Chile Crash Course
"God created the wonders of the world but when he was finished he saw that he had many parts leftover. He had pieces of rivers and valleys, of oceans and lakes, of glaciers and deserts, of mountains and forests, and of meadows and hills. Rather than to let such beauty go to waste, God put them all together and threw them to the most remote corner of the earth. This is how Chile was born." - a Chilean legend.
The Republic of Chile is a South American country, a long narrow strip of land on the soutthern part of the continest, tightly wedged between the cold Pacific Ocean the the majestic Andes Mountains. Peru is to the north, Bolivia is to the north-east, Argentina runs almost the whole length to the east, and Drake Passage is the southern end. The entire west coast rubs against the Pacific Ocean.
How the name 'Chile' came about is anyone's guess. There are many theories, from an Indian chief called Tili, and a similar looking town in Peru called Chili, the Mapuche word chili means 'the end of land' and 'the deepest place on earth', the Quechua chin meant 'cold', the Aymara used tchili to mean 'snow', and then there is the Mapuche bird call, 'cheele-cheele'. The earliest Spanish expedition to the area called themselves 'men of chili' after hearing it from the Incas, so no one will ever know for sure.
History
Some ten thousand years ago the first native Americans migrated into the narrow fertile valleys or on the coasts of present day Chile. Mapuche (Che, "People" + Mapu, "of the Land") are the original Amerindian inhabitants of central and southern Chile and southern Argentina. They were known as Araucanos (Araucanians) by the Spaniards but this is now considered pejorative by the people and the term Mapuche is the one most often used by people in conversation, in the media in Chile and Argentina and is the one preferred by them. Contrary to popular belief, the Quechua word arauco (rebel), is not the root of araucano: it is more likely derived from the placename Arauco, meaning "clayey water" in Mapudungun.
The Mapuche had an economy based on agriculture; their social organization consisted of extended families under the direction of a "lonko" or chief, although in times of war they would unite in larger groupings and elect a "toqui" ('axe-bearer') to lead them.
The Mapuche are a wide-ranging ethnicity composed of various groups which shared a common social, religious and economic structure, as well as a common linguistic heritage. Their influence extended between the Aconcagua River and the Argentine pampa. They can be divided into Picunches who lived in the central valleys of Chile (these integrated with the Inca Empire and later with the Spaniards), the Mapuches who inhabited the valleys between the Itata and Toltén Rivers, and the Huilliches, the Lafkenches, and the Pehuenches. The northern Aonikenk, called Patagons by Ferdinand Magellan, were an ethnic group of the pampa regions that made contact with some Mapuche groups, adopting their language and some culture. They are the Tehuelches. Northern Chile was briefly inhabited by the Incas however the useless barrens caused them to quickly abandon their expansion plans.
While attempting to circumnavigate the globe, the Portuguese captain Ferdinand Magellan in 1520 came across a southern route from the Atlantic to the Pacific and the strait is named after him. In 1535 Diego de Almagro, coming in search of gold from Peru was the next recorded European to set foot on Chile. Hundreds of thousands of Indians from several different tribes were already there, using slash and burn survival technology and they also hunted. Santiago was founded in 1541 by Pedro de Valdivia lacking silver and gold but seeming to have the potential for agricultural.
The Mapuche were tough
Conquering the area of present day Chile was no easy feat because of the ruthless Mapuche people, and was done in fits and spirts. Valdivia lost his life to the Mapuche in 1553. Each advancement southward by the colonists eventually succame to indigenous insurrection shoving the frontier back northward. Of course, indenturing the Indians into slavery didn't help the tensions, and in 1683 slavery was abolished and relations normalized into trade.
Chile's independence
Chile's most famous patriot, Bernardo O'Higgins joined forces when Argentina's renouned patriot, José de San Martín who came over the Andes to help defeat the royalists, and in 1818, O'Higgins was proclaimed leader of independent Chile. Little changed however in the way things were organized, and the wealthy landowners prospered even more, and had great political clout.
During the last of the 1800s, Santiago's ruthless government overpowered the Mapuche further south, claiming sovereignty of the Straits of Magellan, then expanded northward by about a third to Peru's border, cutting off Bolivia from the Pacific Ocean. As a result, Chile acquired massive nitrate deposits that soon helped lead to a very strong Chilean economy.
