Michelle Bachelet, about whose possible presidential candidacy I posted about for the first time more than two years ago, has been elected President of Chile. Now comes the hard part: governing.
As Marc Cooper notes here, despite the largely positive press that Chile gets, there is a lot of room for improvement, especially in labor law and the vaunted privatized pension system. Indeed, although the pension issue did come up as a significant issue in this election and have gotten a great deal of attention recently, warnings about Chile's pension system have been around for several years and concerns about privatization of Latin America's pensions in general have been voiced for at least the past couple of years.
As I mentioned in the post from a couple of years ago and as I posted on Cooper's blog, the issue of the military's finances remains of some concern:
A Pinochet-era constitution gave the armed forces four seats in the Senate that are not subject to election.
The president does not have the power to fire commanders in chief,
and the same commanders are part of a security council that limits
presidential power. The military budget, which includes a big subsidy
from state-owned copper company Codelco, is off limits to Congress and
the executive.
"A country cannot be left naked, without defense, because you can't
just improvise defense when you need it. Today, since we are at peace,
fortunately all the spending looks superfluous, but defense is about
prevention," Bachelet said.
This year's military budget is 1.3 percent of gross domestic
product, which is forecast at about $65 billion. Bachelet rejects
criticisms that that is a bigger proportion than most of Chile's
neighbors, saying that each country uses a different methodology to
measure the military budget.
The subsidy from Codelco, the copper industry that Allende
nationalized and Pinochet kept nationalized (kind of shatters that
image as the great free marketer doesn't it?) earmarks 10% of Codelco's
earnings for the military. Chile's current
President, Ricardo Lagos (a socialist) wants to privatize Codelco. I
do not claim to be an expert on Chile's security, however, I also do
not think that their military needs to be as big as it is. I also
happen to think that it should be under civilian control. This is one
legacy of Pinochet's that needs to be changed, but with a senate
including unelected senators stacked against such a change it doesn't
seem likely.
The issue of the unelected senators has been resolved. One issue that has been persistently raise by the coalition that Bachelet's Socialist party is a part of is that the Pinochet-era constitution stifled their ability to effect reforms. Now that issue is resolved and they no longer have that as an excuse. Only time will tell if they can step up and make the changes.
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