Chile
A Study of Agriculture and Economic
Growth
Presented to:
Professor Spencer Henson
By
Maximiliano Nava-Espinosa
Lukeman Masuen
James Mardall
Cameron Wagg
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AGEC 4210: Group 4 - Chile
Contents
1.1 - Introduction
1.2 - History
1.3 - Geography
1.4 - Natural Resources
1.5 - Demographics: Employment, Income and HDI
1.6 - Economy
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AGEC 4210: Group 4 - Chile
6. Constraints
8. Conclusions
10. References
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AGEC 4210: Group 4 - Chile
1.1 - Introduction
1.2 - History
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1.3 - Geography
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1.6 – Economy
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AGEC 4210: Group 4 - Chile
This does not however alter the fact that the overall level of
poverty has declined along with the consistent growth of the Chilean
economy since 1975. This is clearly illustrated by the graph in Figure 4
(World Resources Institute 2004).
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AGEC 4210: Group 4 - Chile
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As a result of the coup and world economic crises during the late
1970’s Chile faced recession and runaway inflation. Traditional, labour
intensive and low productivity estates faced bankruptcy. Land was
auctioned off to urban businessmen looking to capitalize on market
interests globally and domestically, as well as modern technological
inputs shown to increase commercial productivity (Armstrong 2004).
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AGEC 4210: Group 4 - Chile
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(Government of Chile)
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8. To improve pensions.
(Sustainable Chile)
5.2 – Education
Over the last few decades the education system in Chile has
been subject to the guiding hand of the free market. This has
increased the access problems to education that the traditional rural
impoverished communities face. Education is important to these
communities, particularly with regard to learning about access to
agricultural inputs and technologies.
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AGEC 4210: Group 4 - Chile
6. Constraints
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6.3 – Capital
6.4 – Labour
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Another constraint, which the small farmer faces, is that they are
often neglected by INIA – the institute for Agricultural Research,
mandated to carry out cutting edge research to benefit Chilean
Agriculture. Even when included, the technologies advocated by INIA
are often beyond the financial means of small farmers.
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In 2001, Chile also received $40 million from the US in ODA (CIA
Fact Book). However, this aid was not earmarked for agricultural
purposes but was intended for the following institutional purposes:
military and police aid; international narcotics control programs; sales
of military supplies; training at the Western Hampshire institute of
Security Cooperation (formerly the School of the Americas); inter-
America air force defence academy training and centre for hemispheric
defence studies training (Centre for International Policy 2004)
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8. Conclusions
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Chile has recognised that real growth requires not only strong
export demand, but also strong domestic consumer demand. In order
to achieve this goal, attempts are being made to institutionally
incorporate the small-scale rural agricultural producer into the
mainstream Chilean economy. Although there was some resistance to
the ongoing institutionalization of the Chilean economy at the recent
APEC summit held in Santiago. The authors of this paper believe it will
not be long before Chile will be part of the group of developed
countries.
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AGEC 4210: Group 4 - Chile
80
67.5
70
60
50
%
40
30
20.5
20
12
10
0
Agriculture Industry Services
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60 56.9
50
40 34.3
%
30
20
8.8
10
0
Agriculture Industry Services
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Land Cover AGEC 4210: Group 4 - Chile
Developed
Irrigated Cropland
Cropland/Grassland
Cropland/Woodland
Grassland
Shrub-land
Shrub-land/Grassland
Savanna
Mixed Forest
Water
Herbaceous Wetland
Wooded Wetland
Barren
Herbaceous Tundra
Wooded Tundra
Mixed Tundra
Figure 5. Map of Chile and various land
covers (FAO 2004).
Bare Tundra
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Snow or Ice
AGEC 4210: Group 4 - Chile
Fruit
Livestock
Crops
Vegetables
Forestry
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Figure 11: Import and Export trade between Canada and Chile, 1995-
2000 (Agriculture and Agri-Food Canada. 2002b).
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Latin America
Indicators Year Canada Chile & the World
Caribbean
HDI Rank 2002 4th 43rd .. ..
10. References
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cida.gc.ca/cida_ind.nsf/0/5beclada80c78b2f852569df00776fe3?
OpenDo
Centre for International Policy (2004) “Just the facts: A Civilian’s Guide
to US Defense and Security Assistance to Latin America and the
Caribbean. http://www.ciponline.org/facts/cl.htm
CIA World Fact Book (2004) “Field Listing – Listing Economic Aid
Recipient.”
http://www.cia.gov/cia/publications/factbook/fields/2064.html
Guillen, D., Jank, M., Nogues, J. & Page, S. (2003) “The EU-MACUSUR
Interregional Negotiations: Sanitary and Psytosanitary Measures
and Other Obstacles to Trade” http://chairemercosur.sciences-
po.fr/livre/doc_74_111.pdf
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World Bank Group (2002). “Data and Statistics: Data by Country” The
World Bank Group: Gender Stats: database of gender statistics.
http://devdata.worldbank.org/genderstats/home2.asp
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Zivin, J., Hueth, B.M. & Zilberman, D. (1996) “Prospect for Chilean
Agriculture Under NAFTA: Prepared for the Tri-National Research
Symposium on NAFTA, San Antonio, Texas. Department of
Agriculture and Resource Economics and Policy, University of
California at Berkeley, CA
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