This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Chile Aims To Focus Summit On Its Brighter Side

European Commission President Jose Manuel Barroso, Spanish President Mariano Rajoy and German Chancellor Angela Merkel are among those joining a business conference Friday where 300 executives are formally seeking joint ventures with the same goals.

International Monetary Fund Director Christine Lagarde framed their challenges starkly at last week's Davos Conference, saying the world's top executives agree that "severe income disparity" poses the greatest risk to the global economy in the decade ahead. "Excessive inequality is corrosive to growth; it is corrosive to society," she warned.

Other countries, however, can take many positive lessons from Chile.

The world's top copper producer is seen as probably the best managed economy in Latin America because of its strong growth, prudent fiscal and macroeconomic policies and strong institutions that make it an investor's paradise.

But critics say policies launched under former dictator Augusto Pinochet that privatized much of the country are still blocking urgent social reform and fostering social exclusion and inequality.

Pinera's government has been hit by wide protests demanding improvements in education, housing and health care and the protection of the environment from business interests. So while the country is expanding quickly, Chileans are asking for reforms to a system that they say still fails many.

Some of Chile's contradictions are in plain sight. Slum dwellers living in wooden shacks with zinc roofs at Campamento Juan Pablo II have a perfect view of elegant mansions, soaring skyscrapers and luxury car dealerships, just across a wide avenue in Las Condes, one of Santiago's wealthiest neighborhoods.

"The social gap is huge. The millionaires are right there next to us and we're stuck here living in this shantytown. The rich continue to get richer while the poor get poorer," said Raul Sanchez, 51, who earns poverty-level wages watching over cars at nearby parking lots.

No one can deny that President Sebastian Pinera has tried to fight poverty by encouraging job creation and giving cash handouts to the poorest of the poor.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,416.97 +225.60 1.31%
S&P 500 2,021.43 +19.27 0.96%
NASDAQ 4,682.1450 +44.1510 0.95%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs