Chile ranks as the 8th most open economy in the world

For the fourth year in a row Chile ranks as the 8th most open economy in the world, according to a yearly study by the conservative, U.S.-based Heritage Foundation.

The study ranked Chile third among the 29 countries in the Americas, outpaced only by the U.S. and Canada. Countries outside the Americas that rank above Chile included Hong Kong, Ireland, Australia, Singapore, and New Zealand.

The Heritage foundation study uses ten economic variables to determine rank, including trade freedom, investment freedom, and property rights. The foundation also collaborated with other think tanks, including Chile’s conservative Liberty and Development Institute, in developing its ranking.

Hong Kong ranks as the most open economy in the world, a position it has held for 14 years. Singapore is in the second place position. These two economies, said the Heritage Foundation ranking, give individuals the greatest freedom to consume, invest and work -with little or no government taxation and control.

Chile’s weaknesses, according to the report, lie in its high income taxes and statistically lengthy procedure in closing a business. Tomas Flores, the key research economist for the study, stressed that Chile’s shortcomings relate to its income tax burden. “Because one is always taxed from the beginning, the state is an important partner in any business effort and therefore strips the investor of his freedom,” said Flores.

Publication: Santiago Times
Provider: Chip News
Date: January 17, 2008