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Latin American Economy & Business - December 2013 (ISSN 1741-7430)

CHILE: Keeping everyone happy – or not

Chile's President-elect Michelle Bachelet will take office in March 2014 to strong expectations from students and labour unions that, as promised, her new centre-left government will meet their demands (for free education and more equitable wages, among other things). Falling copper prices and slowing economic growth mean that it could be difficult for the new administration to satisfy these demands. Meanwhile, it remains to be seen how Chile's corporate sector copes with an increased tax rate at a time that wage increases are not necessarily being matched by higher productivity.

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