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In a sharp contrast to some of its neighbours, Chile appears to be a model of economic responsibility. Borrowing lessons from Norway, the Chilean government has been stashing away the revenue generated by its abundant natural resources (especially copper) and is now using those stashes to help ride out the recession & commodity bust.

As the article explains, Finance Minister Velasco's policies to save up during the commodity boom were extremely unpopular. Now, as he uses his stored up cash to stimulate the economy and give handouts to impoverished families, he has become one of the most popular ministers in the country. This story is the mirror image of events in countries like Venezuela, which spent its commodity gains during the boom and is now left with little to cushion to economy in the downturn.

But this isn't just a story of "Chile: smart, Venezuela: stupid." Argentina's government tried to tax its commodity growth but was prevented due to popular opposition, so clearly there are political forces at work. I'm ignorant of most things Latin America, so let me ask you readers this: what is it about Chile's political structures/environment that provided the space for policymakers to implement responsible economic policies? And why is the opposite true for its neighbours?