Chile: Tax Reform to Ensure a Sustainable and Inclusive Growth

On October 10, 2014, the Brookings Global-CERES Economic and Social Policy in Latin America Initiative (ESPLA)  hosted a roundtable discussion featuring Dr. Alejandro Micco, undersecretary of finance in Chile.

Over recent years, Chile has experienced high economic growth and further integration into the global economy. Against the background of these developments, Chile faces growing social demands and high inequality. In order to address these issues, the new Bachelet administration enacted tax reforms to transform the education system, finance a strong package of investment in health care and promote other social spending, while at the same time maintaining a balanced structural budget.

Dr. Micco provided remarks on Chile’s latest tax reform as well as the education reform, the (much-needed) energy agenda and the social, economic and political implications of such reforms. All these, he said, “should be put in place in a way that we ensure a sustainable and inclusive growth in Chile.”

After the presentation, the roundtable discussion engaged experts and thought leaders, both from Latin America and Washington, D.C., in a conversation on the sustainability of the tax reform, the vast problem of inequality in Chile along with the importance of understanding its true origins, and, finally, the implications that recent economic and political episodes have for Chile and for Latin America.