Latin America

Chile (part 1 of 2) CPO 3304 Politics of Latin America

Map of Chile

Outline

• Colonial period • Independence • 19th Century • 20th Century

▫ Partial democracy: 1900-24 ▫ Authoritarian rule: 1924-31 ▫ Democracy: 1932- until 1973 ▫ Authoritarian rule: 1973-1990 ▫ Transition and Consolidation of Democracy: 1990

until the present

Colonial period

• The territory that we know as Chile today played a relatively minor role in the Spanish American economy.

• Land was in the hands of small number of landlords. They produced agricultural goods such as fruits and grain.

• Maritime trade connected Chile with the colonies and Spain.

• Eventually it was valued for agricultural and mining production.

• The Spaniards found a native indigenous population but many died due to the diseases brought by the Europeans.

• Thus, Chile had a relatively homogenous population during the colonial era. Most Chileans were “mestizos.”

Independence

• The First proclamation of independence was in 1811. It was crushed by the Spanish troops.

• Bernardo O'Higgins became the leader of the second attempt to gain independence. He proclaimed the absolute independence from Spain in 1818. José de San Martín, leading the Army of the Andes, helped him.

Post-Independence

• After achieving independence, O Higgins became the first leader of Chile.

• He created the navy, promoted education, and won international recognition of Chile's independence.

• In 1823, the Chilean upper class forced him to resign.

Bernardo O’Higgins

Conservatives and Liberals

• After O' Higgins, there was a period of political instability (1823-30)

• Conservatives and Liberals fought for political control.

• 1829 Civil War

Conservative Rule • In 1830, Conservatives organized a rebellion and took control of the

government. • This Conservative victory marked the beginning of 3 decades of

Conservative rule. The key figure was Diego Portales who became the strong man, although never president in name.

• In 1831 a Constituent Assembly was held. It produced a constitution in 1833. The Constitution of 1833 created a strong central government.

• Portales ruled unchallenged because the government controlled the political machinery and the landowners supported him.

• Liberals tried several times to overthrow the Conservatives.

War of the Confederation (1836- 39) • It was a conflict between the Peru-Bolivian

Confederation on one side and Chile, Peruvian dissidents and Argentina, on the other.

• Chile and Argentina feared a powerful rival in the region.

• The war was fought mostly in Peru. • Outcomes:

Defeat and dissolution of the Confederation. A military rebellion led to the assassination of

Portales.

Manuel Bulnes (1941-51)

• Promoted educational and cultural expansion: ▫ Encouraged foreign intellectuals to come to Chile ▫ Creation of junior schools ▫ Founding of University of Chile ▫ Granted general amnesty to reconcile groups

during 1829 Civil war ▫ Took the possession of the Strait of Magellan and

initiated a territorial struggle with Argentina(settled in 1984.)

19th Century Economy

• After independence, agricultural exports experienced ups and downs.

• Chile had to compete with Argentina for Europeans markets. Argentina had much better access to Europe than Chile.

• By mid 19th Century, mining became the leading force for economic growth. Chile produced silver, copper and nitrates.

• Europeans owned 2/3 of the nitrate fields and American investors practically controlled the Chilean copper industry.

19th Century Society

• The traditional landowners and mining elites were connected through family ties.

• These ties minimized conflicts between the countryside and city.

• Small middle class • Big working class-Chile did not have to import

foreign labor force. It was native born. From the very beginning Chileans workers had access to the political scene. (Unlike Argentina)

• Peasantry tied by labor obligations to the estate where they lived

Continuation of 19th Century Politics • 1859 Civil war. Political elite decided that it was

time to consolidate the political system. • Period of political stability with President José

Joaquín Pérez (1861-71.) • In 1871, the Constitution was amended to set

some limits on the presidency. For example, it prohibited presidents from serving two consecutive terms.

• In 1874, more Constitutional changes made ministers accountable to Congress, strengthening legislative powers.

19th Century Politics

• Liberals fought for the equality of all religions. Liberals won concessions: non Catholics had the right to have churches and schools. Later they made new gains: Civil registration of marriage, birth and death was compulsory.