After the 1891 civil war, Chile became a democratic. A battle developed between local investment supporters and bank interests, and the economy partially denegrated as to protect the properties and powers of the oligarchy. However in the 1920's, the working classes had enough strength to elect reformer Arturo Alessandri Palma, but his policies were no match for congress's determination to defeat him. Still the roots of Marxism became established.
In 1924, a military take over evolved into a somewhat benevolent government into the 1960s when Chile was hit with its first depression, capital flew out, and investment fell drastically highlighting the opposition of socialist President Allend's policies. Image:chile rafting.jpg|right|thumb|Whitewater rafting]]
Allend responded with wage and price freezes, and the expropriation of several profitable extraction companies, great for the short-term, but a highly unpopular and damaging move over the long haul. But he got what he wanted, started making money while unemployment fell. He also redistributed several million hectares to farm workers, gave the army a deserved raise, addressed the needs of the indigenous and even offered complimentary milk to growing families.
The US gets upset
Tensions increased between the Americans (and other foreigners) when the government of Chile decided to grab the huge mega-industries financed by American investors. Nixon worked the international credit markets convincing them to curtail borrowing by Chile. At the same time the CIA started a media campaign to destabilize Chile's domestic economy. Within a year, inflation skyrocketed, professional workers striked, and the transport industry ground to a halt. In 1973, the military took over, actually bombed Allende's palace, 'Palacio de La Moneda', and he apparently committed suicide.
Pinochet
General Augusto Pinochet lead the government, a ruthless dictator, renouned for his human rights abuses of anyone faintly resembling a political dissident. Seventy persons alone in Oct.73 were killed by his Caravan of Death. He had a thousand people executed in his first six months, and a few thousand more during his 16 year reign of terror, according to the Rettig Report. Thirty thousand people fled Chile, thousands were detained then tortured according to the Valech Commission of 2004. With a highly irregular and undemocratic plebiscite without registration lists, and on September 11th, 1980, someone approved an new constitution as General Pinochet was declared president of Chile for a further eight year term.
A plebiscite in 1988 finally ousted General Pinochet and things have been quiet on the international scene ever since. The first-ever woman president, socialist Michelle Bachelet Jeria, was elected in 2006 for four years.
Geography
Over 4600 kilometers long running north-south and less than a tenth of that at the fattest point, Chile is wedged between south America's spine, the Andes Mountains, and the cold Pacific Ocean, drawing many similarities, not least are the landscapes, to the Pacific northwest. In square miles it is about the size of Texas. Image:Maoi profile.jpg|right|thumb|Maoi profile]]
Nitrates and copper come from the Atacama desert in the far north. The small, protected and fertile Central Valley has by far the greatest population density, and was the historic center from which northern and southern expansions originated. Volcanos, lakes, forests and pastures make up rugged and sometimes freezing Southern Chile. The ruggedness applies to the intricate coastline of southern Chile as well, fjords, and inlets, islands and snaking peninsulas with vistas up into the domineering Andes. The country has unsuccessfully tried to claim nearly twice its size in Antarctica, in contradiction to the Antarctic Treaty it signed.
Easter Island is under Chile's control, the eastern most of the inhabited Polynesian islands, as well as the infamous Robinson Crusoe Island, three hundred and seventy miles west off mainland Chile that inspired Daniel Defoe's classic.
Economy
As of today, December 28th, 2007, US$1 = 496.5 Chile Pesos (CLP)
Chile has been on a bit of a roller coaster ride over the last eighteen years, but is doing well presently, with a growth rate around seven percent for several years, largely helped along by high domestic savings through the national pension plan, and the climbing price of copper on the international market produced by its huge CODELCO operation.
Though on the outside appearing to be doing well, an estimated 58% of residents were living below the poverty line in 2006, a fifth were extremely impoverished, according to statistics released by Chile's CAS Informática, around 58% of Chileans lived near or below poverty levels, 20.6% in extreme poverty. All this demonstrates the inequitable way that the wealth is being shared, a ratio falling behind even some sub-Saharan nations. The top ten percent own half of everything.
