Chile: Can Piñera Contain Popular Rage Against Liberal Capitalism?

By Irina Domurath and Stefano Palestini Céspedes*

Protesters in Chile

Protesters in Chile/ Photo by the Authors

Chilean President Piñera’s declaration of a state of emergency and public statements last weekend suggest he is prepared to suppress demonstrations rather than deal with social and political demands. On Saturday, the center-right president also delegated control of public order to Army Commander General Iturriaga and declared nighttime curfews. What started as citizen disobedience – groups of students entering the subway without paying – quickly developed into a massive, albeit uncoordinated, mobilization. Protesters destroyed several subway stations, forcing closure of the transport system that 2.8 million people rely on daily. Despite the government controls, protests spread to other Chilean cities on Sunday, reaching a scale unseen since the end of the military regime.

While the immediate trigger of the protests was an increase in subway prices, underlying the unrest is a deep social discontent over the results of decades of neoliberal policies. Most of them were implemented during the Pinochet era and largely preserved by successor democratic governments. While they were successful in reducing extreme poverty, they have also led to high levels of socioeconomic inequality.

  • The private pension system has yielded huge market revenues instead of dignified pensions; the health sector is split into an underfunded public system and a privatized system that discriminates against women and the elderly; the public education system fails to deliver social mobility; and the public transport system has not helped to overcome extreme socio-geographic segregation in the capital and beyond. Consumer markets are rigged by anti-competitive practices and collusion. The oligarchic political elite sees social policy not as a matter of citizen rights, but as a matter of charity. Parliamentarians refuse to discuss their salaries, which amount to 33 times the minimum wage. Trust in the police and the military has plummeted due to scandals of corruption and abuse of power.

Although some of the protesters targeted symbols of neoliberalism, the government’s response has reflected a lack of awareness of these underlying issues – or, worse, is trying to lay blame on individual vandals. In a televised address from Army headquarters on Sunday night, Piñera sounded a dark note: “We are at war against a powerful enemy, who is willing to use violence without any limits.” Suggesting he does not distinguish between social protesters and groups of vandals, he said, “We are ready to do everything to not fall into populism.” Piñera had previously shown a tin ear on Friday night, when shortly after eating at a high-class restaurant, he admonished citizens for evading subway fares. His remarks fueled social discontent coming just days after two businessmen were sentenced to take ethics classes as “punishment” for involvement in tax-evasion schemes and irregular payments to political allies of Piñera’s coalition.

The Piñera government is addressing the crisis as it has done it before with the student movement and the Mapuche conflict over indigenous lands in the south: treating what are indeed political issues and social discontent as a security threat. The president is playing deaf to the legitimate social and political demands of Chilean citizens, undermining the government’s credibility as a political interlocutor while also fueling an escalation of violence.

  • Chile now joins Argentina, Ecuador, Peru, and others in facing serious pressure to deal with an array of problems that incumbent governments have failed to address – reminiscent of the social mobilizations in Brazil in 2013 that culminated in impeachment and the rise of a reactionary president, Jair Bolsonaro, whose commitment to democracy is seen by many as questionable at the very least. In this context, the Chilean political elite has a huge responsibility to avoid a breakdown of democracy and the rule of law. The government cannot ignore popular desires for a plan to overhaul the neoliberal Chilean model – and it would be wise not to cast opposing views as a security threat.

* Irina Domurath is a legal researcher at the School of Governance, Catholic University of Chile and external fellow at the University of Amsterdam, and Stefano Palestini Céspedes is an assistant professor at the Institute of Political Science, Catholic University of Chile.

 

 

A Right Turn in Latin America?

By Santiago Anria and Kenneth Roberts*

Jair Bolsonaro

Brazilian President Jair Bolsonaro in January 2019. / Marcos Brandão / Agência Senado / Flickr / Creative Commons

After a long winning streak, the left in Latin America has experienced electoral defeats in a number of former strongholds since 2015 – including Argentina, Chile, and Brazil – but the trend is not unidirectional and so far falls short of being a regional “right turn.”

  • Right wing presidents govern today in those three countries as well as Colombia, Guatemala, Paraguay, Honduras, Panama, and Peru – a scenario that is quite different from 2010, when about two-thirds of Latin Americans lived under some form of leftist government. Democratization, financial crises, and market liberalization shaped the 1980s-90s, while mounting social discontent against neoliberal market reforms helped to produce a “left turn” that spread across the region following the election of Hugo Chávez in 1998.  Leftist candidates won 30 presidential elections in 11 different Latin American countries between 1998 and 2014.

The current trend lines are hardly unidirectional across the region.  Mexico, which remained under conservative government when most of the region turned toward the left after 1998, has recently elected long-time leftist leader Andrés Manuel López Obrador to the presidency.  Incumbent leftist parties have been re-elected one or more times in Uruguay, Bolivia, Costa Rica, and El Salvador.  Notably, leftist parties in some countries where they have been historically weak, such as Colombia and Honduras, have strengthened electorally and organizationally, laying the groundwork for further growth.  Leftists’ records elsewhere are mixed.  Rivalries among Ecuadorean leftists make their future uncertain.  Venezuelan President Maduro and Nicaraguan President Ortega have resorted to increasingly repressive and authoritarian measures to maintain their grip on power.