• Move towards a more pluralistic society. • In the 1880's ,Congress extended vote to

all literate males over 25 years, eliminating income requirement.

War of the Pacific (1879-1883)

• Chile vs. Peru and Bolivia. • Chile invaded Bolivia as a result of a conflict

between a Chilean company based in Bolivia and the Government of Bolivia. Peru defended Bolivia. W

• Outcomes: Chile won and got the mineral rich coastal strip that had belonged to Peru and Bolivia.

19th Century Politics

• José Balmaceda (1886-1991) ▫ Liberal ▫ He wanted to increase government intervention in

the economy. ▫ He wanted to build new railways, roads and urban

infrastructure (water and sanitation). (For this, he needed to increase tax revenues from foreign companies.)

▫ Through his plan to improve infrastructure, he tried to break with the foreign monopoly of the railways. He found opposition in Congress. Clashes between Congress and President.

19th Century Politics

• Balmaceda ▫ He also wanted to open a national bank, a threat

to oligarchy, which had control the private banking system.

• With these plans, Balmaceda alarmed conservative Chilean interests.

• Civil war: Navy, congressional rebels and mining and merchants elites vs. Army with Balmaceda. Balmaceda lost. He went to the Argentine Embassy and committed suicide.

19th Century Politics

• Jorge Montt (1991-1996) • 1891-Chile's strong presidency switched to a

parliamentary system. Power of the president was limited.

• Cabinets came and went at an average of 4 every year between 1895-1925. This instability was reinforced with the fragmentation of parties. There were 5 parties in 1900.

• Power remained in the hands of an oligarchy representing agricultural interests.

20th Century

• Worker's mobilizations at the beginning of the XX century. Labor unions emerged although Chilean laws did not recognize them. The main organizers of the unions were the Anarchists.

• Chile, like Argentina, had opened up the political system to middle and working class. They became an important source of votes.

Arturo Alessandri (1920-24)

• Arturo Alessandri knew the importance of the labor sector. He was a liberal. He ran for president and won in 1920. In his campaign, he appealed to workers. He proposed to legalize unions.

• Initially, he favored the workers in their mediations with employers. But Alessandri was attacked by the right for being too soft on labor ‑ and the Left for accepting aggressive employers tactics. Finally, Alessandri paid attention to the right. His government began to repress workers.

• Alesandri wanted to implement a labor code and social welfare package for the workers. He introduced these two proposals in Congress.

• Conservatives opposed. They did not want unions to have any legal status. Impasse. The military intervened in Sept 1924.

Alessandri and the Military

• In 1924, the military junta took partial control of the government. The military issued a package of labor measures. Included was a labor code that subjected unions to close government supervision. The Congress approved all of them.

• The military's legislation was a preemptive measure by the govt to limit further worker's mobilizations.

• Since Alessandri was losing ground with the struggle vs. military, he went to Italy in 1924.

Alessandri and the Military

• Alessandri was recalled after a second military coup in January 1925. The officers in power needed Alessandri and workers' support to become legitimate. The new military government intervened in strikes in favor of the workers.

• Alessandri returned to Chile two months after the coup. President for less than a year. Alessandri's government began to repress labor. Alessandri resigned that same year (1925).

• New constitution of 1925. Reduction of power of congress and establishment of the separation between state and church.

Col. Carlos Ibañez (1925-31)

• Alessandri was replaced by Col. Carlos Ibanez, a strong man.

• He was formally elected President by the Congress in 1927 and consolidated a dictatorship until 1931.

• Ibañez ordered the arrest of opponents and suspended civil liberties.

• The state played a bigger role in the economy by constructing railways, roads and power facilities. The military institution also received more funds. Much of the money came from abroad, loans and the US investment in mining.

Ibañez

• End of Ibañez's rule came with Wall street crash of 1929.

• Minerals exports fell and foreign financing stopped. Protest vs. Ibañez (workers and professionals).

• Ibañez resigned in 1931.

1931 Political Instability

• Among the interim governments: Interlude of a Socialist Republic Col. Marmaduke Grove was a ‑ leading figure. 13 days. It marked the rise of the Socialist party.

