Chile's Next President Is Going To Be...
It’s official, the person taking office as Chile’s president early next year is going to be the free market oriented entrepreneur Sebastian Piñera.
A bilingual Fulbright scholar who’s served as president in the past, he received 54% of the vote this past weekend and was largely responsible for a 7% rally in the local stock market yesterday.
During Piñera’s previous term (from 2010 to 2013), the economy grew at an average of 5% p.a. and the country maintained one of the lowest debt to GDP ratios in the Americas in large part to the streamlining of some of the country’s more bureaucratic sectors.
This time around he’ll be taking over just as things are starting to look quite interesting for two of the nation’s primary resources, copper and lithium, and has already drastically improved confidence within the business community.
In a country with a population of just 17 million, the effects of local policy can usually be seen much more quickly than in some other parts of the world.
Just in the last 24 hours it’s been made apparent that the promise of a more efficient public sector placing less burden on local markets has been enough to push investors off the sidelines and onto the playing field.
The Southern Cone countries of Chile and Argentina have both taken turns to create more pragmatic governments in the past couple of years now.
Instead of promising their citizens the moon while running up gargantuan debt loads and indebting future nations, they’re more concerned with setting up a long term, sustainable financial system.
Given the fact that most countries around the planet are heading in the exact opposite direction, you can rest assured that there's going to be increasing competition to gain exposure to this part of the world in years to come.
A bilingual Fulbright scholar who’s served as president in the past, he received 54% of the vote this past weekend and was largely responsible for a 7% rally in the local stock market yesterday.
During Piñera’s previous term (from 2010 to 2013), the economy grew at an average of 5% p.a. and the country maintained one of the lowest debt to GDP ratios in the Americas in large part to the streamlining of some of the country’s more bureaucratic sectors.
This time around he’ll be taking over just as things are starting to look quite interesting for two of the nation’s primary resources, copper and lithium, and has already drastically improved confidence within the business community.
In a country with a population of just 17 million, the effects of local policy can usually be seen much more quickly than in some other parts of the world.
Just in the last 24 hours it’s been made apparent that the promise of a more efficient public sector placing less burden on local markets has been enough to push investors off the sidelines and onto the playing field.
The Southern Cone countries of Chile and Argentina have both taken turns to create more pragmatic governments in the past couple of years now.
Instead of promising their citizens the moon while running up gargantuan debt loads and indebting future nations, they’re more concerned with setting up a long term, sustainable financial system.
Given the fact that most countries around the planet are heading in the exact opposite direction, you can rest assured that there's going to be increasing competition to gain exposure to this part of the world in years to come.