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Chile: An Overview


Chile, a countryof 19.1 million people,is locatedalongthe
Pacific coast of South America. Chile traditionally has been
one ofthe United States' closest partners in Latin America
due to the countries' comnon commitments to democracy,
human rights, and free trade. Chile's transition to a higher
levelof economic development has enabledthe country to
play amore active role in foreign affairs, including U.S.-
backed efforts to promote peace and stability in the Western
Hemisphere.

Figure I. Chile at a Glance







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Sources: CRSGraphics; Insituto Naconalde Estadisticas; Centro
de Estudios Pblicos; andthe International Monetary Fund.
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Mile has along democratic traditionbutexperienced 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 3,200people were killed or
disappeared, andsome 38,000 people were imprisoned
and/or tortured during the Pinochet dictatorship. Chile
ultimately restored a democratic systemofgovemment in
1990. A center-left coalition of parties dominated Chilean
politics for two decades after the transition.

President Sebastidn Pifiera of the center-right Let's Go
Chile coalition was inaugurated to a second nonconsecutive
termin March 2018. His 2017 campaign centered onthe
economic record of his first term(2010-2014), when the
Chilean economy expanded by 5.3% per year. His argunrnt
that Chile needed stronger economic growthto address the
concerns of the middle clas s appeared to resonate with
many voters after four years ofeconomic stagnation under
President Michelle Bachelet (2006-2010, 2014-2018) and
her center-left New Majority coalition.

Pifiera began his second four-year termpledging to enact
business-friendly taxand laborreforms. Similar to his first
term, however, Pifiera struggled to win legislative approval
for his agenda because his coalition lacks majorities in both
houses of congress. He effectively abandonedhis campaign


proposals in October2019 as he soughtto respond to mass
protests. Pifiera is likely to spend the remainder of his term
trying to contain socialunrest while contending with the
health and economic challenges posed by the Coronaviru s
Disease 2019 (COVID-19) pandemic.


In the 30 years since Chile's democratic transition,
successive administrations have largely adhered to the sane
mix of market-oriented economic policies and targeted
social welfare programs. Although living standards have
improved significantly, many Chileans are dissatis fied with
the limits of the post-Pinochet policy consensus. They
argue that Chile's economic growth has disproportionately
benefited a small sector of society and that most Chileans
still lack economic security and access to quality public
services. Chileans have registered their dis content with the
status quo through repeated electoral swings and mass
mobilizations over the past decade.

Frustrations boiled over in October2019, when protests
against anincrease in transit fares suddenly tumedviolent.
As some groups engaged in vandalism, arson, and looting,
Pifiera declared a stateof emergency and deployed the
military to enforce acurfew. Thosemeasures appear to have
triggered a backlash, with millions of Chileans taking to the
streets to denounce societal inequality and the highcost of
living. Pifiera lifted the state of emergency after 10days,
but protests, and sometines -violent clashes with Chilean
security forces, continued into 2020; Chile's National
Human Rights Institute has filed more than 1,400 criminal
complaints against members of the police andmilitary for
alleged human rights abuses. Pifiera has sought to address
protestors' demands with proposals to increase pensions
and the minimum wage, reduce health care costs, and
enhance penalties for corruption. He also agreed to hold a
plebiscite on whether the country should draft anew
constitutionto replace the Pinochet-era charter.


The arrivalof the COVID-19 pandemic in Chile suspended
most protest activity and shifted the focus of government
efforts. The Pifiera Adminis tration began implementing
containment measures in March 2020, closing borders and
restricting freedomofmovement. Although Pifiera had
announcedplans to begin lifting restrictions in May, a spike
in infections andhospitalizations forcedhimto backtrack
and impose a complete quarantine on the Santiago
metropolitan region-home to more than 40% of Chileans.
As of June 2,2020, Chile had confirmed more than 108,000
cases of COVID-19 and had registered nearly 1,200 deaths.

The Pifiera Administration has taken aggressive action to
mitigate the economic impact of the pandemic. It has
increased funding for unemployment benefits, offered


A A '2


Updated June 3,2020

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