“Analysis of FDI in the service sector in Chile : there a political rhetoric on its implementation?

Abstract

Does political discourse have an impact on productive development programs? To answer this question, the following paper analyzes Chile’s policies for attracting Foreign Direct Investment (FDI), specifically in the services sector over the last three decades. Although Chile is known for its economic prosperity within the region, its performance has not stood out significantly as would be expected. The hypothesis that emerges here is that one of the main obstacles to growth is the lack of a long-term state policy, due that even when there are initiatives, most of them are modified or eliminated by each government that assumes the political administration of the country. In order to elucidate the approach, a qualitative analysis was carried out through interviews with professionals closely related to attracting FDI in service related programs. The objective was to explore and deepen the complexity of the situation through their opinion and experience. These interviews were analyzed together with the available information that was gathered on the subject. The main conclusion is that Chile has done well, even if it has been lax in the implementation of its public policies. However, even though there has been rhetoric on the part of those in the political power, there are expectations that in the near future the policies to be implemented will leave behind the partisan and short-term political bias. To this end, it will be essential to establish a long-term State policy, as well as better coordination among related entities and strengthening of statistical measurement tools.