Chile: Election Likely to Show Big Political Shifts

By Kenneth Roberts and Eduardo Silva*

A presidential candidate stands in front of a crowd and a large Chilean flag

Ex-president Sebastián Piñera addresses his supporters at a campaign rally last month. / Twitter: @sebastianpinera

Chilean politics in the run-up to national presidential and legislative elections on November 19 have revealed that – within major lines of continuity – significant changes in the political alignments that have structured the country’s democracy since the end of the Pinochet dictatorship in 1990 are taking place.

  • Continuity is most pronounced on the conservative side of the political spectrum, where the two main conservative parties, Renovación Nacional (RN) and Unión Demócrata Independiente (UDI), have joined forces with smaller parties to sponsor the presidential candidacy of billionaire business mogul and former President Sebastián Piñera. In public opinion surveys of voter intentions, Piñera has maintained a healthy lead over a collection of centrist and leftist candidates.  He appears likely to come out on top in the first round of voting – and significant abstention (if fewer than 5.5 million registered voters vote) could push him over the top.  If he is forced into a run-off, the final outcome will rest heavily on the ability of his opponents in the divided center-left bloc to coalesce forces.
  • The center-left space is where most change is concentrated. The core parties in the Nueva Mayoría coalition that backed incumbent Socialist President Michelle Bachelet have won five of Chile’s six presidential elections since the transition to democracy in 1990.  For the first time, however, the main centrist party, the Partido Demócrata Cristiano (PDC), has opted out of the alliance to run its own candidate, Senator Carolina Goic.  With Goic languishing in the polls, however, the primary challengers to Piñera are located further to the left, including the Nueva Mayoría’s favorite, Senator Alejandro Guillier.  Although early speculation pegged him as an outsider, he is now firmly identified with the moderate reformist left and represents continuity with the current government.

A new left-leaning group, the Frente Amplio, has nominated Beatriz Sánchez, an independent journalist.  She arguably represents a larger challenge to the status quo, as her candidacy gives political expression to social actors who are sharply critical of Chile’s political establishment and the neoliberal economic model.  Even though the Broad Front’s electoral strength is untested, it brings together a number of small parties alienated from Nueva Mayoría and inspired by Chile’s massive student protest movement and other activist networks that have mobilized around labor, environmental, and pension reform issues in recent years.  Sánchez favors more redistributive taxation and greater state intervention in strategic enterprises and utilities, as well as in water property rights and forestry where social conflict has been high.  She is also for replacing the private pensions system with a mixed public-private one and getting private banking out of the student loan business.

This election will likely show that the broad center-left coalition that dominated Chilean politics since the 1990 transition has effectively splintered, with the Christian Democrats seeking to carve out an independent space in the political center and a movement-based alternative emerging on the mainstream parties’ left flank.  Uniting such disparate forces to compete against Piñera in a run-off election, should one be required, will clearly be a formidable task.  Nueva Mayoría candidate Alejandro Guillier, considered the strongest run-off candidate to take on Piñera, is already in conversation with Christian Democrats and Sánchez’s Frente Amplio.  In a run-off, he is thought likely to get around 60 percent of the Christian Democratic vote, with more conservative Christian Democrats voting for Piñera.  His appeal to Frente Amplio voters could suffer because of their unhappiness with Nueva Mayoría.

  •  The specter of high abstention looms large for second-round voting, too. President Bachelet’s low approval ratings for most of her second term in office, although recently reversed, signaled low enthusiasm despite her successful pushing through a series of major reforms, including a reform of the electoral law to enhance proportional representation, a tax reform to increase revenues for social programs, the initiation of free university education for low-income students, and a much-debated law to legalize abortions in limited circumstances.  Last, but not least, mainstream parties across the board have been weakened by a series of corruption and campaign finance scandals, leaving many citizens alienated from parties.

November 2, 2017

*Eduardo Silva is Professor of Political Science at Tulane University, and Kenneth Roberts is Professor of Government at Cornell University.

