November 15, 2013
SANTIAGO — It's strange, what's happening in Chile. The country is seen abroad as a model of Latin American political stability and sustained economic growth, while at home it lives out the social conflicts provoked by income disparities, political divisions, strikes and street riots.
Both visions of the country are correct, paradoxically. Chile's social, economic and political problems are very real. The education system favors the privileged and 30 years of steady economic growth have but dented the enormous breach dividing the rich and poor. These are the growing pains of a country that has done the right things in politics and the economy for 20 years now, succeeding in maintaining stability while raising per capita incomes from $5,000 to $20,000.
There will be no surprises in presidential elections on November 17 in Chile, where the head of state cannot serve consecutive terms. The victor will be the Socialist party pediatrician Michelle Bachelet, who was Chile's president from 2006 to 2010.
And indeed, her re-election could benefit the country.
If Bachelet receives more than half the votes, she will be the President-elect on Monday. If she does not reach 50%, she will win in a second round scheduled for December 15. This is the only element of suspense in these elections.
The former president has echoed in her campaign speeches the social demands that have fomented street protests and labor strikes, creating difficulties for the outgoing government of President Sebastián Piñera.
Over the last four years, secondary school and university students have taken to the streets demanding an education system that truly provides equal opportunities for all. Meanwhile important power plant projects announced by the government have been rejected by investors or the government itself after protests by environmental activists and community groups living near the localities where they were supposed to be built. There is a looming danger that Chile's power grid may not meet power demand by 2016.
Street protests by students have almost always ended in violence and vandalism against public and private property. Their demand for education that assures equal opportunities, especially legitimate in Chile's unequal, class-based society, morphed into demands for free university education for all including higher-income groups, which does not really promote equal opportunity for all.
Student protests are a frequent site on the streets of Santiago (B1MBO)
Bachelet's discourse is more left-wing now than in 2006, and she has indicated that if elected her government would provide free university education for Chilean youths. But her program supposes only gradual change, meaning this could take six years to take effect. Her education program emphasizes, rightly, the need to improve education quality rather than financing it with massive subsidies.
The Socialist candidate hopes to finance her program with tax reforms that would increase taxes on company profits from 20% to 25%, and remove a mechanism that allows firms to defer tax payment on profits not yet distributed.
Parties backing President Piñera's government have said such measures will deter investors and harm job creation. But the truth is that Chile's current corporate tax rates are far below the Latin America average of 28%, and below the average 25% rate of the Organization for Economic Cooperation and Development (OECD), the grouping of rich countries to which Chile adhered during the first Bachelet presidency. The great majority of Chilean employers know that company taxes are very low and that a 5% rise is a low price to pay if greater tax returns finance social programs that will reduce inequality in the country and allow children of poorer families to receive a good education.
The current education model in Chile is strongly segregated and discriminatory, condemning the children of the poor to remain in poverty. Improving education quality will also make Chile's economy more competitive, boosting future growth. Chile is Latin America's most competitive country according to a World Economic Forum index, ranking 34th worldwide. The quality of its education claims only the 74th position.
A brand new Constitution?
The former president has also denounced Chile's system of private pensions management in her speeches. Created 30 years ago during the rule of General Augusto Pinochet, the private firms known as AFPs or Pension Fund Administrators were long seen as models to emulate elsewhere in the world. They needed no state subsidies, ensured pensions depended on workers' individual savings and gave depth to the local capital market.
But after three decades of activity the AFPs have betrayed their earlier promise of providing retirees with reasonable pensions, and have created high costs for administering the system. Furthermore returns from saving funds and the average contributions made for years have been less than expected. Clearly, the Chilean AFPs need a review.
The ex-president's other campaign theme is constitutional reform. The current constitution dates from the referendum Pinochet government called in 1980, and many question its legitimacy. Bachelet has not ruled out forming a constituent assembly to draft and submit to popular approval an entirely new constitution – which would be a mistake – but her program emphasizes seeking consensus solutions to prevent such extremes.
There is already consensus among practically all political sectors on the need to reform this Constitution. It includes an electoral system that has impeded the rise of new political forces in Chile, denying parliamentary representation to minorities disinclined to join one of the majority coalitions that dominate the country's politics. Bachelet will take the lead in reforming this duopoly political system, and it was time somebody did.
The Socialist candidate has a golden opportunity to undertake reforms the country needs. But she must overcome several challenges, beginning with the great expectations her campaign has created. Any reforms she undertakes will need time to yield results, which is why it will not be easy to contain and placate the anxiety of the majority of her voters.
On the other hand, the coalition taking her to the presidency this time includes parties and postures that wish to undo the Chilean economic model. She will need the same talent she displayed in managing to win the support of a wide range of postures and parties, to forge consensus among an even wider group of people when she becomes president a second time. She is in a good position to do so. With strong leadership she will be able to implement reforms Chile urgently needs, without endangering what the country has achieved over the past 30 years.
