| I | INTRODUCTION | 
Chile, country in southwestern South America, 
occupying a long, narrow ribbon of land along the Pacific Ocean. Chile stretches 
approximately 4,270 km (about 2,650 mi) from north to south but its average 
width is less than 180 km (110 mi). Its landscapes range from arid desert in the 
north to windswept glaciers and fjords in the south. A fertile valley covers the 
center of the country. The snowcapped peaks of the Andes Mountains run along the 
border with Argentina to the east. Santiago, Chile’s capital and largest city, 
is located in the Central Valley.
The overwhelming majority of the people live 
in the middle of Chile, in towns and cities in the fertile lowland known as the 
Central Valley. Most of the people are of mixed Spanish and Native American 
ancestry. Roman Catholicism is the dominant religion, and Spanish is the 
official language.
Chile is one of the leading industrialized 
nations of Latin America. It has a strong economy based on mining, especially 
copper mining, and agricultural goods, largely for export. Chile is the world’s 
largest producer and exporter of copper. It also exports fruits and vegetables, 
and its wines have become popular in many countries. 
Chile was a colony of Spain from the 1500s 
until it achieved independence in the early 1800s. It prospered from its exports 
through the 1800s, but the country’s economic growth primarily benefited the 
landowning upper class. The gap between rich and poor in Chile remains wide. 
Until 1973 Chile largely avoided the military 
coups that had beset other Latin American countries. That year a military regime 
seized power and suppressed Chile’s democratic institutions until democratic 
elections were restored in 1989. At the beginning of the 21st century, Chile was 
still struggling to deal with the legacy of its military rule. 
| II | LAND AND RESOURCES | 
Chile is bounded on the north by Peru, on the 
east by Bolivia and Argentina, and on the south and west by the Pacific Ocean. 
The dominant physical feature of Chile is the Andes Mountains, which extend the 
entire length of the country, from the Bolivian plateau in the north to the 
islands of Tierra del Fuego in the south. Chains of islands extend along the 
southern coast. Chile has a total area of 756,626 sq km (292,135 sq mi). 
Chile owns a number of islands, including 
Easter Island, the Juan Fernández Islands, and Sala y Gómez in the South 
Pacific. One of the Juan Fernández Islands is named for Alexander Selkirk, who 
presumably inspired the fictional shipwrecked character Robinson Crusoe in the 
novel by Daniel Defoe. Cape Horn in the Tierra del Fuego Archipelago marks the 
southernmost point of the South American continent. Chile shares Tierra del 
Fuego with Argentina. The Chonos Archipelago hugs Chile’s southern coast. 
| A | Land Regions | 
Chile can be divided along its length into 
three topographic zones: the lofty Andes on the east; the low coastal mountains 
on the west; and the plateau area, which includes the Central Valley, between 
these ranges. The country has three major geographical and climatic regions: the 
dry northern region; the central region, with a Mediterranean (mild to warm) 
climate; and the southern regions, with a temperate sea climate.
The Andes are widest in the northern region, 
where broad plateaus occur and where many mountains rise more than 6,100 m 
(20,000 ft) above sea level. The country’s highest peak, Ojos del Salado (6,880 
m/22,572 ft), is found on the border with Argentina. Between the Andes and the 
Pacific the Atacama Desert occupies a plateau. This vast desert contains large 
nitrate fields and rich mineral deposits.
In the central region the plateau gives way 
to a valley, known as the Central Valley. The Central Valley is 1,000 km (about 
600 mi) long and ranges from 40 to 80 km (25 to 50 mi) in width. The central 
region is the most heavily populated area of the country, with nearly 90 percent 
of Chile’s people. It also forms the agricultural heartland of Chile. The 
central Andes are narrower in width and have lower elevations than the mountains 
in the north. The most important passes in the Andes are located in the central 
region.
The southern region is without an interior 
valley; the valley disappears below the sea at Puerto Montt. The long chains of 
islands along the Pacific coast are formed by the peaks of submerged coastal 
mountains. Numerous fjords—narrow, steep-sided inlets—indent the coastline here. 
Glaciers discharge icebergs into the coastal fjords. The southern Andes have 
elevations that seldom exceed 1,800 m (6,000 ft), but many summits have 
snowcaps. The region has some of the world’s most beautiful mountain peaks, 
glacial valleys, lakes, and tumbling waterfalls. Chile lies in a zone of 
geologic activity and is subject to earthquakes and volcanic eruptions.
| B | Rivers and Lakes | 
The many rivers of Chile are relatively 
short. Most of them rise in the Andes and flow west to the Pacific. In the 
northern and central regions the rivers are fed primarily by the perpetual snow 
cover of the Andes. The most important rivers (from north to south) are the Loa, 
Elqui, Aconcagua, Maipo, Maule, Biobío, and Imperial. Although the rivers have 
limited value for navigation because of cascades, they are vital for the 
irrigation and hydroelectric power they furnish. Many of Chile’s major lakes, 
including Lake Llanquihue, are concentrated in the scenic lake district of the 
southern region.
| C | Climate | 
Because of its great latitudinal range, 
Chile has a diversity of climates. In general, temperatures are moderated by 
oceanic influences. Winters are mild, and summers are relatively cool. 
Precipitation is generally concentrated in the winter months (May to August), 
and rainfall increases southward. 
The northern region is almost entirely 
desert and is one of the driest areas in the world. Temperatures, however, are 
moderated by the offshore presence of the cold Peru, or Humboldt, Current. The 
average temperatures at Antofagasta range from 18° to 23°C (64° to 74°F) in 
January and from 12° to 16°C (53° to 62°F) in July. This area gets very little 
precipitation with an annual average of 2 mm (0.1 in) at Antofagasta.
The central region of Chile has a mild 
climate. In Santiago the average temperature range is 12° to 29°C (54° to 85°F) 
in January and 3° to 15°C (38° to 58°F) in July. Temperatures decrease about 1 
Celsius degree for each 150 m (about 1 Fahrenheit degree for each 275 ft) of 
elevation in the Andes. Santiago receives an annual total of 360 mm (14 in) of 
precipitation. 
The southern region is cooler and 
experiences year-round rainfall. Precipitation reaches a maximum of about 5,000 
mm (about 200 in) near the Strait of Magellan, much of it in the form of snow. 
The average annual temperature at Punta Arenas in the far south is about 7°C 
(about 44°F). Strong winds and cyclonic storms (see Cyclone) are common 
in the southern region.
| D | Plant and Animal Life | 
The indigenous plant life of Chile varies 
according to climatic zone. Plant life in the northern region includes brambles 
and cactus and has little variety. Here, the Atacama provides one of the best 
examples on Earth of an absolute desert. The more humid Central Valley supports 
several species of cacti, espino (a thorny shrub), grasses, and the Chilean 
pine, which bears edible nuts. Dense rain forests are located south of Valdivia 
with laurel, magnolia, false beech, and various species of conifers. In the 
extreme south, a steppe vegetation of grasses is found.