Chile’s Transition to Clean Energy Matrix

By Thomas Andrew O’Keefe*

Giant wind turbines in Northern Chile

Parque Eólico Canela in Coquimbo, Chile, one of many wind-producing farms in Northern Chile. / Wikimedia / Creative Commons

Since Michelle Bachelet’s return to the presidency in March 2014, Chile has aggressively pursued an ambitious program to transition the country’s energy matrix toward non-conventional renewable resources.  The emphasis on non-conventional includes mini-hydro facilities with a generating capacity under 20 Megawatts, geothermal, solar, wind, biomass, and potentially ocean currents.  Chile aims to generate 60 percent of its electricity from domestic renewable energy resources (including all forms of hydro) by 2035, and 70 percent by 2050.  To encourage that transition, Chile is one of only two Latin American countries (the other being Mexico) to establish a carbon tax, under which energy-intensive industries and utilities that exceed mandated emissions levels are charged US$5.00 per ton of CO2 emissions.  Chile’s drive to adopt a cleaner energy matrix is motivated as much by a desire to reduce greenhouse gas emissions as it is to enhance energy security.

  • During the mid-1990s, Chile faced consecutive years of severe drought that had hugely detrimental impacts on the country’s dams, responsible at the time for around 50 percent of the country’s electricity. An abundance of natural gas in neighboring Argentina led to the construction of pipelines across the Andes and new thermal generators in Chile, but Argentina began cutting natural gas exports in 2004 (and eventually stopped them altogether) because disastrous policies there had caused domestic shortages.  Bolivia, in turn, rebuffed Santiago’s entreaties to purchase its gas unless Chile granted it territorial compensation for the loss of Bolivian access to the Pacific after the 19th century War of the Pacific.  Chile had to build two expensive receiving terminals to import Liquefied Natural Gas (LNG) from East Asia as well as Trinidad and Tobago.  The Chileans were also forced to use more coal and diesel, exacerbating the already precarious air quality in many Chilean cities, particularly during the winter.

In recent years, more than half of all investment in non-conventional, renewable energy in Latin America and the Caribbean has been directed to Chile, primarily to build solar and wind parks to supply the mining industry in the north of the country.  The shift to renewable energy has largely been financed by the private sector, with no subsidies other than reimbursement for small-scale photovoltaic and other nonconventional contributors to the grid at the full retail price (and no transmission charge).  Chile’s antipathy to subsidies reflects the country’s market-based economic orientation and a conscious decision to prioritize state-of-the-art renewable technology sourced from elsewhere rather than encourage the development of its own industry.  The recent investment boom in renewables was driven by the business-friendly climate, the fact that Chile is not a significant hydrocarbons producer, and the inflationary impact of the last three years of drought on the price of hydroelectricity.

Chile has several other things going for it in achieving its goals, including a good regulatory framework and resources that are in growing demand.  Chilean regulators allow generators to sell electricity in only one of three time blocks during the day — giving solar and wind power a competitive edge in public purchase agreement auctions.  This more than halved the bidding price offered by generators and made solar power competitive with natural gas and even electricity sourced from hydro.  In the near future, as the country’s energy matrix shifts to greater reliance on solar and wind power, Chile intends to utilize hydroelectricity to supply peaks in demand for electric power (usually in the evening hours) to make up for intermittencies in sunshine and wind.  (At the moment, fossil fuels provide that function.)  New developments in storage technology will also help.  Chile is one of the world’s largest producers of lithium, needed to make storage batteries.  The interconnection of Chile’s northern and central grids in 2018 should also facilitate greater use of different renewables and redirect the electric power generated from them to where it is most needed.  Chile, already a leader in Latin American alternative energy production, is poised to enhance that position.

September 11, 2017

* Thomas Andrew O’Keefe is President of Mercosur Consulting Group, Ltd.  He taught a seminar on “Energy and Climate Cooperation in the Americas: The Role of Chile” at Stanford’s Santiago campus during the summer 2017 quarter.

Chile: Has the Center-Left Really Turned the Page?

By Stefano Palestini Céspedes*

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By choosing to support Presidential candidate Alejandro Guillier, the Chilean Socialist Party is turning the page on its ideological platform. / Movilh Chile / Flickr / Creative Commons

The Chilean Socialist Party’s rejection of former President and party standard-bearer Ricardo Lagos as its candidate in the Presidential election scheduled for November signals a break with the political program and leadership that it has offered since the end of the Pinochet dictatorship.  But the center-left still has a lot to do to sustain its base going into the future.  In a secret vote – a process that caused heated discussions and revealed deep divisions between factions of the party – the Central Committee decided to support political newcomer Senator Alejandro Guillier.  Already the decision to choose the candidate through a closed-door voting by the leadership, instead of a general consultation as wanted by the party’s constituency, prompted José Miguel Insulza (another historic party figure and former Secretary General of the OAS) to withdraw his own candidacy.

