In 2008, Andrés Velasco, Chile's finance minister, was under mounting criticism for its fiscal policy. As the largest copper producer in the world, Chile benefited from higher prices for copper, which was more than tripled since 2003. Copper revenues translated into more revenue for the state as the largest copper producer in Chile, Codelco, a state enterprise. Velasco was chosen to keep the bulk of revenues in two copper stabilization fund by the end of August 2008, the collective amount of more than 20% of Chile's GDP. Some critics want the funds to be used to improve the poor state of education, income, and other upcoming social issues. After all, Chile was one of the most unequal distribution of wealth in the world. The work has been stagnant and economic growth has slowed since the 1990s. What should be done Velasco amid growing public discontent? Is it really in the interests of Chile to keep saving copper wealth? "Hide
by Laura Alfaro, Dante Roscini, Renee Kim Source: Harvard Business School 25 pages. Publication Date: March 29, 2010. Prod. #: 710019-PDF-ENG
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