2016 Country Review

Chile 2016 Country Review http://www.countrywatch.com Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 3 Chile 4 South America 5 Chapter 2 7 Political Overview 7 History 8 Political Conditions 13 Political Risk Index 41 Political Stability 55 Freedom Rankings 71 Human Rights 83 Government Functions 85 Government Structure 86 Principal Government Officials 94 Leader Biography 95 Leader Biography 95 Foreign Relations 105 National Security 110 Defense Forces 114 Chapter 3 116 Economic Overview 116 Economic Overview 117 Nominal GDP and Components 120 Population and GDP Per Capita 122 Real GDP and Inflation 123 Government Spending and Taxation 124 Money Supply, Interest Rates and Unemployment 125 Foreign Trade and the Exchange Rate 126 Data in US Dollars 127 Energy Consumption and Production Standard Units 128 Energy Consumption and Production QUADS 130 World Energy Price Summary 131 CO2 Emissions 132 Agriculture Consumption and Production 133 World Agriculture Pricing Summary 136 Metals Consumption and Production 137 World Metals Pricing Summary 140 Economic Performance Index 141 Chapter 4 153 Investment Overview 153 Foreign Investment Climate 154 Foreign Investment Index 156 Corruption Perceptions Index 169 Competitiveness Ranking 181 Taxation 190 Stock Market 190 Partner Links 191 Chapter 5 192 Social Overview 192 People 193 Human Development Index 194 Life Satisfaction Index 197 Happy Planet Index 209 Status of Women 218 Global Gender Gap Index 220 Culture and Arts 230 Etiquette 230 Travel Information 232 Diseases/Health Data 243 Chapter 6 249 Environmental Overview 249 Environmental Issues 250 Environmental Policy 251 Greenhouse Gas Ranking 252 Global Environmental Snapshot 264 Global Environmental Concepts 275 International Environmental Agreements and Associations 289 Appendices 313 Bibliography 314 Chile Chapter 1 Country Overview Chile Review 2016 Page 1 of 326 pages Chile Country Overview CHILE Chile gained its independence from Spain in 1818. It established a parliamentary democracy in the late 19th century, but degenerated into a system protecting the interests of the ruling oligarchy. In the 1920s, as dissent arose from unequal power and land distribution, Marxist groups gained strong popular support. The government in the 1960s embarked on far-reaching social and economic programs, particularly in education, housing and agrarian reform, but the programs were unable to eliminate inequalities rooted in the past. Senator Salvador Allende, a Marxist and member of Chile's Socialist Party, was elected president in 1970 by a narrow margin, but he was overthrown in 1973 by a military coup led by Augusto Pinochet, who ruled until a freely elected president was installed in 1990. Chile has one of Latin America's strongest economies. Since the 1980s Chile has maintained sound economic policies that have contributed to steady growth. But it faces the challenge of diversifying its copper-dependent economy. Chile Review 2016 Page 2 of 326 pages Chile Key Data Key Data Region: South America Population: 17434684 Climate: Temperate; desert in north; cool and damp in south. Languages: Spanish Currency: 1 Chilean peso (Ch$) = 100 centavos Holiday: Independence Day is 18 September (1810), Pedro Pablo Day is 29 June Area Total: 756950 Area Land: 748800 Coast Line: 6435 Chile Review 2016 Page 3 of 326 pages Chile Chile Country Map Chile Review 2016 Page 4 of 326 pages Chile South America Regional Map Chile Review 2016 Page 5 of 326 pages Chile Chile Review 2016 Page 6 of 326 pages Chile Chapter 2 Political Overview Chile Review 2016 Page 7 of 326 pages Chile History Around 10,000 years ago, migrating indigenous peoples followed the line of the Andes and settled in fertile valleys and along the coast of what is now Chile. The Incas briefly extended their empire into the north in the 15th century in the common era, or C.E., but the area's remoteness and the subsequent arrival of Spanish conquerors in the 16th century prevented extensive settlement. In 1541, the Spanish, under Pedro de Valdivia, encountered hundreds of thousands of indigenous peoples from various cultures in the area that modern Chile now occupies. These cultures supported themselves principally through slash-and-burn agriculture and hunting. The Araucanians, a fragmented society of hunters, gatherers and farmers, constituted the largest Native American group in Chile. A mobile people who engaged in trade and warfare with other indigenous groups, they lived in scattered family clusters and small villages. Although the Araucanians had no written language, they did use a common language. Those in what became central Chile were more settled and more likely to use irrigation. Those in the south combined slash-and-burn agriculture with hunting. The Araucanians, especially the Mapuche group in the south, became famous for their staunch resistance to the seizure of their territory. Scholars speculate that their total population may have numbered one million at most when the Spaniards arrived in the 1530s. A century of European conquest and disease reduced that number by at least