Waiting for the Forest Law: Resource-Led Development and Environmental Politics in Chile

Abstract

Chile has gained a reputation as the Latin American economic success story of the 1990s. Domestic savings rates are high, foreign investment continues to expand, inflation remains single-digit, and economic growth has averaged 6 percent annually from 1984 to 1995. In the seven years of democratic government since 1989, the poor have begun to share some of the benefits of this growth. From 1989 to 1993, unemployment fell from 12.2 percent to 4.9 percent, and social expenditures increased by a third in real terms (Hojman 1995). But Chile's impressive recent record of sustained economic development coupled with improvements in social justice has incurred significant environmental costs that raise doubts about the ecological sustainability of the Chilean model (Meller, O'Ryan, and Solimano 1996).