In 2007 political development in Chile was characterized as increasing transparency，deepening reforms，protecting human rights and decentralizing power. The economy kept on growing at a sound rate，realizing a twin-surplus for public finance and the current account.But inflation rate is climbing and the capital account was in large deficit，leading to a deficit in the overall balance of payments.In the diplomatic front，the government continues to pursue multilateralism by putting priority on the development of relations with other Latin American countries and promoting regional cooperation.In the social area，Chile continues to stand on top of all the other Latin American countries in terms of performance.