ASSESSMENTS

The Chilean Government Has Calmed, but Not Solved, Protester Anger

Dec 20, 2019 | 10:00 GMT

Demonstrators clash with riot police following a protest against the Chilean government Dec. 18, 2019, in Santiago, Chile.

(MARTIN BERNETTI/AFP via Getty Images)

Highlights

Channeling unrest into a constitutional reform process has managed to dampen, though not end, widespread protests.
Chile's April 2020 and October 2020 referendums on constitutional change will likely spark further spikes in demonstrations — and there is no guarantee the final document itself will actually satisfy protesting groups.
Continued unrest would sap growth in the non-mining sectors, so the government will focus on spurring the mineral sector to maintain economic growth.

Setbacks and controversies during the process of replacing the Chilean Constitution over the next several years will keep the risk of turmoil like that seen in recent months alive. Continued unrest will threaten Chile's business-friendly reputation. Since October, Chile's demonstrations have periodically rocked urban areas, drawing in not only the left, students and radicals but a broad cross-section of Chilean society, including professionals and the middle class. Government promises to replace the country's constitution have, however, somewhat quieted recent protests....

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