Chile Recent History

The last few years for Chile have been years of new challenges and old issues. The presidency of Ricardo Lagos, the first socialist president since Salvador Allende, marked a serious political shift. Following a decade of liberal leaders, Lagos shook things up by appointing women and liberal activists to important positions, enacting constitutional reforms, and increasing funding for social reforms and protection programs. Nevertheless, divisions in the Concertación allowed the conservative Right to gain ground. This was clearly shown through the continued inability of the government to rid the Senate of the nine Pinochet-appointed senators.

Martial-civil relations are still somewhat volatile but have been improving in recent years. The prosecution of the officers responsible for Pinochet’s “Caravan of Death” and the first sentencing of an active-duty officer have helped to eliminate military impunity and reduce social tension.

Economically, the country is still trying to get back on its feet. Improvement has been slow due to the troubled economies of Argentina and the US. Lagos and his successor and ally, Michelle Bachelet, have worked to counter this by solidifying and diversifying the nation’s economic ties. Lagos was part of the Asian trade talks and signed a free-trade agreement with the European Union. Additionally, Lagos signed the US-Chile Free Trade Agreement, which took effect in January 2004. Nevertheless, unemployment continued to remain high.

Throughout all of these controversies and issues, social reform has remained one of most pressing national issues. At the end of Pinochet’s regime, over 40% of the population was living in poverty, with 13% in absolute destitution. Through increased investment in education, health services, and social protection, by 2004 those numbers were reduced to 17 and 4 percent respectively, an incredible feat for any country; unfortunately, problems still remain. Unemployment is still high and is especially prevalent among young adults. Levels of inequality are also very high. Despite the economic growth of the last decade, the gap between rich and poor has expanded significantly, raising serious concerns about the effectiveness of current social programs.

Chile has come a long way since authoritarianism, politically, economically, and socially. Nevertheless, some of the country’s most difficult issues remain unresolved. Combined with a turbulent international scene, these will make the next couple of years vitally important to the future direction and success of the nation.