Economists Reject Opening State Copper Company Codelco to Private Ownership
Thirteen study centers forming the Progressive Centers Network have voiced their opposition to opening the state-owned copper company, Codelco, to private ownership. While they acknowledge the possibility of forming associations with private entities for the exploitation of mining deposits, they firmly reject any privatization of the company's ownership structure. The economists warn that selling public assets would significantly reduce fiscal revenues. They point out that private ownership would shift revenue collection from royalties and other contributions to a corporate tax rate of 23% on profits, thereby diminishing the state's overall income from these valuable resources. This stance highlights concerns about preserving state control over strategic national assets and ensuring continued substantial fiscal contributions from Codelco.
The economists' position centers on the fiscal implications of privatizing Codelco, arguing that maintaining state ownership ensures a more robust stream of government revenue compared to a private ownership model subject to corporate taxation. This perspective highlights a fundamental tension between public ownership of strategic assets and the potential for private capital to drive efficiency or expansion. The analysis suggests that Codelco's current structure, while potentially limiting certain types of private investment, may be optimized for national revenue generation and resource control. Future considerations might involve exploring hybrid models that balance private sector involvement in operations with continued state ownership to capture maximum fiscal benefits and maintain strategic oversight.
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