Animal life is less diversified than in 
other parts of South America because of the barrier to animal migration 
presented by the Andes. Indigenous mammals include llama, alpaca, vicuña, 
guanaco, puma, Andean wolf, huemul (a large deer, also spelled guemal), pudu (a 
small deer), and chinchilla. Birdlife is varied, but most of the larger South 
American types are absent. Aside from trout, which were introduced from North 
America, few freshwater fish inhabit Chilean streams and lakes. The coastal 
waters abound in fish and marine animals.
| E | Mineral Resources | 
Chile is rich in mineral resources, chiefly 
because of the size of the deposits rather than because of the diversity of 
minerals. Copper is by far the most important mineral. Others include nitrates, 
iron ore, coal, molybdenum, manganese, petroleum and natural gas, silver, and 
gold.
| F | Environmental Issues | 
Nearly two-thirds of Chile’s population 
lives in the fertile region surrounding Santiago. This high concentration of 
people has led to severe environmental deterioration in this area. Many water 
systems are polluted with sewage, and urban air pollution is severe. An increase 
in automobile ownership in recent years prompted the government to establish a 
complex management plan with strict emission standards and a modernized public 
transport system.
Chile’s forests, especially temperate 
rain forests, are being harvested at a high rate, mostly in the south by foreign 
companies. The native trees are being replaced with extensive tree farms, so the 
total forest cover is actually increasing, although at the expense of natural 
biodiversity. Soil erosion is widespread, and desertification in some areas is 
significant.
Chile has an extensive protected area 
system made up of 30 national parks, 36 national reserves, and 10 natural 
monuments, but it excludes many important ecotypes, especially those of the 
central and northern regions. Overall, nearly 20 percent of the country was 
protected by the late 1990s. Through its ratification of an agreement called the 
Western Hemisphere Convention, Chile pledged to protect its wildlife. The 
country also ratified the Antarctic-Environmental Protocol and the Antarctic 
Treaty, as well as treaties on biodiversity, climate change, endangered species, 
environmental modification, hazardous wastes, marine dumping, nuclear testing, 
plant protection, and ship pollution. Regionally, Chile has joined with its 
neighbors in signing the Convention for the Conservation and Management of 
Vicuña. 
| III | PEOPLE | 
Compared with other South American 
countries, Chile has a population that is relatively homogeneous. The early 
Spanish settlers intermarried with the Native Americans, notably the Araucanian. 
Mestizos, people of mixed Spanish and Native American ancestry, 
constitute 93 percent of the current population. Only 3 percent of the 
population is pure Native American, mainly Araucanians who are concentrated in 
the southern region, and 2 percent of the country’s population is of unmixed 
European stock. European immigration has not been as important in Chile as in 
other countries of the Americas. German immigrants have, however, been an 
important influence in the southern and south-central provinces of Valdivia, 
Llanquihue, and Osorno. An Irish Chilean, Bernardo O’Higgins, led Chile’s 
struggle for independence. 
German immigrants arrived in Chile 
following the failure of the liberal revolutions of 1848 in Germany. They 
settled the rainy and, until then, largely unimproved provinces south of the 
Biobío River. This region had remained largely controlled until the mid-19th 
century by the indigenous Araucanians. The German settlers introduced small 
industries and farming and in the lake district established resorts that remain 
popular with tourists. Small groups of settlers from Italy, Austria, 
Switzerland, Spain, and Yugoslavia also came in the mid-19th century. Most of 
them settled in the same area as the Germans. 
The population of Chile at the 2002 census 
was 15,116,435. The 2008 estimated population was 16,432,536, giving the country 
an overall population density of 22 persons per sq km (57 per sq mi). About 
nine-tenths of the people live in the central region between Concepción and La 
Serena. 
Chile is one of the most urbanized 
countries in South America. About 88 percent of the population lives in urban 
centers, and nearly one-third of the country’s population lives in the capital 
city of Santiago. Communities both in the south and in the northern desert are 
generally isolated and separated by vast, virtually unpopulated stretches. Most 
of the people in the north work in mining towns or seaports. Punta Arenas in 
southern Chile is one of the southernmost cities in the world.
| A | Principal Cities | 
Santiago, the capital and largest city of 
Chile, has a population of 5,477,804 (2003 estimate) for its urban 
agglomeration. The country’s other major cities are Puente Alto, an industrial 
center that was formerly a suburb of Santiago (population, 2006 estimate, 
627,263); Viña del Mar, a popular resort (292,203); Antofagasta, a mining center 
and harbor (341,942); Valparaíso, a principal seaport (276,474); and Concepción, 
an agricultural and industrial center (225,158). The main cities of the north 
are the ports of Antofagasta, Arica, and Iquique. The main cities of the south 
are Temuco, the gateway to Chile’s Lake District; Osorno, a commercial and 
industrial center in the heart of the Lake District; and the seaport of Puerto 
Montt. 
| B | Social Structure | 
During colonial days and for a long time 
after independence, Chile had a rigid society consisting of a privileged 
landowning aristocracy, descended from the original Spanish settlers, and a 
lower class of peasants and domestic servants. The Indians lived as a nation 
apart. The aristocrats, bound together in the National Agricultural Society, 
dominated the government and led comfortable and cultured lives. They escaped 
heavy taxation because of the high revenues the government obtained from the 
export duty on nitrate (Saltpeter). Most Chileans, denied the vote by property 
and literacy qualifications, were poorly housed and fed, and illiterate.
In the latter part of the 19th century 
the middle class began to increase in size; it consisted mainly of mestizos who 
were able to acquire some education. Eventually, as trade and industry grew, and 
especially after the nitrate market collapsed following World War I (1914-1918), 
the tight control of the landowning aristocracy was loosened. New groups, among 
them traders, manufacturers, professional people, and intellectuals, began to 
swell the ranks of the middle class and to press for social reforms. In 
addition, by 1920 there was an organized and impatient working class that lacked 
the ingrained loyalty to the landlords that had developed in the tenant farmer 
class. All these groups demanded the attention of the government and began to 
promote economic and social change. 
Today Chile’s social structure can be 
roughly divided into three classes. In the upper class are members of the old 
landed aristocracy as well as a more recently wealthy group of industrialists, 
merchants, politicians, and military men. Although these two segments of the 
upper class have power and prestige in common, they are often at odds 
politically and economically. Both groups supported the imposition of military 
rule, but by the end of the 1980s many backed the restoration of democratic 
politics.
Chile’s lower class consists of farm 
laborers, crafts workers, factory workers, and miners. This is the class that 
backed Salvador Allende’s coalition before 1973, that suffered the most from the 
policies of the military regime, and that again turned to left-wing parties 
after the end of military rule in 1990. Sharply falling real wages—wages 
calculated in terms of buying power—from the mid-1970s to the early 1990s 
increased the size of this group. Government policy in the 1990s and early 2000s 
endeavored to improve the health and education of this neglected part of the 
population.
The middle class, largely urban, is 
extremely varied in incomes, occupations, and interests. It is composed of 
professionals, teachers and university professors, civil servants, many private 
employers, and some small merchants, industrialists, and investors. Many members 
of the middle class benefited from Chile’s rapid economic growth in the late 
1980s and throughout the 1990s. Politically, members of the middle class 
participate in all parties.
Social mobility has been high in Chile, 
and upward social movement has been common. The period of military rule in the 
late 1900s at first appeared to be simply reactionary and traditionalist. But 
the free-market economic policies that it adopted ultimately led to increased 
social mobility.
Women have always had a higher degree of 
independence in Chile than in any other Latin American country. They participate 
in public life and are numerous in the trades and in professions. Many women 
from the middle and upper classes attain higher education and pursue teaching 
and other professional careers. After women received the vote in 1949 they came 
to play a decisive role in Chilean elections. The rise of the Christian 
Democratic Party to power was due partly to its appeal to women.
Women assumed very important roles in 
the defense of their families against the repression and the economic privations 
of the Pinochet dictatorship. They emerged as leaders of human rights movements 
and of so-called popular economic organizations—collective gardens, communal 
kitchens, and other survival strategies in the poorest neighborhoods. They also 
played an important role in the redemocratization movement that finally brought 
a return to civilian rule in 1990.
