Booker T. Washington High School
Model United Nations Club
Country Briefing: Chile
Chile has a population of 16 million and a GNP per capita of 4,590. This makes it one of the wealthier countries in South America, although it is poor by American standards. It has a relatively diverse economy and good trade links with other states. However, it is still struggling to overcome a legacy of violence and bitterness resulting from the last period of military rule in the 1970s.
History: people have lived here for at least 20,000 years, but the modern state owes its origins to Spanish colonization and settlement in the 16th century. For almost 300 years it was governed by Spanish viceroys, who oversaw a population of Indians and mestizos, people of mixed blood. Under the leadership of Simon Bolivar and Bernaldo O’Higgins, it won its independence from Spain in 1810. A republic was formed, but power was concentrated in the hands of local landowners and business elites. Throughout the nineteenth century, Chile’s economy depended on the export of agricultural commodities and minerals to other regions of the world. Many foreign interests opened up mines and businesses in Chile during this period. In the twentieth century Chile began a modest industrialization phase. A working class grew up in the major cities, and new political problems developed in response to these changes. Much of the economy continued to be controlled by foreign interests in partnership with local elites. These elites made sure that local industry faced little competition from abroad, a condition that favored business corruption and the concentration of wealth in a few hands.
In 1973, a Marxist government (i.e., one favoring a transfer of power to workers’ movements) was elected under the leadership of Salvador Allende. Allende’s agenda leaned toward nationalization of key foreign-owned businesses in Chile, as well as measures to promote economic equity among Chileans. A military coup led by General Augusto Pinochet deposed this government and killed Allende. Pinochet enjoyed the support and assistance of the American Central Intelligence Agency in this action. Pinochet promptly inaugurated a period of repressive rule against suspected Marxists and other rebels. Many people were imprisoned without trial and some were executed. At the same time, he pressured elites to accept new economic reforms designed to liberalize the economy (i.e., make it more open to international trade). Trade grew rapidly in the 1980s, fostering the growth of a new middle class. This class in turn came to demand greater political and economic freedoms from the Pinochet regime. In 1990, under pressure from a new administration in Washington, Pinochet allowed elections. He lost and was replaced by Aylwin Azocar. Democratic elections continue to be held, and Chile is generally acknowledged as a democracy today. Late in the 1990s, an international movement to extradite Pinochet for crimes against foreign citizens failed. Pinochet, now retired, remains a member of the Chilean Senate and immune from prosecutions for actions taken while in office.
Economy: Chile’s policies of trade liberalization have paid off in that trade is now a much more important part of the Chilean economy. In 199_, Chile joined the North American Free Trade Agreement, giving them much greater access to United States markets. Increased trade attracts foreign direct investment (FDI) but also increases exposure to the risks of the international economy. So far Chile has avoided the crisis that befell the Argentine peso, but it is still suffering from the continental recession that began with the turn of the millennium. Like Brazil and Argentina, Chile must find ways to sustain economic growth through trade while promoting greater political liberties and democracy for the people.
Diplomatic Agenda: Chile’s relationship with the United States and its major trading partners is key to its development. It needs to do what it can to foster deeper ties. This means securing new IMF development loans and perhaps also nabbing some foreign aid from the United States. On the human rights front, there are many in Chile who would like to see the creation of some kind of international tribunal to investigate cases of torture and political violence in Chile and elsewhere in South America. The government’s official position, however, is to push for forgiveness of past crimes without exposing them. In other words, the military and conservative elements of Chile are asking people to forget. At the most, they might favor investigations of other countries with more recent offenses, like Peru and Venezuela. In environmental affairs, Chile is looking for ways to preserve its coastal fishing resources against the activities of large fishing operations carried out by international corporations. On the security front, Chile faces few threats. There are some rumors of new activity by international crime and terror organizations, but not to the extent seen in Colombia or Venezuela.