Global Challenges in the 21st Century: A View from Chile

I. Opening Address by Lee Hsien Loong

© 2004 Institute of Southeast Asian Studies, Singapore I Opening Address Lee Hsien Loong Your Excellency, Mr Ricardo Lagos, President of the Republic of Chile; Distinguished Guests; Ladies and Gentlemen. Many Singaporeans remember Chile fondly, even though not so many have visited the country. This is because when Singapore hosted the Miss Universe contest in 1987 for the first and only time, the winner, Miss Cecilia Bolocco, was Chilean, and many Singaporeans today still associate her beauty and charm with her country. It gives me great pleasure to welcome all of you to the 24th Singapore Lecture. The Singapore Lecture was inaugurated in 1980, and since then, many prominent world leaders have addressed the forum. This morning, we are honoured to have with us His Excellency Ricardo Lagos, President of the Republic of Chile, on his first official visit to Singapore as the President of Chile. Singapore-Chile bilateral relations are warm and friendly. We share similar economic outlooks, we both desire to connect ourselves to the world, we both rely on a fair and open trading system, and as relatively small countries we both depend on a multilateral global order to protect our interests and ourselves. Because of that, we believe that Chile is Singapore’s natural partner in Latin America to build a bridge across the Pacific. We are delighted to have President Lagos share with us his views on the global challenges in the 21st century. Chile’s economy 2 is one of the most dynamic in Latin America. It enjoyed an annual average growth of over 6 per cent throughout the 1990s and continues to have good growth prospects. According to the Global Competitiveness Report 2003–2004, Chile is ranked the most competitive Latin American economy. The Economist Intelligence Unit also ranks Chile as the most attractive business environment in Latin America. A large part of Chile’s economic growth is due to international trade. Today, international trade represents two-thirds of Chile’s national output, one of the highest proportions in the world. Chile has free-trade agreements with the United States, European Union, South Korea, Canada, Mexico and Central America, and the European Free Trade Association, as well as tariff agreements with all other Latin American countries. It is also a member of the World Trade Organization, APEC, and FEALAC (Forum for East Asia–Latin America Cooperation), and an associate member of MERCOSUR. As the Chilean economy spreads its wings abroad, its presence is becoming felt in the Asia-Pacific. Asia is one of Chile’s fastestgrowing export markets. Chile’s exports to Asia totalled US$6.6 billion in 2003, more than its exports to the European Union (US$5 billion), to other Latin American countries (US$4 billion), or to the United States (US$3.7 billion). Chile’s FTA with South Korea, its first with an Asian country, came into force on 1 April 2004. It is also working with New Zealand and Singapore on the Pacific-3 Free Trade Agreement, which will be the first trans-Pacific agreement that spans across three different regions. Chile believes that the FTAs would encourage Asian companies to invest in Chile, to generate jobs and incomes for its economy and at the same time position Chile as a gateway to other Latin American markets. President Lagos began his career as an economist and lawyer. As an academic, he was Professor, then Head, School of Political and Administrative Sciences in the University of Chile, and then Secretary-General, Faculty of Latin American Social Sciences. He 3 worked as an economist for the United Nations before entering politics in the 1980s. After the restoration of democracy to Chile in 1990, he was appointed Minister of Education, and later Minister of Public Works, before assuming the presidency in January 2000. Regarded as the first socialist Chilean President since Salvador Allende, President Lagos has the interest of Chilean workers and the lower-income groups at heart. He believes that free trade and good governance will enhance business confidence and attract foreign investment into Chile. He believes in upgrading the industrial capability of the Chilean economy to create new jobs. He also believes in balancing this with adequate social safety nets to strengthen social cohesion and take care of the poor and disadvantaged in the society. The process will not be easy. It means making the labour market more flexible, giving workers new skills, finding ways to sustain...