Introduction
Chile is one of the Latin American nations that has been a Spanish colony and whose culture and social environment evolved in connection with Spain. It is a well-developed nation with a thriving economy; however, in recent years, there has been some political instability in this country. This paper will address some of the major political, economic, and social elements that describe Chile and its citizens.
Overview of the Nation
Chile is among the biggest states in Latin America, although it is not as well-known as Mexico. According to Brittanica, Chile is a South American nation located on the western coast (Drake). It stretches roughly 2,700 miles from its border with Peru at latitude 17°30′ S to the southernmost tip of South America at Cape Horn at latitude 56° S, only 400 miles north of Antarctica (Drake). It is a long, thin country in terms of shape, with an average width of roughly 110 miles, a maximum of 217 miles at Antofagasta, and a minimum of 9.6 miles near Puerto Natales. It is bordered to the north by Peru and Bolivia, to the east by Argentina, and to the west by the Pacific Ocean. Thus, Chile borders Peru, Bolivia, Argentina, and the Pacific Ocean.
Economy
As with any other state, Chile has been impacted by the COVID-19 pandemic, and this state had to suffer major economic losses due to lockdowns and restrictions. According to the World Bank, Chile’s GDP expanded at an 11.7 percent annual rate in 2021, making it one of the world’s quickest recoveries. Consumption drove growth, despite pension fund withdrawals and direct financial assistance of 9% of GDP (The World Bank). One of the world’s quickest immunization rates led to the rapid recovery of economic activity. However, the job market recovery has been slower than predicted, with just 60% of jobs lost in 2020 being reclaimed in 2021 and many previously employed women, mostly low-skilled, remaining unemployed (The World Bank). In February 2022, inflation escalated to 7.8 percent year on year, owing to significant demand pressures, commodities price rises, supply interruptions, and peso devaluation. Despite improving revenues, the budget deficit reached 7.7 percent of GDP in 2021 as a result of increased government expenditure (The World Bank). Therefore, there are both positive and negative trends in the way Chili recovers economically from the pandemic, and the state will continue to suffer the economic consequences of it for several more years. Despite extensive utilization of public savings accounts, state debt reached 37 percent of GDP, the highest level in three decades (The World Bank). Thus, economically, Chile has been affected by the COVID-19 pandemic, and many vulnerable populations suffered due to loss of jobs and inflation.
Political Stability
In terms of political stability, Chilie has had several timeframes where the country was consumed with riots. Massive social riots erupted in October 2019 as a result of widespread dissatisfaction with rising inequality, rising living expenses, and uneven access to public services (Atradius). One of the primary demands of the demonstrators was the rewriting of the old Pinochet-era constitution, which they said perpetuated inequality by placing the private sector in charge of health, education, housing, and pensions. Finally, the administration caved and declared a constitutional referendum. The referendum was held in October 2020, with a 51% turnout and a 78 percent vote in favor (Atradius). As a result, another election was planned for May 15-16, 2021, to pick 155 persons to form a convention to draft the new constitution. Currently, Chilli is not in a state of riot, and the country has become more politically stable.
The process of revising and approving a new constitution will run until 2022 and will be fraught with difficulties. This will increase policy uncertainty, which may have an impact on the economic outlook and financial market mood. President Sebastián Piera and his center-right “Chile Vamos” party do not have a majority in Congress (Atradius). President approval ratings have fallen as he has repeatedly attempted to thwart popular pension withdrawal measures in 2020 and early 2021 (Atradius). These bills allow workers to tap into a share of their retirement cash amid rising poverty and unemployment due to the pandemic. Presidential and legislative elections were scheduled for November 2021, and President Piera will not run again (Atradius). Therefore, politically, Chilli should become a more stable nation after a democratic election that will help the nation choose a better president.
Conclusion
Chile is a South American country on the Pacific coast (Drake). It runs about 2,700 miles from its border with Peru at 17°30′ S to Cape Horn at 56° S. Chile shares land boundaries with Peru, Bolivia, Argentina, and the Pacific Ocean. The COVID-19 epidemic harmed Chile’s economy, and many vulnerable communities suffered as a result of job loss and inflation. The state will continue to bear the economic burden for many years. Chilli is no longer in a state of upheaval, and the country has grown more politically stable.
Works Cited
Atradius. “Country Report Chile – May 2021.” Atradius, 2021. Web.
Drake Paul. “Chile.” Brittanica, 2022.
The World Bank. “The World Bank in Chile.” The World Bank.