Minister Daniel Mas signaled a pivot in economic policy this Wednesday, calling for a greater reliance on private investment to stabilize Chile’s labor market. Appearing before the Chamber of Deputies’ Mining and Energy Commission, the minister emphasized that the state should take a backseat to private developers.
“In our vision, it is the private sector that has to pull the wagon,” Mas told lawmakers. “Therefore, we would like more private and less state. We have to see how we do that.”
Mas argued that the current economic climate demands clear rules to attract capital. He stated that the administration is focused on providing the stability necessary for investors to commit to long-term projects. According to the minister, creating high-quality jobs depends on the ability of the government to foster a more favorable environment for businesses.
Strengthening investor certainty
During the session, Mas outlined the mechanism behind a recently announced 3% reduction in his portfolio’s budget. He also briefed the commission on a new bilateral agreement between Chile and the United States regarding the processing of critical minerals and land use.
When pressed by committee members on his comments regarding the state’s role, Mas clarified that he does not view development as a zero-sum competition between the public and private sectors. However, he maintained that shifting the burden of growth to private companies is the most effective path forward.
“I am not saying it is a competition between the private sector and the state,” Mas said. “But if we manage to take that leap toward the creation of more and better companies, I believe we will be on the right path to generating more work.”
Mas noted that existing production agreements must yield tangible results in the short term. He linked the success of these initiatives directly to the level of security provided to investors, suggesting that the government’s primary role should be to facilitate, rather than lead, industrial activity.
