| Try to envisage
all of these same changes that occurred in the USA, taking place in a country
which not too many years before, had trouble supplying something as simple,
yet necessary, as bread to its citizens. Chile was a country with little
to no infrastructure. We recently had lunch with a Chilean-born son
of Russian immigrants. He recounted the above mentioned drive from
Santiago to Pucón, now an easy eight hour trip. Back in his
youth, and this was not very long ago, it took three days to accomplish
this now effortless journey. There were ferries needed for crossing
the many rivers and the road was dusty, dry gravel nearly the entire way.
Now, look around
your favorite US supermarket as you shop for groceries this winter.
The vegetable department is a good place to start. As you survey the bounty
of beautiful fruits and vegetables available for you to enjoy year round,
you may notice a small plastic sticker on the plump, juicy tomatoes, avocados,
oranges, peaches, nectarines and more....it will probably say ‘Produce
of Chile’. Remember, while you are up north and enjoying a
winter snow, we are enjoying a warm and quite beautiful summer. This explains
those stickers on the produce. You are looking at fruit and vegetables
that were most likely still attached to their respective trees or vines
down here in Chile just last week. It is truly amazing how fast produce
can be picked, processed and packed for shipment into the USA and then
off it goes to stores all across the world. This as well as countless
other advances have all occurred in a relatively short period of time.
Take a walk
to the freezer section of Costco, if you have one of those warehouse stores
nearby. You will most likely find that the frozen salmon you just put in
your cart originated in Chile. Chile is the world's second largest salmon
producer, Norway being number one! Then there are the wood paint stirring
sticks you may need from the local Home Depot. The sticks come from
Chile; or, because one third of the world's copper comes from Chile, whenever
you flip on a light switch, you can probably thank this country for the
copper wiring used throughout your house. Combine all of this with a stable,
democratic society and a progressive economic system, set up by Harvard
educated pencil-pushers and you can easily see that Chile is a shining
star and has, in many ways accomplished the impossible. Chile had a National
budget surplus last year, sold more goods to foreign countries than it
purchased and kept inflation to a low and manageable level of just over
3%. There is a strong middle class with a high percentage of home ownership
along with an excellent education system that now requires English to be
taught to all students.
As we look
around the world, we view Chile as a country that has not only paid its
dues but it has also formed a solid base that can sustain an avalanche
of its own economic growth and prosperity. We really cannot see this
type of preparation for future growth in any other country on Earth.
Europe and the USA are becoming large debtor nations with huge impending
Social Security problems. The primary exports from the USA, besides
weapons are technology and knowledge and there is no question that the
USA possesses these resources in abundance. These are all much more
difficult to come by in a country which has fairly recently lifted itself
from the depths of poverty and are now in high demand in a country hungry
to feed its engine of growth and prosperity.
The volume
of wine, produce, salt and other goods which Chile has contracted to sell
to the world grows with each passing year and shows no sign of decreasing
in any of the scenarios we have envisioned as the future of Chile. It is
exciting for us to be viewing this economic growth from within this country
as well, for we feel the pride that each one of Chile's citizens wears
as a badge of honour. Everything looks to be in place for Chile's
grand entrance into the world economic community - it is a country whose
future is being noticed more and more in boardrooms around the world.
There have been whispers in the past and these whispers have given way
to investments. No one can say that Chile is an irresponsible investment,
no one! The time is right for investments, technological advancement,
American ingenuity (remember that?) diversification and most importantly
the introduction of "Smart Money."
We have recently
been introduced to a whole new crop of Chile's industrial movers and shakers.
It turns out that with the many foreign investment incentives and the high
number of wealthy Chilean corporations, Chile is not so much in need of
financial capital. What the wise operators in Chile are aware of
is that it is, in a sense, naive in terms of big business. It isn't
the Presidents and Vice Presidents per se but the rest of the organizations
who need a broadening of their perspectives. We still see typewriters in
use at many locations (this is actually something we like to see sometimes).
The people of Chile do have a newfound sense of prosperity but they are
still immature and not quite sure how to handle this progress. Plus
there are so many ideas just waiting to be tested. Most people from
the USA have experienced so much more in our lives. We were born
into prosperity. Most of the successful in Chile have experienced
prosperity for a relatively short time. They are just beginning to
see heroes emerge who were able to raise themselves from poverty to wealth.
