Cortázar and Larraín in PMA Fruittrade 2016 Economy: Opposite opinions and the same conclusion
A national pact is needed that unifies objectives to be implemented, both by the public and private sector, and that returns the confidence to save and invest.
In the context of the Fruittrade 2016 WFP, held in Chile in Espacio Riesco, an interesting debate was held on the reality and prospects of the Chilean economy at the world concert. The panelists were René Cortázar and Felipe Larraín, both commercial engineers, former ministers of state and prestigious economic analysts.
The specialists presented their thesis and opinions during the participation in the subject, “Pruning and thinning the Chilean economy to reap better fruits: visions to find convergence in times of crisis”, Which exposed hundreds of attendees to the 2016 version of this event, organized by Produce Marketing Association, PMA, in conjunction with the Federation of Fruit Producers of Chile, Fedefruta.
Cortázar
"We are facing the danger of a frustrated development case”, René Cortázar said on several occasions, referring to the text of Aníbal Pinto Santa Cruz,“Chile, a frustrated development case”, Published in 1959, in which the author argues that Chile has wasted great opportunities to become a developing nation because it has no internal political unity and does not have a country project.
Cortázar explains the precarious reality of the Chilean economy mainly due to the lack of unity of the public and private sectors to face the global economic crisis. Remember that in the 1990s the country achieved great growth rates, precisely due to the unity of the public apparatus with the private sector, who managed to establish common agreements and the creation of clear and transparent institutions and rules of the game, "which allowed Chileans to save more, invest more and grow more"He said.
The almost zero capacity for savings, investment and growth that Chileans suffer today is due to the “absence of attractive and unifying game rules”, According to Cortázar.
Larraín
Felipe Larraín, for his part, argues that there is no so-called global crisis, and that the reality of Chile is due to the inefficiency of economic planning and the bad public policies implemented by the Government.
Larraín argues that the reforms carried out by the Executive, both tax and labor, are the main cause of the "slowdown" of the Chilean economy and that the so-called world crisis is only an excuse put forward to cover the Government's own inefficiency in economic matters.
Conclusions
There are clearly two opposing positions from every point of view, however, at the time of the conclusions and the diagnosis of future perspectives, both experts evacuate the same opinion: It is necessary a national pact that unifies objectives to be implemented, both by the apparatus public as the private sector, and that returns the confidence to save and to invest. And this task corresponds to the institutions that lead the country, both political and union.
Regarding the perspectives, they conclude that the immediate future looks promising, that small signs of recovery are already observed and both place the 2017 as the scenario of the beginning of the economic recovery for Chile.
Agriculture
In the case of agriculture, both specialists are even more optimistic, predicting that this productive sector is in full growth, due to the growing global demand for food that will remain for a long period.
Felipe Larraín goes further in his projections and adds, “I am a farmer as well as an economist, and I can tell you that in addition to the rising world demand, the case of China favors us in a way, because that country should lower the intensity of its investments in the perspective of stabilizing its economy, and in this same perspective should increase consumption, which is very good news for those of us who produce or participate in the agri-food industry"He finished.
Source: Blueberrieschile.cl - Blueberriesconsulting.com
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