The return of Alessandri

• 1932 elections. Alessandri wins. • Alessandri was President from 1932-1938 • Policies: • He is more interested in order than in change. • He cracked down on the opposition, mainly the

left. He proclaimed a state of siege, closed Congress and sent opponents into exile.

• Reduced public spending and dismantled state agencies created by Ibañez. The world demand for Chilean exports increased and foreign trade balance improved. Unemployment dropped.

Popular Front governments (1939- 52) • 1939. New elections 1939. Popular Front wins,

What was the Popular front a coalition of ‑ Communists, Radicals, Socialists, Democrats. The candidate was Pedro Aguirre Cerda, a wealthy Radical.

• Internal tensions of the coalition • Radicals were the dominant element and the

least radical in ideology. They focused on eco. development and not social welfare. Socialist and Communists competed against each other.

• Policies of the Front: Nothing menacing. Expanded eco. role for the national government. For example: State corporation to promote economic development.

• Due to poor health, Aguirre Cerda had to resign in 1941.

Popular Front governments (1939- 52) • Juan Antonio Ríos (1942 46) A Radical. He ‑

supported the US during WWII. • Gabriel González Videla (1946 52). Another ‑

Radical. ▫ Strikes. Government declared a state of siege and

suspended civil liberties. Right was scared of rise of votes for the Left. Communist obtained 18% vote in municipal elections. The US was launching a campaign to isolate the Left. The Left attacked González and the US. In 1948, the Congress (Communist were outnumbered) outlawed the Communist party and its members were banned from running for office or holding official posts. It marked the demise of the Popular Front.

Ibañez is back

• 1952 elections: Rejection to traditional parties. Gen. Carlos Ibañez won.

• Ibañez (1952-58) He had to ask for a loan from IMF, many riots

throughout Chile. Communist party was legalized for the 1958

elections.

The Alessandri Dinasty

• 1958 elections. Jorge Alessandri, son of Arturo Alessandri, won with 32% of the votes. He was the leader of the right. (Conservative-Liberal coalition) His competitors were Salvador Allende from Socialist Communist alliance (29% of the votes)) and Eduardo Frei from the Christian Democrats (21% of the votes.)

• Chilean electorate was deeply divided.

Jorge Alessandri (1958-64)

• Economic policies: He followed an orthodox IMF style stabilization policy: budget cutting, devaluation, and appeal for foreign investment. His economic policies did not solve the socioeconomic problems of Chile, exodus of the rural poor to the cities, to Santiago.

• During his presidency, there was a realignment of forces. Now 4 main pol. groups: 1) right (Conservatives and Liberals) 2) Centrist Radicals 30 Marxist left (Communist and Socialists) and 4) The CD (center)

Eduardo Frei (1964-70)

• 1964 elections The Right supported the candidate of the Christian democrats, Eduardo Frei, out of fear that the left could win. Political system polarized: Right and Center vs Left. The candidate of the left Allende, called for radical changes to lead Chile to socialism. Frei called for reforms although his slogan was Revolution in Liberty.

• The CIA recently admitted to contributing more than 50% of Frei campaign expenses.

• Frei won by 56% of the vote.

Eduardo Frei

• Economic policy. Moderate and reformist • The Chilean government bought into part

ownership of the companies with the proceeds to be reinvested by the companies in expanded facilities, especially for processing.

• He carried out a modest land reform. The program went slowly than originally planned and land was not given to many people.(only 28,000 new owners, planned 100,000).

• Politics. They pushed for a new kind of popular participation, a new kind of grassroots political activity. Mixture of coops, self help, communitarian. The idea was to undermine the power of the Left (main support came from labor unions.)

Salvador Allende (1970-73)

• 1970 elections. • Right Jorge Alessandri 34.9%‑ • Center CD Radomiro Tomic 27.8% • UP or Popular Unity Allende 36.3% • Military plot, initially supported by the US, to

block Allende from coming to power because Gen Rene Schneider was murdered in a kidnap attempt. Allende came to power. He was President for 3 years.

