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GROWING PERSPECTIVES OF

CHILES ECONOMY

LAURA GASCN HIGUERA


METHODOLOGY /1 RITI
FCHS/COMILLAS, MADRID
DECEMBER, 2014

GROWING PERSPECTIVES OF CHILES ECONOMY

The main aim of this essay is to analyze the population Chile has and its future, regarding
the current situation and how it has changed in comparison with the countrys past. To reach this
objective we are going to be focusing in the phenomenon of migration and the countrys position
when it comes to talk about the birth and death rates.

This past decades Chiles economy has suffered a big change and this is reflexed in the way
the population grows and acts. Due to the differences in the economic situation, political system and
social thoughts there has been a change in the birth rate of the country. Furthermore, changes in
technology and a great development of medicine helped in reducing the death rate in Chile.

Also, we can feel a difference in the population by analyzing the migration movements the
country suffers. There has been detected a change in Chiles situation regarding this aspect: Chile
has passed from being a country that generates immigrants to be considered one that receives them
(Banco Mundial, 2014).

Though this migration rate isnt very high compared to other countries, even to some in the
same geographical area, its seen as a great development, meaning that their economy has increased
and therefore, they gain migrators that are searching for a better life in the country.

Regarding the size of the Chilean population (about 17 million people) and the amount of
foreigners, that represent the 25% of the total population (Casimiro, 2014), we cant really talk
about relevance in this numbers, but we can identify the relevance that this has had in the
development of the agriculture, market, banks, industry, and technology advancements that it brings
(Extranjeria gobierno de Chile, 2014).

Up to the year 1982 (Extranjeria gobierno de Chile, 2014), immigration in Chile was led by
people coming from European countries or, in minor cases from eastern countries, with Arabic roots
or Asian countries, that were consolidated and have increased since the economic growth. When
democracy and, with it, Chiles stability the arrivals of this entire migrating tendency was increased
and established. Since that, the number of migrators coming from Asian countries and from
countries bordering Chile has greatly increased, while the amount of European people has decreased
(mainly since 2001).

GROWING PERSPECTIVES OF CHILES ECONOMY

Nowadays we have what is called new immigration (Extranjeria gobierno de Chile, 2014),
and its composed by people that come from South American countries and that mainly migrate
with working objectives. Its main characteristics are the spontaneity and that the objectives are in
the urban areas of the country. This kind of migration is mainly led by women that go to the
domestic service, industry, workforce or construction.

The territorial distribution of the immigration is, most of it (about the 63% of the
population), located in the Metropolitan Region (Santiago de Chile). Apart from there, we can find
migration in other economical centers such as the regions of Valparaso and Tarapaca (Extranjeria
gobierno de Chile, 2014).

Going back to the fact that birth rate has changed due to the change in the economy of the
country; we can find here a very worrying situation. Whereas in the 60s the average of kids women
had was set in 5 kids per woman. Nowadays this has been largely reduced and today we find that
the rate is in 145 kids per woman. This is a very serious fact taking into account that the necessary
amount to sustain de population is set in 21 (Pblica, 2014).

The decrease of the birth rate that the country is facing is due to several facts such us the
incorporation of women to the working environment, the change of the mentality, the reduction of
the religious thoughts and their weight they have, the change in economy (a kid doesnt mean
anymore workforce), latter marriages, divorce or the increment of the time people dedicates to their
studies (causes that people have kids later so, as a result, they've less children).

The growth rate of the country is positive (The World Bank, 2014). Although the growth of
the population has decreased in the past years (for example, in the year 2000 it was 117 and in
2012 we had it in 088) (Index Mundi, 2014), the countrys habitants are more each year. This
means that even though the birth rate keeps decreasing, other facts are helping the population in
keeping their weight. These other facts that we are considering are the mortality (people have more
life expectancy) and the migration (instead of people leaving the country, we have people coming to
the country).

GROWING PERSPECTIVES OF CHILES ECONOMY

Though this rate may make us think that theres not a big problem then with the low birth
rate, regarding the population pyramid of the country we realize that this isnt true: population isn't
growing enough to sustain the countrys economy and society without the fear that they wont have
any problems in the future related with the lack of young population to support the elder.
We see that up to 30 years ago, the population development was sustainable, but in this past
years, as it happens with most of the developed countries, the base of the pyramid leads to descend.
This is leading us to change the vision of Chiles population from what we called a young country
to the situation nowadays were theres less and less young people. This, if it continues, mainly
provoked by the low birth rate, may cause problems in the sustainability of the economy and the
welfare state.

In conclusion, we can say that the economic development Chile suffers is leading to a
decrease in the number of born people in the country but, is also attracting foreigners to migrate and
join to the Chilean society.

As a result of this situation we can say that Chiles population is growing but not in the
quantity it should to be in a perfect situation. The growth of the country starts to abruptly
decrease in the year 2000, whereas the immigration rate starts to be positive from the year 2000.

The people who arrive to the country as immigrants are young or middle aged and there are
very few babies or children to be able, in the future to maintain the economy, the state should try to
increase and to support having children so Chile doesnt keep becoming an old country.

GROWING PERSPECTIVES OF CHILES ECONOMY

REFERENCES
Banco Mundial. (29 de 11 de 2014). Obtenido de
http://datos.bancomundial.org/indicador/SM.POP.NETM
Extranjeria gobierno de Chile. (29 de 11 de 2014). Obtenido de
http://www.extranjeria.gob.cl/filesapp/migraciones.pdf
Index Mundi. (29 de 11 de 2014). Obtenido de
http://www.indexmundi.com/es/chile/tasa_de_crecimiento.html
The World Bank. (29 de 11 de 2014). Obtenido de
http://data.worldbank.org/indicator/SP.POP.GROW
Casimiro, M. R. (29 de 11 de 2014). El Quinto Poder. Obtenido de
http://www.elquintopoder.cl/ciudadania/3-mitos-de-la-nueva-inmigracion-en-chile/
Pblica, I. R. (29 de 11 de 2014). Instituto Res Pblica. Obtenido de
http://www.respublica.cl/index.php?option=com_k2&view=item&id=232:anlisis-deactualidad-2-tasa-de-natalidad-en-chile&Itemid=36