Many such organizations remained active 
and new ones emerged in the 1990s to enable women to play an important role in 
the reconstruction of social service programs. Women also organized to promote 
change of discriminatory social legislation, including the prohibition of 
divorce. In 2004 Chile finally legalized divorce, and in 2006 Chileans elected 
their first female president.
| C | Language | 
Spanish is the official language of Chile 
and is spoken by virtually the entire population. Although some inhabitants 
continue to speak Mapuche, an Araucanian language, or German, nearly all of them 
are also fluent speakers of Spanish. Many Chileans also speak English and other 
languages of international commerce. 
| D | Religion | 
Roman Catholics constitute 78 percent of 
the population of Chile. The Roman Catholic Church has been a major force in 
Chilean society, although church and state were officially separated in 1925. 
Protestants make up about 3 percent of the population. The remainder are 
primarily people who profess no religion. Native Americans practicing 
traditional religions constitute a very small minority. 
In the late 1960s, influenced by papal 
social encyclicals and by European Catholic social thought, the church played a 
prominent role in the introduction of social reforms in Chile, and the number of 
socially concerned priests increased. These representatives of the church took 
progressive positions, even on delicate issues such as birth control, as part of 
their efforts to remedy pressing social problems. A sector of the Catholic 
hierarchy was also influential in the rise of the Christian Democratic 
Party.
After 1973 the church initially backed 
the overthrow of the leftist government but subsequently strongly condemned the 
abduction, torture, and murder practiced by the military dictatorship. The 
Vicariate of Solidarity founded by the archdiocese of Santiago called for a 
return to full democracy and became a key provider of legal defense for 
political prisoners. In the 1990s the church abstained from direct involvement 
in politics even while it strived to promote its conservative social positions. 
Divorce was prohibited in Chile until 2004, and abortion remains illegal.
The Protestant churches initially came 
to Chile because of a British presence in the country and as a result of several 
educational and social institutions established in Chile by North American 
churches. German immigrants founded Lutheran denominations in their areas of 
settlement south of the Biobío River. Starting in the 1970s evangelical 
congregations began to convert many nominal Catholics among the urban and rural 
poor.
| E | Education and Cultural Activity | 
A distinctive cultural tradition has 
evolved in Chile that combines elements of the various ethnic groups. To a large 
extent, the arts and the educational system of Chile are based on European 
models. 
| F | Education | 
Chile’s modern education system had its 
origins in the mid-19th century. Today, Chile has one of the best educational 
systems in Latin America. Education is free and compulsory for all children 
between the ages of 6 and 13. The school system is administered by the national 
government under the minister of education. The national literacy rate of 97 
percent is one of the highest in Latin America. Chile conducted intensive adult 
literacy campaigns in the 1980s and initiated adult education programs in the 
1990s.
In 2000, 1.8 million students were 
enrolled in primary schools and 1.4 million were enrolled in secondary schools. 
Chile also has a national preschool program. Among the institutions of higher 
education, the University of Chile (founded in 1738), a state-operated 
university in Santiago, is highly respected throughout the world. Other centers 
of higher learning include the Catholic University of Chile (1888), also in 
Santiago; the University of Concepción (1919); the Catholic University of 
Valparaíso (1928); and several technical universities. Most of the regional 
capitals have a university. Total annual enrollment in institutions of higher 
education in 2002–2003 was 521,609.
| G | Cultural Life | 
The culture of Chile is largely Spanish. 
Two lively and contrasting cultural strains predominate in Chile: the 
cosmopolitan culture of the affluent urban population, and the popular culture 
of the peasants, which is predominantly Spanish but contains traces of 
Araucanian heritage. The latter influences are strongest in Chilean music and 
dance. 
Chile has a flourishing literary 
tradition and has produced two Nobel Prize winners in literature, Gabriela 
Mistral and Pablo Neruda, both poets. This literary tradition dates back to the 
1500s, when soldier-poet Alonso de Ercilla y Zúñiga wrote what is considered the 
greatest Spanish American epic poem, La Araucana, about the Spanish 
struggle against the Araucanians. The names of some of the Indian heroes of the 
poem are cherished by Chileans. 
During the early years of independence 
Chile was a center for intellectual exiles, around whom a generation of talented 
writers flourished. The greatest of the exiles was Venezuelan jurist, 
grammarian, educator, and poet Andrés Bello, who lived in Chile from 1829 until 
his death in 1865. Bello organized the National University of Chile in 1842. 
Exiles from Argentina, among them Domingo Faustino Sarmiento, later president of 
Argentina, brought South American romanticism, which had begun in Argentina, to 
Chile. It was also in Chile, at the end of the 19th century, that the modernist 
movement in Spanish American literature got its first focus with the publication 
in 1888 of Azul, a book of poems by Nicaraguan Rubén Darío. Darío, 
considered to be one of the greatest Latin American poets, was living in Chile 
at the time. 
In the late 19th century and the 20th 
century Chile produced many top-flight historians and writers of fiction. The 
best-known fiction writers are Alberto Blest Gana, one of the first realistic 
novelists in the Spanish language; Eduardo Barrios, the writer of several 
penetrating psychological novels; Manuel Rojas, a novelist who often 
incorporated his own experiences into his works; and Maria Luisa Bombal, one of 
the finest writers of psychological short stories in the Spanish language. 
Chilean novelists José Donoso and Isabel Allende both spent time in exile during 
the military dictatorship of Augusto Pinochet. Allende won popular acclaim in 
Latin America, Europe, and North America during the 1980s and 1990s. However, 
the best-known Chilean writers internationally are the two Nobel Prize winners, 
Neruda and Mistral. 
Colonial painting in Chile was not 
outstanding. The best-known 20th-century artist to come from Chile was 
surrealist painter Roberto Matta Echaurren, who spent much of his life in France 
and the United States.
The folk music of Chile is of Spanish 
origin and came to Chile via Peru and Argentina. The national folk song and 
dance is the spirited cueca, or zamacueca, a courtship dance 
performed with handkerchiefs that is of Peruvian origin. The zapateo, a 
dance with intricate footwork, is also popular in Chile. 
| H | Cultural Institutions | 
Chile’s most important cultural 
institutions are concentrated in the large cities of the central region. These 
institutions include the National Museum of Fine Arts, the National Historical 
Museum, and the National Museum of Natural History, all located in Santiago, and 
the Natural History Museum in Valparaíso. The Salvador Allende Museum of 
Solidarity, which features contemporary works by artists from around the world, 
opened in Santiago in 1999. The country’s largest library is the National 
Library in Santiago, with about 3.5 million volumes. It is one of the best 
libraries in Latin America.
| IV | ECONOMY | 
The Chilean economy has been dominated by 
the production of copper since the early 20th century. Chile remained the 
world’s leading producer and exporter of copper in the early 21st century. 
Beginning in the 1940s the government worked to diversify the economy, rapidly 
expanding the industrial sector. In the 1970s and 1980s the government made 
efforts to improve the neglected agricultural section and to reduce the 
country’s dependence on imported food. Today Chile is one of the leading 
industrial nations in Latin America as well as one of its largest mineral 
producers. Chile is also known for its fruit and wine production. By the end of 
the 1980s fruit ranked second to copper in export earnings. However, fruit 
production has since suffered as a result of drought and weather patterns 
created by El Niño. 