People from the United States have seen and heard these success stories
for almost their entire lives. McDonald’s, KFC’s Colonel Sanders,
Bill Gates, Apple Computers and Sam Walton (Wal-Mart), are but a few of
the many incredible success stories which are accompanied by thousands
of other smaller scale rags-to-riches stories. People from the USA now
have a certain cultural expectation of prosperity. Through all of
this we have seen and been involved in the creation and building of the
financial and economic empire that is the USA. This is the main reason
we have so many immigrants entering the USA - it is the land of opportunity,
or at least it has been.
So what is
the point anyway? Well, what we have become aware of is that Chile
is in the perfect position to really benefit those who are importing certain
attitudes, procedures, and systems which have become common and everyday
in the States but which escape the thoughts and expectations of the average
Chilean. The bar needs to be raised, but the window of opportunity will
be short, so for those who get in now, we honestly believe the sky is the
limit. The financial and business leaders of Chile are infinitely
aware of this and therefore the term "smart money" has been circulating
around various boardrooms where the future of Chile is being mapped out.
Chile needs your knowledge and is willing to pay for it. Should an
investor enter Chile with capital, so much the better. We know of
a few opportunities for sizable investments in the neighborhood of, say,
$30-50 million dollars. With that amount of money one could buy into
an established Chilean company which will actually reciprocate by depositing
an equal amount of money back to the corporation or actually a trade of
shares of ownership. The Chilean company knows that along with the
outside ownership comes outside technology, systems and know-how.
In addition, hopefully, will come visions for the future. Chilean
companies want to hire US corporate Vice-Presidents, Managers and
Directors. They revere the more seasoned business players. Youth
is good, but when poised on the brink of explosive growth, the wisdom that
comes with experience is preferable.
For hundreds
of years Chile, Uruguay, Brazil, and Argentina have had their respective
histories. International corporations from Europe and the USA have
long had operations in the Southern Cone. Before the Panama Canal,
a great number of freighters plied the waters of the Straights of Magellan
and made the great port cities of these countries their ports of call.
That was then and this is now. Now is the beginning of the new Global
Age. Many of us are feeling change is in the wind as we look at the
great Northern Empires in the USA and Europe. We are looking for
the newest, safest and best place under the sun. We all, well some
of us anyway, want a piece of heaven on Earth and maybe a little bit more
than our fair share of the new prosperity.
If one comes
to Chile with the desire of building a nice retirement home for oneself,
on a beautiful parcel overlooking the ocean, a river or a lake and perhaps
have a golf course nearby, that is one thing and it is a very viable plan
for a good number of reasons. However, on an entirely different level,
if those same people have families who need to work and who need opportunity,
people who either own or represent corporations or have expertise working
for a progressive northern operation, they have a whole different reason
to relocate to Chile. Corporate planners should begin educating themselves
regarding the opportunities possible if they invest and export their technology
and systems to Chile. Chilean corporations are looking for firms
to invest in their companies, not for the money but for the knowledge and
vision these firms can provide There are opportunities all over the
world but few are as ripe for planting a seed and actually seeing it grow
and bear fruit, as is possible, at this very moment, in Chile. The
figurative soil has been tilled, the water system is in, and transportation,
warehousing, distribution and infrastructure are all in place. Everything
is ready to simply sow and fertilise. This same logic would equally apply
for a smaller venture as well as an individual looking for a new job in
a new land. hether one is seeking a corporate officer’s position, middle
management or a position in a field of technical specialization, there
are solid opportunities waiting. If you are looking to develop your
own small business and you have some expertise or you are interested in
partnering with an existing Chilean firm, chances are that you may possess
the special vision and insight necessary to make a success of yourself
in the Southern-most country in the world.
In so many
respects Chile has been hiding out while building the foundation for a
new second Millennium, First World Country. The cover has been pulled off,
the curtains are being drawn back -the signs read “now open for business!”
The question is, are you ready to step up to the plate? If
so, look to the South, behind the protection of the worlds driest desert
and the nearly impassible Andes. Hiding in plain sight, for all to
see is a beautiful country named Chile.
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