Mining & Development
CESCO believes that the role of natural resources in economic development is a fundamental issue, specially in countries endowed with ample natural resources. However, CESCO also holds that only adequate policies will permit countries to convert this potential wealth into real progress and development.The road towards development based on natural resorces as a take-off platform requires sustained efforts, such as those made by the Scandinavian countries and by other successfully developed countries like Australia, New Zealand and Canada.
The role as a country-provider of commodities to the world markets -common to most Latin American nations since their independence in the early nineteenth century- has characterized the economy and the style of development of these nations. Likewise, Chilean economic history can be expressed clearly through the ups and downs of its mining resources.
The average export component of primary products as a total of Chilean shipments during the twentieth century fluctuate between 80 and 90% according to World Bank estimates. Regarding GDP, at least 26% is explained by activities based on natural resources according to data collected by the Central Bank.
The Chilean economy has increased its output substantially during recent decades by using its natural resource endowment as a stepping stone. This process has three special characteritics compared to the experience of other countries that have based their growth on intensive natural resource production:
- For the first time in history Chilean production is not concentrated in one economic sector (mining) but significantly on different sectors.
- Chile has also become a world leader in the production of other exports products aside from mining. Examples include fresh fruits, salmon production and forestry.
- In some products, the value-added process has reached a high level of sofistication due to the requirements of demanding markets concerning quality and biological safety.
Despite these traits, which differ from a traditional monoproducer export pattern, Chilean productive structure has not evolved consistently to a more diversified stage. In fact, it has become evident that a transition to a "second export development phase" has yet to be accomplished. This is a major national task to which CESCO is also commited through its contributions to the public debate and the generation of an inclusive dialogue among all the players in the mining industry.