MercoPress. South Atlantic News Agency
The Economist article triggers strong reaction from the Chilean political system
Widely perceived to be the most developed and financially stable nation in South America, Chile is, for the most part, unaccustomed to critical analyses from the international press. Read full article
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Apr 15th, 2012 - 06:20 am - Link - Report abuse 0Sems to be that the girls will meet next year......
Michelle, Dilma and Cristina....
And Camila will be serving the coffee ;-)
I have been reading the Economist since 1992 regularly
Apr 15th, 2012 - 08:45 am - Link - Report abuse 0Its most interested and experted areas have been 1) East Europe..2)Asia.
less experted on the other regions Africa & America ...
”On the opposite end of the political spectrum, Felipe Sallaberry, a deputy in the Independent Democratic Union (UDI), told Radio Cooperativa that the article was “disrespectful.”
Apr 15th, 2012 - 11:14 am - Link - Report abuse 0Not wrong. Just “disrespectful”. Arguably, if Hitler were referred to as a “war-mongering, murdering megalomaniac” or CFK as a “lying, thieving, power-crazed divot”, that would also be “disrespectful”. Also true!
Firstly, the MAIN problem Chile has, is the fact that since the modern economy was instated in 1975 following the teachings of Milton Friedman a Nobel prize winning anti Keynesian economist. The power and influence has been concentrated in the hands of a minority. Those originally with the capital and connections would benefit from privatizations and deregulation. This was IMPOSSIBLE to avoid. The protectionist and somewhat socialist policies of previous Christian democrat governments, not to mention the Marxist Alleged had virtually wiped out savings with their high inflation high government spending and intervention models. GDP growth was about 1% for 20 yrs. or more. Chile was a basket case.
Apr 15th, 2012 - 12:36 pm - Link - Report abuse 0Enter the Chicago boys with their bitter tasting medicine. Firstly the crash of the old system, then pain for half a decade, then continuous growth. As predicted by Friedman himself, a free economy cannot be ruled by a dictatorship, sure enough the people deposed Pinochet. Nothing to write home about here, this was simply in the “manual”
So as the years passed, the economy grew and more Chileans were able to become entrepreneurs within the model. The guys that were there at the beginning became ever more wealthy and powerful, they amalgamated, tried to kill off competition, colluded to fix prices and other assorted nasties.
This is Chile today. Banks that charge 50% on credit cards when the inflation rate is 3% and the cash rate is 5%. Schools and universities that charge first world fees. A university degree costs about USD$1000-1500 per month. Health care costs that are the most expensive in Latin America. In a nutshell severe lack of competition. The big players can charge what they want and people feel helpless, and angry. Only time, less regulation, a skilled migration scheme (doctors,teachers,engineers) and not deviating from an open economy can fix this. The passage from middle to developed economy is the most difficult challenge, it's where you can lose the game.
4 The Chilean perspective
Apr 15th, 2012 - 07:37 pm - Link - Report abuse 0At least your country has made a valiant effort so far but I do not unerestimate the difficulties shown in your final sentance.
A very well written and informative post.
the chilean government disgraces itself by replying to The Economist - the most overrated publication ever.
Apr 15th, 2012 - 08:11 pm - Link - Report abuse 0Countries have already began to turn a deaf ear to IMF's self-interested recipes and “recommendations”.
The Economist is next to follow. I used to subscribe to this magazine until I noticed one day that I couldn't get myself to read half the rubbish they wrote before chucking it in the bin.
Thanks PIÑERA for your explicit support to Argentina´s claim at the beginning of the Summit.
Apr 15th, 2012 - 09:16 pm - Link - Report abuse 0http://www.eltiempo.com/politica/piera-dice-que-chile-apoya-a-argentina-en-reclamo-por-islas-malvinas_11559641-4
@7 Unfortunately, for you, very few people speak, read or understand “gibberish”. You need to bear this in mind before posting links.
Apr 16th, 2012 - 11:44 am - Link - Report abuse 0Sems to be that the girls will meet next year......
Apr 16th, 2012 - 01:21 pm - Link - Report abuse 0Michelle, Dilma and Cristina....
