Chile has for decades been Latin America’s most stable nation and one of its most prosperous. Its pro-business outlook has drawn foreign direct investment and fueled economic growth, and its record in reducing poverty has been impressive. Much of that is now thrown into question. After the recent first round of elections, the two front-runners for the presidency are extremists — an ultraconservative who seems nostalgic for the dictatorial rule of Augusto Pinochet, and a leftist who promises not merely to reform but to dismantle Chile’s economic model. It’s hard to say which of these agendas might prove more toxic.
The candidate of the far right, José Antonio Kast, emerged with a narrow lead heading into the runoff vote on Dec. 19. His platform is thin on economics and heavy on social conservatism and authoritarian messaging. His counterpart on the left, Gabriel Boric, promises radical change to combat inequality, rein in capitalism and dethrone market forces. “If Chile was the birthplace of neoliberalism,” he explains, “it will also be its grave.”
