private partnerships.
AHORA Ministro Arenas: Tenemos desafío de reimpulsar crecimiento, para avanzar hacia un país que enfrenta desigualdad http://t.co/9J5CaXOkVF
— Ministerio Hacienda (@Min_Hacienda) June 27, 2014
Watch a video of his remarks: