Question

What lessons can China derive from Chile's experience with economic and political reforms?

Answer 1

Chile government was under a military coup. However, the Chilean government later on became a democratic government, which stated people wanted a free liberal economy. Economic reforms were based on the economic liberalisation, privatisation and globalisation. Thereafter, the GDP in Chile has increased. Thus it shows economic liberalisation has raised to economic growth in.the country. However, the inequality gap in recent years in Chile has been a major failure of the economic reforms taking place in Chile.

China which has a communist government regime should understand they could be removed away from their power anytime if people wants their economic liberalisation. However, this might not happen in China in the near future as China's economy is pretty liberal. Major GDP of China constitutes from the earnings of exports. This shows China has a liberal economy. Moreover, both the countries Chile and China has inequality in income which should be rectified by both the countries, before people start revolting again.