hile remains dependent upon foreign energy sources (The World Bank, 1989).
Chile's chief wealth lies in its mineral deposits, which are located primarily in the country's northern provinces. Copper is the most important of these minerals, because it is Chile's largest source of foreign exchange (Paxton, 1990). Nitrate of soda, iron ore, and coal are also important minerals in Chile (Paxton, 1990). The international demand for these minerals, particularly copper, affects the country's interna tional relations.
Chile's structure of production is approaching the produc tion structure for the industrialized countries. Approximately 37 percent of Chile's gross domestic product (GDP) is accounted for by the economy's industrial sector, compare with an average 35 percent in the industrial countries (The World Bank, 1989). Chilean agricultural production accounts for seven percent of the GDP, compared to an average three percent in the indus trialized countries, and services in Chile, at 56 percent, com pare to the 62 percent average for the industrial countries (The World Bank, 1989). The weakness in Chile's industrial structure lies in the continued dominance of the resource extraction industries (The World Bank, 1989). Greater develop ment of the country's manufacturing base is required to reduce the dependence on imported goods.
Chile maintains a large (relative to its population size) military establishment, which includes ground, sea, and air forces (Paxton, 1990). The country's defense budget annually approximates three percent of the GDP (London Institute for Strategic Studies, 1989). While this proportional level of spending is lower than that for the superpowers, it is signifi cantly higher than that for most other countries of the world, whether they are larger or smaller than Chile (London Institute for Strategic Studies, 1989). The size and strength of Chile's military establishment likely has a great deal more t...