During the period of military rule from 1973 
to 1990, the government played a less prominent role in the economy and most 
nationalized companies were returned to private ownership. Since the return to 
civilian government in 1990, spending on social welfare has increased, although 
exports, business investments, and consumer spending have also grown. 
Privatization of industry has continued but at a slower pace. In 2006 the 
national budget had $37.8 billion in revenues and $25 billion in expenditures. 
Chile’s estimated gross domestic product (GDP) in 2006 was $145.8 billion.
| A | Agriculture | 
About 13 percent of the labor force of 
Chile is engaged in agriculture, forestry, and fishing, and these sectors 
account for 4 percent of the GDP. The bulk of Chile’s agricultural activity is 
concentrated in the Central Valley except for sheep raising in the far south. 
Since the 1960s agrarian land-reform programs have been instrumental in 
increasing the number of small landowners, and modern farming methods have 
increased productivity. While only 3 percent of Chile’s land area is currently 
under cultivation, agricultural production has increased significantly since the 
early 1980s. Chile is one of the Southern Hemisphere’s largest exporters of 
fruits, sending much of its crop to North America, where the fresh produce 
enjoys a market advantage due to the inverted growing season. The country also 
has an important wine-making industry. During the 1990s Chilean wines gained 
popularity abroad, especially in the United States, Canada, and the United 
Kingdom.
Leading crops in 2006, with production in 
metric tons, included fruits—particularly grapes and apples (1.4 
million)—vegetables (2.8 million), root crops such as sugar beets and potatoes 
(1.4 million), and maize (1.4 million). Fruits and vegetables contributing to 
export income included asparagus, avocados, beans, citrus fruits, garlic, 
grapes, nuts, onions, peaches, pears, and plums. 
Sheep are raised in large numbers in the 
Tierra del Fuego and the Magallanes regions of Chilean Patagonia. The country 
had about 3.4 million head of sheep in 2006, with a wool output of 14,000 metric 
tons. Other livestock include cattle, pigs, and horses.
| B | Forestry and Fishing | 
Forests cover 21.3 percent of Chile’s land 
area. About 47.1 million cu m (about 1.7 billion cu ft) of timber was cut in 
2006. Output consists of both hardwoods (such as laurel and oak) and softwoods 
(such as pine and cedars). Lumber, pulp, and paper are made from the annual 
timber cut. The forestry industry accounts for about one-tenth of annual 
exports.
Chile has one of the largest fishing 
industries in South America. A catch of 5.5 million metric tons was taken in the 
country’s rich fishing waters in 2005. Principal species include mackerel, 
anchovy, sardine, and herring. Processing plants pack much of the fish catch for 
distribution.
| C | Mining | 
Mining continues to play a critical role 
in Chile’s economy, although it is decreasing as a percentage of exports due to 
gains in other economic sectors. Chile has some of the world’s largest known 
copper deposits and is the world’s leading producer of this metal. Copper is the 
leading export, accounting for more than 40 percent of all annual exports by 
value. The government owns and operates the giant copper company, CODELCO 
(Corporacíon Nacional del Cobre de Chile). About 5.4 million metric tons (metal 
content) were produced in 2004. 
Petroleum and natural gas (first 
discovered in 1945) are extracted on Tierra del Fuego and in the Strait of 
Magellan. In 2004 Chile produced 2.2 million barrels of petroleum and 1 billion 
cu m (35 billion cu ft) of natural gas. Iron ore, with production of 5 million 
metric tons, is the country’s other leading mineral product. Chile also has 
large deposits of nitrates, zinc, sulfur, and coal, as well as silver, gold, 
manganese, and molybdenum.
| D | Manufacturing | 
The manufacturing sector (along with 
mining and construction) contributes 48 percent of Chile’s annual national 
output. Manufacturing is largely based on the refining and processing of the 
country’s mineral, agricultural, and forestry resources. Chile is a major South 
American producer of steel. Copper is also refined, and the several oil 
refineries use both domestic and imported petroleum. Other important 
manufactured goods include food products, cement, pulp and paper products, 
textiles (cotton, wool, and synthetics), tobacco products, glass, chemicals, 
refined sugar, and electronic equipment. The assembly of automobiles is also 
important. The bulk of the country’s manufacturing industry is located near 
Santiago and Valparaíso. Concepción is the other major industrial center.
| E | Tourism | 
Tourism is of growing importance to 
Chile’s economy. The country offers a variety of landscapes, from the desolate 
beauty and salt lakes of the Atacama Desert to the picturesque peaks and Lake 
District of the Andes Mountains. Among the many national parks is Torres del 
Paine in the south, a place to see Andean condors, rugged mountain peaks, 
glaciers, waterfalls, and mountain lakes. Chile also offers a variety of 
activities. Beaches line the country’s lengthy coastline. Hiking and skiing draw 
visitors to the mountains near Chile’s cities. Wine-sampling tours are available 
in the vineyards of the Central Valley. Boat tours from Tierra del Fuego travel 
past elephant seals and penguin colonies.
Little of Chile’s colonial heritage 
remains in Santiago, the capital, largely as a result of earthquake damage. But 
the historic quarter of Valparaíso, which features some of the finest Latin 
American architecture of the 19th century, is now a UNESCO World Heritage site. 
The name Valparaiso means “valley of paradise,” and the city’s situation on 
hills that slope down to the harbor bears out the name. Nearby is the beach 
resort of Viña del Mar.
| F | Energy | 
The electricity-generating plants in Chile 
produced 45.3 billion kilowatt-hours of electricity in 2003. The fast-flowing 
rivers that descend from the Andes and the coastal ranges are rich sources of 
hydroelectric power. In 2003 about 53 percent of Chile’s energy was generated 
from waterpower.
| G | Transportation | 
Chile has good internal transportation. A 
network of roads, of which 20 percent are paved, covers 79,604 km (49,464 mi). 
Railroad lines total 2,030 km (1,261 mi) in length and extend from Iquique in 
the north to Puerto Montt in the south. The main north-south system is connected 
by spur lines to important coastal towns and by trans-Andean lines to points in 
Argentina and Bolivia. The railway also links Chile with Peru. 
Because of the difficult terrain, many 
coastal cities rely on water transportation. Fine harbors are few, however. The 
principal ports are Valparaíso, Talcahuano and Tomé (both located on Concepción 
Bay), Antofagasta, San Antonio, and Punta Arenas. The most important 
international airports in the country are located near Santiago and Arica; 
others are at Antofagasta, Puerto Montt, and Punta Arenas. Airlines also 
facilitate travel between major cities within Chile.
| H | Communications | 
Chile has a wide variety of modern 
communications media. In 2004 the country had 59 daily newspapers. El 
Mercurio, La Nación, and La Tercera de la Hora, all published in 
Santiago, have considerable influence. The constitution provides for freedom of 
speech and of the media, and the media are able to criticize the government and 
retain their independence. Television includes a national government network, 
several independent stations, and many cable networks. In 1997 there were 354 
radios and 244 televisions in use for every 1,000 residents; there were 211 
telephone mainlines per 1,000 inhabitants in 2005.
| I | Currency and Banking | 
The basic unit of currency is the Chilean 
peso (530 pesos equal U.S.$1; 2006 average). The peso was introduced in 
1975 to replace the escudo. The Central Bank of Chile, established in 1926, 
issues Chile’s currency, and it has broad powers to regulate monetary policy. 