Chile's independent Central Bank pursues a policy of maintaining inflation between 2% and 4%. Inflation has not exceeded 5% since 1998. Chile registered an inflation rate of 2.4% in 2004. In 2005, inflation reached an estimated 3.7%. Stronger than expected domestic demand coupled with higher worldwide energy prices led to most of the inflationary rise in 2005. The Chilean peso’s rapid appreciation against the U.S. dollar in 2004 and 2005 helped keep down inflation while at the same time the strengthening peso played a role in the stronger than expected domestic consumption. Most wage settlements and spending decisions are indexed, reducing inflation's volatility. Under the compulsory private pension system, most formal sector employees pay 10% of their salaries into privately managed funds.
Total foreign direct investment rose to $7.1 billion in 2004, up from $2.5 billion in 2003. Both foreign and domestic investment in Chile had declined during the country’s period of slower economic growth from 1999-2003, but both now appear to be recovering strongly. The Chilean Government committed in early 2002 to undertake a series of microeconomic reforms designed to create new incentives for private investment. The government also has encouraged the use of Chile as an "investment platform" for multinational corporations planning to operate in the region. Chile's welcoming attitude toward foreign direct investment is codified in the country's Foreign Investment Law, which gives foreign investors the same treatment as Chileans. Registration is simple and transparent, and foreign investors are guaranteed access to the official foreign exchange market to repatriate their profits and capital. The U.S.-Chile Free Trade Agreement offers a number of other investor protections.
Foreign Trade
Chile's economy is highly dependent on international trade. In 2005, exports accounted for about 39% of GDP. That figure was somewhat distorted by world-record copper prices. Chile’s overall trade profile has traditionally been dependent upon copper exports, and the rise in copper prices has reinforced it further. The state-owned firm CODELCO is the world's largest copper-producing company with recorded copper reserves of 200 years. Chile has made an effort to expand non-traditional exports. In 1975, non-mineral exports made up just over 30% of total exports, whereas now they account for about 60%. The most important non-mineral exports are forestry and wood products, fresh fruit and processed food, fishmeal and seafood, and wine.
The trade balance for 2005 showed a surplus of $8 billion. Total exports in 2005 were $38 billion, up nearly 20% from 2004. Chile's export markets are fairly balanced among Europe (25.1%), Asia (33.1%), Latin America (15.7%), and North America (19%). The U.S., the largest national market, takes in 17.3% of Chile's exports. Since the implementation of the U.S.-Chile FTA in January 2004, bilateral trade has increased 85%.
Asia has been the fastest-growing export market in recent years. For example, Chile’s number two, three, and four trading partners are China, Japan, and South Korea, respectively. Chile’s recent FTAs with Asian trading partners and plans to sign more in 2006 underscore the growing importance of Asia to Chile’s trade portfolio.
After two years of negotiations, the United States and Chile signed an agreement in June 2003. The agreement will lead to completely duty-free bilateral trade within 12 years. The U.S.-Chile FTA entered into force January 1, 2004 following approval by the U.S. and Chilean congresses. The bilateral FTA has inaugurated greatly expanded U.S.-Chilean trade ties. Chile is a strong proponent of pressing ahead on negotiations for a Free Trade Area of the Americas (FTAA) and active in the WTO’s Doha round of negotiations, principally through its membership in the G-20 and Cairns Group.
Finance
Chile's financial sector has grown faster than other areas of the economy over the last few years. A banking reform law approved in 1997 broadened the scope of permissible foreign activity for Chilean banks. Chileans have enjoyed the recent introduction of new financial tools such as home equity loans, currency futures and options, factoring, leasing, and debit cards. The introduction of these new products has also been accompanied by an increased use of traditional instruments such as loans and credit cards. Chile's private pension system, with assets worth roughly $54 billion at the end of 2004, has been an important source of investment capital for the capital market.
Chile maintains one of the best credit ratings (S&P A+) in Latin America. There are three main ways for Chilean firms to raise funds abroad: bank loans, issuance of bonds, and the selling of stocks on U.S. markets through American Depository Receipts (ADRs). Nearly all of the funds raised through these means go to finance domestic Chilean investment. The government continues to pay down its foreign debt. Combined public and private foreign debt was roughly 50% of GDP at the end of 2004—low by Latin American standards.
