Mr Rodrigo Espinosa, Minister Counsellor for Chile, gave a fascinating wide ranging briefing about UK-Chile links particularly touching on the history and politics of the country. The Cultural Attache, Mr Cristian Leon, and the Commercial Attache, Mr Cristian Lopez, also gave enthusiastic briefings about the unique geography, diverse culture and economy on the rise.
Speech by Mr Espinosa
1.- The links between Chile and the UK go back to our very beginnings as a newly discovered land, of them related to the UK’s seafaring missions. Pirates, sailors and buccaneers were the first British people to adventure along our coasts. Perhaps the first significant contact between our two nations took place 40 years or so after the arrival of the Spanish conquistadors to Chile, in 1576, in which Sir Francis Drake, surprising the Spanish, shelled and sacked the port of Valparaíso The plunder included a ship full of Chilean wine, forewarning what was to become, centuries later, a £160 million a year export business to the UK, currently the principal export destination and consumer for Chilean wine worldwide.
2.- It is worth to mention also that the UK was pivotal in the independence of Chile from Spain. The country’s eventual liberator Bernardo O’Higgins, was educated in Richmond – on the outskirts of London - between 1795 and 1798. It was during that time that he first became aware of the liberal thinking then prevalent, and was deeply influenced by the Venezuelan Francisco Miranda, who was in London trying to convince Canning to fund and participate in the revolutions against Spain.
3.- O Higgins was perhaps one of the first Chileans to come to the UK to improve their education, a trend that has made the UK one of the preferred destinations for Chilean students enjoying government scholarships to obtain masters degrees or PhDs. In 2012 and 2013, the UK has received the highest number of Chilean students on the scholarship program, surpassing the USA.
4.- Once in power, O’Higgins again turned to the UK as a source of know-how, this time to Napoleonic Wars veteran, Lord Thomas Cochrane. Bernardo O’Higgins asked him to form the Chilean Navy, which under his command won the crucial victories which consolidated Chilean independence. Ever since, The Royal Navy has been the traditional reference for training and procedures in the Chilean Navy: Today 50% of Chile’s fleet are British ships and both Navies have a permanent program of academic training and professional cooperation. This bond is celebrated every year on the 21st May, Chilean Navy Day, when a wreath is placed on Lord Cochrane’s tomb at Westminster Abbey.
5. Once independence was consolidated,
the links with Britain grew rapidly. In 1824, the first British Consul was appointed in Valparaiso and full diplomatic relations were established in 1831.
6. Britain has also made a significant cultural impact in Chile. Chile’s third biggest city, Valparaiso, received a major influx of English and Scottish immigrants in the 19th century who settled mainly in Cerro Alegre and Cerro Cordillera. The distinct British characteristics of the architecture appropriately adapted to the geographic conditions of their environment remain until today and the city has been declared UNESCO World Heritage site.
7. One last event that I would like to mention is the rescue of Ernest Shackleton and his crew in 1916 when their Trans-Antarctic Expedition was shipwrecked on Elephant Island. It was a Chilean ship, the Yelcho, sent by the Chilean government, which rescued the 23 men who spent 4 and a half months isolated in Antarctica. This was the first instance of the longstanding close cooperation between our two countries in Antarctica, which was recently reinforced by the signing of a MOU between the BAS and the Chilean Antarctic Institute covering scientific and logistical cooperation. The MOU identifies Punta Arenas, the nearest port to the Antarctic, as a strategic centre for the development of science, tourism and fishing in the Antarctic.
12. These historic anecdotes demonstrate how deep and stable relations between our two nations have been. A survey carried out in 2011 to find out what the British people know about Chile, showed that in the UK, Chile is identified for its wine, mining and nature. Under a closer scrutiny, we can see that Chile, and Chilean people, have a positive reputation among the British. However, in general, the British people do not know a great deal about Chile, and despite the positive image that is held, it does not reflect the advances that Chile has made in the last 20 years and of which we are most proud. Let me briefly outline them for you.
ABOUT RECENT POLITICAL HISTORY
16 In 2010, Chile celebrated 200 years as an independent state. Compared to most European countries, we are still a young nation. One that has traditionally been republican and committed to democratic values. Until 1973 Chile was considered one of the most settled democracies in Latin America, with a vibrant political life.