half. Although the Spanish did not find the gold and silver they sought in Chile, they recognized the agricultural potential of the region's central valley, and Chile became part of the Viceroyalty of Peru. Nevertheless, the area received little attention from the colonial homeland in Spain. As a successful agro-oriented culture, headed by wealthy landowners, began to flourish in Chile, a nationalist movement emerged and grew rapidly. The drive for independence from Spain was hastened by the seizure of the Spanish throne by Napoleon's brother Joseph. On Sept. 18, 1810, a national junta of "criollos," Chilean-born elites of Spanish descent, employed the Santiago town council, announcing their intention to govern the colony until the king was reinstated. They swore loyalty to the ousted monarch, Ferdinand VII, but insisted that they had as much right to rule in the meantime as did subjects of the crown in Spain itself. The criollos' temporary plan soon led to initiatives for permanent independence, and from Chile Review 2016 Page 8 of 326 pages Chile 1814 to 1817, Spanish loyalists reasserted control over Chile. During this period of harsh governance, known as the "Reconquista," Spanish attempts to re-impose arbitrary rule led to a prolonged struggle led by Bernardo O'Higgins, Chile's most renowned patriot. Chilean independence was formally proclaimed on Feb. 12, 1818. Despite the political revolt and independence, Chile saw little social change at that time. Throughout the 1800s, Chilean society preserved the essence of the stratified colonial social structure, family politics and the influence of the Roman Catholic Church. Although eventually the system of presidential absolutism predominated, wealthy landowners continued to control Chile for most of the century. Toward the end of the 19th century, the government in Santiago consolidated its position in the south by ruthlessly suppressing the Mapuche peoples. In 1881, it signed a treaty with Argentina confirming Chilean sovereignty over the Strait of Magellan. As a result of the War of the Pacific with Peru and Bolivia from 1879 to 1883, Chile expanded its territory northward by almost one- third and acquired valuable nitrate deposits, the exploitation of which led to an era of national affluence. Although Chile established a parliamentary style democracy in the late 19th century, it degenerated into a system that protected the interests of the ruling oligarchy. By the 1920s, the emerging middle and working classes were powerful enough to elect a reformist president, but his program was frustrated by a conservative congress. Continuing political and economic stability resulted in the quasi-dictatorial rule of General Carlos Ibanez from 1924 to 1932. When constitutional rule was restored in 1932, a strong middle-class party, the Radical party, emerged. It became the key force in coalition governments for the next twenty years. In the 1920s, Marxist groups developed with strong popular support. During the period of Radical Party dominance from 1932 to 1952, the state increased its role in the economy. The 1964 presidential election of Christian Democrat Eduardo Frei-Montalva by an absolute majority initiated a period of major reform. Under the slogan "Revolution in Liberty," the Frei administration embarked on far-reaching social and economic programs, particularly in education, housing and agrarian reform, including rural unionization of agricultural workers. By 1967, however, Frei encountered increasing opposition from leftists, who charged that his reforms were inadequate, and from conservatives, who found them excessive. At the end of his term, Frei had many noteworthy accomplishments, but had not achieved the party's ambitious goals. In 1970, Dr. Salvador Allende was elected president by a narrow margin. A Marxist and a member of Chile's Socialist Party, Allende was also the leader of the "Popular Unity" (UP) coalition of Socialists, Communists, Radicals and dissident Christian Democrats. As president, his program Chile Review 2016 Page 9 of 326 pages Chile included the nationalization of most remaining private industries and banks, as well as land expropriation and collectivization. Allende's proposal also included the nationalization of U.S. interests in Chile's major copper mines. Elected with only 36 percent of the vote and by a plurality of only 36,000 votes, Allende did not enjoy majority support in the Chilean Congress or broad popular support. During his presidency, domestic production declined, severe shortages of consumer goods, food and manufactured products were widespread and inflation reached 1,000 percent per year. Mass demonstrations, strikes, violence by both government supporters and opponents, and widespread rural unrest ensued in response to the general deterioration of the economy. By 1973, Chilean society had split into two hostile camps. A military coup d'etat, headed by Gen. Augusto Pinochet overthrew Allende on Sept. 11, 1973. As the armed forces bombarded the presidential palace, Allende was reported to have committed suicide.

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