  • The preference for Guillier, a well-known journalist and non-militant of the Socialist Party (PS), has an obvious explanation: the polls. While Guillier ranks second in the polls just behind the center-right candidate – billionaire former President Sebastián Piñera – Lagos remained stuck beneath the threshold of 5 percent. The PS decision cannot be reduced to mere pragmatism, however.  Lagos represented continuity with the generation that has represented the center-left since the restoration of democracy, based on market friendly policies with social redistribution.  Much of its base has grown disillusioned by the pace of redistribution, however, and combined with dismay over signs of corruption –modest in scale by regional standards but politically embarrassing to the party and to incumbent President Michelle Bachelet – that disenchantment jeopardizes PS prospects moving forward.  By following the polls and choosing Guillier, the PS is turning the page of the transition to democracy period.

But the PS may be abandoning its previous ideological platform without a clear idea of what is going to be the new one.  The ideological and programmatic orientations behind Guillier’s candidacy are unclear.  To become the single candidate of the center-left, moreover, Guillier will probably need to compete in primary elections against the candidate of the Christian Democrats.  Whoever emerges from that process will compete in November against two rather well defined ideological positions.

  • The right-wing candidate, Sebastián Piñera, offers a program oriented to undo the progressive reforms undertaken by the Bachelet government, such as reforms of the tax, pension, and education systems. Polls suggest that this program of “neoliberal restoration” may attract centrist voters who, skeptical of the political and social changes associated with those reforms, may prove receptive to Piñera’s contention that they are the cause of a recent slowdown in economic growth and tightening of the labor market.
  • On the opposite end of the spectrum, the leftist coalition Frente Amplio strives to enhance and deepen the reforms; expand social rights and redistribution; and reduce the role of markets, particularly in the educational sector and retirement pensions. In a strategic move, Frente Amplio chose a charismatic journalist (and former radio colleague of Guillier), Beatriz Sánchez, as its candidate.  According to polls, she is already attracting support from prospective voters who Guillier would need in order to become Chile’s next President.

In selecting Guillier, the center-left is acknowledging the exhaustion of its base with the generation that led the Chilean transition to democracy.  Disillusion is particularly deep among younger Chileans who must be a critical foundation for any enduring project of social reform.  Party stalwarts like Lagos and Insulza represent precisely the wrong message in that context.  But if the center-left is clearly trying to turn the page, to succeed it must define its post-transition programmatic platform — or risk being relegated for the first time since Allende’s Unidad Popular to be the third political force after a united right and a united left.

April 20, 2017

Stefano Palestini Céspedes is CLALS Research Fellow and Postdoctoral Fellow at the Department of Political and Social Sciences at the Freie Universität Berlin, where he specializes in international organizations and regional governance.

Chile: Between Stability and Uncertainty

By Eduardo Silva and Kenneth Roberts*

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Students protest in Santiago, May 2016. A highly-mobilized Chilean civil society has beset Michelle Bachelet’s second term as president. / Francisco Osorio / Flickr / Creative Commons

With national elections looming at the end of 2017, President Michelle Bachelet’s startling reversal of fortune raises the question of whether the traditional parties’ failure to win broad popular support could give rise to an anti-establishment populist leader.  At the end of her first government in 2010, Bachelet was the most popular president in post-democratic transition Chile.  This go-around, high-profile corruption scandals involving party financing and real estate deals implicating her family (along with both governing and opposition parties) have cut into her support.  Irregularities in the electoral registry before the 2016 municipal elections, an ineffective response to devastating forest fires, concessions over major reforms, and a slowing economy have also hurt her approval ratings, which are hovering near 20 percent, the lowest of any president since 1990.  Her administration has been beset by protests over education reform, labor relations reform, and the private pension system that the military government established in the 1980s.  Tensions and violence flare up continuously over land rights in the south between Mapuche communities and extractive industries.  All of this is occurring in a context of marked secular decline in voter participation and political party identification.

The trend of volatile approval ratings and a mobilized civil society now spans three administrations – Bachelet, Sebastián Piñera (2010-2014), and Bachelet again – from 2006 to 2017.  Unlike in Brazil and Argentina, where “middle class” revolts demanding clean, efficient government and economic growth signified a rightward turn after prolonged center-left rule, most of the protests in Chile come from the left flank, rather than the right.  Moreover, the mainstream parties appear seriously detached from the most active groups in civil society and, as seen in declining levels of party identification, from the citizenry at large.  This raises questions about the future of Chile’s party system, whether its center-left and center-right coalitions can hold together, and the chances for outsider populists.

