Chile : New Economy Study, Volume 1. Executive Summary and Policy Recommendations
The report comprises two volumes, the Executive Summary and Policy Recommendations (Volume 1), and the Background Documents (Volume 2), providing the scope, and organization of the study as follows. The first chapter assesses the performance of Chi...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/02/3043880/chile-new-economy-study-vol-1-2-executive-summary-policy-recommendations http://hdl.handle.net/10986/14710 |
| Summary: | The report comprises two volumes, the
Executive Summary and Policy Recommendations (Volume 1), and
the Background Documents (Volume 2), providing the scope,
and organization of the study as follows. The first chapter
assesses the performance of Chile in the knowledge economy,
where knowledge is a critical factor for competitiveness and
growth. It examines progress to date, and remaining
challenges with respect to three factors - the knowledge
variables: 1) the economic incentive and institutional
regime; 2) science and technology; and, 3) the education
system. The second chapter looks at Chile's Information
and Communication Technology (ICT) - the infrastructure of
the knowledge economy. The third chapter evaluates the
potential use of ICT by local firms, with special focus on
micro, small and medium businesses (MSMBs), which represent
the bulk of the Chilean productive sector. The focus of the
overall analysis is on the role of Knowledge in improving
the productivity of the private sector. The study's
main focus on improving productivity of the private, rather
than the public sector, is motivated by the fact that a
recent Bank Public Modernization loan, addresses key issues
in improving the effectiveness, and efficiency of the
Chilean public administration. It is highlighted that the
recent growth of the Chilean economy, and positive
short-term outlook, should not deter the Government from
embarking on further reforms aimed at improving the
productivity of the private sector. Chile may want to
encourage microeconomic reforms supporting private sector
development. Recommendations include the creation of
innovative businesses, a single contact point for business
registration, and a more flexible labor market, so as to
reduce the costs of labor, increase employment, and that of
firm's productivity. Moreover, the Government should
review, and rationalize its programs in support of science,
technology, and innovation, encouraging private
participation in science, to ensure an adequate, relevant
research, and, promote further reforms to improve the
quality of education. Such policy agenda will require
public-private partnerships to enhance productivity, and
growth, which will require rethinking some economic principles. |
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