Other banks include a state bank and a number of commercial and development 
banks.
| J | Foreign Trade | 
In 2004 total annual exports were valued 
at $30.9 billion. Metals and mineral ores typically constitute nearly half of 
the export total. Other important exports include fruits and vegetables, wood 
pulp and paper products, and chemicals. In 2004 imports were valued at $22.4 
billion. Principal imports are machinery and transportation equipment, electric 
equipment, mineral products, and chemicals. Chile’s chief trading partners for 
exports are the United States, Japan, the United Kingdom, China, Brazil, and 
Mexico. Principal sources for imports are the United States, Argentina, Brazil, 
China, Germany, Mexico, and Japan.
Chile is a member of several international 
trade organizations, including the Asia-Pacific Economic Cooperation (APEC) and 
the Latin American Integration Association (LAIA). Chile is also an associate 
member of Southern Cone Common Market (known by its Spanish acronym, 
MERCOSUR).
| V | GOVERNMENT | 
The government of Chile was based on the 
constitution of 1925 until a military coup d’état in 1973. Although the 
constitution remained nominally in effect, most of its provisions guaranteeing 
popular democracy and due process were suspended. A new constitution was 
approved in 1980 and enacted in 1981, although its major provisions were not 
fully implemented until 1989. Significant changes were made to the constitution 
in 2005. All citizens aged 18 and older are entitled to vote.
| A | Executive | 
The 1981 constitution vests executive power 
in a president who is popularly elected, and a cabinet that is appointed by the 
president. Military leaders controlled the government from 1973 until 1989, when 
popular elections for a civilian president were held. The military continued to 
wield significant power in the government, however, until constitutional changes 
in 2005 greatly reduced its influence. The modifications reduced the 
military-controlled National Security Council to an advisory role and gave the 
president the power to remove members from the council. In 1994 the legislature 
extended the presidential term from four to six years, but it reverted back to 
four years in 2005. 
| B | Legislature | 
In 1989 Chilean voters elected a bicameral 
legislature, called the National Congress. The Chamber of Deputies consists of 
120 members and the Senate comprises 38 members. 
| C | Judiciary | 
The highest judicial body in Chile is the 
Supreme Court. Judges are appointed for life by the president from a list 
submitted by the Supreme Court judges.
| D | Local Government | 
For the purpose of local administration, 
Chile is divided into 15 regions (including Greater Santiago), which are 
subdivided into 53 provinces. The governors, who preside over the regions, and 
the officials who govern the provinces are appointed by the president. Provinces 
are further divided into municipalities.
| E | Political Parties | 
Chile’s political parties have generally 
been divided into three blocs of the right, the center, and the left. In 1973 
the military government crushed and banned leftist parties and ordered others to 
suspend activity, declaring them to be in “indefinite recess.” From 1977 to 1987 
all parties were banned.
Political parties were again legalized in 
1987. However, the law was devised to defeat parties of the center and left and 
to enable the military and its civilian allies to control the electoral process 
and the governments it produced. Ironically, some of the party registration 
requirements forced party leaders to organize strong local bases and probably 
strengthened the forces of the center-left coalition. In addition, district 
boundaries were redrawn to favor those areas, particularly rural ones, where 
conservative and pro-military forces were stronger. Despite these handicaps, the 
process of transition maintained a remarkably steady course and virtually 
replaced the party system that had been violently dissolved in 1973. Party 
alignments and voting constituencies split once again into relatively even and 
stable blocs of right, center, and left. 
Two important changes emerged after the 
restoration of political parties. The center and left maintained a strategic 
alliance in which the center was dominant, and the right became divided early on 
over the appropriate degree of proximity to maintain to the Pinochet regime. In 
the 2001 legislative elections the center-left coalition Concertación de 
Partidos por la Democracia (Coalition of Parties for Democracy) was 
victorious, winning 62 seats in the Chamber of Deputies. The center-right 
coalition Alianza por Chile (Alliance for Chile) won 57 seats.
| F | Social Services | 
Social welfare legislation was first 
enacted in the 1920s, and by the early 1970s the country’s welfare program 
ranked as one of the most extensive in the world. After the 1973 coup, the 
military government abandoned or dismantled much of the social welfare system. 
In 1981 a new social security system displaced the state-run system that had 
been in place since 1952. The new system, privately administered but government 
regulated, was based on the notion of individual capitalization accounts similar 
to a private insurance policy. Contributions amounting to 10 to 15 percent of 
earnings are obligatory, and the government guarantees a minimum benefit to 
contributors. The majority of the people receive free medical care under the 
National Health Service. 
| G | Defense | 
Military service of one year in the army or 
two years in the navy or air force is compulsory in Chile for all able-bodied 
18- or 19-year-old men. In 2004 the country’s military force of 78,098 people 
was distributed as follows: 47,700 in the army; 19,398 in the navy; and 11,000 
in the air force.
| VI | HISTORY | 
The first European to visit what is now 
Chile was Portuguese explorer Ferdinand Magellan, who landed at Chiloé Island 
following his voyage, in 1520, through the strait that now bears his name. The 
region was then known to its native population as Tchili, a Native 
American word meaning “snow.” At the time of Magellan’s visit, most of Chile 
south of the Rapel River was dominated by the Araucanians, a Native American 
people remarkable for its fighting ability. The Native Americans occupying the 
northern portions of Chile had been subjugated during the 15th century by the 
Incas of Peru. In 1535, after the Spanish under Francisco Pizarro had completed 
their conquest of Peru, Diego de Almagro, one of Pizarro’s aides, led a 
gold-hunting expedition from that country overland into Chile. The expedition 
spent nearly three fruitless years in the country and then withdrew to 
Peru.
| A | Spanish Settlement | 
Pedro de Valdivia, another of Pizarro’s 
officers, led a second expedition into southern Chile in 1540. Despite fierce 
resistance from the Araucanians, Valdivia succeeded in establishing several 
settlements, including Santiago in 1541, Concepción in 1550, and Valdivia in 
1552. In 1553, however, the Araucanians organized a successful uprising, killing 
Valdivia and many of his followers and devastating all the towns except 
Concepción and La Serena. The rebellion was the initial phase of warfare that 
lasted nearly 100 years. 
Hostile to colonization, the Araucanians 
were the only important Native American people who were never entirely subdued 
by the Spaniards. Not until the last quarter of the 19th century did the 
Chileans succeed in pushing them into the forests of the south and bringing them 
under government control. The fierce and persistent resistance of the 
Araucanians gave a frontier flavor to the history of Chile for several 
centuries. In spite of their bitter fight against the Araucanians, the Spanish 
came to admire them and to mix with them, so that a majority of Chileans today 
probably have Araucanian ancestors.
In the Spanish colonial organization Chile 
originally was a dependency of the Viceroyalty of Peru and later had its own 
government. The country developed slowly because there was not enough silver or 
gold to attract the Spanish. Moreover, it was far from the main centers of 
Spanish colonization in Peru and was difficult to reach. Most of those who did 
settle in Chile became farmers, and Chile supplied Peru with foodstuffs, 
especially wheat. Orchards, ranches, and vineyards also prospered. The 
townspeople lived by trade.
| B | Independence from Spain | 
Chile took the first steps toward 
independence in 1810, after Chilean colonists learned that the king of Spain had 
been deposed by Napoleon I of France. On September 18 of that year, the Santiago 
town council deposed the colonial governor of Chile, delegating his powers to a 
council of seven. This act marked the formal establishment of Chilean 
independence from Spain, and September 18 is now celebrated as Chile’s 
Independence Day. Within four years, however, the Spanish viceroy of Peru 
regained control of Chile, but by that time the taste for independence was 
strong. 