All things considered, Chile has been a case of exceptional partisan and electoral stability in Latin America since 1990.  The dominant parties and coalitions have won all the elections, without the rise of a major “outsider” populist or a major new “movement party.”  But the next elections may provide a sort of “in between” outcome.  Ex-President Piñera, who has independent tendencies on the right, and a center-left alternative, Alejandro Guillier, are the current frontrunners in presidential primaries scheduled for July.  Guillier is a type of insider, nominated by a small party in a large coalition, with outsider credentials who does not really belong to Chile’s traditional casta política.  At this early point, if Piñera and Guillier win their respective primaries, both would appear to have a shot at winning in November or in December’s runoff – with neither outcome representing a breakdown of the system, nor a widespread electoral protest against mainstream parties.  This suggests, for now, the continuation of a system that is on the surface highly stable in institutional terms, but in reality highly detached from society at large and in particular from youth and the more active, mobilized sectors of civil society.  Neither political coalition shows many signs of significant internal renovation, although Guillier represents at least some change in leadership of the Nueva Mayoría.  However, political systems have been known to limp along under these conditions in the absence of major economic meltdowns, and that may be the most likely outcome of the next electoral cycle in Chile.

February 13, 2017

*Eduardo Silva is Professor of Political Science at Tulane University, and Kenneth Roberts is Professor of Government at Cornell University.

Intense Electoral Year in Latin America

By Carlos Malamud*

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Chilean President Michelle Bachelet with the leaders of her coalition, Nueva Mayoría. The Chilean presidential election of 2017 will determine the legacy of the Nueva Mayoría. / Gobierno de Chile / Flickr / Creative Commons

The new year will be an intense one for Latin American elections.  Although perhaps not as important as those taking place in 2018, this year’s elections will have a significant impact on the countries holding them and, in some cases, the region as a whole.

  • In Ecuador’s presidential and legislative elections on February 19, the PAIS Alliance will run a slate of nominees for the first time without Rafael Correa heading its slate. The President said he’s stepping down for family reasons, but Ecuador’s economic problems, aggravated by the decline in oil prices, apparently convinced him to seal his legacy on a high note now rather than end his time in office in defeat.  The party’s presidential candidate, former Vice President Lenin Moreno, has a 10-point lead in polls over his closest competitor and has the advantage of facing an opposition divided among seven candidates, but his leadership remains uncertain.
  • In Mexico, the state governors of México, Nayarit, and Coahuila and mayor of Veracruz are up for election on June 4. The race in México state will measure the popular backing of the four parties in contention – PRI, PAN, PRD, and López Obrador’s new Movimiento Regeneración Nacional (Morena) – in the 2018 presidential election.  The older parties will begin to weed out the weaker pre-candidates.
  • Elections for half of the Argentine Congress and a third of its Senate in October will define the second half of President Mauricio Macri’s presidency. The government is confident that economic recovery will strengthen its election prospects.  A weak showing will strengthen the Peronista opposition and complicate Macri’s agenda.  The Peronistas are currently divided into three big factions – that of Sergio Massa; the “orthodox” wing headed by some provincial governors, and corruption-plagued Kircherismo grouping headed by former President Cristina Fernández.  Open, simultaneous, and obligatory primaries (known by the Spanish acronym PASO) in August will be an important test for all.
  • Chile will elect a successor to President Michelle Bachelet on November 19. Primaries in July will reveal whether the country’s two big coalitions – the center-left (including the President’s Nueva Mayoría) and the center-right – are holding, as well as the presidential candidates’ identity.  The names of former Presidents Sebastián Piñera and Ricardo Lagos are in the air, but it’s too early to know how things will play out in the environment of growing popular disaffection with politics and politicians.
  • Honduras will hold elections on November 26. Due to a Supreme Court decision permitting reelection, incumbent President Juan Orlando Hernández could face a challenge from ex-President Manuel “Mel” Zelaya, who was removed from office by the Army in June 2009, running as head of the Libertad y Refundación (Libre) Party.
  • Also in November, Bolivia will elect members of various high courts, including the Constitutional, Supreme, and Agro-Environmental Tribunals and the Magistracy Council. These elections will reveal the support President Evo Morales will have as he tries to reform the Constitution to allow himself to run for yet another term in office.