Image:atacama38.jpg|right|thumb|Atacama]]
Foreign relations
Since its return to democracy in 1990, Chile has been an active participant in the international political arena. Chile completed a 2-year non-permanent position on the United Nations Security Council in January 2005. Chile is an active member of the United Nations family of agencies and participates in UN peacekeeping missions. Chile hosted the Defense Ministerial of the Americas in 2002 and the APEC Summit and the Community of Democracies Ministerial in April 2005. An associate member of Mercosur and a full member of APEC, Chile has been an important actor on international economic issues and hemispheric free trade.
The Chilean government has diplomatic relations with most countries. It settled most of its territorial disputes with Argentina during the 1990s. Chile and Bolivia severed diplomatic ties in 1978 over Bolivia's desire to reacquire territory it lost to Chile in 1879-83 War of the Pacific. The two countries maintain consular relations.
Demographics
With a present population of 16 million people, Chile is a relatively homogenous country. Most of its population is of predominantly Spanish origin, with varying degrees of native Amerindian admixture, the product of the racial mixture between colonial Spanish immigrants and the native Amerindian tribes.
About 85% of the country's population lives in urban areas, with 40% living in the greater Santiago area. Chile's population growth is among the lowest in Latin America, at around 0.97%, coming third only to Uruguay and Cuba.
Indigenous communities
Those belonging to recognised indigenous communities (2002) Alacalufe 2,622 (0.02%) Mapuche 604,349 (4.00%) Atacameño 21,015 (0.14%) Quechua 6,175 (0.04%) Aymara 48,501 (0.32%) Rapanui 4,647 (0.03%) Colla 3,198 (0.02%) Yámana 1,685 (0.01%)
In the 1992 Chilean census, a total of 10.5% of the total population surveyed declared themselves indigenous, irrespective of whether they currently practiced or spoke a native culture and language. Almost one million people (9.7% of the total) declared themselves Mapuche, 0.6% declared to be Aymara, and a 0.2% reported as Rapanui. At the 2002 census, only indigenous people that still practiced or spoke a native culture and language were surveyed: 4.6% of the population (692,192 people) fit that description; of these, 87.3% declared themselves Mapuche.
Immigration
Relative to its overall population, Chile never experienced any large scale wave of immigrants. The total number of immigrants to Chile, both originating from other Latin American countries and all other (mostly European) countries, never surpassed 4% of its total population at any one time. This is not to say that immigrants were not important to the evolution of Chilean society and the Chilean nation. Some non-Spanish European immigrants arrived in Chile, mainly to the northern and southern extremities of the country during the 19th and 20th centuries, including English, Germans Irish, Italians, French, Croatians and other former Yugoslavians. The prevalence of non-Hispanic European surnames among the governing body of modern Chile are a testament to their disproportionate contribution and influence on the country. Also worth mentioning are the Korean, and Palestinian communities, the latter being the largest colony of that people outside of the Arab world. The volume of immigrants from neighboring countries to Chile during those same periods was of a similar value.
Currently, immigration from neighboring countries to Chile is greatest, and during the last decade immigration to Chile has doubled to 184,464 people in 2002, originating primarily from Argentina, Bolivia and Peru. Emigration of Chileans has decreased during the last decade. It is estimated that 857,781 Chileans live abroad, 50.1% of those being in Argentina, 13.3% in the United States, 4.9% in Sweden, and around 2% in Australia, with the rest being scattered in smaller numbers across the globe.
Culture
Northern Chile was an important center of culture in the medieval and early modern Inca empire, while the central and southern regions were areas of Mapuche cultural activities. Throughout the colonial period following the conquest, and during the early Republican period, the country's culture was dominated by the Spanish. Other European influences, primarily English and French, began in the 19th century and have continued until today.
The national dance is the cueca. Another form of traditional Chilean song, though not a dance, is the tonada. Arising from music imported by the Spanish colonists, it is distinguished from the cueca by an intermediate melodic section and a more prominent melody. In the mid-1960s native musical forms were revitalized by the Parra family with the Nueva Canción Chilena, which was associated with political activists and reformers, and by the folk singer and researcher on folklore and Chilean ethnography, Margot Loyola.
Chileans call their country país de poetas 'land of poets'. Gabriela Mistral was the first Chilean to win a Nobel Prize for Literature (1945). Chile's most famous poet, however, is Pablo Neruda, who also won the Nobel Prize (1971) and is world-renowned for his extensive library of works on romance, nature, and politics. His three highly individualistic homes, located in Isla Negra, Santiago and Valparaíso are popular tourist destinations.
