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Cabinet Reshuffle by President Michelle Bachelet Political Analysis

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Cabinet Reshuffle by President Michelle Bachelet Political Analysis SPECIAL REPORT Cabinet Reshuffle by President Michelle Bachelet Political Analysis Santiago de Chile, May 2015 BARCELONA BOGOTÁ BUENOS AIRES LIMA LISBOA MADRID MÉXICO PANAMÁ QUITO RIO J SÃO PAULO SANTIAGO STO DOMINGO CABINET RESHUFFLE BY PRESIDENT MICHELLE BACHELET POLITICAL ANALYSIS 1. INTRODUCTION Fourteen months after the start of her term of office and 1. INTRODUCTION following a series of scandals related to irregular political 2. CABINET CHANGES campaign funding (linked to the PENTA and CASCADAS case), 3. MINISTERS WHO REMAIN IN the Ministry of the Interior's questionable handling of the crisis THE SAME POSITION involving the President's son (the CAVAL case), and one of the AUTHORS lowest presidential ratings since Chile reinstated democracy (38% approval and 43% disapproval, according to the latest survey by the Center of Public Studies), President Michelle Bachelet announced her new cabinet on May the 11th. Its aim is to breathe new life into the second half of her term by building a team of individuals with proven experience in negotiating political-parliamentary matters and skills in establishing dialogs with public and private sectors. Political party involvement in the president's decision was practically inexistent, just as in the case of Bachelet's first cabinet (2014). According to comments made by the presidents of the political parties of the Nueva Mayoría (New Majority), government coalition, they were only made aware of some of the names included in the new cabinet on May 10th at 8:00 pm. A CABINET BASED ON DIALOG An aspect to highlight in this new cabinet is the parliamentary experience of most of the new ministers, showing a strong trend towards dialog and negotiation. These items were notably absent during the initial Tax Reforms and marked the performance of the recently-departed Finance minister Alberto Arenas. Although the new Finance minister, Rodrigo Valdés (PPD, Party for Democracy), has a strong technical (but not parliamentary) background as well as professional experience in the private sector, the support he received from the new Interior minister, Jorge Burgos (Demócrata Cristinano, (Christian Democracy)) was noteworthy. In a joint press conference with Valdés, Burgos made multiple mentions of the importance of the ministry of Finance in his first appearance as the cabinet chief, hinting at a promising ministry partnership. Valdés, who is close to the Minister of Education, Nicolás Eyzaguirre (PPD, Party for Democracy), appears to be a good alternative for establishing a closer bond between the government and the private sector, especially with regulatory projects related to General Legislation for Banks, Capital Markets and Labor Reforms. The new 2 CABINET RESHUFFLE BY PRESIDENT MICHELLE BACHELET POLITICAL ANALYSIS Finance minister has worked Bachelet's government was at the IMF, Barclays and BTG the Democracia Cristiana Pactual, where his professional (Christian Democracy), which capabilities are acknowledged. argued against Education Reforms and recently Ximena Rincón's (DC, questioned the government's Christian Democracy) arrival poor handling of the CAVAL “The president in the Ministry of Labor has case that involved the is attempting been positive because the president's son. The arrival of minister has already been Burgos in the Ministry of the to build a closer president of the Senate's Interior and the presence of relationship with the Labor Commission, and these Ximena Rincón in the Ministry Partido Comunista matters are closely linked to of Labor will strengthen one of her expertise. This, combined the central reforms proposed (Communist Party)” with the positive evaluation by Bachelet's government, the from her predecessor (Javiera Labor Reform. Blanco, the current Minister of Justice), sets the stage The presence of the Partido for Labor Reforms with a Comunista (Communist high level of involvement, Party) in the cabinet with two discussion and negotiation ministers (Marcos Barraza on all sides. Matters such as in the Ministry of Social negotiations by branches, the Development and Claudia groundwork for launching Pascual in the Ministry of collective negotiations and National Women's Service) hints replacements during strikes at the idea that the president are issues for which it is hoped is attempting to build a closer that the new minister will relationship with the Partido have agreement and dialog in Comunista (Communist Party), their handling. which includes the president of the Central Unitaria de A MORE APPROACHABLE Trabajadores (CUT, Central DEMOCRACIA CRISTINA Union of Workers), one of the (CHRISTIAN DEMOCRACY) most important agents in Labor AND AN INCREASINGLY Reforms. NEUTRAL PARTIDO COMUNISTA (COMMUNIST PARTY WINNERS AND LOSERS As a result of the Nueva Rodrigo Peñailillo, a member of Mayoría's (New Majority) the Partido Por la Democracia parliamentary majority, the (Party for Democracy, PPD), right-winged opposition formed part of the G-90 group was not a major hurdle of young politicians who were the government faced actively involved in directing in presenting initiatives. Michelle Bachelet's presidential However, one of the parties campaign and he became her that was most critical of person of trust in the cabinet. 