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03/02/2022

Mirroring events worldwide, anti-establishment sentiment has been taking hold, spurred by a sense of rising inequality and corruption in the country. The result has been a blemishing of the steady centrism that guided Chile for nearly four decades. Since 2012, Transparency International has listed Chile as one of the countries with one of the most significant declines in citizens’ perception of clean government. As we have seen elsewhere, this recipe is a combustible mix for political change.

02/02/2022

Nigerians have been justifiably confused by conflicting poverty data presented by the Muhammadu Buhari administration and the World Bank. According to Buhari, his administration has lifted 10.5 million Nigerians out of poverty within the past two years. But no sooner had he made the statement than the World Bank asserted that inflation has plunged seven million Nigerians into poverty.
These statements might seem to be contradictory to non-economists. But closer analysis suggests that Buhari and the World Bank are right - depending on how poverty is measured.
The first is income or monetary measure of poverty, what economists refer to as the 'headcount index'. It measures the proportion of the population that is poor based on a minimum personal income - for example $1.90 per day. This minimum amount is deemed adequate to maintain an acceptable living standard, given the cost of living in a given country.
Based on this measure, Buhari is right to claim that - by transferring cash to 12 million households during the past five years - a majority of these Nigerians have exceeded the income threshold. Therefore, they have escaped poverty.
The other measure is known as the multidimensional poverty measure. It measures poverty by income, and by the access people have to health, education and living standard indicators. These include sanitation, drinking water, electricity, and housing. It is therefore possible for someone to be regarded as non-poor under Buhari's calculations, but poor when this measure is used.
This is the measure the World Bank appears to be applying. By this measure 47.3% Nigerians, or 98 million people, live in multidimensional poverty. Most of them are located in northern Nigeria. This poverty rate does not include Borno State, where insurgency has prevented data collection.
Aware of this, the Buhari administration has set the very ambitious goal of lifting 100 million Nigerians out of poverty by 2030. This is a tall order, considering that another five million more Nigerians are expected to become poor as a result of COVID-19 in 2020.
The administration's cash transfer programme is commendable. But Buhari should turn his focus more on promoting structural transformation. This would move millions of poor Nigerians from low-productivity agricultural and informal-sector activities to high-productivity sectors such as manufacturing, agro-processing, as well as information and communication technologies.

01/02/2022

A second-half goal created by Luis Suarez rescued a point for Uruguay in the Copa America group stage in a 1-1 draw with Chile on Monday. Uruguay were coming off a 1-0 loss to Argentina where their attack was non-existent, and while it was improved in this one, it was far from the level the team expects as it stretched its winless streak to five games.
Chile managed just one shot on frame in this one, but it was all they needed to beat Fernando Muslera, as Eduardo Vargas scored this lovely opener 26 minutes in: With their backs against the wall again and looking to break a streak of four matches without a goal, Uruguay were much improved in the second half, showing creativity and putting the ball into dangerous spots, while giving Chile next to nothing.
But as the time was winding down, some key veteran was going to need to step up to get a point, and it came thanks to the attentive Suarez. Though it has been declared an own goal by Arturo Vidal, Suarez was able to get the ball into the back of the net on a corner kick in the 66th minute by battling his former Barcelona teammate for a ball at the far post. The ball hit the Chilean player and rocked off the crossbar and in, beating Claudio Bravo.

31/01/2022

Sunday marked a historic day in Chilean history. And that is no mere empty phrase. The word “historic” can rarely be applied with better justification than here: Almost 80% of the electorate voted in favor of rewriting the constitution, a document dating back to the dark days of the Pinochet dictatorship, which ended some 30 years ago.
During the mass demonstrations in Chile a year ago, one of the main calls was for a new constitution that put far more emphasis on social policies. President Sebastian Pinera eventually gave in and agreed to hold a referendum on constitutional reform. Now, Chileans have sent an important signal to other Latin American countries: namely, that widespread discontent about extreme inequality can lead to a peaceful, democratic process of change.

28/01/2022

Two almost simultaneous earthquakes were felt Saturday in the South Shetland Islands in the Antarctica and in central Chile, where buildings shook in the country’s capital. No casualties or damage were immediately reported.
The quake in the South Shetland Islands had a magnitude of 6.9 with a depth of 9.6 kilometers, according to the U.S. Geological Survey, while the earthquake in Chile had a magnitude of 5.8.
Chile’s Interior Ministry said on Twitter the South Shetland Islands quake was 216 kilometers northeast of the country’s O’Higgins scientific base, and called for coastal regions in the Antarctica to be evacuated because of a tsunami risk.

26/01/2022

Chileans favored left-leaning independent candidates in electing an assembly that will draft a new constitution, replacing the one imposed in the 1980s during the military dictatorship.
In a major blow to the traditional political forces in Chile, weekend voting for the 155-member constitutional assembly gave 48 seats to independent candidates, most of them identified with leftist ideology, according to official results announced Monday.
The next biggest group was the governing center-right coalition, with 37 seats, and then the Communist Party with 28. Twenty-five seats went to another leftist coalition, and 17 were reserved for Indigenous people.

22/01/2022

This week we will take a look at prices and volumes of kiwifruit in the U.S. market.
In a recent article, we discussed how Chilean kiwifruit production had decreased due to labor shortages as a result of the pandemic, and how Northern California, whose season has already ended, also saw a drop in production. Add this to the increase in consumption of fruits rich in vitamin C, and you get high kiwifruit prices in the market.
To the above, we must add the fact that kiwifruit stocks in the Northern Hemisphere (United States, Italy, Greece, France) are lower compared to previous years, and that there are also delays in Chilean production. Let us also remember that the majority of kiwifruit volumes from New Zealand go to the Asian market and to Europe.
As we mentioned, and as can be seen in the graph below, the reported average prices of kiwifruit in the North American market have been the highest in recent years. The average reported price in May was US$25.68 for containers of nine kilograms or 19.8 pounds, which represents a 15 percent increase year-on-year.

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