Table of Contents
CHILE BASIC DETAILS
- Chile population – 1.90 crore
- Capital – Santiago
- Currency – Peso
CHILE IS ACTUALLY A HIGH INCOME COUNTRY
- GDP Per capita nominal – $16,078
- Chile is ranked as a high-income economy by the World Bank, and is considered as South America’s most stable and prosperous nation
- Chile joined OECD in 2010
THE CLASHES
- Clashes erupted in Plaza Italia, ground zero of violence, and outside the presidential palace. Bus service was later suspended altogether. –
Chile Desperto
- Demonstrators shouted “enough with abuse,” while the hashtag “ChileDesperto” — Chile woke up — made the rounds on social media.
THE CLASHES
- The spasm of unrest was triggered by an increase in metro fares but reflected a much broader anger over economic and social conditions, including a yawning gap between rich and poor.
REASONS
- The unrest started as a fare-dodging protest mainly by students against the hike in metro ticket prices, which increased from 800 to 830 peso ($1.13 to $1.17) for peak-hour travel, following a 20 peso rise in January.
- The fare hike was blamed on rising oil prices and a weaker peso.
INEQUALITY
- Chile is among South America’s most prosperous nations, with a growth rate of 2.1 percent and a flourishing youth population. The average real incomes of the people have been continuously rising for the past 25 years. Chile also earns a lot of export revenue from its copper industry and international trade.
COPPER PRICES FELL
- But in recent times, Chile has had to grapple with problems in the labour market, deficiency in infrastructure, redistribution of income, diversification and economic inequality. The plunge in copper prices has forced workers to adapt by increasing output and productivity. According to the Organization for Economic Cooperation and Development (OECD), economic inequality in Chile is a major problem. Its Gini coefficient value stands at a record 0.50, one of the highest inequality coefficients in the world. Gini coefficients are used to measure the wealth distribution across many countries.
WHAT TO LOOK FORWARD
- As ordained by Chile’s dictatorship-era constitution, the state of emergency will apply to Santiago and can last for 15 days. It grants the government additional powers to restrict citizens’ freedom of movement and their right to assembly. The latest protests follow grievances over the cost of living, specifically of healthcare, education and public services. Anger has also been directed at the Carabineros national police force, whose heavy-handed repression of protests has come under the spotlight. Once one of the country’s most respected institutions, its reputation has been eroded by corruption scandals and a reputation for brutality.
WhatsApp