  • With the possible exception of Brazil, the right’s surge is not the result of the sort of social backlash that brought the left to power. In general, the right’s victories appear to be a routine alternation of power rather than a regional wave with common starting points and driving forces.  Argentina and Chile are the two clearest examples of routine electoral alternation of power explained by retrospective, anti-incumbency voting in contexts of economic slow-downs, corruption scandals, and social policy discontent.  In countries like Paraguay and Honduras, on the other hand, the shifts were initiated by non-electoral means – a politically motivated presidential impeachment in the former and a military coup in the latter – and then consolidated through elections after the fact.  In Brazil, the right turn can be traced back to the social protests that broke out against Dilma Rousseff’s leftist PT government in June 2013, but former conservative allies’ opportunistic impeachment of Rousseff, along with their imprisonment of former President and PT founder Lula, seriously weakened her party – paving the way for the election of anti-establishment candidate Jair Bolsonaro.

The left in power is still strong, though probably not unbeatable today, in countries like Bolivia and Uruguay, at least in part because of their roots in and strong connections with social movements.  Unlike the PT, both Bolivia’s MAS and Uruguay’s FA have managed to preserve more of their movement character and to avoid extreme forms of top-down control and professionalization.  The ability of mass popular constituencies and grass-roots activism to hold party leaders accountable and steer public policies in desired directions—a condition largely absent in countries like Brazil, Ecuador, and Venezuela—has helped the left maintain cohesion in Bolivia and Uruguay.  This cohesion, accompanied by significant reductions of inequality, helps to explain the continued vitality of left parties in these countries.  The recent strengthening of leftist alternatives in Mexico and Colombia, moreover, should guard against facile assumptions that a region wide right turn is underway.  Conservative forces’ recent victories are better understood as a reinforcement of the post-neoliberal left-right programmatic structuring of political competition in Latin America than a unidirectional political shift to the right.  That said, Brazil wields significant political and economic influence in the region and, traditionally seen as an “early mover” in the region, may be a bellwether of the future.  The ability of President Bolsonaro and his model of governance to deliver the results that Brazilians want—and to operate within the parameters of democratic institutions—will be key factors in determining the direction and strength of the region’s rightist wave.

January 9, 2019

*Santiago Anria is Assistant Professor of Political Science and Latin American Studies at Dickinson College, and Kenneth Roberts is Professor of Government and Director of Latin American Studies at Cornell University.

Correa’s Second Term

By Rob Albro, CLALS Faculty Affiliate

President Rafael Correa, Ecuador | by: "el quinto infierno" | Flickr | Creative Commons

President Rafael Correa, Ecuador | by: “el quinto infierno” | Flickr | Creative Commons

Little drama accompanied results of the February 17 election in Ecuador, where center-left incumbent Rafael Correa retained the presidency by a wide margin. Correa enjoys the highest approval rating – nearly 80% late last year – of any Latin American head of state. He will be the first Ecuadoran president to complete his term since 1996, and his resounding victory at the polls will in principle keep him in office until 2017. Most pre-election polls had projected Correa to win decisively, and he did just that with 56.7% of the popular vote. The opposition is fractured, with seven different candidates running against him. His nearest rival, banker Guillermo Lasso, garnered only 23.3% of the vote. A testament to Correa’s dominance is that the right-leaning Lasso offered a vision little different from the president’s own policies and even adopted key elements of Correa’s discourse. The title of Lasso’s recent book, Another Ecuador is Possible, references the World Social Forum.

Correa’s political base was consolidated during the anti-neoliberal protests of 2005, and his “citizen’s revolution” represents an unorthodox combination of nationalist populism, robust social welfare spending and rhetorical flourishes in defense of Ecuador’s national sovereignty. Correa’s social spending – increasing the health budget, minimum wage, pensions, and access to medical care; offering micro-credit and free school lunches; providing new housing and anti-poverty subsidies –is highly popular, especially with the urban poor. These programs, dependent upon a commodity-led export strategy, have enabled Correa to marginalize once important political actors of the left and right. Organized labor and indigenous movements on the left, like economic and media elites on the right, have picked fights with Correa, objecting to his authoritarian style, attacks on the press, petroleum policies in the Amazon, poor record on crime, and outbursts directed toward foreign investors. But this has made little dent in his popularity.

If Correa is certain to face resistance to his agenda in his new term, the political fragmentation and lack of dramatic choices evident during the campaign suggest that it will not necessarily be effective.  Despite potential fiscal headwinds, redistributive social welfare policies are likely to continue to expand. Questions do remain: regular social investment has been enabled by ramping up an extraction-based economy dependent on oil, which has also generated some social conflict.  But there is mounting evidence that aside from being popular these policies are also measurably successful. Ecuador’s election comes on the heels of Venezuela’s, where opposition candidates also found it necessary to tout redistributive policies. If the economy turns south, a splintered opposition might find common cause. But as in a number of other South American countries, the redistributive politics of an incipient social welfare state will inform the agenda of Correa’s eventual successor. The long-term management of these policies, and whether the President will seek to alter the Constitution to permit indefinite re-election, are matters that could prove vexing during the coming years.