Pension reform is the best-known economic reform in Chile. Ever since the early 1980s, workers have been allowed to put 10 percent of their income into a personal retirement account. This system, implemented by José Piñera, has been remarkably successful, reducing the burden of taxes and spending and increasing saving and investment, while also producing a 50-100 percent increase in retirement benefits. Chile is now a nation of capitalists.
These capitalists have
- liberalized trade
- reduced the size of government
- strengthened property rights
- reduced the burden of regulation
- protected their currency
In short, they have moved their country in almost the opposite direction as the United States.