Financial crises and subnational socio-economic sustainability

Abstract

This paper verifies the differences in vulnerability and resilience of some Chilean cities and subnational regions to certain international crises (1975, 1982, 1997 and 2008), according to the behavior of regional and urban socio-economic variables. Also, the unequal economic and social sustainability of these cities and regions is assessed against the impact of the crises. The effects of the international economic and financial crises are analyzed by the behavior of sector-regional GDP, changes in foreign investment, employment and poverty. Vulnerability and resilience of subnational regions are highly variable and even divergent against the impacts of the crises; and, as a consequence, public policies to prevent and mitigate crises may end up being profoundly unequal because of their homogeneity, and less effective because of their neutrality.