About Chile

LOCATION
Located in southwestern South America, Chile borders on Peru to the north, Argentina and Bolivia to the east, and the Pacific Ocean to the west and south. Chile's territory also includes several islands in the Pacific Ocean: exotic Easter Island (Rapa Nui), known around the world for its Moai, thousand-year-old sculptures that protect the island; the Juan Fernández Archipelago, a stopping point for explorers, a refuge for pirates and their treasure, and home for more than four years to Alexander Selkirk, the sailor that inspired the novel Robinson Crusoe; and the islands of San Félix, San Ambrosio, and Sala y Gómez.

POPULATION
According to the last census, from 2002, the population numbers 15,116,435, of which 90% live in urban areas, and more than a third of which is concentrated in Santiago.

POLITICAL - ADMINISTRATIVE DIVISION
The country is divided into 13 regions, including the Metropolitan Region, which encompasses the capital, Santiago, and the majority of the nation's political, economic, and cultural activity.
Other major cities include Antofagasta, the center of fishing, industrial, and mining activities in the north; Valparaíso, Chile's principal port and, as of 2003, a UNESCO World Heritage Site; Viña del Mar, a renowned tourist destination and host of the annual International Song Festival; and Concepción, the agricultural and industrial hub of the south.

CLIMATE AND NATURAL BEAUTY
Chile's climate varies significantly between the country's three broadly defined geographic zones. The desert north is warm and dry, with sunny days and cool nights, while central Chile has a Mediterranean climate, with clearly defined seasons, in contrast to the south, where torrential rains are common throughout the year. Chile enjoys a diverse range of tourist destinations, most notably the Atacama Desert, with its astonishing flowering desert spectacle; the central zone, with countless circuits through the countryside and vineyards that produce Chilean wine, which is known for its quality around the world; and the southern region of the country, with its beautiful lakes and the Torres del Paine National Park.

LANGUAGE
Spanish is the official language of Chile, though the country's indigenous peoples still speak their own languages, among them Mapudungun, Quechua, and Rapanui.

RELIGION
More than 76% of the Chilean population claims to be Catholic. Non-Catholic denominations also account for a large portion of the population and have grown steadily in recent years.

THE CITY OF SANTIAGO

Founded in 1541 by the Spanish conquistador Pedro de Valdivia, Santiago is located in the Mapocho Valley. With a population of more than 5 million, the city has been Chile's political, economic and cultural center since the country gained its independence in 1810. Established at the foot of Cerro Santa Lucía, the metropolis boasts a wide range of hotels, restaurants, malls, theaters, and shows, to accommodate and entertain the thousands of tourists who visit every year.

AT THE DOOR OF ECONOMIC DEVELOPMENT

In the Economist Intelligence Unit's 2003 Business Environment Ranking, Chile was considered to be the best country in Latin America in which to conduct business over the next five years and among the 60 economies evaluated was ranked 18th overall. With a dynamic business environment grounded on a solid economic foundation, plus strong fiscal discipline and a low level of public debt, the country has the freest economy in Latin America. In the 90s the economy grew at an average of 7% a year. While growth has averaged 3.2% over the first years of this decade, by 2004 it has recovered to 6,1%.

Chile's economic opening has been reinforced by a policy of pursuing regional and multilateral accords. Foreign trade has expanded and the country has emerged as an attractive international partner as a result of trade, economic, and financial agreements, which include Free Trade Agreements (FTAs) with Canada, the United States, the European Union, and South Korea. In addition, Chile has signed an association agreement with the Southern Cone Common Market (MERCOSUR) and bilateral pacts with several countries, including Colombia, Ecuador and Peru. Combined, these factors have allowed local producers and exporters to extend their reach to new markets at the same time that they've assured foreign investors that they'll find an institutional framework that respects private property and their freedom to determine the nature of their economic activities.

Another benefit of Chile's integration into the world market has been the diversification of its exports, especially in the forestry, agriculture, wine, fisheries, and livestock sectors. Nevertheless, copper has continued to be the principal export product, accounting for 34% of all export revenue in 2002.

In conjunction with the development of its exports, Chile has become one of the world's most appealing markets for imports. Among the most important imports are intermediate goods, such as raw materials and petroleum, which for the most part come from the US, Argentina, Brazil, China, Japan, and Germany.