These elections in 2017 have a heavy national component but will shed light on the region’s future direction.  The success or failure of the populist projects in Ecuador and Honduras, or of President Bachelet’s Nueva Mayoría in Chile, will tell us where we are and, above all, help us discern where we’re headed.

January 17, 2017

*Carlos Malamud is Senior Analyst for Latin America at the Elcano Royal Institute, and Professor of Latin American History at the Universidad Nacional de Educación a Distancia (UNED), Madrid.  This article was originally published in Infolatam.

NiUnaMenos Gains Momentum

By Brenda Werth* and Fulton Armstrong

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Protesters gather in Buenos Aires, Argentina as part of the NiUnaMenos movement, which has sparked mobilizations across the country and in many other Latin American cities. / Wikimedia / Creative Commons

Protesters have taken to the streets in Argentina and elsewhere in Latin America to raise awareness about violence against women and girls, pushing for an end to machista culture.  News media estimate that a demonstration under the banner of NiUnaMenos – “not one less woman” due to femicide – in Buenos Aires last Wednesday drew tens of thousands of supporters dressed in black, despite freezing rain.  Other banners declared “We want to live” and demanded “No more machista violence.”  The immediate issue driving the protest was the brutal attack earlier this month on a schoolgirl in Mar del Plata – 16-year-old Lucía Pérez – who was drugged, raped, and tortured to the point of suffering cardiac arrest and died from internal injuries.

  • Argentina passed laws between 2008 and 2012 protecting a range of rights relating to human trafficking, violence against women, marriage equality, and gender and sexual identity, creating new space for discussion of the issue. But the Casa del Encuentro, an NGO that helps victims of gender violence, says that data through 2015 indicate that somewhere in Argentina a woman is killed every 30 hours.  The government’s Secretariat of Human Rights says that 19 women and girls were murdered in the first 18 days of October.  Argentine President Macri, challenged since early days of his administration to address the problem, has reiterated pledges to push legislation that would establish a hotline for reporting abuse and create more shelters for abused women as well as better ways of monitoring abusers.

Similar protests were held in Peru, Mexico, Bolivia, Chile, Paraguay, Uruguay, and El Salvador – with thousands of protesters in capital cities demanding an end to the systematic violation of women’s rights.  Chilean President Michelle Bachelet announced last week that she was joining the NiUnaMenos movement.  She condemned the murder of a 10-year-old girl asphyxiated, burned, and buried by her step-father.  Movement organizers cite research showing that violence against women is a serious problem in much of Latin America.  The Mapa da Violencia published by FLACSO Brazil last year shows that seven of the 10 countries with the highest female murder rate are in this region – with El Salvador (8.9 homicides per 100,000 women), Colombia (6.3), Guatemala (6.2), and Brazil (4.8) near the top of the list.

The demonstrations reflect growing global awareness of gender violence as a violation of human rights and that legislation, while helpful, is not enough.  NiUnaMenos and other groups are also rewriting the traditional definition of violence against women as attacks perpetrated by strangers rather than boyfriends, husbands, or family members – just as coverage of femicide in Mexico in the 1990s raised public awareness of gender violence as systematic and deeply structural as opposed to “every-day,” “familial,” and “private.”  NiUnaMenos is challenging “the culture of violence against women” in machista societies and condemning “the men who think that a woman is their property and they have rights over her and can do whatever they want.”  In Argentina, the mainstream media have stimulated much of the backlash, with reporting that exploits private details of victims’ lives and portrays victims in a manner that suggests responsibility for the crimes committed against them.  This recycling of the “algo habrá hecho” logic that circulated freely during the dictatorship coincides with a renewed focus in Argentine society on cases of torture during those years, treating them specifically as acts of sexual violence.  A week or two of protests obviously will not change ingrained culture, but the burgeoning movement highlighted by NiUnaMenos offers hope of continued progress in protecting the fundamental rights of women throughout the hemisphere.

October 24, 2016

* Brenda Werth is Associate Professor of World Languages and Cultures at American University.

Political Upheaval in South America

By Eric Hershberg

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Thousands of protesters in Maracaibo, Venezuela. Photo Credit: Google Images / Creative Commons

2016 is proving to be this century’s most complicated year to date for South American political systems, and the coming months will be critical to assessing how well the region’s democracies can govern amid declining economic conditions and spiraling corruption scandals.  Brazil and Venezuela – two very different systems with very different problems – are suffering the most visible crises.