And Camila will be serving the coffee ;-)
this is funny......jeje
Another problem for Chile is the extremes in attitudes among the population. I'm married to a Chilena who is from a pobla. The extremes in attitudes are as follows: There are many Chileans who understand that their country has progressed big time over the last 15-20 years. They are capitalizing on this and trying very hard to improve their lives, work hard, increase their income, etc. The other extreme is made up of the people who live in the poblas who feel that the government owes them something. Not only the government, but they feel that EVERYBODY owes them something. About 20 years ago, the Chilean government started providing housing that was nearly free to people who lived in shantytowns. This was good in that it got people, like my wife's family, out of living in total shitholes. The downside is that you ended up with thousands upon thousands of poorly educated people living in very close proximity to each other and this has created unbelievable teen birth rates, drug abuse, assaults, etc. Many many of these people are now adults who don't work, or work very little. They also feel that the government should give them everything for free. When I say everything, I mean everything. I have family members like this and I know a ton of Chileans like this. This is a pretty large segment of the population. It's not some small demographic.
Apr 16th, 2012 - 01:44 pm - Link - Report abuse 0Chile has made huge strides in a good way, but as a country they have a lot of deep-rooted cultural problems they have to deal with. Only a very small percentage of the Chilean population lives in Vitacura, La Dehesa, etc.
@10 I agree that the distribution of wealth is still acute in Chile. Most of the power and wealth is held by a limited number of families and there is a reluctance for change in these powerful, conservative families.
Apr 16th, 2012 - 02:25 pm - Link - Report abuse 0Something that is very apparent is the 'placing' of people in Chile. On meeting a new person they immediately want to know names, place of birth, profession to 'place' that person. It is like the class system that existed 50 years ago or more in the UK. People are not expected to move or socialise outside of that 'class'. The obvious problem with the lack of social mobility is that people in the lowest class are condemned to remain poor and become disaffected.
I have always had friends across the social spectrum - it has never been a consideration when making friends - but on telling a Chilean friend that I had accepted an invitation to dinner from a certain Chilean chap, she started to berate me because she considered that he was not 'good enough' for me. LOL! We had a lively discussion about it and eventually she accepted that I absolutely rejected her prejudice and she accepted my strange English ways. He was a great chap, intelligent, fun and entertaining but he was just not the right background for her so she refused to socialise with him. *shrugs* Years later she has a much more inclusive attitude and an open-mind but I have encountered this attitude numerous times.
@11 Very true, there is “old money” in Chile in some families that have had it for several generations. Some of the people of old money aren't bad people per se, but they can be. Ask your Chilean friends about “los cuicos”. Or, maybe you're familiar with them? Hopefully not, because they're some of the worst. They are people who have some disposable income, yet they feel like they have wealth like Pinera, and they look down on those who make less than them. They are some of the biggest assholes I've ever met anywhere. Not every Chilean who has disposable income is a jerk, some of them are good people, and they aren't cuicos. It's the people who have some disposable income and think they're superior....they're the cuicos. We have friends who have their own Agencia de Aduana. They're doing very well for themselves. The husband is a very down-to-earth, good guy. His wife is a total cuica and she sickens me. I can't stand to be around her for more than a few minutes. This is just another cultural “thing” they're going to have to come to terms with eventually.
Apr 16th, 2012 - 02:44 pm - Link - Report abuse 0@12 We have a fair few of them too, only we call them snobs. You are right that they are the worst kind to be around but I think their life must be exhausting always worrying about what other people have and what they don't have. : )
Apr 16th, 2012 - 04:03 pm - Link - Report abuse 0I've met a few from The Families. Some were OK enough and the younger generations certainly seem keen for change. Others were so blinkered and prejudice that it was almost amusing.
There are class distinctions here in Chile, but “new rich” are a everywhere in the world. Here you are judged by your family, your schooling and your character. The way you pronounce your words is an immediate giveaway and the clubs you belong to. Private health care is excellent here and our pension system is solid.
Apr 16th, 2012 - 04:09 pm - Link - Report abuse 0@14 Very true, there can be those jerks anywhere who are new to money. It is funny listening to los cuicos. I just start laughing because they're actually going out of their way to be pretentious. My wife laughs and then just says...pobrecito or pobrecita. What else can you do? I've mastered Chilensis and I can speak like a total Flaite even though I'm from the USA, but I can't mimic the cuico accent yet. I need to hang out in your neck of the woods, quite a few of them in Chicureo huh?? Just kidding....
