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NEWS & LETTERS, September-October 2005

Chile's privatization

Santiago, Chile--Your President Bush talks about Chile’s privatized social security system as a "model." In fact, privatization has been disastrous for us. At the time the change was put through by the Pinochet dictatorship, most people didn’t understand how they could be affected, but now that those people are retiring, many workers have been reduced to poverty. In some cases, the private companies holding the money went bankrupt and there is nothing to withdraw. In other cases, there is some money but less than was put in. Privatization has decimated our health insurance as well.

Everything has been privatized since Pinochet welcomed in the economics of the "Chicago Boys"--water, electricity, higher education, etc. The working and middle classes keep getting poorer. Chile now has one of the biggest divisions between rich and poor in the world. Our natural resources are being destroyed by private capital. Fish have been nearly depleted by the fish meal industry, which sweeps up all sea life to grind up.

The current Socialist Party president continues the neo-liberal process, but he is smart enough to bring former Left parties into the government and to employ a lot of former radicals. As a result, young people are completely turned off by political activity. Two million youth have refused to register to vote, in defiance of the law.  Since voting is mandatory, in the last election many people, instead of casting their vote for a candidate for president, wrote in "more jobs" or "rights for women."

Unions are getting weaker. They have to organize underground or else the workplace will close and reopen under another name. The major union is tied to the government. To establish an independent union, you have first to start a cultural organization just to get a discussion going--so afraid are people to "talk politics."

People are forming groups in order to combat the official culture of individualism, but only small collectives of young people. Mostly they come out for a demonstration and then go home. Some collectives are working on local projects such as creating libraries, adult education, tutoring poor children, and helping youth to find their roots. Some are helping the indigenous Mapuches to resist government attempts to kick them off their land.

--R. & J.

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