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Economic Reforms In Chile Essay

1922 words - 8 pages

Chile is a Latin American country facing the Pacific Ocean and located in the Andes Mountains. More specifically, this country is longer than wide in terms of fields spreading. Indeed, it has got 4,600 km of Pacific coastline and only 250 km in its widest part in the South American continent. (OECD, 2013)

As almost every Latin American country, it has suffered from a long period of dictatorship. However, it implemented in that time range several economic reforms that made the success of Chile today. Those measures are also known as the “Chilean miracle”. Following the concept of neoliberalism and the Chicago school of economics. Chile put in application almost all their recommendations ...view middle of the document...

(Pearse, 1997)

However, the impact of natural resources implies an export-oriented growth strategy for Chile. Consequently, it involves a heavy weight of the export industry in the Chilean GDP. As we have previously seen the globalization has only been possible thanks to reduce cost of transportation. As Chile has got a significant numbers of natural resources including raw materials that are very demanding in the 21st century. I am speaking about the lithium and copper materials. Those raw materials are the main parts of smartphones batteries. Consequently, in order to be competitive Chile needs to have a strong shipbuilding industry, including infrastructures and a strong competitive power of the national enterprise in relation to the competition to transport merchandises all around the world. (Pearse, 1997)

In order to examine the Chilean needs in the shipbuilding industry, we will see as a first part, the main Chilean infrastructures within the two main companies in this area. Then, we will analyse the opportunities in this field, and then finish with the outlook for the future in the shipbuilding industry. (Pearse, 1997)


As we could have seen in the introduction, Chile does not weight a lot on the world scale. Indeed, it is not even figure prominently in the top worldwide producer. Indeed, it represents less than 0,1% of the worldwide. This is partly due to the human power restraint capabilities and the small and difficult geographical areas where Chile is located. (OECD shipbuilding outlook, 2013)
The Chilean coast has the characteristics of shallow waters and open sea - in this case ocean. In the North, the ports are mainly use for the raw materials and the trade between neighbours – Bolivia and Paraguay. The maritime transport and ports are the main and almost the unique way of communication. (Pearse, 1997)


Indeed, there is one important player that we previously mentioned in this industry in Chile, which is called ASMAR-Shipbuilding and Docking Company; also known as Astilleros y Maestranzas de la Armada de Chile, is based in the Talcahuano port. Moreover, it is considered the largest shipbuilding, and repairing infrastructures in Chile. (, 2014) “It has two dry-docks, the largest with a capacity up to 96,000 DWT. There are four floating docks and more than 1,700 mts. of berths. The permanent labour force at all ASMAR Company plants totals about 3,500 people” (Pearse, 1997).

The ASMAR history and tradition originates from ancient roots. Indeed, it has a history since the navy base establishment in January 1895. As most of the navy bases, their role-play is to back any ships, which is engaged in a mission for the Navy. Furthermore, a dry-dock which was built in the same place and was functional by February 1896. Another navy base enter in service this year, but this time it was settled at the Magallanes shipyard. Building ships for its own navy is an important step towards...

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