Former Chilean Finance Minister: Privatizing Codelco Not Ideal Now
Felipe Larraín, an economist and former Finance Minister under Sebastián Piñera, stated that now is not the opportune moment to privatize Codelco, the Chilean state-owned copper mining company. He expressed this view during an appearance on the podcast "Cómo te lo Explico." Larraín also commented on tariffs imposed by the United States, describing them as "lamentable." Additionally, he discussed a "mega-reform," which he believes will stimulate greater investment and economic growth.
The former minister's assessment on the timing of Codelco's privatization reflects a common tension between fiscal needs and national strategic interests in resource-rich economies. While privatization can unlock capital and efficiency, the current geopolitical climate and commodity price volatility may indeed present risks to achieving optimal valuation and public benefit. His comments on US tariffs and the potential impact of the mega-reform suggest a focus on immediate economic levers for growth, balancing external pressures with domestic policy initiatives. The long-term implications for Chile's sovereign wealth and industrial policy will depend on how these competing priorities are managed.
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