How does Chile, a country of 16 million residents and geographically isolated by the Atacama and the Andes, compete in a world of 6 billion individuals and in a region of economic and political powerhouses? Countries such as Brazil (with 190 million citizens) and Mexico (that shares a massive border economy and a 2000-mile shared border with the United States) are in some ways destined for a position in the global market. But it is to Chile’s credit that it has managed to secure its spot not by stressing its character as a deliberate and positive player in the international community.

Visiting Fellow Roger Noriega

Chile is the platform for Latin America to the rest of the world, both economically and politically. In the case of the former, Chile has thrived with the carefully chosen tools of low tariffs and free trade agreements (FTAs) and strong domestic institutions to build its bridge to the rest of the world.

As to the latter, strong economic ties have laid the groundwork for political ties with often competing interests. At a time when the United States and Latin America appear to be at odds over growing populism in the region, Chile manages a responsible left government that is amicable to both sides. And as the first country outside of Asia to sign an FTA with China when many countries are ambivalent about partnership with the Asian giant, Chile has shown that partnerships aren’t always about making a political statement but about doing what is right for oneself.

Chile’s economic ties with the world go beyond liberalizing its trade with 86 percent of the global market. Chile has taken deliberate steps to both seek out new partners--this country has more FTAs with Asian nations than any other Latin American country--and to create the internal framework necessary to transform itself into a platform for services to the rest of the continent. Sometimes these steps are quite literal and obvious (for example, the enactment of double taxation agreements with other countries), but it goes deeper than that, such as taking the lead in Latin America to enact national intellectual property law to better take advantage of the world market or encourage learning English within the country.

This strength as a platform is also evident in the country’s foreign policy. Since the restoration of democracy, Chile has demonstrated that it’s nobody’s pawn, but that there is nothing to be gained from spiting major powers. Admittedly, Chile is worried that a close relationship with the United States might be perceived as dependence. But Chileans have never used anti-Americanism for its political dividends within the country or abroad. As a result of this posture, Chile is a respected and important member of the entire international community--and not just as a part of Latin America.

One can point to many examples of this, but the most timely is perhaps that of Chile’s decision with regard to Venezuela’s candidacy for the UN Security Council. While many see this decision in terms of Chávez’s confrontation with the United States, in fact, Chile has consistently demonstrated the ethics and values to evaluate the issue outside of this pro- or anti-United States matrix. As such, all of us in the hemisphere shouldn’t read too much into the final vote.

Make no mistake: Chile has proven that it can take advantage of and defend its interests in a global market, politically and economically. Foreign enterprises such as IBM, Kodak, and HP have come to rely upon this good faith, but it is Chileans that are the ultimate beneficiaries of such relationships as they create good jobs for the country. Governments from across the globe now trust Chile as a political partner and platform to the rest of the region. Chile is a platform out of strength, and not out of weakness.

Roger F. Noriega is a visiting fellow at AEI. Megan Davy is a research assistant at AEI.