Corporación de Fomento de la Producción

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The Corporación de Fomento de la Producción (Association for Production Promotion, CORFO) is a Chilean authority that was founded in 1939 to promote business .

At the suggestion of President Pedro Aguirre Cerda , on April 29, 1939, the Chilean Parliament issued the Ley N ° 6.434 de Reconstrucción y Auxilio y Fomento de la Producción (Law No. 6434 on Reconstruction and Emergency Aid and Development of Production), thereby creating CORFO . One reason for the establishment was the severe earthquake on January 25, 1939.

CORFO should present a national development plan to build up the country's industry and infrastructure. For this purpose, public companies were founded following the example of the Spanish ENDESA (1944), such as the Compania de Acero del Pacifico (Pacific Steel Company) in 1948 , the Empresa Nacional del Petróleo (National Oil Company) in 1950 , the Industria Azucarera Nacional (National Sugar Industry) in 1953 , and the 1964 Empresa Nacional de Telecomunicaciones (National Telecommunications Company) and many more. This enabled the economy of Chile to develop in the course of import-substituting industrialization .

Initially, CORFO was divided into four departments, which were responsible for agriculture, trade and transport, energy and fuels, as well as industry and mining. By 1952 it had grown to ten departments, including departments for finance and research.

After many state-owned companies were privatized during the military dictatorship, CORFO today has four main areas of responsibility:

  • Strengthening research and technological development with economic significance
  • Promotion of business partnerships, especially of small and medium-sized companies, in order to strengthen their competitiveness
  • Modernize the administration of private companies to increase their competitiveness
  • Investment promotion for young entrepreneurs, exporters and small businesses

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