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Trouble in Paradise: Chile’s Inequality Explodes
The social reforms agenda presented by President Sebastián Piñera to ease the Chileans’ discontent is insufficient.
SANTIAGO, Chile — In the past week Chile has been gripped by a wave of fury and indignation. Chileans of all ages have poured into the streets armed with kitchenware, banging pots to demand reforms — Latin America’s traditional cacerolazo form of protest. Demonstrations have been both violent and peaceful, leading the government to declare a curfew in some parts of the country and a state of emergency. Troops have been deployed to restore order for the first time since Chile returned to democracy 30 years ago. At least 18 people have died so far and thousands have been arrested. The illusion of Chile as an oasis in a convulsed region has cracked.
It began with a series of protests at the Instituto Nacional in Santiago, one of the country’s most prestigious state schools. For months now students have demanded more resources for the school and reforms to the education system. Then on Oct. 6, the government led by Sebastián Piñera — the center-right politician-businessman who returned to the presidency after an election victory in 2017 — put into effect an increase in subway rates, setting off a wave of protests that have unmasked rampant class inequality and corruption.
On Tuesday, Mr. Piñera issued an apology and proposed a set of social reforms, but demonstrators remained in the streets setting barricades and union leaders called for a two-day general strike, while human rights organizations denounced the use of excessive force by the security forces.
Chile, one of the most competitive nations in Latin America, is undergoing a crisis of disillusionment.
A recent study revealed that while the middle class has increased, 1 percent of the population in Chile holds 25 percent of the wealth generated in the country. Until recently the promise of economic stability, poverty reduction, expansion of consumption and growth of the middle class had given many a reason to feel optimistic. And yet inequality remains a legacy the country can’t seem to shake. Mr. Piñera campaigned on the promise that “better times are coming,” but he is facing an economic slowdown and the World Bank has lowered growth expectations for this year and next. The illusion of permanent growth has been ripped apart and that rupture is fueling the fire of disappointment that has erupted in the last week.
In the years after the dictatorship ended in the 1990s, Chile had experienced an optimistic era of democratization and modernization that reduced poverty from 30 percent to 6.4 percent in 17 years. Left- and right-wing presidents have alternated in recent decades, but new generations remain mistrustful of those in power, demanding greater equality and a broader and more inclusive social welfare system, as well as reforms to the pension system — which until now has been tied to the individual’s career path and capacity for savings — and to the health care and education systems.
The generation born into a democratic Chile that are now demanding change are children of the discontent that the expansion of the middle class, and with it consumption, kept at bay. The crowds of demonstrators are not guided by parties or visible movements, and they lack a clear set of objectives. They are more united by a common abhorrence of inequality, and their agenda, with a focus on issues such as greater diversity and better protection of the environment, directly clashes with that of their predecessors, those who lead the country.
On Oct. 22, Mr. Piñera appeared before the press and announced a series of social reforms, among them immediate improvement of pensions, subsidies for medicines, the creation of a guaranteed minimum income, aimed at diffusing the protests.
Will these social programs solve the crisis and put out the fervor? It’s a promising agenda, but it’s insufficient in the long term. Chile is experiencing social unrest, but also a cultural and political crisis. Mr. Piñera must promote a more peaceful and effective dialogue without sacrificing the democratic process. This is the first step toward healing the wounds of inequality.
Until a few days ago, Chile was an exceptional example of welfare and building institutions in Latin America. Today, it cannot tolerate the temptation of violence after overcoming the repressive and bloody dictatorship of Augusto Pinochet. The Chilean government must remain committed to democratic mechanisms, including negotiating with political opposition forces, appeal to the generation of young Chileans who represent the country’s future, advancing social reforms, defending civil liberties, and ensuring economic growth. It’s not easy to do all that at once, but otherwise the wound will remain open.
Carlos Peña is a lawyer, philosopher and president of the Universidad Diego Portales. This article was translated from the Spanish by Erin Goodman.
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