When looking at Latin America, Brazil is usually looked upon as the top country of the region with the strongest emerging economy. However, the country of Chile is leading in another aspect of business. According to the 2011 Latin Business Index, Chile remains the country with the best business environment in Latin America. The index studied 18 countries in Latin America and broadly measured the climate for business in each country with Chile coming in at the top of the list. Five major categories were the focus of the study including the macro environment, corporate environment, globalization, infrastructure levels, and the political environment. There were many business factors in Chile that accounted for its success in each of these categories.
Chile’s superior corporate environment has set itself apart from the other Latin American nations. The corporate environment of Chile is made up of strong economic freedom, easy access to capital for entrepreneurs, and a healthy labor supply. Chile also has one of the best environments for tax as Chile’s corporate tax rate of 17 percent is the second-lowest in Latin America only trailing Paraguay. Looking further into Chile’s tax environment, the country also has the lowest tax rate as a percent of profits and the number of hours needed to comply with tax regulations is the lowest in Latin America. The corporate environment is not the only aspect of Chile’s business environment that is excelling.
From a technological standpoint, Chile is also finding its way to the top of Latin American rankings. Chile has the highest diffusion of personal computer technology and broadband Internet according to the Latin Technology Index. In the political sphere, Chile has also been outperforming its Latin American competitors and is considered the least corrupt country of the region. Chile is a country marked with strong freedom in terms of civil rights and political liberties. Chile’s intellectual rights are the best in Latin America and are considered stronger than other major countries such as Spain and South Korea.
As you can see, all these business factors make up an important component of Chile’s thriving business environment. Which factor do you think is the most important for a country to have a successful business climate?