The most important leader who emerged 
during Chile’s struggle for independence was Bernardo O’Higgins. As a young man 
O’Higgins had spent several years in Europe, where he came under the influence 
of various revolutionaries. When he returned to Chile, O’Higgins involved 
himself in the patriot cause. By 1816 he was commander of exiled Chileans who 
had joined the Army of the Andes, which was preparing for the liberation of 
Chile and the southern part of South America. Early in 1817 an epic crossing of 
the Andes brought the liberating forces into Chile. See also Latin 
American Independence.
In February 1817 the rebel army 
decisively defeated a Spanish royalist army at Chacabuco, ending Spanish control 
of northern Chile. O’Higgins was declared supreme director, and on February 12, 
1818, he proclaimed the absolute independence of Chile. Nevertheless, royalist 
forces were not completely expelled from the country until 1826.
Thus Chile became free from Spain, but 
its colonial social structure remained intact. At one end of the social scale 
was an aristocracy with little political experience, composed of conservative 
landowners and urban merchants, united by blood ties and family interests. At 
the other end was an uneducated and submissive mass, ill-prepared to practice 
the rights and duties of a free people.
O’Higgins ruled the country until 1823. 
The five years of his rule were typical of the experience of liberators in other 
parts of Latin America. Great popularity and high hopes soon gave way to 
bickering and slander as the ruling class disagreed over what should be done and 
as personal ambitions emerged. O’Higgins made enlightened efforts to create 
schools and import teachers from England, to suppress banditry and promote 
foreign trade, to construct roads and water supply systems, and to encourage 
libraries and newspapers. Yet radicals were dissatisfied in some respects, and 
conservatives opposed O’Higgins’s abolition of titles of nobility and his 
efforts to terminate entailed estates—estates whose ownership was restricted to 
descendants of current owners. The clergy was offended by his efforts to control 
the church and introduce toleration. O’Higgins found no way to share his power 
or to delegate his authority. He resorted to strong methods to maintain his 
power, but by 1823 his opponents forced him to resign. The disillusioned 
liberator moved to Peru, where he lived until his death in 1842.
| C | Conservative Rule | 
A liberal constitution, establishing a 
republican form of government, was adopted after O’Higgins’s departure. But 
political strife between Conservative and Liberal groups contending for power 
kept Chile in turmoil until 1830. In that year conservative elements, headed by 
General Joaquín Prieto, organized a successful rebellion and seized control of 
the government. In 1831 Prieto became president, but the leading person in the 
government was Diego Portales, who filled various cabinet posts during Prieto’s 
administration. A new constitution was adopted in 1833. It established a 
centralized government under a strong president who had absolute veto power. The 
vote was limited to literate male citizens who met a specified property 
qualification. Roman Catholicism was the official religion, and the practice of 
other religions was prohibited. Liberal groups launched armed attempts to remove 
the Conservatives from power in 1835, 1851, and 1859, but these attempts 
failed.
Despite its authoritarian character, the 
Conservative Party government fostered domestic policies that contributed 
substantially to the commercial and agricultural development of Chile. Steps 
were taken to exploit mineral resources, railroads were constructed, and 
immigration was encouraged. Foreign trade expanded, greatly facilitated by the 
steamship. A school system and cultural institutions were established. The chief 
development in Chilean foreign relations during this period of Conservative 
dominance was a series of conflicts with Bolivia and Peru, which were united in 
a confederation from 1836 to 1839. Fearing a powerful rival for dominance in the 
region, Chile invaded Peru in 1839 and defeated the Peruvian navy and the 
Bolivian army. The Chilean victories put an end to the Peru-Bolivia 
Confederation. 
| D | Liberal Rule and Foreign Wars | 
Conservative rule continued through the 
presidency of Manuel Montt, which ended in 1861. The remarkable economic 
progress during this 30-year period gave rise to a new and vigorous group of 
wealthy mining and merchant families, who, rebelling against the existing 
authoritarian system, began to demand reforms. During the 1850s the Liberal 
Party became more determined. President Montt yielded to them by abolishing 
entailed estates and by encouraging religious tolerance. By 1861 the Liberals 
were strong enough to detach moderate Conservatives from the ruling 
oligarchy.
Beginning in 1861 the liberal wing of the 
Conservative Party, in coalition with the Liberal Party, instituted a number of 
constitutional reforms. The constitution was amended to prohibit consecutive 
presidential terms, prevent presidents from exercising an absolute veto, and 
permit literate males to vote without regard to their wealth. Laws limiting the 
special privileges of the landed aristocracy and of the Catholic church were 
passed. Education was broadened, transportation and public services were 
improved and extended, and immigration and further colonization of the land were 
encouraged. 
In 1865 Chile became embroiled in an 
inconsequential Spanish-Peruvian war that continued sporadically until 1869. Of 
greater importance was the War of the Pacific (1879-1883), which broke out over 
control of nitrate. Nitrate found in the desert of northern Chile, coastal 
Bolivia, and southern Peru became immensely valuable in the 1860s. It was used 
in fertilizer and in explosives. The boundaries between the countries were 
poorly defined, and after a series of disputes over the extraction and taxation 
of nitrate, Chile sent a small army into Bolivian territory in 1879. A war with 
both Bolivia and Peru followed, which Chile won.
As a result of its victory in the War of 
the Pacific, which ended in 1883, Chile acquired considerable territory, 
including the province of Antofagasta from Bolivia and the province of Tarapacá 
from Peru. Peru also yielded Tacna and Arica to Chile, on condition that after 
ten years a plebiscite be held to determine their status. The plebiscite was 
never carried out satisfactorily from the standpoint of Peru, and Chile held the 
entire area until 1929. That year mediation by the United States finally ended 
the bitter and tedious dispute: Tacna became a possession of Peru and Arica went 
to Chile. See Tacna-Arica Dispute.
The importance to Chile of the nitrate 
industry can scarcely be overstated. Chile increased its territory by more than 
a third, and the income generated by the nitrate industry increased private 
wealth as well as public revenue. For years the export duty on nitrate supplied 
half or more of the national revenue. The War of the Pacific opened an era of 
prosperity that radiated to all the social classes but was concentrated in 
particular in the upper classes of society. 
| E | Civil War and a Parliamentary Republic | 
During the period of prosperity, 
resentment of presidential domination of the government grew, particularly in 
Congress. The contest for supremacy between the president and Congress reached a 
climax in 1891, when President José Manuel Balmaceda retained a cabinet opposed 
by Congress and declared he would adhere strictly to the constitution in spite 
of unwritten parliamentary theories. His defiance led to a civil war.
The rebels, who termed themselves 
Congressionalists, seized the Chilean fleet and the rich nitrate provinces in 
the north, under the leadership of naval officer Captain Jorge Montt. In August 
of 1891 they defeated a government army near Valparaíso. This city fell to the 
rebels, as did Santiago, virtually ending the civil war. More than 10,000 lives 
had been lost and considerable property destroyed. Balmaceda committed suicide 
in September 1891. Shortly thereafter Montt became president. 
During the era of the democratic (or 
parliamentary) republic from 1891 to 1920, presidents were little more than 
figureheads. Their powers were restricted, and control of the government was 
vested in a cabinet of ministers responsible to Congress. Civil rights were 
generally respected, and a multitude of political parties flourished. Some 
progress was made in education. Manufacturing received considerable impetus, and 
copper and nitrate production gave a surface prosperity to the country. 