Language
Chilean Spanish is notoriously difficult for foreigners to understand due to the dropping of final syllables and 's' sounds, the very soft pronunciation of some consonants and the high levels of slang employed, particularly in Santiago and the surrounding areas. Chileans also tend to speak much faster than natives of neighboring countries. These factors all contribute to newly arrived visitors to the country, even proficient Spanish speakers, hearing no more than indecipherable mumbles in early encounters with locals. Books have been written (such as 'How to survive in the Chilean Jungle' by John Brennan and Alvaro Taboada) which attempt to detail and explain the difficulties and idiosyncrasies of Chilean Spanish.
English language learning and teaching is popular among students and higher professions, although with varying degrees of success. Even with intensive preparation, culture shock can take a real toll on communication. Many words have been absorbed into everyday speech from English, although they may be unrecognizable due to non-native pronunciations of English and misuse.
The national flower is the copihue (Lapageria rosea, Chilean bellflower), which grows in the woods of southern Chile.
The coat of arms depicts the two national animals: the condor (Vultur gryphus, a very large bird that lives in the mountains) and the huemul (Hippocamelus bisulcus, an endangered white tail deer). It also has the legend Por la razón o la fuerza (By right or might or By reason or by force).
Religion
Chile is a traditionally Catholic nation, with an estimated 89% of Chileans belonging to that church. The other 11% is comprised of other Christian denominations, the single largest of these being the LDS (Church of Jesus Christ of Latter Day Saints or Mormons), which comprises over 3% of the Chilean population. The rest are Protestant and Eastern Orthodox, a small Muslim community which makes up under 1 percent of the population, and less than 1 percent (an estimated 25,000) are Jewish or practice Judaism.
Tourist Entry into Chile
Tourists from countries with which Chile maintains diplomatic relations must enter the country on a valid passport. Tourists whose country of origin is Argentina, Brazil, Uruguay, Paraguay or Peru may enter on their national I.D. cards or equivalent documents. Argentine citizens under 21 years of age who are travelling unaccompanied require the authorisation of their parent or guardian, signed before a notary public, in order to enter Chile. Other foreign tourists under 18 years of age who are travelling unaccompanied require the authorization of their parent or guardian, signed before a notary public, stamped by the Chilean Consul in their country of residence.
Although Chile maintains diplomatic relations with France, and Venezuela, citizens of these countries – and certain others – require a Tourist Visa to enter the country, and in some cases the authorisation of the Ministry of Foreign Affairs.
On entering Chile, tourists receive a duplicate form from Policía Internacional called "Tarjeta de Turismo" (Tourist card). This card is personal and non-transferable, and is valid for 90 days, which may be extended for a further 90 days. The tourist must retain the copy while he is in Chile and hand it in to Policía Internacional when he leaves. Extensions can be requested in Regional Government offices (Intendencias Regionales) in the “Extranjería” office.
NOTE: Passengers entering the country on passports issued by Australia, Canada, the United States and Mexico must pay a Reciprocity Tax before passing through immigration. The amounts to be paid are: Australia - US$ 30 Canada US$ - 50 United States - US$ 100 Mexico - US$ 15 This amount must be paid in cash in US Dollars or Chilean Pesos. For enquiries telephone (56 2) 6901063.
Safely travel in Chile
Unlike some of its South American neighbours, crime is not a serious problem in Chile. Like anywhere, however, sensible precautions should be taken. That being said, Santiago provides the highest opportunity for a run in with pickpockets.
If you are new to travelling, or even if you have travelled the globe for years, I strongly recommend you check out the following link for some very interesting and informative reading about safe travelling in Chile, and the Third World in general. It is an accumulation of original thoughts and experiences of several worldly travellers, just go to Safely Travel. It was written with the Third World in mind, where travelling disasters are around every corner, and a pre-emptor to what we may all expect someday in the First World as populations increase and desperate people become more brave and sophisticated in their survival techniques. It will make you aware of all sorts of scams, how to check into a hotel, advice for single lady travellers, advice for single men travellers, rip tides, credit card scams, driving in a foreign land, kidnapping, street people, you name it. It is an essential read for anyone travelling, and the most comprehensive discussion I know of!