Salvador Allende

Allende

• Initial economic strategy freeze/control prices ‑ and increased wages, boom in consumer buying. Merchants' inventories were depleted.

• He nationalized copper, coal and steel companies. He also nationalized 60% of the foreign private banks.

• Response from the US invisible blockade vs Chile in the international eco. This blockade included a hold on any loans from major international banks (World Bank). Private foreign investment also stopped. During 1972 73, West European and socialist countries ‑ extended lines of credit to Allende.

• Land reform. State expropriated land but peasants also seized land.

Allende

• 1972 Problems as a result of initial policies: • Products disappeared from the legal market to

the black market to avoid price controls. • Sabotage by producers • Inefficiency of the government in taking over

and running huge sectors of the economy. • Political violence from the left and the right.

Allende

• 1973 More problems • Economy: Inflation, Deficit of balance of

payment low world copper prices, less export ‑ earnings, public sector grew, no investment. Economy in shambles.

• UP suffered internal tensions: Far Left (MIR) pressed for radical measures. For example: faster nationalizations. The moderate sectors, including the Communists, called for caution, radical measures and actions will help the right to mobilize military and middle class.

• Massive streets mobilizations by pro Allende and Anti Allende groups. Middle class saw Allende as a threat to private property.

• US contributed to the destabilization of the regime by passing dollars to conservative groups and subsidizing anti Allende strikes.

Military coup

• On September 11,1973 a well coordinated military coup put an end to Allende's regime. Allende resisted the coup from the presidential palace in Santiago. Air force Hawker Hunters attacked the palace with rocket fire. As army troops entered the palace, Allende committed suicide.

• One of the main leaders of the coup was Gen. Augusto Pinochet, Army Chief.

• At least 2,000 died during the coup.

The Pinochet Dictatorship (1973- 90) • The military junta imposed an authoritarian regime

from the very beginning ▫ Congress was dissolved ▫ Political party activities were closed ▫ Constitution suspended ▫ Limits to freedoms

• Pinochet achieved supreme authority ▫ He outmaneuvered other members of the military junta ▫ Using the traditional military hierarchies, he united the

military around him ▫ He created a highly personalized regime ▫ Wrote a Constitution that place him in power indefinitely

The Pinochet Dictatorship • Those conditions allowed the consolidation of a

repressive and extremely authoritarian regime ▫ All political activity was suppressed ▫ The political decisions were highly centralized: hierarchy

and discipline were keystone ▫ Personalization of supreme leadership

• Pinochet and the military did not have a national project ▫ They just wanted to stop the “Communist threat” ▫ They wanted to reinstate the “capitalist model” ▫ The coup was a reactive process

Gen. Augusto Pinochet

The Pinochet Dictatorship

• Massive violations of human rights. • 1973-76 Worst period of human rights violations • Up to December 1973, 18,000 were detained and

by December 1975, 50,000 were detained. • Between 1973 1990 Thousands of people were ‑

murdered, executed, disappeared, tortured, or killed by other measures.

• Majority of the victims belonged to left wing organizations.

The Pinochet Dictatorship

• With the help of civilian technocrats, the military achieved major economic changes in Chile. The technocrats were known as the Chicago boys because they were trained at the University of Chicago. The Chicago boys believed that state intervention in the economy restricted Chile's economic growth. It reduced competition, artificially increased wages and led to inflation. Formula: reduce role of the state, open up the economy, reduce tariffs, and cut back inflation. They emphasized on export promotion and attracting investment.

• Results: generally speaking: relative price stability, booming exports, record foreign investment, impressive foreign debt reduction and successful privatization of former public companies.

The Pinochet Dictatorship

• 1978 Granted Amnesty to military for any human rights violations.

• 1978 A plebiscite for legitimization. Appearance of support for Pinochet. He obtained the majority of the votes.

• 1980 Citizens approved a Constitution that confirmed Pinochet’s hold on his office until 1990. Authoritarian constitution. It called for a plebiscite in 1988 in which the people would decide if the nominee selected by the military junta, Pinochet, would rule as an elected president for 8 more years.

