How software is developed at Chile?. That's a very complicated question.
I'll tell my little own experience. Here, we don't create nothing, all is copied from some other great country. In practice, it depends of the software provider and the customers.
The provider defines the development model behind his tools. If the provider is Oracle, we use the development model behind Developer. If the provider is Microsoft, we use all around Web Services. If the provider is SAP... I hadn't used SAP, but friends told me that's a mess.
The customer defines the development model by contract. If the customer likes CMMI, we use CMMI. If the customer likes PMI, we use PMI. If the customer likes ISO 9000 Annex 3, we use that too. If the customer doesn't require them, we don't use it.
When the software is built. We don't refactor. Because is too risky at short run. We don't see the future risks involved at the long run. We don't learn from mistakes and still trying to do the things the same way that 10 years before.
Why am I talking so bad about my country in terms of Software Engineering?. Because I think that my country has the talent. But they don't try to use it. We can improve a lot, and it's matter of work. Yes, it's a lot of work, but we need to do that if we want to be a Developed Country.