Since coming to power in a landslide win for the center-left coalition in 2018, President Sebastián Piñera has implemented a series of centrist policies to try and bridge the divide between left and right in Chile. In an effort to quell deep-rooted polarization and bring together a nation that has long been divided ideologically, Piñera has embraced a third-way approach between free market economics and greater government involvement in the economy.
An Overview of Chile’s Political Landscape
Chile has long been divided between the center-left Socialist Party and right-wing UDI, plus the smaller pro-market Independent Democratic Union and the Eco Socialists of Chile (ESC). There are numerous other liberal, conservative and centrist parties, with presidential elections taking place every four years.
Recent events have illustrated the country’s political divides. Last year saw the massive student protests that emerged over the suspension of public transit fare hikes, a move which had been blocked by the socialist-led congress. The ensuing unrest was largely driven by issues such as income inequality and the high cost of housing.
How is Piñera’s Centrist Approach Taking Shape?
Faced with the challenge of pleasing both sides of the divide, President Piñera has adopted a more moderate approach in recent months. Piñera’s administration has taken steps to move Chile towards what is being called the “third way” of politics.
Fiscal Reform
To achieve a centrist approach, Piñera ordered a series of fiscal reforms that are aimed at reducing taxes and deregulation. These measures are intended to reduce government spending while also allowing Chile to keep its welfare and public services in place.
The results of the fiscal reforms have been positive, reducing the budget deficit to 5.1% of gross domestic product (GDP)–down from 6.2% in 2018.
Pro-Business Agenda
Piñera has also implemented a pro-business agenda in order to encourage private sector investment and bring foreign capital into Chile. This includes reducing the corporate tax rate to the lowest in Latin America, cutting taxes for small businesses, and simplifying bureaucratic procedures.
These efforts have been met with some resistance, as many people feel that the president is pushing policies that benefit business owners and the wealthy.
Social and Environmental Initiatives
The president also hopes to address growing social and environmental concerns in Chile. Piñera has proposed new programs to improve education, reduce poverty, and protect the environment. This includes an initiative to plant 50 million trees in the country.
The president has also implemented a police reform plan that seeks to increase oversight, improve standards of conduct, and reduce brutality–issues which have long been a source of contention between the government and the public.
President Piñera’s centrist approach is a bold attempt to bridge the divide between the left and right in Chile. While his policies have been met with some resistance from both sides, his efforts have ultimately won him the support of the Chilean people. As Piñera continues to pursue a more moderate course, it will be interesting to see how it helps shape the nation’s future.