17. A summary of the most recent history of Chile begins with the election of a socialist government at the beginning of the 1970s under President Salvador Allende. The ideological confrontations which stemmed from Allende’s election, framed in the international context of the Cold War, and coupled with an economic crisis, resulted in a Military Coup in 1973. The military government led by General Augusto Pinochet, lasted until 1990. During the dictatorship, significant market economic reforms were carried out, but the period is primarily remembered for human rights abuses and political persecution.
18. Since 1990, Chile has returned to the path of democratic governments, following a referendum in 1988 which led to a change of regime, as seen in the Oscar nominated film ‘No’. The first four governments of this period were formed by a coalition of Centre-Left parties known as Concertación. In 2010 current President Sebastián Piñera took office championing the Centre-Right. Next November, we will hold presidential elections with 9 candidates representing diverse political and economical views for the country.
19. The last 23 years have been very fruitful for Chile and have led to major changes through democratic reforms, further economic growth and the liberalisation of trade, ensuring important advances in the quality of life, reducing poverty, carrying out a sustained push towards development and ensuring the stability of institutions.
20. During recent years, a domestic political consensus has existed to define and strengthen the foundations to build towards development. We are looking to do this by ensuring: a) a stable and validated democratic system with perspectives of continuity, b) an effective government, c) an open and competitive economy that is based on private enterprise, and d) the aim to overcome poverty and inequality through welfare policies that do not risk the government’s fiscal position.
LOOKING FOR DEVELOPMENT
34. Chile is regarded today as a middle income country, and the last figures released bring us ever closer to the income levels of developed countries. In 2012, our GDP per capita was estimated at US$19,273 and in 2013 it is estimated to reach US $20,500, which will mean that Chile will become the first country in Latin America to cross the barrier of $20,000 of GDP per capita. The continent average is US $7,200.
35. Currently only 14.4% of Chileans live below the poverty line and the middle class has grown to make up more than 50% of the total population. Primary and secondary school coverage is at 98%, the infant mortality rate is among the lowest in the world (7.3 per 1000 born), and life expectancy is now 78.9 years, very close to what you expect in the UK. All of this is particularly impressive if we take into account that in 1990 40% of Chileans lived below the poverty line and the real income of the average family was half what it is now.
37. One of the most important issues that need to be sorted out in Chile at the moment is the inequality between rich and poor. The Gini index currently puts Chile’s coefficient at 0.52, 121st out of 136 countries. Evidently, this is one of the issues that we are working hardest to reverse, and thus the implementation of welfare policies such as the AUGE Health Plan, which guarantees treatment of Chile’s 80 most common illnesses. Chile has also introduced a supportive pension system which favours the 60% worst off. Chile introduced the first private pension system at the start of the 1980’s which has been corrected over time as deficiencies have been identified.
38. Another important welfare policy has been the “ethical minimal familiar income”, which puts in place various bonuses and subsidies linked to policies that spur employment – specifically for women. Allowances are provided based upon a citizen’s level of poverty and the fulfilment of certain societal commitments such as ensuring the good health of family members, school attendance and that anyone unemployed is actively seeking employment – there are even reward bonuses based on good performance in these areas. It is important to point out that most of these systems impose different levels of co-payment depending on the user of the public service, and their family income level. In 2012 these programs delivered £ 324 million to Chilean citizens in welfare bonuses and subsidies, that’s half of the expenditure of the Ministry for Social Development.
REGARDING CHILE’S FOREIGN AFFAIRS
21. As a relatively small and geographically isolated nation, making strong global links and being connected to international trends have been the chosen paths to overcome certain limitations. Chile is now a recognised member of the international community, characterized by:
a) its broad international participation, which is reflected in its enormous network of economic, political, cultural and scientific connections.
d) its international presence via various Chilean communities and our diplomatic and commercial missions around the world;
e) its presence at the forefront of international organisations and initiatives such as the United Nations, of which we are founding member, and wherein we have given support to Security Council and General Assembly reforms. This year we are a candidate for accession to the Security Council for the 2014-2015 period. We also have members in every specialised agency of the UN System – the former president of Chile and current candidate, Michelle Bachelet, is head of one of them, UN Women. Chile also participates in UN Peacekeeping Operations, Haiti being the most important for us at the moment, but we have also been involved in the Middle East, Bosnia-Herzegovina, Timor-Leste; Cyprus and Pakistan.
f) its state of the art military and operating capacity which has been demonstrated in Haiti and other peacekeeping operations or at times of natural catastrophe;
g) and the culture and image that we project through our artists and sportspeople.
