cess and coverage, but weak regulatory frameworks have left consumers’ rights imperfectly protected.
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The two largest Latin American countries, Brazil and Mexico, have historically had notoriously low levels of immigration. In Brazil, the language barrier makes it less attractive for Spanish-speaking people to migrate. copper mining sector in northern Chile led to double-digit population growth in cities like Iquique and Antofagasta. Bolivians have crossed the border to work in Arica and Antofagasta. But the flows have not been restricted to migrants from neighbouring countries: Colombians and Ecuadorians too have moved to northern mining towns in Chile looking for opportunities. There are now non-stop daily flights from Antofagasta to Cali in Colombia and Santa Cruz in Bolivia. In 1990, there were 13.2 million people living in Chile – among them 107,501 foreigners, or 0.8 percent of the national population. By 2013, the population had increased to 17.6 million. This 33 percent increase over 25 years is lower than the Latin American average and just above that of the US. In that same period, however, the foreign-born population in Chile jumped to 398,251, or 2.3 percent of the national
GLOBAL BRIEF • FALL | WINTER 2015
olls repeatedly show that Chileans are very optimistic about the future of the country and about their own personal future prospects. In the monthly reports on economic outlook issued by the polling company Adimark, Chileans have consistently shown bullish attitudes. In the past five years, an average of 55 percent of Chileans have fancied that the economic situation will improve in the coming year. Because the country has seen so much growth over the past two decades, Chileans have high expectations that growth will continue, even if a majority of them also paradoxically believe that others will benefit more than their own families from expanded opportunities. Macroeconomic data justify the optimism. In 1990, Chile (US$4,388) had a lower GDP per capita (in purchasing power parity terms) than several Latin American neighbours: Venezuela (US$9,418), Argentina (US$7,462), Brazil (US$6,475), Uruguay (US$6,229), Mexico (US$5,993) and Colombia (US$5,021). Today, Chile has the highest GDP per capita in Latin America (US$21,911). Even when compared to the rest of the world, Chile has an impressive record. In 1990, Chile’s GDP per capita was 39.8 percent that of Portugal, and 18.3 percent that of the US. In 2013, it was at 85 percent and 41 percent, respectively. If per-capita national output grows at the average rate of the past 10 years, in less than a decade Chile will have surpassed Portugal. Of course, sustaining such growth will be difficult – the economy has expanded 4.9 times since 1990, but will have expanded by barely two percent in 2014 – and future economic prospects will depend on higher levels of education and higher productivity among younger cohorts. Rapid economic growth has had the effect of reducing population growth. In fact, there has been no better birth control mechanism in the history of the country than its sustained economic expansion over the past two decades. After democracy was restored, the average number of children per woman decreased from 2.4 in 1990 to 1.8 in 2005. As the former poor entered the middle class, women waited longer before having children and young couples chose to have fewer children. The slower population growth made it easier for Santiago to expand social services. Moreover, since the pension system was modified from the traditional pay-as-you go approach to individual savings retirement accounts, an ageing population has not presented the same chal-
lenges that it does in Western European countries. The increase in educational levels among younger Chileans has led to growing demand for low-skilled workers – particularly for household work. From the mid-1990s, migrants from Peru began to fill positions previously taken by Chileans migrating to cities from rural areas. Indeed, the arrival of Peruvian nannies was early evidence that Chile was turning into a destination for immigrants from elsewhere in Latin America. Other migratory waves soon followed. After the 2001 economic crisis in Argentina, many highly skilled professionals crossed the Andes to find work in Chile. Having already been positively impacted by the arrival of world-famous Peruvian food, the restaurant industry benefited from the influx of Argentine hosts and hostesses, a group better trained than their Chilean counterparts. In recent years, immigrants have settled in cities and towns beyond Santiago. The active
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