Editing Economy of Chile (section)

==History==
{{main|Economic history of Chile}}
[[File:GDP_per_capita_development_of_Chile.svg|thumb|Change in per capita GDP of Chile, 1820–2018. Figures are inflation-adjusted to 2011 international dollars.]]
After Spanish arrival in the 15th century Chilean economy came to revolve around [[Autocracy|autarchy]] estates called fundos and around the army that was engaged in the [[Arauco War]]. During early colonial times there were gold exports to Peru from [[placer deposit]]s which soon depleted. Trade restrictions and monopolies established by the Spanish crown are credited for having held back economic development for much of the colonial times. As effect of these restrictions the country incorporated very few new crops and animal breeds after initial conquest. Other sectors that were held back by restrictions were the wine and mining industries. The [[Bourbon reforms]] in the 18th century eased many monopolies and trade restrictions.

In the 1830s Chile consolidated under the ideas of [[Diego Portales]] as a stable state open to foreign trade. Foreign investment in Chile grew over the 19th century. After the [[War of the Pacific]] the Chilean treasury grew by 900%. The [[League of Nations]] labeled Chile the country hardest hit by the [[Great Depression]] because 80% of government revenue came from exports of copper and nitrates, which were in low demand. After the Great Depression Chilean economic policies changed toward [[import substitution industrialization]] and the [[CORFO|Production Development Corporation]] was established.

Under the influence of the [[Chicago Boys]] the [[Pinochet regime]] made of Chile a leading country in establishing [[neoliberal]] policies. These policies allowed large corporations to consolidate their power over the Chilean economy, leading to long-term economic growth.<ref>Ricardo Ffrench-Davis, ''Economic Reforms in Chile: From Dictatorship to Democracy'', University of Michigan Press, 2002, {{ISBN|9780472112326}}, p. 7</ref>
The [[crisis of 1982]] caused the appointment of [[Hernán Büchi]] as minister of finance and a sharp revision of economic policy. Despite a general [[privatization|selling of state property]] and contrary to neoliberal prescriptions, the regime retained the lucrative state owned mining company [[Codelco]] which stands for about 30% of government income.

According to the [[CIA World Factbook]], during the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of [[Patricio Aylwin]], who took over from the military in 1990, deepened the economic reform initiated by the military government. The Aylwin government departed significantly from the neoliberal doctrine of the Chicago boys, as evidenced by higher government expenditure on social programs to tackle poverty and poor quality housing.<ref>{{cite book|last1=Dominguez|first1=Jorge|title=Constructing democratic governance in Latin America|date=2003|publisher=JHU Press|isbn=1421409798}}</ref> Growth in real GDP averaged 8% from 1991 to 1997,{{Citation needed|date=February 2011}} but fell to half that level in 1998 because of tight monetary policies (implemented to keep the current account deficit in check) and lower exports due to the [[1997 Asian financial crisis]]. Chile's economy has since recovered and has seen growth rates of 5–7% over the past several years.{{Citation needed|date=February 2011}}

After a decade of impressive growth rates, Chile began to experience a moderate economic downturn in 1999, brought on by unfavorable global economic conditions related to the [[1997 Asian financial crisis]]. The economy remained sluggish until 2003, when it began to show clear signs of recovery, achieving 4.0% real GDP growth.<ref>[http://indexmundi.com/chile/gdp_real_growth_rate.html] Chile GDP – real growth rate</ref> The Chilean economy finished 2004 with growth of 6.0%. Real GDP growth reached 5.7% in 2005 before falling back to 4.0% in 2006. GDP expanded by 5.1% in 2007.<ref name="countrystudies">{{cite web|url=http://countrystudies.us/chile/85.htm|title=Development and Breakdown of Democracy, 1830–1973|work=Country Studies|publisher=Library of Congress|date=31 March 1994}}</ref>