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handle is hein.crs/goveqzj0001 and id is 1 raw text is: Congressional Research Service
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Chile: An Overview

Updated October 15, 2024

Chile, located along the Pacific coast of South America,
traditionally has been one of the United States' closest
partners in Latin America. During the 118th Congress, the
Senate consented to a tax treaty with Chile and some
Members have assessed options for strengthening
commercial and security ties while addressing emerging
opportunities and challenges in bilateral relations.
Po tca and Economc Env,ronment
Chile's democratic tradition dates to the 19th century but the
country experienced 17 years of authoritarian rule after
General Augusto Pinochet led a 1973 military coup that
deposed the democratically elected socialist government of
President Salvador Allende (1970-1973). More than 3,200
people were killed or disappeared, and some 37,000
people were imprisoned and/or tortured during the Pinochet
dictatorship. Chile restored democratic governance in 1990,
after nearly 56% of Chileans voted against continuing the
Pinochet regime in a 1988 plebiscite.
Center-left and center-right coalitions dominated Chilean
politics for three decades following the transition. Center-
left coalitions held the presidency and majorities in Chile's
bicameral congress for most of that period, but SebastiAn
Pifiera led his center-right coalition to power for two
nonconsecutive presidential terms (2010-2014, 2018-2022).
Both coalitions prioritized political stability and economic
growth, eschewing ambitious structural reforms in favor of
consensus-based politics, market-oriented economic
policies, and incremental social change. Living standards
improved significantly between 1990 and 2022, with real
GDP per capita growing by an average of 4.7% per year
and the poverty rate falling from 68.5% to 6.5%.
Nevertheless, most Latinobar6metro polls since the mid-
1990s have shown a majority of Chileans to be dissatisfied
with how democracy works in Chile. Chile has one of the
highest levels of income inequality in the Organization for
Economic Co-operation and Development, and some
Chileans express frustration with other disparities in
Chilean society. Over the past 15 years, Chileans repeatedly
have registered their discontent with the status quo through
electoral swings and mass protests.
Constitutional Reform Proces 
In late 2019, Chile's political leadership agreed to a process
to potentially replace the country's 1980 constitution. The
agreement was part of a broader effort to restore social
peace after a month of sometimes violent protests against a
transit fare increase and other perceived government
failures. Chile's democratic governments have amended the
constitution extensively over the past 34 years but some
Chileans view the Pinochet-era document as illegitimate
and an impediment to a more inclusive democracy.
Although 78% of Chilean voters voted in favor of replacing
the constitution in October 2020, 62% of voters rejected a

first draft in September 2022 and 56% rejected a second
draft in December 2023. Many Chileans apparently
perceived the first draft, written by a left-of-center
convention, as too radical, and the second draft, finalized by
a right-of-center council, as too conservative.
Consequently, Chile's 1980 constitution remains in place.
Figure I. Chile at a Glance
Capital: Santiago
Population: 20.1 million (2024 est.)
Life Expectancy: 81.6 years (2024 estj)
Gross Domestic Product/GDP per Capita:
$335.7 billion/516,816 (2023 est.)
Top exports: copper and copper ores, lithium, CHILE
fish, fr it  n  uts (2023 ')
Top Trade Partners: China (31%), United States
(18%), European Union (11%), Brazil (7%), Japan (5%) (2023)
Sources: CRS Graphics; Chile's Instituto Nacional de Estadisticas;
International Monetary Fund; and Trade Data Monitor.
Boric Administration
President Gabriel Boric was inaugurated to a four-year term
in March 2022, a decade after rising to prominence as a
leader of Chile's student movement. Leading a left-wing
coalition, he defeated right-wing populist Jos6 Antonio Kast
with 56% of the vote in a December 2021 runoff election.
Boric came to office pledging to address environmental
concerns and usher in a new era of economic and social
inclusion by strengthening the public education and health
care systems, replacing the privatized pension system, and
expanding the rights of historically marginalized groups.
Boric has struggled to enact his agenda, however, and his
approval rating has hovered around his first-round vote
share (26%) for most of his term, according to the Centro
de Estudios Pdiblicos. Boric had hoped to advance many of
his proposals through the constitutional reform process that
ultimately failed. Other proposals have stalled in the
Chilean congress, where Boric must negotiate with centrist
and opposition legislators to pass legislation. Although the
congress has enacted measures to increase mining royalties,
reduce tax evasion, raise the minimum wage, and reduce
the work week from 45 to 40 hours, it rejected a revenue-
raising tax reform intended to fund much of Boric's agenda.
Boric also is contending with a resurgent political right,
which has capitalized on widespread public concern over
rising crime and immigration to boost its support.
Boric's political challenges have been compounded by
difficult economic circumstances. GDP growth slowed
from 11.3% in 2021 to 2.1% in 2022 and 0.2% in 2023,
amid the government's withdrawal of pandemic-era
stimulus measures, rising inflation, and domestic and
geopolitical uncertainty. Chile's finance ministry forecasts

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