Structural Change in Chile: 1960–90

Abstract

This paper attempts to analyze compositional structural change in Chile, especially during the period around 1974–90, when the most overt ‘neo-liberal’ experiment was forced on the country's economy and society. The main conclusion is that, while the service sector has moved in the correct direction, setting up important industries for the dynamic development of the country, the manufacturing sector has not performed equally well. The manufacturing sector has significantly shrunk its most sophisticated base, and relies mostly on traditional manufacturing that grows sluggishly. Export expansion is in manufacturing still a small proportion of exports. The primary sector is still the main export earner, but has significantly diversified. It appears that the economy has not moved fast enough towards, and does not appear to be geared by, the type of exports that may sustain a dynamic industrial development, based on external markets.