Debt, Democracy, and the Constitution in Chile

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Debt, Democracy, and the Constitution in Chile
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Why study the debt?

• Theoretical standpoint of understanding how
  economics interacts with politics.
• From a more practical standpoint it might help
  explain Latin Americas turn towards Democracy.

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Debt and Democracy in Latin America

• Friedens Debt, Development, and Democracy
• Domestic interests decide exit or exercise voice
  based on the liquidity of their assets
• Fixed asset holders will be more likely to
  complain
• Liquid asset holders will be more likely to exit
• Threat from the left

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Sectors versus Factors
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Friedens Argument and Chile

• Does Friedens view accord with Valenzuela and
  Constables?
• Winners in Chile?
• Losers?
• Threat of the left?

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The Poor

• Gains during Pinochet years...
• Poverty
• Health
• Sanitation and access to water
• Two steps forward
• Some measures of inequality worsened

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Universities

• Gremialista Movement
• Social Sciences
• Privatization
• Geography
• Political Activism

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Democracy and the Constitution

• Authoritarian Provisions in the 1980 constitution
• Restrictions on basic democratic and human rights
• Disdain for separation of powers and popular
  sovereignty
• Militarys constitutional prerogatives
• Barriers to constitutional reform

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Restrictions on Democratic and Human Rights

• Article 8
• Outlawed groups that did harm to the family or
  espoused totalitarian views
• Article 23
• Limited freedom of association

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Concentration of Power Disdain for Popular
Sovereignty

• Designated Senators (9)
• President
• Supreme court
• NSC
• Larger Senate body (38)

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Binomial Majoritarian

• Two deputies per electoral district and two
  Senators per conscrípcion
• List system two candidates for each party (votes
  are cast for each entry)
• Winners and Losers are determined by list totals
• To gain both seats, winning party has to win more
  than 67 percent of the vote.

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Military Prerogatives

• President can appoint but not dismiss heads of
  each branch
• Article 95 (NSC)
• NSCs power has decreased somewhat

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Immutability of the Constitution (before 1988)

• To amend the constitution
• Both houses most vote 3/5 then 60 days later vote
  again (Majority)
• President can then
• Approve
• Reject
• Reword
• In case of rewording, congressional override
  requires 3/4

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Constitutional Amendments

• If President rewords
• Can pass with simple majority
• Even if blocked, President can call for a
  referendum

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after 1988

• To override president rewording only 3/5 is
  required
• To push through a measure not approved by the
  president has gone from 3/4 to 2/3.
• The votes the president needs to approve his own
  language has risen from 3/5 to 2/3.
• He can still call a referendum

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Does Chile represent the best way to achieve
democracy?