America Economia is Latin America's leading business magazine, founded in 1986 by Elias Selman and Nils Strandberg. Headquartered in Santiago, Chile, it features a region-wide monthly edition and regularly updated articles online, as well as country-specific editions in Chile, Brazil, Ecuador and Mexico.
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Once meant to protect the royal family, the century-old law has become a tool for the military-led government in Bangkok to stamp out all dissent. A new report outlines the abuses.
Laura Valentina Cortés Sierra
October 22, 2021
"We need to reform the institution of the monarchy in Thailand. It is the root of the problem." Those words, from Thai student activist Juthatip Sirikan, are a clear expression of the growing youth-led movement that is challenging the legitimacy of the government and demanding deep political changes in the Southeast Asian nation. Yet those very same words could also send Sirikan to jail.
Thailand's Criminal Code 'Lèse-Majesté' Article 112 imposes jail terms for defaming, insulting, or threatening the monarchy, with sentences of three to 15 years. This law has been present in Thai politics since 1908, though applied sparingly, only when direct verbal or written attacks against members of the royal family.
But after the May 2014 military coup d'état, Thailand experienced the first wave of lèse-majesté arrests, prosecutions, and detentions of at least 127 individuals arrested in a much wider interpretation of the law.
The recent report 'Second Wave: The Return of Lèse-Majesté in Thailand', documents how the Thai government has "used and abused Article 112 of the Criminal Code to target pro-democracy activists and protesters in relation to their online political expression and participation in peaceful pro-democracy demonstrations."
Criticism of any 'royal project'
The investigation shows 124 individuals, including at least eight minors, have been charged with lèse-majesté between November 2020 and August 2021. Nineteen of them served jail time. The new wave of charges is cited as a response to the rising pro-democracy protests across Thailand over the past year.
Juthatip Sirikan explains that the law is now being applied in such a broad way that people are not allowed to question government budgets and expenditure if they have any relationship with the royal family, which stifles criticism of the most basic government decision-making since there are an estimated 5,000 ongoing "royal" projects. "Article 112 of lèse-majesté could be the key (factor) in Thailand's political problems" the young activist argues.
In 2020 the Move Forward opposition party questioned royal spending paid by government departments, including nearly 3 billion baht (89,874,174 USD) from the Defense Ministry and Thai police for royal security, and 7 billion baht budgeted for royal development projects, as well as 38 planes and helicopters for the monarchy. Previously, on June 16, 2018, it was revealed that Thailand's Crown Property Bureau transferred its entire portfolio to the new King Maha Vajiralongkorn.
Protestors In Bangkok Call For Political Prisoner Release
Freedom of speech at stake
"Article 112 shuts down all freedom of speech in this country", says Sirikan. "Even the political parties fear to touch the subject, so it blocks most things. This country cannot move anywhere if we still have this law."
The student activist herself was charged with lèse-majesté in September 2020, after simply citing a list of public documents that refer to royal family expenditure. Sirikan comes from a family that has faced the consequences of decades of political repression. Her grandfather, Tiang Sirikhan was a journalist and politician who openly protested against Thailand's involvement in World War II. He was accused of being a Communist and abducted in 1952. According to Sirikhan's family, he was killed by the state.
The new report was conducted by The International Federation for Human Rights (FIDH), Thai Lawyer for Human Rights (TLHR), and Internet Law Reform Dialogue (iLaw). It accuses Thai authorities of an increasingly broad interpretation of Article 112, to the point of "absurdity," including charges against people for criticizing the government's COVID-19 vaccine management, wearing crop tops, insulting the previous monarch, or quoting a United Nations statement about Article 112.
Juthatip Sirikan speaks in front of democracy monument.
Shift to social media
While in the past the Article was only used against people who spoke about the royals, it's now being used as an alibi for more general political repression — which has also spurred more open campaigning to abolish it. Sirikan recounts recent cases of police charging people for spreading paint near the picture of the king during a protest, or even just for having a picture of the king as phone wallpaper.
The more than a century-old law is now largely playing out online, where much of today's protest takes place in Thailand. Sirikan says people are willing to go further on social media to expose information such as how the king intervenes in politics and the monarchy's accumulation of wealth, information the mainstream media rarely reports on them.
Not surprisingly, however, social media is heavily monitored and the military is involved in Intelligence operations and cyber attacks against human rights defenders and critics of any kind. In October 2020, Twitter took down 926 accounts, linked to the army and the government, which promoted themselves and attacked political opposition, and this June, Google removed two Maps with pictures, names, and addresses, of more than 400 people who were accused of insulting the Thai monarchy. "They are trying to control the internet as well," Sirikan says. "They are trying to censor every content that they find a threat".
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