Economic Challenges and Investment Prospects in Chile
Chile is currently facing a complex situation. Economic growth has been sluggish, and a
decline in output is anticipated for this year. Inflation has reached its highest levels in
decades. On the political front, the country endured significant tensions last year among
various actors involved in the constitutional process.
To address these and other issues related to investment and business activity in Chile—and
drawing on their extensive national and international experience—we spoke with attorneys
José Luis López Blanco and Patricio Cartagena, partners at the law firm ASL CORP.
Political and Economic Outlook.
Commenting on the country’s current outlook, José Luis López Blanco pointed to signs of a
potentially encouraging new phase. “There is now a political agreement to draft and
approve a new constitutional text. This opens the door to a scenario in which the intense
confrontational dynamics of the previous year—akin to clashes between rival fan groups—
can be left behind.”
He added that, in the firm’s business meetings, both Chilean and foreign investors have
expressed renewed interest in launching new development initiatives. “One clear sign of this
is the significant rise in investment in mining exploration, which signals strong interest in
future projects in the sector,” he noted.
PROMOTING NATIONAL WELL-BEING VIA PUBLIC-PRIVATE PARTNERSHIPS.
López Blanco emphasized the importance of consensus between the public and private
sectors, recognizing that one of the main goals of public policy must be to promote the well
being of all Chileans.
“In this respect, Article 1, paragraph 4 of the Chilean Constitution enshrines the so-called
‘principle of service,’ establishing that ‘the State is at the service of the human person, and
its purpose is to promote the common good.’ To fulfill this mission, the State may enter into
cooperative or associative arrangements with the private sector to implement development
projects efficiently.”
He pointed to the public-private partnership model in infrastructure concessions as a clear
success story: “It has allowed Chile to develop the most advanced road network in Latin
America.”
HIS PERSPECTIVE ON THE DOMINGA MINING PROJECT.
When asked about the recent rejection of the Dominga mining project by the Committee of
Ministers, López Blanco acknowledged that the firm’s legal and engineering specialists are
best positioned to address the technical aspects of the case.
Nonetheless, he remarked, “It is striking that it has taken ten years—from the initial
submission of the project to the present—for the Committee to issue a rejection. That is
simply unacceptable. Project review periods should be significantly shorter to enable a
thorough and substantive technical evaluation.”
He cautioned that, considering the considerable benefits the project could have brought to
the region, it is concerning that no viable solution was reached between the public sector
and the investor regarding the environmental issues that required resolution.
“How is it possible,” he asked, “that with all the advances in science and technology, no
mutually agreed-upon solutions can be found for a project offering such clear benefits to
the region?”
REVIEW OF ENVIRONMENTAL INSTITUTIONS.
Mining law expert Patricio Cartagena noted that “the Environmental Evaluation Service
(SEA) recently summoned public agencies with environmental jurisdiction to submit their
assessments based on the Methodological Guidelines issued by the agency.”
He continued: “What does this call reveal about the current environmental framework and
the recent developments concerning the Dominga project? In our opinion, it reflects a lack
of legal and technical certainty within the environmental institutions. Personal views are
taking precedence over technical criteria in the State’s environmental decision-making
processes.”
Cartagena stressed that this situation confirms the need to overhaul environmental
institutions to ensure that technical criteria prevail in the service of sustainable
development. This includes implementing effective procedures that rebuild public trust in
institutional frameworks.
He added: “Chile urgently needs a national development and territorial planning strategy
that clearly defines the environmental and sustainability components specific to each
region. Such a baseline would allow the State, companies, and communities to align around
productive goals and investment security.
According to Cartagena, with this sustainability framework and new environmentally
responsible investments—adapted to circular economy principles, climate change demands,
and higher levels of citizen involvement—Chile can establish a broad and effective public
private cooperation model. “It is the only viable path to restoring economic and sustainable
development,” he stated.
Source : http://www.guiaminera.cl/
