New FDI policy in Chile: Paradigm shift or change in objective?
DOI:
https://doi.org/10.29393/GP1-5NFSC10005Keywords:
Chile’s FDI policy, Policy Change, OECD, Kingdon's Multiple Streams Framework (MSF), Qualitative Content AnalysisAbstract
During 2013-2016, there was an abrupt change in Chile's Foreign Direct Investment (FDI) policy. The Foreign Investment Statute, known as DL 600, was repealed and Law 20,848 was enacted. The Foreign Investment Committee (CIE) was transformed into a new FDI agency, InvestChile. In addition, the first National Strategy for the Promotion and Development of FDI was established. This radical policy change did not occur because of the predictable expiration of DL 600; nor because of the continuous decline in FDI inflows into Chile; nor because of the quest to further liberalize FDI regulations; nor because of the intention to collect more taxes by repealing the invariable income tax; nor because of the disuse of DL 600; nor because of following in the footsteps of the rational decision model. The results of qualitative content analysis of the discourse of political entrepreneurs, according to Kingdon's Multiple Streams Framework (MSF), show that the OECD had a considerable influence on Chile's FDI policy change during 2013-2016. By actively adopting the OECD's problematization and recommendations in the Problem Stream and Policy Stream, political entrepreneurs achieved a change of objective in which the Chilean government has transformed itself from a passive recipient to a proactive promoter. This is considered an important step forward within the same paradigm of attracting more and better FDI and deeper integration into the global economy.
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