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Chile: An Overview

Updated October 5, 2021

Chile, located along the Pacific coast of South America,
traditionally has been one of the United States' closest
partners in Latin America. The country's transition to a
higher level of economic development has enabled it to
play a more active role in foreign affairs, often in
collaboration with the United States.
Figure I. Chile at a Glance

Sources: CRS Graphics; Instituto Nacional de Estadisticas;
Latinobar6metro; International Monetary Fund; Trade Data Monitor;
and Ministerio de Desarrollo Social y Familia.
Political and Economic Situation
Chile has a long democratic tradition but 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 a democratic system of government in
1990. A center-left coalition of parties dominated Chilean
politics for two decades after the transition.
President Sebastian Pinera of the center-right Let's Go
Chile coalition was inaugurated to a second nonconsecutive
term in March 2018. He took office pledging to enact
business-friendly tax and labor reforms but struggled to
move many of his proposals through Chile's fragmented
Congress. Pimera effectively abandoned much of his agenda
in the face of mass protests in October 2019. He has spent
the past two years trying to contain social unrest while
addressing the health and economic challenges posed by the
Coronavirus Disease 2019 (COVID-19) pandemic. An
August 2021 poll conducted by the Centro de Estudios
Pdblicos found that 16% of Chileans approved of Pinera's
performance in office and 68% disapproved.
Social Unrest, Constitutional Refor, and Elections
According to a 2020 Latinobar6metro poll, 76% of
Chileans are dissatisfied with how democracy functions in
their country. Although Chile has experienced significant

improvements in living standards over the past 30 years,
inequality remains high and most Chileans view the
country's income, education, and health disparities as
unjust. Chileans have registered their discontent with the
status quo through repeated electoral swings, but changes in
government have resulted in limited reforms to the
country's economic model and its reliance on the private
sector for the provision of social services.
With the political system unwilling or unable to channel
Chileans' preferences, many people have taken to the
streets in mass mobilizations. Social unrest spiraled into
violence in October 2019, when protests against an increase
in transit fares in Santiago were accompanied by vandalism,
arson, and looting. President Pinera's decision to declare a
state of emergency and deploy the military to enforce a
curfew appears to have triggered a backlash, leading
millions of Chileans across the country to join the protests.
In an effort to restore peace and respond to demands for a
new social contract, the Pinera administration and
legislators from across the political spectrum agreed to hold
a plebiscite on whether to replace the Pinochet-era
constitution. The plebiscite passed with overwhelming
support, and in May 2021, Chileans elected a constituent
assembly in which predominantly left-leaning independents
hold a plurality of seats. The assembly may seek to increase
the state's role in social service provision, reduce private
control over water and other natural resources, grant
autonomy to Indigenous peoples, and decentralize
governance, among other changes. Each element of the
constitution would need the approval of a two-thirds
majority of the assembly, and the final draft is to be
submitted to a national referendum in 2022.
Chile is scheduled to hold presidential and congressional
elections on November 21, 2021. In late September 2021,
the Chilean polling firm Cadem found Gabriel Boric-a 35-
year-old former student leader and leftist member of the
Chamber of Deputies-leading the presidential race with
22% support. He was followed by Jose Antonio Kast, a
rightist former member of the Chamber of Deputies (15%);
Sebastiin Sichel, a former Pinera administration official
nominated by the center-right ruling coalition (12%); and
Yasna Provoste, senate president nominated by Chile's
traditional center-left coalition (12%). If no candidate wins
a majority of the vote, a runoff between the top two
candidates is to take place on December 19, 2021.
Pan demic Response and Economic Recovery
Chile confirmed its first case of COVID-19 in March 2020,
leading the Pinera administration to impose a variety of
containment measures. Pinera resisted calls for a national
quarantine, opting to impose restrictions on municipalities
and regions in accordance with local conditions to avoid

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