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Where Was The Chile I Had Left Behind?

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Chapter Summary

Gross Domestic Product (GDP) levels achieved before the recent global financial crisis were an eloquent indicator of missed opportunities for a more equitable income distribution in Chile. The Gini Coefficient that measures the degree of income disparities has confirmed that Chile is one of the most unequal countries in the world. Market consulting firms divide the Chilean population into five categories according to their purchasing power: The ABC1, with the highest incomes; then the C2 and C3 corresponding to middle and lower levels within the middle class; and finally groups D and E that are the poorest. Instead of the ill-fated consensus between government, the right wing parties and the big businesses, or of the unequal dialogue between workers and employers, an altogether new policy is required. Income declarations for tax purposes must be transparent so as to enable evasion control.

Keywords:Chile; gross domestic product (GDP); socioeconomic disparities



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