The Inter-American Development Bank Group (IDB Group) and the government of Chile will advance a joint agenda to attract new investment, strengthen strategic sectors, and accelerate economic growth, with the potential to generate 400,000 jobs in the coming years, according to IDB estimates.  

The agenda was presented during IDB Group President Ilan Goldfajn’s visit to Santiago, where he met with President José Antonio Kast, Minister of Finance Jorge Quiroz, Minister of Economy, Development, and Tourism Daniel Mas, and Minister of Mining Daniel Mas, and business leaders to strengthen private-sector-based development. IDB Invest, the IDB Group’s private-sector arm, projects investing $1 billion per year in Chile. 

One of the priorities of the IDB Group’s work in Chile is to strengthen capital-market reform and the National Housing Fund (FONAVI). This includes $2 billion from the IDB and IDB Invest through guarantees and mobilisation of financing, which will expand access to credit for Chileans and help create jobs in the construction sector. This effort is expected to contribute to the recovery of 180,000 construction jobs compared to pre-pandemic levels. 

The new agenda also addresses streamlining investment permits, strengthening knowledge services, and collaboration on issues such as critical minerals, security, regional integration, and disaster-risk management. 

President Goldfajn also inaugurated the IDB Group’s new headquarters in Chile, reflecting the institution’s long-term commitment to the country. Located in one of Santiago’s main financial hubs, the new offices triple the previous space, now with capacity to accommodate a 135% increase in staff compared to 2020. 

“Chile has all the conditions to achieve greater dynamism in its economy and job creation. At the IDB Group, we want to support that ambition by mobilising financing, knowledge, guarantees, and private investment to unlock projects, modernise key sectors, and turn opportunities into jobs and concrete results for Chileans,” said Goldfajn. 

Growth and Productivity 

One of the IDB Group’s main areas of work in Chile will be streamlining investment permits. The Group supports implementation of the Framework Law on Sectoral Authorisations and incorporation of digital tools and artificial intelligence to reduce processing times in maritime concessions, for example. This area has the potential to help create approximately 150,000 jobs over the next five years. 

Reducing processing times will be highly relevant for sectors such as mining and critical minerals, in which Chile is a world leader, and which have the potential to generate 10,000 new jobs. The IDB Group will support this goal through reforms and policies that facilitate investment, the mobilisation of private capital and risk management, and the development of infrastructure and value chains.

In addition, both sides will work to consolidate knowledge-based services as one of the country’s main engines of growth and exports, promoting investment in digital talent, connectivity, and technological transformation. With the right strategy, this sector could generate up to 60,000 jobs over the next five years. 

An additional priority of the joint agenda is strengthening public security. Crime costs Chile 2.4% of GDP annually, and reducing this problem — beyond improving people’s lives — will have a positive impact on the economy and job creation. The agenda also includes regional integration, disaster-risk management, and strengthening care systems and early-childhood programs. 

The participation of IDB Invest will be key to mobilising private investment, attracting new international investors, and developing new solutions aligned with the country’s economic priorities in strategic areas such as infrastructure, water security, electricity-sector sustainability, innovation, and entrepreneurship.