  • In Venezuela, where the Bolivarian project has descended into an incompetent Putinism in the tropics, is collapsing under the weight of monumental mismanagement of the economy. Many of the ills of the Venezuelan petrostate predate Chavismo, but during a collapse in oil prices President Maduro has doubled-down on profligate economic policies introduced by Hugo Chávez, bringing the country to catastrophe made worse by increasingly draconian repression of loyal and disloyal opposition alike.
  • President Dilma Rousseff’s mismanagement of coalitions in a presidential system predicated on coalition-building has opened the way to political and economic implosion in Brazil.  Contrary to the fervent assertions of important segments of the Workers Party (PT), her impeachment does not precisely constitute a coup, but it may indeed amount to an ill-advised bending of institutional mechanisms by cynical legislators and aggressive judges, egged on by rightist sectors whose commitment to democracy is in fact dubious.  Dilma didn’t invent the corruption and footloose budgetary practices that have been her undoing, but her fall does respond to overwhelming popular rejection of her performance.  Interim President Temer’s appointment of an entirely white male cabinet that includes representatives of some of the country’s most retrograde interests suggests abandonment of many of the most laudable achievements of more than a decade under PT rule – and more backlash as well.

Other institutional crises may be on the horizon.  Ecuadoran President Rafael Correa pursued a high-risk strategy of debt-driven expansion of the state, which is not sustainable amid economic contraction.  Argentine President Mauricio Macri’s honeymoon may prove short-lived.  Much-needed economic reforms are likely to provoke even greater inflation and have already stoked resistance from the Peronist opposition.  Macri enjoys some unprecedented assets – for the first time non-Peronists also control the city and province of Buenos Aires– but Argentine public opinion overwhelmingly favors statist economic policies that he aims to dismantle, and no non-Peronist elected president has completed his term in office since the rise of Peronism as a political force.  Chilean President Michelle Bachelet, wounded by a drop in mineral export revenues and comparatively minor corruption allegations involving her daughter-in-law, reshuffled her cabinet earlier this month but continues to tank in the polls.  Latinobarómetro reports that 70 percent of Chileans believe their political system doesn’t work.

It’s not hard to envision other relatively stable South American democracies facing hard times ahead.  The June 5 presidential runoff in Peru could leave the country deeply polarized, especially if Keiko Fujimori, heiress to the country’s darkest episode in recent history, wins.  It is not a foregone conclusion that Colombian President Juan Manuel Santos, who has staked his second term on a long-awaited and much-needed peace accord, will secure its ratification, risking lameduck status for the remainder of his administration.  If the presidents elsewhere appear to be weathering the storm, democratic governance nonetheless faces important challenges.  It would be rash to predict that democracy will fail the test – and that such failure will give rise to a new era of authoritarian rule – but it’s clear that the region will witness widespread instability during the coming years.

May 26, 2016

Structural Reforms in Chile: Moving Forward in Midst of Political Crisis

By Claudia Heiss*

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Photo Credit: Chile Ayuda a Chile / Flickr / Creative Commons

Chilean President Michelle Bachelet has done well pushing her reform agenda despite a series of scandals regarding the illegal financing of political campaigns and abuse of power by her daughter-in-law.  Bachelet started with 58 percent support and the highest electoral margin of victory since Chile’s return to democracy in 1990.  Her New Majority coalition incorporated the Communist Party and replaced the Concertación, the center-left coalition defeated in 2010 at the end of her first period, and after 20 years in power.  Bachelet’s current program reflected a left-turn and an intention to correct perceived flaws of a transition criticized for assuming too many features of the model imposed by the dictatorship.  The program included a tax plan to finance education reform introducing free university in a commoditized market of superior education.  This project was the offspring of massive student protests in 2011.  Another proposal was to replace the dictatorship-era 1980 Constitution through an “institutional, democratic, and participatory” process.