However, the parliamentary experiment 
proved a failure as government efficiency decreased and many national problems 
were neglected. Congress was still dominated by the wealthy landowners. Although 
material progress was notable and the landed aristocracy lived elegantly, the 
farm workers lived little better than enslaved laborers and the wandering day 
laborers, or rotos (broken ones), were often destitute. As cities grew 
and light industries and copper mining developed, the new class of urban workers 
became restless, often through the influence of European radical teachings and 
the Mexican revolution of 1910. 
The middle class began to acquire a class 
consciousness, and its members became the principal source of political 
agitation. Gradually, political forces among the workers and the middle class 
started to make electoral alliances, and the pattern of Chilean society began to 
change. It was no longer characterized by the existence of a small ruling elite 
and an ill-defined and indifferent mass. Now sections of society were demanding 
a fundamental redistribution of power. The impetus for change finally came with 
the collapse of Chile’s lopsided economy at the end of World War I when the 
prices paid for copper and nitrate fell. Demand for Chile’s nitrate never fully 
recovered.
In 1906 a disastrous earthquake virtually 
destroyed Valparaíso and extensively damaged Santiago, killing more than 3,000 
people and leaving about 100,000 homeless. The damaged areas were rapidly 
rebuilt, however.
| F | Between the World Wars | 
Chile was neutral in World War I 
(1914-1918). After the war, great strife developed between Liberals and 
Conservatives. The Liberals gained power with the election in 1920 of former 
minister of the interior Arturo Alessandri Palma, but the senate blocked nearly 
all of his proposals for reform. In 1924 Alessandri resigned at the demand of 
the army and navy. In 1925 he was recalled, however, and won approval of a new 
constitution that established the separation of church and state, made primary 
education compulsory, and made the cabinet responsible to the president rather 
than to the Congress. 
Emiliano Figueroa, a Conservative, was 
elected president in 1925, but an army officer, Carlos Ibáñez del Campo, wielded 
governmental authority and ruled as president from 1927 until 1931. The Ibáñez 
administration was unable to cope with the effects of the world economic 
depression, however. With the drop of copper and nitrate prices, the economy of 
Chile virtually collapsed. A general strike spread rapidly and Ibáñez resigned 
in mid-1931. For more than a year Chile was in turmoil. The economy foundered, 
revolts flared, and a series of juntas and short-lived presidents attempted to 
rule. 
Alessandri was once again elected 
president in 1932. His six years in office were notable for the reestablishment 
of order, often with strong methods, and for his alliance with the 
Conservatives. Chile had emerged from the period of depression by the time his 
term ended in 1938. However, the growing demand for increased social legislation 
started a new period of internal strife. The Radical Party, which had supported 
Alessandri, together with several leftist groups and the Communists, organized 
the so-called Popular Front. Pedro Aguirre Cerda, the Popular Front candidate, 
won the 1938 election by a narrow margin. 
Aguirre had an ambitious program 
resembling the New Deal in the United States. He was able to carry out part of 
it despite vigorous opposition from the Conservatives. His reforms were also 
disrupted in 1939 by a devastating earthquake that killed about 28,000 people. 
This coalition was successful again in 1942, when Radical Party member Juan 
Antonio Ríos was elected president. Ríos governed moderately amid the 
conflicting political sympathies during World War II (1939-1945). Chile first 
followed a policy of neutrality and then entered the war on the side of the 
United States in 1944. 
| G | Postwar Governments (1946-1970) | 
The 1946 presidential election was won by 
Gabriel González Videla, a Radical Party leader who was supported by a left-wing 
coalition. Although the Communists had supported González Videla and he had 
given them cabinet posts, he broke with them because they organized 
demonstrations, precipitated and aggravated strikes, and created general unrest. 
Further troubles ensued, resulting in a break of relations between Chile and the 
Union of Soviet Socialist Republics (USSR) and the outlawing of the Communist 
Party in Chile in 1948. (The Communist Party remained underground until 1958, 
when it was again legalized.) 
After World War II ended, Chile, like 
other Latin American nations, was eager to import goods the world struggle had 
long denied it. A catastrophic inflation began as money poured into imports. 
Subsequent economic dislocations caused riots and strikes. In spite of González 
Videla’s efforts, economic realities harassing the Chilean population were not 
alleviated. The old landed aristocracy still owned most of the productive land. 
Chile’s ability to import goods depended largely on the export to the United 
States of copper and nitrate, whose price depended almost entirely on the U.S. 
market.
A reaction against the traditional 
parties resulted in the surprising election of General Carlos Ibáñez the 
following year. The dictator, who was overthrown in 1931 and had led 
unsuccessful revolts with Nazi (National Socialism) support in 1938 and 1948, 
was known to be a reactionary nationalist and admirer of the Argentine dictator 
Juan Perón. Chilean voters apparently turned to him in the hope he would control 
inflation and labor violence and perhaps curb U.S. influence as well.
Ibáñez did not justify the uneasiness 
often expressed that he would govern as a dictator. He restored some order but 
did not effectively cope with Chile’s economic and social problems. Rapid 
inflation continued, and strikes and riots persisted. In 1958 Jorge Alessandri 
Rodríguez, a former senator and son of Arturo Alessandri Palma, heading a 
Conservative-Liberal coalition, was elected to the presidency on a platform 
favoring free enterprise and the encouragement of foreign investment. He 
undertook vigorous austerity measures and developed public works, schools, and 
housing. However, a series of earthquakes, tsunamis, and volcanic eruptions 
killed thousands and dealt a severe blow to the economy in 1960. An earthquake 
on May 22 of that year ranked 9.5 on the Richter scale, making it the strongest 
ever measured.
Strong popular sentiment for more 
thoroughgoing social and economic change made the presidential election of 1964 
a contest between leading reform candidates. Former Senate member Eduardo Frei 
Montalva, candidate of the centrist Christian Democratic Party, defeated a 
leftist coalition. Frei’s administration began to acquire government ownership 
of the copper industry, and it also made important advances in agricultural 
reform, housing, and education. But by the end of the 1960s the middle class was 
becoming impatient with moderate reforms.
| H | Allende Regime | 
As the presidential election of 1970 
approached, leftist opposition united to form a Popular Unity coalition; it 
nominated Salvador Allende Gossens, who waged his campaign on a platform that 
promised full nationalization of all basic industries, banks, and 
communications. He received about 37 percent of the votes, and Congress backed 
him overwhelmingly against his rightist opponent, former president 
Alessandri.
Once installed as president, Allende 
quickly began to implement his campaign promises, turning the country toward 
socialism. State control of the economy was instituted; mineral resources, 
foreign banks, and monopolistic enterprises were nationalized; and land reform 
was accelerated. In addition, Allende initiated a redistribution of income, 
raised wages, and controlled prices. Diplomatic relations were established with 
Cuba, China, and other communist countries.
Allende’s election coincided with a 
severe fall in the price of copper, Chile’s major export. Inflation became ever 
more drastic when his nationalization efforts halted private investment and when 
agrarian reform disrupted agricultural production. Labor unrest hobbled 
industrial production, and the suspension of loans by major U.S. and 
international banks additionally was severely damaging to the economy.
Opposition to Allende’s program, 
moreover, was strong from the beginning. The legislature was controlled by the 
opposition parties, principally the Christian Democrats and the conservative 
National Party. Allende’s plans for a socialist Chile, though popular with the 
working classes, were opposed by the middle classes. The situation was 
aggravated by the United States. The U.S. Central Intelligence Agency (CIA), 
which initially sought to prevent Allende from taking office, then spent large 
sums of money to destabilize and undermine the regime.
