WSJ describes Chile as a model for the region

-Came across an interesting article by Stephen Haber on Latin America's economic transformation in today's Wall Street Journal. Chile is described as a model for economic stability and growth in the region. I’ve pasted relevant sections below along with a link to the article in its entirety. –Saludos...

“Chile provides perhaps the most obvious example of a country that has been undergoing dramatic changes -- and its success has served as a model for the rest of the region. Beginning in the 1970s, a series of reforms reshaped the economic playing field. Analysts often point to Chile's sound macroeconomic policies -- and rightly so. But these policies are the result of parliamentary rules that create incentives for legislators to converge on balanced budgets and of electoral rules that favor the two largest parties -- one of which is center-right and the other center-left, thereby minimizing the probability of a return to populist economic policies.

Other institutional reforms changed the nature of regulation and the enforceability of property rights. Under the Chilean constitution, the government can only expropriate private property if Congress enacts a specific law, and even then compensation must be paid in cash at market prices; all economic activities are legal, unless Congress passes specific laws regulating them; and citizens can protect themselves from arbitrary government actions that reduce their rights to life, liberty and property by obtaining an injunction from an appellate court -- in which they need not be represented by legal counsel. Chilean gross domestic product per capita has doubled over the past 18 years, the fastest sustained expansion in the country's history. Poverty rates have fallen precipitously. Young Chileans from humble families are attending college and buying homes. Indeed, Chile has a homeownership rate roughly equal to that of the United States, about 70%.”

Read the full article

American entrepreneur finds solution in Ki Teknology

Jeff Takle, owner and founder of rentingyourhome.com based in Boston, MA, recently recapped his experience with Ki Teknology throughout the development of his site. The project covered new ground for both parties involved, as Jeff was under strict time deadlines to launch his new business and website and the Ki Teknology team quickly worked to adapt development processes typically suited to larger, transactional based projects to this entrepreneurial American project. In the end, Jeff was able to find a high-quality solution at competitive cost for the development of his site. Jeff’s comments follow:

“In the beginning, I have to admit, there were some frustrations. Ki Teknology is much more process-oriented than I am used to and it was an adjustment on both our parts. We settled on an agile development methodology that met both our needs, however, and the result was that I got the benefits of a flexible design staff, as well as the benefits of their systematic approach to project management. They included me early in the user testing phases and our dialogue evolved to a give and take, back and forth, that suited my personality well. In the end, they met every deadline.

In our later meetings, the communication with Ki Teknology improved substantially. It was previously hampered by the language barrier and some cultural differences.  But Ki Teknology adapted immediately and within 1 or 2 meetings, we were absolutely back on track.

On December 11, 2008,  Renting Your Home was featured in an article about entrepreneurs in the New York Times Magazine, and the site received a high volume of traffic. The work Ki Teknology had completed just 7 days earlier proved critical for converting that traffic into paying customers. If they’d overrun the deadlines, I would have missed that upsurge in customer traffic.

In the end, I’m happy with the decision to work with Ki Teknology. I was able to manage costs, deliver the product on time, and dramatically improve the quality of our product line.”

Jeff Takle

RentingYourHome.com

Touchdown in Chile and getting to know Ki Teknology

In Spring, 2008, I completed the two-year full time MBA program at Babson College F.W. Olin Graduate School of Business in Wellesley, MA and accepted a consulting position in Santiago, Chile working with the Economic Development Agency and Ki Teknology, a newly formed entity resulting from the merger of two established Chilean firms: Kepler Tech, specializing in software development and maintenance, and Intermedia, specializing in web development, design, and digital marketing.

The nature of the job allows me to wear a variety of professional hats, and my contract is mainly divided between strategy, finance and operational related responsibilities. The main theme of my job is to help a growing firm in a growing Chilean economy compete with established international development players throughout India, Latin America and Eastern Europe.

 Understandably, I was initially somewhat intimidated by the prospect of moving 5,000 miles to a country where I had no established contacts, and a Spanish competency level that at the time could best be described as “Gringo,” but the people at Ki Teknology welcomed me with open arms and helped me to quickly settle into my new life in Chile.

From the beginning, I was amazed at the hospitality of Chilean culture. Whether it’s the CFO inviting me out for some skiing or surfing (both doable in the same day here), the CEO opening his family’s home to me in Buenos Aires, or management and staff sharing their lives with me on a daily basis the transition from life in the United States to life in Chile has been amazingly easy.

Working with the staff at Ki Teknology has been impressive. The standard working day in Chile is 9am to 8pm, and the company is laser focused on mitigating any cultural differences that could potentially disrupt professional relationships with international clients. Key staff is forced to endure regular English lessons with Hill, the resident professor who will have absolutely no problem dragging you out of a café if you’re late for a class or if he suspects you may have had some outside help on last night’s homework assignment.

All in all the experience thus far has been fast, productive and amazing to witness firsthand. Despite the global economic downturn Chile policy makers have managed public finances efficiently and the country now finds itself sitting on a cushion of reserves which puts it in great position to weather the storm through the foreseeable future. Every morning I walk four blocks to work and I pass six cranes, continuing the building that has completely transformed Santiago in recent years. In the four months that I have been working with Ki Teknology I have seen the company’s office space double as work with international clients continues to keep pace, and I’m excited about the long-term prospects of the company and the country.