MercoPress. South Atlantic News Agency

“Educational gap” conditions Chile's growth

Chilean Finance minister Nicolas Eyzaguirre forecasted that if Chile sustains the average 5,5% growth of the last fifteen years, per capita income will reach 20,000 US dollars by 2020, but he also warned about the unfair distribution of wealth and insufficient educational opportunities.

During a conference titled "Economic Integration and Inequality" sponsored by the United Nations Economic Office for Latinamerica, Mr. Eyzaguirre argued that in the fifties with the imports substitution policy, "Latinamerica actually became more dependent from overseas and growth stagnated".

It was not until the seventies when Chile led the way by opening its economy, "that the region actually began growing again, but with shortcomings".

However since then, "we've managed a harmonic mix of fiscal, monetary and exchange policies, together with a closer supervision of the banking system and an improved coordination of financial and economic decisions", said Mr. Eyzaguirre.

But, "success in growth terms has come parallel with tremendous inequalities in wealth distribution and is the subjacent problem for the production structure which the market on itself will not resolve", underlined the Chilean official who identified the "educational gap" as the most pressing challenge for a modern Chile.

The unfair investment of resources for the improvement of labour quality "helps to explain the terrible distribution relation in Chile where there's a 14 times difference between the 20% richest and 20% poorest, when a relation of five is the norm in developed countries, even those which began as intensive exporters of commodities".

Further on Mr. Eyzaguirre stated that Chile could catch up with the lowest third of developed countries if it can sustain a 5,5% annual growth during the next fifteen years, but "education access and quality are vital and it's the government duty to ensure that all Chilean children beginning at the age of three have the same opportunities, plus more funding for research and technology".

In related news a public opinion poll about economic perception and expectations in Santiago showed that a majority of Chileans believe the economy is finally recovering and a growing number has acquired or is thinking of purchasing durable goods (18,9%), including new homes (14%).

September 2004 recorded the highest positive perception index since September 2001. However unemployment (36%) and insecurity (28%) remain as two huge challenges.

For high income Chileans insecurity tops the list and for low income Chileans, unemployment (above 10%) and lack of jobs. Both issues are less intense but evenly feared by middle class Chileans.

The public opinion poll was done by the University of Chile interviewing 3,178 Santiago residents.