OECD urges Chile to mend roof while sun shines

OECD secretary general Angel Gurría gave Chile a gold star for its macroeconomic management, but urged the country to up its game in several critical areas.

Gurría (pictured) said authorities had navigated the economy well through the recent downturn, but added that Chile must now take advantage of stronger forecast growth to address shortcomings.

The Paris-based organization expects Chile's economy to expand 2.9% this year, while growth for 2017 is forecast to come in at around 1.6%.

The OECD says Chile must implement policies to address low productivity levels and take steps to improve access to quality jobs and reduce high levels of inequality.

"The current global economic upswing provides a key opportunity to deepen structural reforms so that Chile can achieve its full economic potential, make the most of globalization and share the fruits more fairly," Gurría said in a statement.

During an event in Santiago held to mark the release of a report that contains the findings of the OECD Economic Survey of Chile, Gurría said education and training plays a critical role.

Gurría, who has met with members of president-elect Sebastián Piñera's team, said that strengthening links between the likes of colleges and employers, investing in staff development and improving overall levels of education are vital parts of any push to diversify Chile's commodity export-dependent economy, boost productivity and help create more inclusive growth.

"Skills and abilities must match the direction the world is heading in," Gurría said, citing the importance of the services industry. "We must look at where things are heading and align ourselves."

Gurría closed his presentation by citing the strong link between productivity and inclusion, indicating that these are key matters for any government to address.

"You can't have one without the other - they go together. We now know that focusing just on growth doesn't work, and we now know that simply sharing out the pie doesn't work," he said.

The OECD also cited, among other issues, Chile's low level of investment in R&D compared with that of its peers within the organization and high levels of red tape. The OECD has also called on Chile to step up infrastrucutre investment and implement measures to stimulate competition.