About Chili

Chili Population: 15,823,957 (July 2004 est.)
Languages: Portuguese (official), Spanish, English, French
Capital: Santiago
Government Type: Republic
Independence Day: 18 September 1810 (from Spain)
Legal System: based on Code of 1857 derived from Spanish law and subsequent codes influenced by French and Austrian law; has not accepted compulsory ICJ jurisdiction.
NOTE: Chile is in the process of completely overhauling its criminal justice system; a new, US-style adversarial system is being gradually implemented throughout the country with the final stage of implementation in the Santiago metropolitan region expected in June 2005
Currency: Chilean peso (CLP)

Executive Branch:

Chief of State: President Ricardo LAGOS Escobar (since 11 March 2000); note - the president is both the chief of state and head of government.

Head of Government: President Ricardo LAGOS Escobar (since 11 March 2000); note - the president is both the chief of state and head of government.

American Embassy: Avenida Andres Bello 2800, Las Condes, Santiago
Mailing Address: APO AA 34033
Telephone: [56] (2) 232-2600 FAX: [56] (2) 330-3710

Economic Overview: Chile has a market-oriented economy characterized by a high level of foreign trade. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Growth in real GDP averaged 8% during 1991-97, but fell to half that level in 1998 because of tight monetary policies implemented to keep the current account deficit in check and because of lower export earnings - the latter a product of the global financial crisis. A severe drought exacerbated the recession in 1999, reducing crop yields and causing hydroelectric shortfalls and electricity rationing, and Chile experienced negative economic growth for the first time in more than 15 years. Despite the effects of the recession, Chile maintained its reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. By the end of 1999, exports and economic activity had begun to recover, and growth rebounded to 4.2% in 2000. Growth fell back to 3.1% in 2001 and 2.1% in 2002, largely due to lackluster global growth and the devaluation of the Argentine peso, but recovered to 3.2% in 2003. Unemployment, although declining over the past year, remains stubbornly high, putting pressure on President LAGOS to improve living standards. One bright spot was the signing of a free trade agreement with the US, which took effect on 1 January 2004. In 2004, GDP growth is set to accelerate to more than 4% as copper prices rise, export earnings grow, and foreign direct investment picks up.

International Disputes: Bolivia has reactivated its claim to the Atacama corridor ceded to Chile in 1884 to secure sovereign maritime access for Bolivian natural gas; dispute with Peru over the economic zone delimited by the maritime boundary; Beagle Channel islands dispute resolved through Papal mediation in 1984, but armed incidents persist since 1992 oil discovery; territorial claim in Antarctica (Chilean Antarctic Territory) partially overlaps Argentine and British claims.