3 CABINET RESHUFFLE BY PRESIDENT MICHELLE BACHELET POLITICAL ANALYSIS Although his departure was Democrat Radical Party)). The highly foreseeable, he was former minister of General one of the individuals who Secretariat of the Presidency, has been most affected by the Ximena Rincón (DC, Christian shuffle. Peñaililllo received Democracy), is now with the poor ratings because of how he Ministry of Labor. handled the CAVAL and SQM cases, in which invoices were Álvaro Elizalde, a member of submitted to the company the Partido Por la Democracia “The Partido (linked to the CASCADAS case) (Party for Democracy), was Comunista for consultancy that was never not appointed to the Ministry (Communist Party) has carried out, these are known as of General Secretariat of the ideologically false invoices. Presidency and was replaced by benefited from this the socialist Marcelo Díaz, who cabinet reshuffling He is replaced by Jorge Burgos, was previously the ambassador because” a member of Democracia of Chile to Argentina. Cristiana (Christian Democracy) who was previously the The Partido Comunista minister of National Defense. (Communist Party) has The role of minister of the benefited from this cabinet Interior is extremely important reshuffling because Marcos because this person acts as Barraza has been appointed the President's right hand. as the new minister of Social As a result, it is very symbolic Development, replacing for a member of Democracia Fernanda Villegas. The Partido Cristiana (Christian Democracy) Comunista (Communist Party) to hold this position because currently holds two ministries, this ministry has been which is fairly rare in heavy traditionally dominated by the governments. political center. In the Ministry of Culture, José Antonio Gómez, a member Claudia Barattini was removed of Partido Radical Social from her position and replaced Demócrata (Social Democrat by Ernesto Ottone. Radical Party), has taken over the position formerly held by The ministry cabinet's political Burgos (Democracia Cristiana,– equilibrium is now as follows: Christian Democracy–). Democracia Cristiana The former Labor minister, (Christian Democracy): Javiera Blanco (independent close to DC, Christian • Ministry of the Interior Democracy), is now with the Ministry of Justice, which • Ministry of Public Works had been led by José Antonio Gómez (Partido Radical • Ministry of Justice Social Demócrata (Social 4 CABINET RESHUFFLE BY PRESIDENT MICHELLE BACHELET POLITICAL ANALYSIS • Ministry of Labor and Social Partido Radical Socialista Forecast Demócarata (Social Democrat Radical Party): • Ministry of Economy, Development and Tourism • Ministry of National Defense • Ministry of the Environment • Ministry of Mining Partido Socialista (Socialist Party): Partido Comunista (Communist Party): • Ministry of General Secretariat of Government • Ministry of National Women's Service • Ministry of Energy • Ministry of Social • Ministry of Agriculture Development Partido Por la Democracia MAS , Movimiento Amplio (Party for Democracy): Social(Broad Social Movement): • Ministry of Foreign Affairs • Ministry of Sport • Ministry of Finance Izquierda Ciudadana (Citizen • Ministry of General Left): Secretariat of the Presidency • Ministry of National Assets • Ministry of Housing and Urban Planning • Ministry of Transport and Communications • Ministry of Education 5 CABINET RESHUFFLE BY PRESIDENT MICHELLE BACHELET POLITICAL ANALYSIS 2. CABINET CHANGES Ministry of the Interior and Public Security Burgos holds a Law degree from the University of Chile. He is the former minister of Defense for the current government and a former representative of district 21 (Providencia and Ñuñoa). Important milestones in his professional career include his position as assistant secretary for the Ministry of the Interior, ambassador of Chile to Ecuador, assistant secretary of War, and a variety of duties in the Ministry of the Interior during the Patricio Aylwin administration. In 1992, he was the acting provincial governor of the Jorge Burgos Varela Metropolitan region. Democracia Cristiana (Christian Democracy) (CD) Ministry of National Defense Gómez holds a Law degree from the University of Chile. His is the former minister of Justice for the current government and a former senator of the Antofagasta region.
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