chapter  11
Industrialisation and Regional Development in Chile
WithRobert N. Gwynne
Pages 43

This chapter examines the process of industrialisation and its relationships with urban and regional development in just one country of Latin America, Chile. Despite some isolated attempts at industrial protection before 1928, Chile's economic history before the 1928 Tariff Act was dominated by the theory and practice of free trade. The free-trade model came to an abrupt end at the end of the 1920s when the world depression hit Chile particularly hard. In order to improve the technological expertise of Chilean industry in the 'difficult' stage of import substitution, the Frei government welcomed foreign investment in manufacturing and the establishment of manufacturing subsidiaries by foreign corporations. As in Brazil and Argentina, the role of immigrant entrepreneurs was important in the early industrial development of Chile. Static world volume, alongside erratic prices, was a problem because the process of industrialisation in Chile had set up significant demands for constant import of intermediate goods and raw materials for the consumer goods industries.