Hernán Büchi
Counselor for Liberty and Development
Chile
Panelist: Future of Latin America: Challenges and Opportunities
Mr. Büchi, 54 years old, Civil Engineer of Universidad de Chile, postgraduate studies at Columbia University, New York.
Mr. Büchi has served for the government of Chile as Undersecretary of the Economy (1979-80), Undersecretary of Health (1980-83), Minister of Planning (1983-84), Superintendent of Banks and Financial Institutions (1984-85) and Minister of Finance (1985-89).
During all this period the chilean economy was structurally transformed through the promotion of the private initiative, free markets and a more outward-looking orientation. Also, the external debt crisis was successfully overcomed before anybody in the region and Chile was a world leader in the initiation of a deep and revolutionary process of privatization, not only of public enterprises but also of the social security system, the provision of health, education, etc. As a result, it was possible for the chilean economy to exhibit a sustained increase in exports, domestic savings and investment as a fraction of GDP, and to achieve a general high standard of efficiency.
Mr. Buchi also in its capacity as public official (1979-89) was Chairman of the Board and/or Member of the Board of several Public Enterprises such as ENDESA (power company), CAP (steel), IANSA (sugar), FFCC (railway) and CTC (telephone company), Codelco (Mining).
In 1989 he was Candidate for the Presidency of Chile.
In 1990 Mr Buchi founded and became Chairman and Member of the Board of the Institute Liberty and Development (a think-tank for public policies). In its current capacity, he is Chairman of the Board of the Center for the International Economy of Liberty and Development and Member of the Board of said Institute. He is also the Chairman of the Board of Trustees of “Universidad del Desarrollo”.
Since 1990 Mr. Buchi has advised a number of different governments of Latin America , Eastern Europe and Asia on the design and management of economic policy. Also, he is a member of the board of some of the most important private companies in Chile ____________________________________________________
LIST OF MAIN REFORMS IN WHICH MR. BÜCHI PARTICIPATED OR DIRECTED
TARIFF REFORM AND TRADE LIBERALIZATION.
PRICE LIBERALIZATION REFORMS; NEW MECHANISMS TO DEFINE PRICES OF ELECTRICITY, WATER AND SEWAGE, ETC.
TAX REFORMS: VALUE ADDED TAX REFORM AND IMPLEMENTATION, INCOME TAX REFORM, ETC.
DEREGULATION; DESIGN AND IMPLEMENTATION OF MARKET ORIENTED RULES IN THE REAL SECTOR OF THE ECONOMY: TRANSPORT, COMMERCE, INDUSTRY, MINING, AGRICULTURE, PORT SYSTEM, ENERGY, WATER AND SEWERAGE SYSTEM SERVICES, ETC. IN THE CASE OF MINING A NEW MINING CODE WAS ENACTED
PUBLIC ENTERPRISE RESTRUCTURING.
PRIVATIZATION OF PUBLIC ENTERPRISES.
CAPITAL MARKET REFORMS :
- RESTRUCTURING OF THE BANKING SYSTEM.
- INSURANCE COMPANIES.
- MUTUAL FUNDS AND OTHER FINANCIAL INTERMEDIARIES.
FOREIGN INVESTMENT LAW REFORMS.
LABOR LEGISLATION REFORMS.
DESIGN AND IMPLEMENTATION OF A MODERN SOCIAL NETWORK; PENSIONS FOR POOR PEOPLE, FAMILY SUBSIDIES, ETC
EDUCATIONAL SYSTEM REFORMS. CREATION OF A FINANCING SCHEME BASED ON FINANCING DEMAND. LIBERALIZATION OF THE UNIVERSITY SYSTEM.
HEALTH SYSTEM REFORMS: DECENTRALIZATION AND CREATION OF A PRIVATE HEALTH SYSTEM.
PENSION SYSTEM REFORM. CREATION OF A PRIVATELY ADMINISTRATED PENSION SYSTEM.
REFORMS TO THE FINANCING SCHEME OF THE PUBLIC HOUSING PROGRAMS
IMPLEMENTATION OF AN INDEPENDENT CENTRAL BANK.
EXTERNAL DEBT CONVERSION AND CAPITALIZATION MECHANISMS.
