ECONOMIC DEVELOPMENT AFFECTS IN CHILE PAST AND PRESENT
The economy of Chile has shifted substantially over time from the heterogeneous economies of the diverse indigenous peoples to an early husbandry-oriented economy and finally to one of raw material export and a large service sector. Chile emerged into independence as a rural economy on what was the periphery of the Spanish Empire. A period of relative free trade that began with independence in the 1810s brought a modernizing development of certain sectors of the Chilean economy. This was accompanied by formation of a local business class, a novelty in Chile. Chile experienced its first modern economic crisis with the Long depression in the 1870s. The exploitation of lucrative nitrate deposits of the north conquered in War of the Pacific (1879–1884) marked a whole epoch in the history of Chile and the economic legacy of nitrate has been widely debated. In the first half of the 20th century Chile suffered severe economic recessions including the Great Depression. This period saw the rapid urbanization of the country, and a state-led partial industrialization that began in 1939. Large-scale copper mining replaced nitrate extraction as the country's main source of wealth. Chilean agriculture remained one of the most undeveloped sectors of economy and was stagnant, despite land reforms in the 1960s and 1970s, from 1930 to 1980. In the mid-1970s under the influence of the Chicago Boys, Pinochet's military dictatorship initiated profound changes oriented to a "neoliberal" economic model. The democratic governments that succeeded the dictatorship since 1990 have largely continued its economic policies, but increased social spending and reduced poverty. Chilean exports and GDP per capita rose steadily through the 1980s and 1990s until the Asian crisis of 1997 after which economic growth slowed somewhat. In the post-1973 period there has been a rise in outsourcing, self-employment, informal employment and an increase in women's share in the labor force.
ECONOMIC DEVELOPMENT AFFECTS ON ECOSYSTEMS IN CHILE
As a rapidly developing based on resource exploitation, Chile embodies many of the themes so often discussed about the impact of economic growth on the environment. Economists typically hold Chile up as a model of progress, while environmentalists libel the wisdom of its development strategy. Both are, in some respect, correct. Hence, given Chile's current economic necessities, it would be unwise for it to abandon pro-growth initiatives. However, it cannot continue its current model of development indefinitely if it hopes to provide a livable environment for its people. Chile must continue to strengthen its incipient environmental programs and diversify its economy with an eye to relative environmental cleanliness. These objectives are well within reach, and both economists and environmentalists would do well to recognize and encourage the moderate, sensible middle course that is still available to make Chile an example of sustainable development. Presently According to 2007 estimates, Chile contributes only 0.26% to the global emissions of greenhouse gases, ranking place 44 among 186 countries. 29 However, the country is highly
vulnerable to global warming. According to the vulnerability categories set out in Article 4.8 of the UN Framework Convention on Climate Change, Chile presents 7 of the 9 characteristics of vulnerability identified.30
One of the current visible manifestations of climate change is the loss of mass as the general trend of most glaciers in Chile, which affects less availability of water in watersheds with consequent negative impacts on productive activities such as mining and agriculture. As the Economic Commission for Latin America and the Caribbean (ECLAC) states, depending on the climate scenario selected Chile could experiment an average increase in temperature by about 1°C over the next 30 years, between 1°C and 2°C in an intermediate period (2040-2070) and
an increase between 3°C and 4°C at the end of the century. The third scenario implies a reduction in annual rainfall of approx. 30% in central Chile and an increase of them in the extreme south.
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