All this amounts to Chile gaining the reputation of ‘punching above its weight’.
22. Chile is also an important player within Latin America. We actively participate in the Organisation of American States, whose Secretary General, Jose Miguel Insulza, is Chilean. Chile held the presidency of the Community of Latin American and Caribbean States (CELAC) and concluded its mandate with a summit in Santiago that was attended by several European heads of State.
23. Chile remains an associate member of Mercosur and the Andean Community as well as being part of Unasur and contributing to the establishment of the Pacific Alliance, an initiative that aims to build an economic, logistic and political integration between Mexico, Colombia, Peru and Chile. Within all of these mechanisms, Chile stands out as a pragmatic country which is looking to overcome any ideological differences in order to set in stone projects and initiatives which respond to common interests between the countries involved.
23. It is also remarkable Chile’s admission into the Organisation for Economic Cooperation and Development (OECD) in 2010 - a body which imposes rigorous standards of governability for developing countries - is considered by us to be a recognition of Chile’s success. But as a developing country, Chile is also member of the Group of 77 and the Non Aligned Movement in the UN.
OUR CHALLENGES AND VISION OF THE FUTURE
39. This overview of Chile leads to the question, what do we need to do to continue to grow and develop better standards of living for our entire population, and to further contribute on a global level?
40. One of the main priorities is to reduce inequality and poverty in our country. Economic growth over the last 23 years has led to the reduction of the poverty rate from almost 40% of the population in 1990 to 14.4% in 2012 – the number of extremely poor people fell from 12.8% to 2.8% over the same period. This government has set its focus on the generation of jobs as a main tool to overcome poverty. It has done so through successful policies that have led to today’s unemployment rate of 5,6%, compared to 9% in 2010, and at the same time as consistent growth which allows us to look forward positively.
41. Improving the quality of education is also an important challenge, especially in order to increase Chile’s potential growth and its productivity in a global economy which relies on knowledge and technology. This is a priority for every country in the world and in Chile has been a major issue in the past few years. In 2011 there were large student protests in Chile calling for improvement in the quality of public education and a reform of the education system.
42. The student movement, which continued with less intensity in 2012 and 2013, is a reflection of the dissatisfaction of the Chilean youth with the current system and their consciousness of the necessity for improved education so that they can excel. The response is not simple and long term policies are necessary, as well as reforms of schools and universities. Last year a tax reform was passed which will finance initiatives to improve the quality of education and a major reform is central in the program of all the presidential candidates. What’s more, a regulatory body has been created to assess and ensure the quality of education and scholarships have been set up to encourage advanced students to start a career as school teachers. The government has also increased the subsidy it provides for each student.
43. The focus on modernising the education system also requires the incorporation of elements which encourage scientific and technological exploration, which will allow Chile to develop in the areas of cognitive sciences, biotechnology and the environment. All this is necessary in order to diversify our exports and add wealth based on human capital to the wealth of our natural resources.
44. Another area that needs to be strengthened is the development of a society in which innovation and entrepreneurship prosper. Since last February, Chile has become the second country in the world – following New Zealand – where you can establish a business in just one day, for free and online. Other initiatives in line with this goal are tax benefit schemes and projects like Start Up Chile (which aims to attract entrepreneurs from abroad to set up their venture in Chile by providing financing) and ContactChile (which helps Chilean innovators to export their ideas and products). We are also trying to attract R&D International Centres of Excellence to set up in Chile to support national centres of R&D and to develop their activities in the country.
47. As you can see, we believe that our country today has a clear purpose, aware of our strengths and where improvement is needed to become a developed nation with better living standards and opportunities for our people. Now Mr Cristian Lopez and Mr Cristian Leon will talk you about Chile’s economy and Chile’s culture, respectively.
Background
Chile has a population of around 17.2 million million people and positioned in South America. It is officially named Republic of Chile and is known as Chile. Chile shares its border with Argentina, Bolivia and Peru. The capital of Chile is Santiago and has a population of 5.3 million.
The territory of Chile covers 756,096 square kilometres and has a temperate; desert in north; Mediterranean in central region; cool and damp in south climate.
The geography in Chile is low coastal mountains; fertile central valley; rugged Andes in east.