Chilean champion.

Although Brazil is the investor favorite in Latin America, Chile remains the country with the best business environment, according to the 2011 Latin Business Index from Latin Business Chronicle.

The index broadly measures the cLimate for business in 18 countries in Latin America. It focuses on five categories, using a methodology revised from 2010. The categories and their components are:

* Macro environment: Percent GDP growth in 2009, 2010, estimated 2011 and forecast 2012, and percent inflation for those years.

* Corporate environment: taxes, labor environment, access to capital for entrepreneurs, ease of doing business and economic freedom.

* Globalization and competitiveness: globalization, competitiveness, tariffs and security.

* Infrastructure level. Transport, technology penetration, access to water and quality of electricity supply.

* Political environment: political freedom, political stability, political outlook, judicial independence, business policies of government, transparency and intellectual property rights.

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What sets Chile apart from all other Latin American nations is its superior corporate environment. Chile scores a whopping 7.02 points in that category, far outpacing the next best performers in corporate environment: Mexico (6.35) and Colombia (5.33).

Chile has by far the best tax environment, the best labor environment, best access to capital for entrepreneurs and most economic freedom. But it ranks fourth in ease of doing business, including opening and closing a business, trailing Mexico, Peru and Colombia in that component of the corporate category.

At 17 percent, Chile's corporate tax rate is the second-lowest in Latin America (only Paraguay has a lower rate). Chile also boasts the lowest tax rate as a percent of profits, and the number of tax payments and hours needed to comply with tax regulations are among the lowest in Latin America.

Chile's labor environment outperforms its neighbors, thanks to such factors as having no restrictions on night and holiday work, that it doesn't pay premiums for such work and that it has one of the lowest-paid annual leaves, according to World Bank data. Chile has no minimum wage for an apprentice and has the region's second-lowest severance pay for redundancy dismissal (12 weeks of salary), although regular

dismissals cost more. Along with EL Salvador, Chile receives the best marks from executives in Latin America when it comes to flexibility of wage determination, and the country has the lowest "brain drain," according to an executive opinion survey from the Swiss-based World Economic Forum.

When it comes to technology, Chile can boast Latin America's highest penetration of PCs and broadband Internet, according to the Latin Technology Index from Latin Business Chronicle.

Chile also outperforms in its political environment. It is the least corrupt country in Latin America, according to German watchdog Transparency International. Meanwhile, Chile ranks as the freest economy in Latin America, according to the Heritage Foundation, and it is among the three freest countries in terms of civil rights and political liberties, according to Freedom House.

Chile's intellectual property rights are the best in Latin America and stronger than countries such as Spain and South Korea, according to the Intellectual Property Rights Index from the Property Rights Alliance.

Fast FactsPopulation:       17.1 millionGDP:              $203.3 billionGDP per capita:   $15,002GDP growth.       5.3%Inflation:        1.5%FDI:              $15.0 billionExports:          $71.0 billionImports:          $55.2 billionNote: All figures for 2010. GDP per capita isbased on purchasing power parity (PPP).Sources: International Monetary Fund,Centrat Bank of Chile, ECLAC, PopulationReference Bureau, Latin Business Chronicle