Chile’s booming salmon industry has boosted regional employment and exports, but rising environmental concerns and regulatory uncertainty pose significant economic trade-offs.

As the world’s second-largest exporter of farmed salmon, Chile has leveraged its aquaculture sector to generate $6.4bn annually and employ over 86,000 people, supporting economic development and regional employment, especially around Puerto Montt. However, this growth highlights risks of primary product dependency and raises concerns about negative externalities, including pollution from fish waste and feed in protected marine ecosystems. Regulatory ambiguity and disputes over farms in national parks undermine investor confidence and limit expansion, despite rising global demand. Balancing sustainable growth with environmental protection remains a key economic challenge.

Chile's salmon farms hope for calmer waters - BBC News

1. What are the negative externalities associated with the expansion of Chile’s salmon farming industry?

2. Discuss whether increased growth of the salmon farming industry reduces or worsens Chile’s reliance on primary product dependency.

3. To what extent does the expansion of salmon farming contribute to economic development in Chile?