Even if the election goes to Ms. Bachelet, her ability to push though change will hinge on how many supporters she has in congress. Some fear she will be forced make too many concessions to the countrys far left because her coalition now includes the communist party. Theres just a lot of uncertainly about how deep her reforms will actually go, said Hernán Felipe Errázuriz, a business lawyer and former central bank chief. And uncertainty is bad for investment. The tax change would not be radical, though I would prefer to see the system unchanged and just get rid of existing loopholes, said Rolf Lüders, an economist who was part of the team of University of Chicago graduates—known as Chicago Boys—who advised the government of Gen. Augusto Pinochet. One issue Chiles new president will face is a slowdown in growth. This will leave the state with fewer resources, just as Chileans are demanding more from their elected officials.
Posted on: Sun, 17 Nov 2013 21:48:45 +0000