28 days after the outbreak of the first protests over a rise of 30 pesos (the equivalent of 0.03GBP) for subway tickets, lawmakers and leaders of almost every political faction presented a historic agreement, announcing a referendum on a new constitutional process. How can a 3% fare increase so fundamentally shake up a supposedly stable and prosperous country and turn into a veritable constitutional revolution?
Commentators explained how Chile’s macroeconomic success story obscured deeper socio-economic and political rifts running through Chilean society. While the combined wealth of Chile’s billionaires is equal to nearly 25% of the country’s GDP, its rising middle class is highly indebted and struggles to stay afloat in the face of the high costs for part-privatized education and health systems, rents and utilities, and unreliable and meagre pensions.
Some highlighted the political fault lines in the country: political power is heavily concentrated among the economic elite, creating a widespread sense of political disenfranchisement among Chileans. Mistrust of political parties and institutions was further fuelled by congressional gridlock and corruption scandals across the political spectrum.
