Chile's Economy
Saving the Windfall: Chile's Stabilisation Fund
How Chile's structural balance rule since 2001 saves copper windfalls in a sovereign fund, helping it avoid boom-and-bust spending.
Chile is known for fiscal discipline.
Structural balance rule
Since 2001, Chile sets spending based on long-term copper prices and growth, not temporary booms.
Saving windfalls
When copper prices are high, extra revenue goes into the Economic and Social Stabilisation Fund.
Using savings
During the 2009 global crisis, Chile used these savings to support the economy without heavy borrowing.
Independent panels
Experts estimate long-term copper prices, limiting political manipulation.
Contrast
Many commodity exporters spend booms and crash later; Chile avoided the worst of this.
Chile saved during the 2000s copper boom and spent the savings when the 2009 crisis hit.
Saving smooths booms and busts.
- Chile uses a structural balance rule since 2001.
- Windfalls go into a stabilisation fund.
- Savings supported the economy in 2009.
- Experts estimate long-term copper prices.
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