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1 [1] (July 16, 2019)

handle is hein.crs/govbalw0001 and id is 1 raw text is: Cogesoa Reeac Servic Updated July 16, 2019 Chile: An Overview Chile, a nation of 19.1 million people, is located along the Pacific coast of South America. Chile traditionally has been one of the United States' strongest partners in Latin America due to the countries' common commitments to democracy, human rights, and free trade. Chile also has worked with the United States to promote peace and stability in the Western Hemisphere, as the country's transition to a higher level of economic development has enabled it to take on additional regional responsibilities. Political and Economic Situation Chile has a long democratic tradition, but it experienced 17 years of authoritarian rule after a 1973 military coup led by General Augusto Pinochet deposed the democratically elected Socialist government of President Salvador Allende (1970-1973). More than 3,200 people were killed or disappeared, and some 38,000 people were imprisoned and/or tortured during the Pinochet dictatorship. Chile ultimately restored democracy in 1990. The center-left Coalition of Parties for Democracy (CPD), which initially formed to campaign for an end to the dictatorship, governed Chile for 20 years after the transition. Although it repeatedly won the presidency and majorities in Chile's bicameral congress, the CPD's ability to implement policy changes was constrained by provisions of the Pinochet-era constitution and the specter of another democratic breakdown. Consequently, the coalition pursued consensus-based reforms that largely maintained the market-oriented economic framework inherited from Pinochet while gradually strengthening Chile's social safety net. The CPD's cautious approach enabled Chile to consolidate democratic governance and produced considerable improvements in living standards. Nevertheless, many Chileans have been dissatisfied with the limits of the post-Pinochet policy consensus. They argue that Chile's economic growth has disproportionately benefited the country's wealthiest families and that most Chileans still lack economic security and access to quality public services. Over the past decade, this dissatisfaction has manifested itself through repeated electoral swings and mass mobilizations. In 2009, Chileans elected President SebastiTm Pifiera of center-right Coalition for Change as president, leading to the country's first alternation of power since the return to democracy. Pifiera lacked majorities in both houses of congress, however, and generally adhered to the same policy mix as the CPD while implementing some business- friendly economic reforms. The Chilean economy expanded by an average of 5.3% per year throughout his 2010-2014 term, but Pifiera enjoyed little popular support and faced repeated protests. Figure I. Chile at a Glance Source: CRS Graphics, Instituto Nacional de Estadisticas; Centro de Estudios Publicos; and the International Monetary Fund. After four years in opposition, the former CPD incorporated the Communist Party and social movement leaders into the coalition, rebranded itself as the New Majority, and regained power with a series of policy proposals intended to reduce inequality. From 2014 to 2018, President Michelle Bachelet worked with her congressional allies to enact far- reaching fiscal, labor, education, and electoral reforms. She struggled with low approval ratings, however, as the economy grew by an average of 1.8% per year. Analysts primarily attributed Chile's economic slowdown to the falling price of copper, which accounts for about half of the country's export revenues, but Bachelet's policies reportedly exacerbated the downturn by weakening business confidence. Chile's political pendulum swung back to the right in December 2017, as Chileans voted to return Pifiera to the presidency. He defeated Senator Alejandro Guillier of the ruling New Majority coalition in a second-round runoff election by a margin of 54.6% to 45.4%. Pifiera campaigned on the economic record of his first term, and he appears to have won over swing voters with his argument that the country needs stronger economic growth to address the concerns of the middle class. Pifiera also benefited from the fragmentation of the New Majority coalition; the centrist Christian Democrats split from the coalition to run its own slate of candidates, and a new Broad Front coalition attracted many left-wing voters. Pifiera's center-right coalition, rebranded Let's Go Chile, picked up seats but failed to win majorities in either house of congress. Pifiera was inaugurated to his second four-year term in March 2018. He has pledged to boost economic growth by modifying some Bachelet Administration reforms, creating new incentives for entrepreneurship and innovation, and increasing investment in infrastructure. Pifiera also has put forward proposals to improve public security and tighten the country's immigration policies. He has struggled to

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