Chilean inequality has been going down lately, pre-transfer that is, but this is not in every way reassuring news:
“In this case, the fall of inequality would be bad news over the long term,” Mr. de la Torre told me. “We would be specializing in sectors that require less knowledge.”
That is from a very good column on Chile by Eduardo Porter. In my view, although Chile of course has done very well, it is one of the most overrated countries in the world today, economically speaking that is. They have not overcome their educational problems or their class problems, the glorious run of copper is over, they will have a hard time continuing to move up the quality ladder, and their policies are moving in a more redistributive but not growth-enhancing direction.
Way back when, Alex and I used to select the most underrated and most overrated countries, in the sense of which country-specific mutual funds you might short or buy. My pick this year for the most overrated country is, I am afraid to say, a country I love dearly and that is Chile.
What is your pick?