Publication: Chile's Growth and Development: Leadership, Policy-Making Process, Policies, and Results
Date
2009
ISSN
Published
2009
Author(s)
Schmidt-Hebbel, Klaus
Abstract
This paper analyzes the relations
between leadership, the policy making process, policies and
institutions, and development results in Chile. It starts
with a stylized model for the dynamics of development that
derives a Kuznets type relation between growth and
distribution of income, determined by the quality of
leadership, the policy making process, institutions, and
policies. This framework is applied to Chile, identifying
the features of the policy making process and leadership
that allowed for continuation of growth enhancing reform,
with a stronger focus on equity goals, since the transition
to democracy. As a result of three decades of reforms, Chile
has recorded a quantum leap in economic growth, which is
traced down to specific reforms. Yet Chile's equity
experience is much more mixed: poverty has declined
massively but income remains highly concentrated, a likely
result of shortcomings in the quality of education and in
labor markets. The paper reviews the major risks to the
country's future development pace and points out the
main reform challenges faced by policy makers.
Link to Data Set
Citation
“Schmidt-Hebbel, Klaus. 2009. Chile's Growth and Development: Leadership, Policy-Making Process, Policies, and Results. Commission on Growth and Development Working Paper;No. 52. © World Bank, Washington, DC. http://hdl.handle.net/10986/27939 License: CC BY 3.0 IGO.”