The South American Economic Miracle Since colonial times, Spanish South American countries have been at the mercy of foreign interests. Spain dominated the fertile and mineral rich Spanish South American landscape, using it to extract raw materials and ultimately profit largely at the cost of land deterioration and slave work. Culture, language, and more importantly, socio-economic strategies used in South America by Europeans or North Americans have played a crucial role in the course of many Spanish South American countries. The so-called economic “miracles” in South America have been a source of controversy and speculation. The miracles in South American countries, like Chile, show significant increase in GDP, and a decrease in the percentage
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Despite this, no other South American country has been the subject of experimental economic strategies like Chile. This South American country was set as the economic example for the rest of South America. The Chilean miracle, a term used by the Nobel prize winner, Milton Friedman, was an economic boom in Chile set forth by the deregulation of markets, free trade, the privatization of state owned companies, and loans from the IMF and the World Bank. Many of the policies that were implemented in Chile were set in place by the “Chicago Boys,” a group of Chilean students from the University of Chicago that were taught and influenced by Milton Friedman. The Chicago Boys went on to occupy high-ranking positions in the Chilean government, which made it easier and more effective to implement new economic …show more content…
Due to its position in the southern region of South America, Chile’s primary harvest seasons happen right about the time that it is winter in the United States. This has led Chile to exports thousands of fruits and vegetables abroad. The agro-industry accounts for about 15% of Chile’s exports and it is valued at $2.5 billion annually. This amount of agro-industry has led to high levels of deforestation, about half a million acres annually. The forest has been turned into tree plantations, which produce wood that is exported to the U.S., Europe, and Japan. Plantations like these have affected water supplies and biodiversity in the deforested areas. Several of the animals that lived in the deforested areas have now been cataloged as
Despite this, no other South American country has been the subject of experimental economic strategies like Chile. This South American country was set as the economic example for the rest of South America. The Chilean miracle, a term used by the Nobel prize winner, Milton Friedman, was an economic boom in Chile set forth by the deregulation of markets, free trade, the privatization of state owned companies, and loans from the IMF and the World Bank. Many of the policies that were implemented in Chile were set in place by the “Chicago Boys,” a group of Chilean students from the University of Chicago that were taught and influenced by Milton Friedman. The Chicago Boys went on to occupy high-ranking positions in the Chilean government, which made it easier and more effective to implement new economic …show more content…
Due to its position in the southern region of South America, Chile’s primary harvest seasons happen right about the time that it is winter in the United States. This has led Chile to exports thousands of fruits and vegetables abroad. The agro-industry accounts for about 15% of Chile’s exports and it is valued at $2.5 billion annually. This amount of agro-industry has led to high levels of deforestation, about half a million acres annually. The forest has been turned into tree plantations, which produce wood that is exported to the U.S., Europe, and Japan. Plantations like these have affected water supplies and biodiversity in the deforested areas. Several of the animals that lived in the deforested areas have now been cataloged as