The scandals have hurt Bachelet’s popularity – she ended her first term in 2010 with 80 percent support and is now at historical lows below 30 percent – undermined the legitimacy of the political parties and Congress, and prompted a surge of social mobilizations.  (Slower economic growth, owing to the low price of copper, has contributed to the government’s unpopularity.)  But the President has scored some big wins.  In addition to the tax and education reforms she sought, the government has achieved important advances in the direction of its political program:

  • In 2015, a proportional system replaced the Binomial electoral system, which severely distorted popular will in the election of representatives and granted veto power in Congress to the political heirs of the dictatorship.
  • The campaign finance scandals led to the recent approval of a “Probity Agenda,” including higher transparency, forbidding corporate donations to political campaigns, and establishing a new law to regulate political parties.
  • A bill to make the main regional authority, the Intendente, elective rather than appointed by the President – a major step toward decentralization – has passed the Senate.
  • The decriminalization of therapeutic abortion, currently punished in only five countries, was approved by the Chamber of Deputies.
  • Congress is in the final steps of approving a labor reform meant to increase the negotiating power of workers towards their employers.
  • A complex constitutional reform process was launched last year, and this month the government selected 216 “facilitators” to assist the process and initiated a series of local meetings to discuss constitutional principles, rights, duties, and institutions. The process, the first of its kind ever in Chile, will lead to a presidential proposal to be presented to Congress.

The road ahead will not be easy for President Bachelet and her allies.  The political climate is pessimistic, and China’s economic troubles suggest the commodity bubble is over – to the detriment of the Chilean economy.  While rejected by conservatives, the changes appear as insufficient to those who want more radical reforms.  The labor bill has been criticized by union leaders as not allowing enough collective bargaining, and the proposal for constitutional change falls short of a binding participatory process like a Constituent Assembly or a referendum would be.  Bachelet, however, has deftly channeled anger about the scandals into the constructive reforms of the Probity Agenda, and she changed the perception of what is achievable in Chile in terms of progressive political and social transformations.  While public opinion is currently harsh with the government and with political elites, her second term, which ends in 2018, could in the long run consolidate her legacy as an effective reformer even in the face of adversity.

April 14, 2016

*Claudia Heiss is Assistant Professor at Universidad de Chile’s Instituto de Asuntos Públicos and researcher at the Centre for Social Conflict and Cohesion Studies, COES.

The Politics of the Refugee Crisis in Latin America

By Luciano Melo*

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Syrian refugees arriving in Uruguay. Photo Credit: International Organization for Migration / Flickr / Creative Commons

Several Latin American governments have pledged to accept Syrian refugees – part of one of the largest refugee movements in history – but support for robust resettlement programs appears likely to fall short.  According to the United Nations Refugee Agency (UNHCR), some 6 million Syrians have been displaced within their country and 4 million more have fled abroad, mostly to Turkey, Lebanon, Jordan, Iraq, and Egypt.  One million have entered Europe, putting a heavy burden on the EU, and the United States has agreed to settle 10 thousand (although the refusal by 31 U.S. governors to accept them raises questions about follow-up).  Public support for receiving migrants dropped in the aftermath of the Paris attacks in November, but France has announced that it will admit 30,000 new refugees in the next two years, a measure that President Hollande characterized as the country’s “humanitarian duty.”

Several Latin American governments also have agreed to absorb refugees.

  • Brazil, with ties to Syrian immigrants since the 19th century and one of the largest communities outside Syria, has promised to accept 20,000 refugees from the current conflict. More than 8,000 have already settled in Brazil.
  • Venezuela also set a goal with the UNHCR of receiving 20,000 Syrians, but President Nicolás Maduro’s defense of Syrian President Bashar al-Assad as “the only leader with authority in Syria” suggests low enthusiasm for implementation.
  • Chile and Argentina have had modest programs to settle Syrian refugees since the beginning of the war. Chilean President Bachelet has agreed to settle 100 Syrian families, whereas Argentina’s “Syria Program” agreed to offer permanent residence to 300 Syrians after three years.
  • Uruguay, which resettled Syrian families from Jordanian camps in 2004, recently suffered a setback when refugees in September protested in front of a government building complaining about the cost of living and lack of jobs. Observers estimate that almost 100 Syrians will actually leave the country.

The cost of settling families and individual refugees can be high, and each country will face challenges in meeting their commitments.  Brazil is in a deep crisis – with negative GDP growth expected next year, impeachment processes initiating against President Dilma, and gigantic corruption scandals rocking the political system.  The Venezuelan economy is in shambles, with skyrocketing inflation, and the country appears to be in permanent political crisis.  Chile has experienced an economic slowdown since the price of copper fell, and Argentina has been trying to recover from recession and double-digit inflation rates in the first months of the newly elected President Macri.  Even Uruguay expects lower growth – down to 2 percent from the previously estimated 2.5 percent – and a fiscal deficit of 3.6 percent of GDP.  The good news is that accepting refugees does not necessarily affect the economy negatively.  Turkey and Lebanon, which have resettled 2.2 million and 1.8 million since the war started, are expected to have 4 percent and 3 percent growth in the coming year, confirming that the issue is mostly political rather than economic.  In Latin America, in contrast with the U.S., the crisis has not been used by leaders to polarize public opinion.  In fact, the topic is barely on the radar of common citizens, and the media rarely cover it.  The Syrian war and ISIS terrorism are remote concerns, and more pressing local matters – recessions, corruption scandals, and impeachments – take precedence.