The Pinochet Dictatorship

• 1986 Armed wing of the Communist unsuccessfully attempted to kill Pinochet.

• 1988 Pinochet reacting to international pressure to liberalize and sure that he will win, called for another plebiscite on his rule. He was the nominee to rule Chile. He lost. 55% of the votes for the no and 43% of the votes for yes.

• 1989 Elections: Patricio Aylwin, the candidate of the Concertación (coalition of 17 center and center left parties), won.

Conclusion

• After years of authoritarian rule, Chile enjoyed a long and stable democracy.

• Democracy came to an end with the military coup in 1973.

• In 1989, Chileans rejected the continuation of the authoritarian regime under Pinochet.

• The 1990 elections opened the way for a long transition to democracy.

Chile:(part 2 of 2) from 1990 until the present CPO 3304 Politics of Latin America

Outline

• Patricio Aylwin (1990-94) • Eduardo Frei (1994-2000) • Ricardo Lagos (2000-04) • Michelle Bachelet (2004-08) • Sebastián Piñeira (2010-14) • Michelle Bachelet (2014-)

Patricio Aylwin (1990-94)

Aylwin

Goals: • Restoration of Chile’s democratic institutions,

investigation of human rights abuses and rapid improvement of economic conditions for the poor.

• He promised to continue with the same economic policies of the Pinochet government.

Aylwin

• Obstacles to his goal to restore democratic institutions. ▫ Aylwin accepted to rule under the 1980

constitution. Gen. Pinochet would be the Army Commander in Chief from 1990 until 1998. Same prerogative to the 3 junta members from the Navy, Air Force and Police. The military kept a defense tax, which consists of 10% of the yearly revenues of state copper companies yearly revenues. They also kept very generous pension rights that exceed those of any social group.

Aylwin

• More obstacles for the achievement of his goals : ▫ A promilitary judiciary, Pinochet appointed most

judges ▫ A rightist dominated Senate, Pinochet appointed

nine permanent senators. Aylwin did not have a simple majority. According to the Constitution, the composition of the Courts, regulatory bodies and semi autonomous agencies required the approval of 60% vote in both houses. )

▫ Resistance of the military to any trials or investigations of human rights abuses.

Aylwin

• On Human Rights: ▫ Creation of a Commission for Truth and

Reconciliation in 1990. Nine months later, the Commission issued a report: 2, 115 people victims of human rights violations resulting in death. Aylwin apologized on behalf of the state and passed laws to release almost all political ‑ prisoners of the dictatorship.

• He had attempted to reform the judiciary and encouraged the prosecution of human rights violations. Despite resistance, there were 200 cases being investigated by June 1993.

• He passed a law to compensate the families and victims.

Aylwin

• On the economy: ▫ He maintained macroeconomic stability ▫ He did not inherit an economic crisis. Although it

inherited economic challenges: unemployment, social equity, education and social reforms. These problems did not require emergency measures.

Did Chile had a democracy under Aylwin? • According to Juan Linz and Manuel Garretón,

Chile had a democratic situation but not a democratic regime. ▫ Unelected officers (like Pinochet) had strong

political powers over elected officers. ▫ Constitution had authoritarian components.

Eduardo Frei (1994-2000)

Frei

• Lack of political direction. • He proposed to eliminate the 9 senatorial

positions –4 reserved for military commanders. His plans were blocked by military appointees and the political right.

Frei

• In 1993, former head of Chile’s secret police during Pinochet and his deputy were sentenced for masterminding the 1976 Letelier assassination.

• Test for Chile’s democracy. Tension between Supreme Court and Pinochet. Supreme Court upheld the decision. The two convicted men were arrested and taken to jail.

Frei

• Increase in public works-through private investment

• Good economic performance until 1997-Asian financial crisis.

• Energy crisis in 1998. • 1998-Pinochet retired as Chief of the Army and

becomes Senator. • A judge investigated Pinochet for human rights

violations but he had immunity rights.

Frei and The Pinochet Case

• On October 10, 1998, Spanish Judge Baltazar Garzón indicted Pinochet for human rights violations committed in Chile during the dictatorship.

