Chile and Latin America are at a historic crossroads. We arrived late to the industrial revolution of the 19th century and, thus, we were left behind in the development bandwagon. We cannot be left behind in this new revolution, the 21^st century’s revolution, the revolution of the society of knowledge, technology and information.

This revolution is knocking at our doors and will be very generous to those countries wishing to embrace it, but indifferent, even cruel, to those who ignore it and let it pass by.

How will we do it? First, by strengthening the three main pillars that are key for development to germinate and for opportunities to flourish: a stable, vital and participative democracy; a social market economy, characterised by free competition and openness to the world; and a strong, effective state that fights poverty and promotes greater equality of opportunities.

However, to build on solid foundations and not on shaky ground, not even the above three pillars will suffice. In the 21^st century we must also invest in the pillars of modern society. I am referring to the development of our human capital, which is our greatest treasure; the promotion of innovation and entrepreneurship, which are our only truly inexhaustible resources; investment in science and technology, which will open up unsuspected opportunities in the future; and the promotion of more dynamic, flexible markets and societies, that will allow us to be at the forefront of upcoming changes and lead them, rather than be left behind, trying to understand them.

On the other hand, we live in the digital era, where physical frontiers and geographic distances have virtually disappeared. As such, we must deepen our integration with the world and better govern globalisation, so as to prevent it from governing us. Financial crises are no longer limited within domestic borders, but rather have regional, even global implications. The ills of modern society, such as terrorism, drug trafficking and organised crime, know of no boundaries, territories or jurisdictions. Any attempt to effectively face global warming, natural disasters, health emergencies, starvation and extreme poverty shall require much more attentive, concerted and efficient actions by the international community.

Not only must nations promptly respond to the challenges posed by the modern society; international institutions, including the United Nations and those born from the Bretton Woods agreement, such as the World Bank and the International Monetary Fund, must also adapt to the new reality if they wish to play a leading role, and not sit along as mere witnesses to the developments and changes brought by the 21^st century.

In 2010, Chile commemorated 200 years of independent life. Only 20 of all 198 existing nations can say the same. It is time to assess progress, but most important, it is time to walk that extra mile and attain the goals and dreams our ancestors have always cherished but never reached: to make of Chile a developed country without poverty and with real opportunities for material and spiritual development for all its children.

To this end, our government is implementing a programme of bold reforms, with ambitious goals and concrete deadlines.

First, to make our economy grow once again at 6% annually for many years. This growth will allow us to attain, by the year 2018, a GDP per capita equivalent to that of southern and eastern European countries.

Second, to create one million jobs between 2010-2014. This goal will require us to almost double the job-creating pace of the past years and to fully incorporate women into the labour market.

Third, we are committed to boost the quality of our education, at all levels, as well as to improve continuous training options for our workforce.

Fourth, we are advancing towards a system that actually guarantees all Chileans a decent, timely and efficient healthcare, both in the public and private sectors.

Fifth, we are implementing a more comprehensive policy in our fight against crime, including a special emphasis on prevention and rehabilitation.

Sixth, we want to deepen our democracy making it more vital, transparent and participative. For that purpose, we aim to increase suffrage to more than three million youngsters who currently do not take part in elections, and to extend voting rights to Chileans living abroad.

Finally, we are committed to eliminating poverty before the end of this decade and to eradicating extreme poverty during the present governmental period. To achieve this goal, we are introducing a “family-based ethical income” through government transfers, which will supplement the earnings of the most impoverished households, thus permitting them to overcome poverty.

Broadly speaking, these are the seven pillars of our administration. High, noble and ambitious goals, but fully reachable for our generation, the generation of our bicentennial.

For 50 years, the OECD has been a prolific and indispensable source of advice on good practices and on the public policies that help members and non-members to reach goals such as those of our government. This solid knowledge will be an essential support for Chile in order to set the foundations for becoming a developed country in this new world, where the keys to development are knowledge, information, technology and innovation.

Visit www.gobiernodechile.cl and www.oecd.org/chile

©OECD Yearbook 2011

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