Romero notes that “rebuilding is necessary, which means that economic activity should soar, leading to growth in construction activity and investments in public works. This is because our country covers such a large territory, and it is very likely that numerous localities will remain isolated [for quite a while] after any quake of great magnitude.”, Morrás adds: “It’s worth emphasizing that the earthquake produced a moral deterioration of the population resulting from the belated response of the authorities to the catastrophe. With 67 acres of land and room for 150 horses, the former ranch of the 'King of the Cowboys' sold at auction for $640,000. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. I believe we will be able to overcome this tragedy," he said. “There is no sure system for prevention against tsunamis,” notes Hans Niemeyer, professor of geological sciences at the Universidad Católica del Norte in Chile. Find the best auto, life, home, health rates. These chaotic conditions generated a flood of criticism about the government’s performance from a wide range of social groups, who argued that the response to the national emergency had come too late. Morningstar: © 2018 “You also need to improve social and community networks, such as groups of neighbors in communities, buildings and neighborhoods, with the goal of being able to construct a communications and containment network. Experts say that there is no reason why the recent change in the Chilean government should affect the way this crisis is managed in coming weeks. Find out how TireRack tests and reviews tires and why choosing the right ones for your car is so important. Initially, economists had been forecasting growth of 5.5% this year, and Piñera had promised to accelerate growth through a forceful governmental program. More, Honda and General Motors are creating a new generation of fully autonomous vehicles. “Although the losses generated by the catastrophe are quite significant, generally speaking, people are exaggerating the toll,” he says. Over the first 25 hours of the campaign, it managed to collect some US$58 million, to be spent on the construction of emergency housing and schools — to many, a sign of hope that the nation can pull itself together more rapidly than people ever imagined. “I would estimate a maximum of between US$4 billion and US$8 billon. © 2020 A WarnerMedia Company. This was a serious reversal for Chile’s first female president, who was about to leave office. Greentown, one of China’s largest real estate companies, is a market leader in deploying an asset-light business model. The earthquake fault rupture exceeded 100 km in width and extended nearly 500 km parallel to the coast. It is going to take these micro-enterprises time to recover; at least two or three years.”. All materials copyright of the Wharton School of the University of Pennsylvania. under which this service is provided to you. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 EQECAT said more than half of the damage total is expected to come from the state of Santiago, which includes the capital, which has a population of 5 million. More, Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. Privacy Policy. Looking for Mr. or Ms. Moneybags? Get Knowledge@Wharton delivered to your inbox every week. According to the Chilean Chamber of Construction, the country’s industry trade group, buildings must be built to withstand a grade-eight earthquake. Oakland, Calif.-based EQECAT said the damage wreaked by Saturday's 8.8 quake off the coast of southern Chile amounts to between 10% and 15% of the nation's gross domestic product. How do you know you're really ready to retire early. “Since many people lost their housing, this is going to produce a significant amount of overcrowding, which has to be dealt with over the short term,” notes Rodrigo Morrás, professor of organizational service management at the Adolfo Ibáñez University’s business school. NBA Commissioner David Stern says the basketball league is looking to expand its use of technology to improve gameplay and increase its audience. All Rights Reserved.Terms “Chile is in perfect shape to comply with its export obligations.” Although several ports in the south of the country have suffered structural damages, the port complex in Valparaíso – from which copper exports are shipped – is operating without any problems, the local press reported. At a press conference, Pinera said the 8.8-magnitude earthquake, the fifth largest ever recorded in the world, cost the nation tens of billions of U.S. dollars. and/or its affiliates. "We will also use part of savings ... to boost reconstruction plans," Pinera said. This behavior, in turn, became legitimated by the need for food, water and other basic products. Montes notes that although no country is truly prepared to deal with an earthquake of a magnitude of eight on the Richter scale, “there are some countries that are better prepared than others, as shown by the enormous destruction in Haiti, which recently experienced an earthquake of a lower magnitude than that of Chile.” The Haitian quake had an intensity of seven on the Richter scale, according to the U.S. Geological Service. “Copper production will not be affected, because the principal mines for this metal are in the north of the country, where they have not been affected by the earthquake,” says Niemeyer. “I would estimate a maximum of between US$4 billion and US$8 billon. The Wharton School is committed to sharing its intellectual capital through the school’s online business journal, Knowledge@Wharton.