• At the time, Pinochet was in Great Britain for medical reasons.

• On October 17, 1998, Pinochet was placed under house arrest in London.

• Pinochet will stay under house arrest until 2000.

Ricardo Lagos

• Socialist and Presidential candidate of the Concertación coalition.

• Former Minister of Public Works under Eduardo Frei

• Won the 2000 elections. On the second round, he won by 47.9% against the candidate of the right who obtained 45.5%

Ricardo Lagos 2000-2006

Ricardo Lagos

• He inherited the Pinochet case. • British government released Pinochet in March

2000. • Pinochet returned to Chile. • In Chile, Pinochet faced justice. He was charged

with a number of crimes and was under house arrest.

• He was never convicted.

Ricardo Lagos • Signed Free Trade Agreements with the European

Community, US, China, South Korea and New Zealand. • Legal work week was reduced from 48 to 45 hours. • Improvements in infrastructure and

transportation. • Creation of unemployment insurance • Compulsory schooling extended to 12 years. • Approval of the first divorce law. • Monetary compensation to victims of torture

under the dictatorship.

Michelle Bachelet

• Socialist and Presidential Candidate of the Concertación coalition.

• She was Minister of Health and Minister of Defense under Lagos.

• 2005 election: Bachelet won the presidency with 53.5% of the vote on the second round. She defeated the center–right candidate Sebastián Piñera.

• She became Chile’s first female President

Michelle Bachelet

Bachelet

• Reformed the pension system. ▫ 60% of the poorest segment of the population,

regardless of their contribution history, could receive a minimum pension.

▫ Female pensioners will get a bonus for every child born alive.

Bachelet

• Social welfare programs to young vulnerable children.

• Literary programs: free books to 400 thousand poor families with children attending primary school.

• Free computers to poor seventh graders with excellent grades.

• Labor laws ▫ Protection to subcontracted employees ▫ Pay equality-equal pay for equal work in the

private sector, regardless of gender.

Bachelet

• In April 2006, Massive high school students demonstrations demanded an improvement of quality levels in public education.

• She responded by setting up a committee to propose changes to Chile’s educational system.

• As a result of the committee report, Bachelet signed an Educational Reform Bill in to law which created new regulatory bodies: Superintendency on Education and a quality Agency.

Bachelet

• Gen. Pinochet passed away on December 10, 2006.

• Bachelet did not allow a state ceremony and did not attend his funeral.

• Pinochet had a military funeral. Flags flew at half-staff only at military barracks. The Minister of Defense attended the funeral.

Bachelet

• On February 27, 2010, Chile was ravaged by a 8.8 magnitude earthquake that killed more than 500 people, toppled buildings and bridges and triggered tsunamis that wiped entire villages.

• Bachelet and the government were criticized for the slow response to the disaster.

Bachelet

• In January 2009, she opened the Museum of Memory in Santiago, documenting the horrors of the Pinochet dictatorship.

• She promulgated a law to create the National Institute for Human Rights to protect and promote human rights .

Sebastián Piñera (2010-2014)

Sebastián Piñera

• His 2010 victory meant a shift to the right after two decades of center left political leadership and became the first elected right wing leader in 52 years.

• He was also the first billionaire businessman to be sworn into the Chilean presidency.

Piñera

• Challenges when he came to power: ▫ World economic recession ▫ Us and European economies in trouble ▫ A devastating earthquake that left $30 million in

damages. • Outcomes:

▫ 5% annual economic growth ▫ 3% inflation rate ▫ Reduction of poverty levels

Michelle Bachelet (2014-)

Bachelet

• Michelle Bachelet has been re-elected as President of Chile.

• Plans: ▫ Raise corporate taxes to fund education. ▫ A series of social measures, including same gender

marriage and legalization of abortion, that could shake up traditionally conservative Chile.

▫ Reform Chile’s largely privatized education system.

▫ Reform the Constitution

Conclusion

• Chile has made progress towards democracy. • Uninterrupted constitutional rule. • Free and honest elections. • However, there are still changes that need to be

made for Chileans to enjoy a full democracy. ▫ 1980 Constitution