A former coworker emigrated to Chile from Uruguay, and he reports that it's by far the most progressive country in South (and probably Central) America... they have low taxes (in comparison to Brazil, Argentina or Uruguay), are far more advanced technologically and enjoy a higher standard of living.

The government there does seem to "get it". There are, of course, several problems as in every Latin American country, but mitigated.

I forwarded the link to several friends, some of which are thinking about starting their own company, and I'll strongly consider it as soon as I finish my Master's.