Apr 16th, 2012 - 05:05 pm - Link - Report abuse 0Yeah, accents are very revealing here too. Way back regional accents were a disadvantage but now they are a badge of honour. Far worse are the 'affected' accents where people attempt to mimic an accent to be something they are not. This is not always a fake 'posh' accent but often someone trying to sound 'street'. (Kinda gangster).
Apr 16th, 2012 - 05:41 pm - Link - Report abuse 0I think Chile will move in the right direction and open up opportunities for social mobility because it can only be positive for the country. But it will take time. Still, it is my favourite of the SoAm countries and the only one I would invest and live in. : )
@16 Yep, Chile will continue to improve. They need to diversify their economy away from copper, which is something Pinera has been harping on, as it makes up I believe still over 60% of total GDP. That's still a big risk, particularly if the housing bubble bursts in China or an event like that. The good thing for Chile is that they don't have the Chavez' or CFKs of the world running the show.
Apr 16th, 2012 - 07:08 pm - Link - Report abuse 016 ElaineB
Apr 16th, 2012 - 07:38 pm - Link - Report abuse 0So what experience have you had of Uruguay: no ring of fire problems?. :o)
@18 I have a very limited experience of Uruguay, so far. My overwhelming impression was of incredibly friendly people with all the time in the world for a stranger, like me. Stopping to ask for directions one day led to a small crowd of people all discussing the best way to get to my destination, more people stopped to join in until it was quite a little party. No food poisoning to report. : )
Apr 16th, 2012 - 08:12 pm - Link - Report abuse 0I liked the pace of life there, as I am sure you do too.
19 ElaineB
Apr 17th, 2012 - 11:40 am - Link - Report abuse 0Could not have put it better myself. :o)
zulu99, ElaineB, and others.
Apr 20th, 2012 - 10:54 am - Link - Report abuse 0As a Chilean I must admit that it really annoys me when I see class discrimination. This is a direct result of the spanish colonization and cannot be avoided, fortunately it is diminishing slowly. As a true believer in Libertarianism I am convinced that as the economy continues to grow and as a result more and more people's lives improve through better education and greater opportunities this phenomenon will become a sad distant memory.
We must all realize that chile was in the stone age only 37 years ago, helpless and with most of the population living in poverty. Chile has improved it's GDP per capita an unbelievable two thousand two hundred per cent since those dark days and reduced its population in poverty to only 11.5% by comparison the US is 12%. This has been a giant improvement in peoples lives and moreover it's important to point out that there is no difference between both main parties in relation to economic policy. They both support a safety net for the vulnerable and at the same time espouse an open and competitive economic model. I must admit that I don't support the numerous subsidies and government industries but that's an argument that I WILL NEVER WIN here. The Chilean idiosyncrasy is one of a very demanding people, prepared to make lots of noise to get their “share” of the wealth, whether they deserve it or not. This is a transitory manifestation of the sudden growth and wealth created in the last 30 odd years and will also disappear in time.
Chile has a long way to go still, but for those who experienced the miracle of the miners or the earthquake of Feb 27, I'm sure you will agree that for a bunch of spicks (joke) we're good people.
”Chile has a long way to go still, but for those who experienced the miracle of the miners or the earthquake of Feb 27, I'm sure you will agree that for a bunch of spicks (joke) we're good people.”
Apr 20th, 2012 - 04:14 pm - Link - Report abuse 0couldn't agree more, in the seven years I lived in FI I had the pleasure of making friends with many Chilians, they were OK guy's and good to have a beer with.
What the hell went wrong with your Arg neighbours?
22 Ken Ridge
Apr 21st, 2012 - 07:24 am - Link - Report abuse 0I think they are trying to re-invent the economic wheel. I got some sober news for them, if they keep going like this, in just a few short years, maybe even less. They are going to be right back to the crisis of 2001. All the signs point to this. You could say it's almost like a slow motion train wreck.
With the letters CFK painted on the side of the train.
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