ETFs can focus on a wide range of securities. As a result, it should come as no surprise to learn that there are ETFs focused on specific countries like Chile. Unfortunately, there is no easy way for interested individuals to determine whether such ETFs are worth investing in or not, which means that they will have to do a lot of research if they want to reach a real conclusion.
What should you know about Chile?
For those unfamiliar, Chile is a South American country flanked by the Andes to the east and the Pacific Ocean to the west while stretching from the Norte Grande to the tip of the continent. Thanks to this, nothing looks so much like a tape, which has given it a very varied climate. For example, Norte Grande contains the driest desert that can be found on the entire planet. On the contrary, the center has a Mediterranean climate while the south has an alpine climate. However, it is interesting to note that Chile is not as rich in flora and fauna as some of its counterparts in the region.
Of course, the region that would become Chile was inhabited long before the Columbian exchange. However, there was never a single civilization that managed to claim the entire region. Instead, there was a wide range of peoples that inhabited it. Still, they could be divided into three general groups, which were the northern peoples, the Araucanian culture, and the Patagonian culture. Among them, the Araucanian culture was the most numerous, with the result that it was one of these peoples called the Mapuche that managed to put up the fiercest resistance when the Spanish arrived devastating.
For the most part, the Spanish were not so interested in the region that would become Chile. After all, they were concerned about precious metals, which were not very common in the region. Still, the Spanish recognized its fertility, with the result that the Captaincy General of Chile became a source of food for the most important Viceroyalty of Peru. As for why the Captaincy General remained the Captaincy General all the time, the simple answer is that it was heavily militarized, not only by the Mapuche but also by the European enemies of Spain.
Finally, Chile became involved in the Spanish-American wars of independence, which began when Napoleon replaced Fernando VII of Spain with his brother José Bonaparte after the French invasion of Spain in 1807. This process was very complicated in Chile, especially because the The Chilean population was not united behind independence, but was divided between pro-independence and royalists. However, an official declaration of independence was issued in 1818, which was finally formally recognized by Spain in 1840. Post-independence Chile retained the stratified social structure of the Captaincy General. This was largely true even in the parliamentary era from 1891 to 1925, which has been condemned as a do-nothing system focused on dividing the spoils than on actually solving growing problems and praised for its democratic stability.
The latter makes much more sense when one realizes that Chile went through a military dictatorship from 1973 to 1990, which came to power by violent means with the support of the United States. Perhaps unsurprisingly, the new regime proceeded to commit many human rights violations. The exact figures are cause for considerable controversy, but it is clear that thousands of people died while hundreds of thousands of people were forced to flee. In addition to this, the military dictatorship is infamous for implementing the radical deregulation, privatization, and other economic reforms recommended by the Chicago Boys, who are so named because they were taught or influenced by economics professors at the University of Chicago.
It is important to note that the military dictatorship was not overthrown by violent means. Instead, there was a plebiscite that was against the military dictatorship, which it decided not to repress. This avoided a lot of potential violence. However, this meant that many elements of the military dictatorship moved into the new Chilean democracy. In particular, the dictatorship-era constitution, which was overturned in a very recent referendum, is worth mentioning. From an economic perspective, this was significant because the constitution reflected the economic policies of the military dictatorship, as evidenced by how it put housing, health, and education under private control. Something that made him a natural target when protests erupted in 2019 fueled by a combination of income equality, rising cost of living, outrage over privatization, outrage over …