Wednesday, November 18, 2009

MBAE10 Alumni, Pamela Quintero & Salena Steffy-Fuoss in Chile

Our plane touched down on Saturday, November 14, 2009. We decided to arrive one day early in order to participate in an all-day excursion to Isla Negra and Pomaire. Prior to leaving Chicago we did not know if we would be able to make it in time for the daily tour. Fortunately, our plane was on-time and we quickly arrived at our hotel. We booked the tour and within 1 hour we were on our way to Isla Negra with our gracious Tour Guide, Sandra Gonzalez of Turis Tour.

As we started our journey to Isla Negra we quickly learned many important and interesting things about Chile, from Sandra. As we went through the Lo Prado under water mountain tunnel, we learned that it is 3 km long and took 4 years to build. This tunnel is significant because instead of going 6 to 8 hours through the mountains, drivers can now use the underpass and cut the travel time down to 1 to 2 hours. Sandra also pointed out one of the former copper mines that has since been closed due to the higher marginal costs (when compared to the marginal benefit) of extracting the copper. As she stated, one of the negative by-products of the copper mining industry is related to the changes in the landscape. Because of the techniques involved in the extraction, large sediment mountains are created and are unable to sustain vegetation. She did explain however, that with Chile having 7 of the 10 largest mines in the world, new techniques are being developed to reduce the effects on the environment. This seemed to be confirmed when we met with the CFO of Empresas Copec.

On our way to Isla Negra, Sandra shared a Chilean legend with us, as we passed an old cemetery along the main road. The legend states that years ago there were attempts to build a road that would cut through the cemetery and force the movement of certain cemetery plots. As workers attempted to break ground with various types of equipment, for some reason the ground could not be broken. After several fruitless attempts, a decision was made to go around the cemetery.

We then passed a wind farm and our guide explained that when it rains the wind turbines help to reduce the effects of freezing on the grapes. This is an important measure for protecting one of Chile’s primary agricultural products and their wine industry.

As we continued to make our way to Isla Negra, Sandra discussed several recent economic changes in her country.

  • She discussed the effort to reduce the number of homeless in Santiago through a low cost housing purchase. Those that qualify for the program are given the opportunity to purchase homes in two installment payments totaling about $1,000 US dollars. In order to foster a vested interest, the house is incomplete when initially turned over to the new homeowners. For example, features such as doors and stairs may be missing. The idea behind this is that the homeowner will begin to understand the value of home ownership and develop a stake in their new home, as they begin to complete the structure of their house. The success of this program is monitored by social workers that visit the new homeowners periodically, to verify their progress. It is expected that within 5 years the homeless encampments will be eliminated in Santiago. Also on the subject of housing we were told that homes in Santiago range from $50,000 in the city to $140,000 in the valley’s surrounding the city. These homes are more expensive due to lower pollution, increased safety, and short commute into the city.
  • In the past 3 to 4 years the justice system has changed dramatically in Chile. We were told that in the past, a defendant was unable to defend him or herself in court. In recent years, the judicial system has become closer to that which we are familiar with in the United States - where a defendant is innocent until proven guilty. Defendants now have the ability to participate in their own defense. However, this system is still in its infancy and has resulted in an inefficient and timely court process.
We finally reached Isla Negra and discovered a quaint artistic town on the edge of the Pacific Ocean. Our first stop was the home of Pablo Neruda – a famous Chilean Poet who was awarded the Nobel Prize. His home, which overlooked the sea, was reminiscent of a boat. We learned that Pablo Neruda was passionate about the sea, as it reminded him of his childhood and experiences with his father. As we passed through the rooms of his home, it seemed very much like the shape of the country - each room connecting to the next through narrow “boat-like” passage ways. We quickly discovered that he was a collector of many types of artifacts and items, including: bottles, statues, bugs, seashells, and of course anything that was from a boat. In fact, the story is that one day he told his wife that his desk was coming that day. It turns out, he saw a piece of wood floating in the sea and as the tide pulled it closer, he retrieved it. The piece of wood, which later became his writing desk, was a hatch door from a ship.

Before departing Isla Negra, we ate lunch at a local restaurant, as we overlooked the Pacific Ocean. After lunch, we walked down to the beach where we felt the ice-cold water on our feet. On our stroll back across the beach, we befriended one of the stray dogs (very common in Chile) with our peanut butter crackers. He escorted us back to our vehicle and we were off to Pomaire.

In Pomaire, we got our first experience with local artisans and their handicrafts. The town markets, offered everything from Pottery goods to Alpaca clothing. The traditional and hand-crafted items provided excellent choices for gifts for our friends and families back home.

As our trip ended and we said our goodbyes to our new Chilean Friend, Sandra, we realized that our decision to visit Chile would be one that we will not soon forget.

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