Download file 184 KB Texto completo en español More of: Harald  Beyer

In order to become a country with high per capita income Chile has to accumulate physical as well as human capital. This accumulation does not come by itself. For example: it is not enough to increase the schooling level of the population, but this must go with quality standards (let’s call them minimal learning and skills). If these are not achieved, accumulation of human capital will keep behind of what is for example suggested by the population schooling level. Something analogous can be said regarding the accumulation of physical capital. As far this is in some proportion consequence of distortions in the economy, its effect on growth will be lesser than what could be inferred by the independent analysis of its magnitude.
Therefore a merely quantitative outlook on investment or education will only provide us with a limited perspective of the ability a country has in order to grow or shorten the inequality levels. Accumulation of physical as well as human capital are not enough if countries are not able to develop a set of policies and institutions which, on the one hand, secure in a convincing way that the resources invested will be transformed into productive capital and, on the other, allow for a profitable use of such capital. Dissimilarities in the countries’ development level have much to do with the differences in those institutions and policies.
Considering such a background, this essay reflects on the development of Chiles’ economy during the last decades. Particular attention is payed to its growth and the important inequality prevailing in Chile. It is pointed out that during the last 50 years Chile’s economy has advanced at a rather insufficient pace when compared with other countries. A special analysis of educational deficiencies shows their impact on the accumulation of human capital as well as on income inequality.