The country became polarized along class 
lines. Terrorism and violent clashes between armed right- and left-wing groups 
increased. An abortive military coup in June 1973 was followed by a wave of 
antigovernment strikes. The climax came on September 11, 1973, when the military 
stormed the presidential palace and seized power. After the coup Allende was 
found dead of bullet wounds. Officially his death was declared a suicide, 
although some believe he was assassinated by the military after the presidential 
palace was seized.
| I | Pinochet Government | 
The military ruled through a junta headed 
by General Augusto Pinochet Ugarte. It immediately suspended the constitution, 
dissolved Congress, imposed strict censorship, and banned all political parties. 
In addition, it embarked on a campaign of terror against leftist elements in the 
country. Tens of thousands were arrested, and nearly all those arrested were 
tortured. Thousands were executed or exiled, while still others languished in 
prison or simply disappeared.
For the next few years the junta retained 
its iron grip on the country, although some token relaxation could be seen 
toward the end of the decade. In 1976 Chilean opposition leader and former 
foreign minister Orlando Letelier and his U.S. secretary were killed by a car 
bomb while in Washington, D.C. At the time, the assassinations were widely 
believed to have been ordered by Chile’s secret police. The state of siege was 
lifted in 1978 (although a state of emergency remained in effect), and more 
civilians were added to the cabinet. Chile, however, remained a police state. A 
new constitution, accepted by a referendum on the seventh anniversary of the 
military coup, legalized the regime until 1989, and Pinochet began another 
eight-year term as president in March 1981.
Economically, the Pinochet government, 
with its austere controls, slashed inflation and stimulated production between 
1977 and 1981. Starting in 1982, however, a worldwide recession, declining 
copper prices, the burden of paying interest on Chile’s huge foreign debt, and 
the government’s heavy military spending plunged Chile’s economy into a 
depression. There were large-scale protests against the government in 1983, 
followed by a wave of bombings in major cities. Rising popular unrest and 
continued economic deterioration led Pinochet to reimpose a state of siege in 
1984. After an unsuccessful attempt on Pinochet’s life in 1986, he launched new 
repressive measures. 
| J | Civilian Rule Restored | 
The state of emergency was finally lifted 
in 1988, and that October Chileans were permitted to hold a plebiscite on 
whether Pinochet’s term should be extended to 1997. After nearly 55 percent of 
the electorate voted no, Pinochet’s term ended in March 1990, following free 
presidential and legislative elections. To avert a prolongation of military rule 
backed by right-wing parties, the center and leftist parties united to elect a 
moderate, Christian Democrat Patricio Aylwin, in December 1989. It was Chile’s 
first presidential election in 19 years. 
Pinochet resigned the presidency as 
planned in 1990, but he remained the commander in chief of the armed forces. 
Aylwin initiated modest economic reforms and appointed a commission to 
investigate human rights violations by the Pinochet regime. The Aylwin 
government had to operate under a constitution and body of legislation that had 
been designed to legitimate an authoritarian regime. Changing this system was 
not easy, as electoral and legislative rules had been drawn up so as to limit, 
rather than broaden, the base of political participation and representation. 
Moreover, while the private sector of the 
economy was thriving during military rule, in part on resources and markets 
previously in the public domain, the public sector had been gutted. Social needs 
had grown as economic growth had served to widen an already wide gap between 
rich and poor. The proportion of the population defined as living in poverty had 
risen from 20 percent in 1970 to 40 percent in 1989. Growing poverty and 
inequality had been reinforced over the period of military rule by a 20 percent 
reduction in social spending.
Given the challenges the new elected 
governments faced, the progress they achieved in restoring social services and 
raising living standards was remarkable. Inflation was gradually tamed, dropping 
to single digits by 1995. Growth was maintained until the recession of the early 
2000s. Spending on education, health care, and housing increased. Politicians, 
journalists, and community organizers applied continual pressure to extend the 
boundaries of civil and political rights.
The civilian government progressed in its 
attempts to hold the military accountable for human rights abuses, despite 
fierce resistance. The truth and reconciliation committee appointed by the 
Aylwin government unearthed mass graves and documented more than 3,000 cases of 
persons “disappeared” by the Pinochet government. Such documentation enabled 
parents, children, widows, and widowers of victims to claim government 
benefits.
In the 1993 elections Christian Democrat 
Eduardo Frei Ruiz-Tagle, son of Eduardo Frei Montalva, was elected president. He 
continued the country’s movement toward civilian-controlled politics. 
Also in 1993 the former head of Chile’s 
secret police during the Pinochet government and his deputy were sentenced to 
seven- and six-year sentences for masterminding the 1976 Letelier assassination. 
The case, which was widely seen as a test of Chile’s fragile democracy, was 
appealed and upheld by the Chilean Supreme Court in May 1995. While Chilean 
military leaders agreed to abide by the court’s decision, the former police 
commander vowed to resist arrest and called on Pinochet to intervene. Pinochet 
denounced the decision and challenged the authority of the Supreme Court to 
sentence the men. After a tense standoff between the military and the civilian 
government, the two convicted men were arrested in June 1995.
In 1998 Pinochet retired from the army. A 
judge from the Santiago Court of Appeals began to review murder charges brought 
against Pinochet by the Chilean Communist Party for crimes carried out during 
his dictatorship. 
The legal proceedings against Pinochet and 
others who committed crimes during his regime divided Chilean society and 
exposed the unresolved issues remaining from that period of the nation’s 
history. The country debated whether to bring legal proceedings against those 
who committed human rights abuses and how to pursue justice without risking the 
overthrow of the country’s fragile democracy. Although some Chileans believed 
that the past should not be reopened, others argued that those responsible for 
the kidnappings, disappearances, and murders needed to be held accountable.
| K | 21st-Century Events | 
In 2000 Ricardo Lagos Escobar, a member of 
the ruling center-left Concertación coalition, became the first Socialist to be 
elected president since Salvador Allende. As president, Lagos worked to decrease 
poverty and improve social services, including an increase in unemployment 
insurance and available housing. He also finalized a number of free trade 
agreements with countries such as the United States and South Korea. These 
agreements will eventually reduce or eliminate tariffs on traded goods.
Under the Lagos government, Chile again 
tried to come to grips with the legacy of the Pinochet dictatorship. In 2001 
Pinochet was indicted on charges of kidnapping and murder and placed under house 
arrest. But the appeals court ruled that Pinochet was mentally unfit to stand 
trial and dismissed the legal proceedings against him. The Chilean Supreme Court 
upheld the appeals court decision in 2002.
In November 2004 an official Chilean 
government report concluded that more than 27,000 Chileans had been tortured 
during the Pinochet regime. In December Chile’s National Congress approved 
compensation for the torture victims in the form of a monthly pension and access 
to housing, education, and health benefits. 
In 2005 the Chilean courts continued to 
battle over whether Pinochet could be charged with the various crimes committed 
during his presidency. At the same time Pinochet’s political and popular support 
suffered after investigations revealed he may have stolen millions in government 
funds while in power. Pinochet died in December 2006 before he could ever be 
brought to trial. At the time of his death he was under indictment for tax 
evasion and human rights violations.
In January 2006 the Socialist candidate 
Michelle Bachelet was elected Chile’s first female president. Bachelet and her 
family were arrested and tortured by Pinochet’s regime in the mid-1970s, and her 
father (a military officer) died in prison during this time. She and the rest of 
her family were eventually released and forced into exile before returning to 
Chile later in the decade. In the election Bachelet’s ruling coalition won 
control of both branches of the National Congress. The new president vowed to 
increase the number of women serving in the Chilean government and to narrow the 
gap between rich and poor in the country.
 
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