January 4, 2016

* Luciano Melo is a PhD candidate at American University’s School of Public Affairs specializing in comparative politics.

What Does Macri’s Victory Mean for Latin America’s Left Turns?

By Eric Hershberg and Fulton Armstrong

South America right

Photo Credits: Douglas Fernandes and _Butte_ / Flickr / Creative Commons

Argentine President-elect Mauricio Macri’s actions since his historic victory last week indicate a rightward shift in domestic and foreign policy that some observers are tempted to proclaim as part of a broader Latin American trend.  He has reiterated promises of broad economic reforms and appointed a cabinet – including former JP Morgan executive and ex-Central Bank chief Alfonso Prat-Gay as his finance minister – to implement them.  He has further pledged to reverse outgoing President Fernández de Kirchner’s protectionist trade policies.  (During the campaign, advocates of unbound capitalism cheered when he named Ayn Rand’s “The Fountainhead” as one of his favorite books.)  Macri has named Susana Malcorra, a senior aide to UN Secretary General Ban Ki-moon with strong diplomatic credentials, to be his foreign minister and, for starters, directed her to reverse policies he judged to coddle Venezuela. The President-elect, who takes office on December 10, is speaking with the confidence of a President elected with more than a 3-point margin over Kirchnerista candidate Daniel Scioli and with control over more than the 91 seats (one third of the total 257 seats) that his Cambiemos coalition won in the lower house of Congress.  (His party is the first, however, to control simultaneously the Province of Buenos Aires, the City of Buenos Aires, and presidency.)

The temptation in some quarters to declare Macri’s victory as the beginning of the end for Latin America’s “Left Turns” is understandable but nonetheless premature.  To be sure, the Argentine electoral results coincide with other major setbacks for various currents of the Latin American left:  The Chavista project in Venezuela is crashing; Brazilian President Rousseff and her party are mired in a corruption morass and economic crisis whose combined effects may cut short her time in office; President Correa, facing a dire economic situation in Ecuador, is increasingly talking about abandoning efforts to run yet again in 2017.  Chilean President Bachelet’s low popularity and declining public support for the Vázquez government in Uruguay may be additional signs that the prospects for the “pink tide” are very much in doubt.

But in Argentina and beyond, the jury is still out.  Through no action of its own, the South American left enjoyed the multiple benefits of the decade-long commodity boom that began in 2003.  Just as its electoral successes did not indicate wholesale shifts to the left in the region – indeed political scientists have long questioned whether the evidence supports claims of a leftward shift in popular preferences – today’s parallel crises may reflect the end of of the boom rather than a rejection of left-leaning governments.  Many of the policies advanced by various currents of the “pink tide” may remain highly popular, even while they are no longer affordable.  Another tempting explanation is that Latin Americans are rejecting leaders who they perceive as corrupt, irrespective of their placement on the left-right spectrum.  In Argentina, notably, Macri hasn’t rejected the Kirchneristas’ redistributive agenda but has instead emphasized the confusing, corrupt way it has been pursued for the past 12 years.  (Never before has an Argentine rightist portrayed eliminating poverty as a core priority.)  It may well be that voters understand economic slowdowns and dysfunction as a product of corruption rather than the fallout from declines in historically high commodity prices.

Regardless of the underlying drivers of electoral change and public disillusion with incumbents, it’s fair to ask if the left’s current travails and the right’s resurgence will open the way toward more accountable political leadership, whatever its ideological proclivities, or just signal an alternation of power.  Like Macri in Argentina, a new cohort of Latin American leaders will have to prove that they are more than outsiders drawing on sentiment to throw out the incumbent rascals.  The question is whether they pursue policies that make democracy more transparent, expand meaningful political participation, and sustain the social gains that have been achieved by the pink tide governments that now appear to be on the ropes.

December 2, 2015