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Weekly Report - 08 December 2011 (WR-11-49)

CHILE: Piñera picks up but challenges remain

He has waited a long time for some good news but suddenly President Sebastián Piñera has been inundated with it. The student protests which have shaken his government for over six months are winding down: his government managed to push through both chambers of congress the 2012 budget, a separate education bill and the most visible face of the student protest movement, Camila Vallejo, lost the elections to lead the Confech student federation. To top it off, Piñera’s approval rating finally started to bounce back, and Chile stole the show in two key annual league tables. But big challenges lie ahead. Two separate reports by international organisations were fiercely critical of inequality in Chile, and intimated that unless his government take action it can expect more social convulsions.

Vallejo remains a vice-president but her replacement Gabriel Boric will call the shots in the Confech and he is already talking about a probably overambitious strategy to expand the movement from its focus on education to a larger range of issues “that are excluded from the current political scene”, such as healthcare and the environment. Vallejo’s defeat to Boric owes in large part to her failure to prevent congress from approving Piñera’s education reforms for 2012 after she controversially underlined her determination to prevent a political accord on the matter. Despite her best efforts, the senate approved the budget, although the left-wing opposition Concertación abstained from voting on the education bill on the grounds that it fell short of student demands. It then narrowly passed in the chamber of deputies (58-55) when independent deputies threw their weight behind the government’s proposals.

The upshot is that education spending will increase by 10% to US$12.1bn (the lower chamber increased this by US$420m) in 2012 on this year’s level, including a big 26% increase in higher education spending. This is broadly the same as budgetary spending increases on education under the previous administration of Michelle Bachelet (2006-2010). Students expressed their profound disappointment at the sum and also the preservation of the status quo ante regarding the education system.

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