President Ricardo Lagos pointed out that Chile’s efforts in recent years are bearing fruit, announced measures to benefit the most needy, and called upon Congress to approve the proposed constitutional reforms, automatic voter registration and voluntary voting, in addition to constitutional recognition of the country’s indigenous peoples.

In a speech marked by “optimism” and an emphasis on social concerns, President Ricardo Lagos delivered his fifth Message to the Nation since taking office in 2000. He stressed that the efforts of “all” Chileans in recent years are now bearing fruit, while the difficult times “seem to be coming to an end,” as reflected in growth estimates of 5% for the current year and 5.5% for 2005.

President Lagos recalled that since the first day of his administration, he has stated that he would not pursue unrealistic dreams, but instead “a possible utopia: bringing Chile to the threshold of full development by its Bicentennial,” in 2010, with the construction of a “more just and humane Chile, with greater solidarity.”

The President’s Message focused chiefly on the social sphere. He announced the payment of a bonus to one million individuals receiving minimum or assistential pensions, in an additional effort to soften the impact of rising oil prices, as well as the readjustment of pensions for 400,000 senior citizens over age 75.

“If I had to describe the specific characteristics of the kind of development we want, I would have no doubt in saying that we seek a more egalitarian, cohesive, democratic, honest, tolerant, and free society,” he asserted.

At the beginning of his speech, the President enumerated some of the “fruits” of Chile’s efforts: the Health Reform, the Chile Solidarity program, the Civil Marriage law, new human rights laws, a new cultural institution, and numerous free trade agreements.

Continued growth

In spite of the difficult times faced during recent years, Chile never halted its growth and never reduced its social spending, the President emphasized. He pointed out that between 2000 and 2004, Chile’s economy will have achieved growth more than 50% higher than that of the developed countries, and nearly twice that of Latin America as a whole. During challenging times, he stressed, “we moved forward with enormous investments in education, health, judicial reform, and social infrastructure.”

In achieving these advances, Chile earned recognition around the world for its economic management, as reflected in the reduction of its country risk to well below the levels common in the region. “Chile’s country risk is one-fifth of the Latin American average. If we had Latin America’s average risk, our private sector would face additional expenses of 1.36 billion dollars per year.”

President Lagos also stressed the need to expand research in science and technology, in order to boost the country’s competitiveness in the global marketplace. Toward this end, he affirmed, Chile must “build a better relationship between the scientific and business worlds. This is a necessary step to ensure that scientific advances will have a positive economic impact. We must innovate for tomorrow.”

At the same time, he was adamant that “all of the funds generated by payments, which we refer to as royalties, for the extraction of non-renewable mineral resources, must be used to promote and support scientific and technological innovation throughout all of Chile’s regions.”

The President added that “our sovereignty in the 21st century is represented by the technology and knowledge necessary to produce our fruit, our wine, our salmon, and all of our other exports. Let us state clearly: soon we will no longer export ordinary cherries and peaches; instead, we will export something which is called a cherry or a peach, but which is protected by a patent on the DNA used to produce it. This is how the future will be, and we must be capable of achieving it. And thus it seems very important to me that we use our nonrenewable resources to generate the capital that will allow us to continue being a pace-setter for other countries.”

Chile’s growth is also reflected in its infrastructure, both urban and rural. The expansion of the Metro system will be completed by the end of 2004, including over 40 kilometers of new tracks, twice the total constructed during the previous 30 years. In addition, the current level of progress will permit the completion of the Metropolitan Region’s urban highway network by 2006, substantially reducing travel times for the capital’s inhabitants.

A country open to the world

Chile has achieved great credibility in the international sphere. The country participates in all opportunities for dialogue on both the regional and global levels. This year, it will serve as host for the APEC Summit. “This means that we are taking on responsibilities. We have pledged ourselves to help protect peace and to strengthen multilateralism and the rule of international law.”

President Lagos also reaffirmed his conviction regarding the need to strengthen bilateral ties in the region, in order to promote growth and progress in Latin America. “Chile hopes and desires that its neighbors will do well. When things go well for our neighbors, this is also good for Chile. When our neighbors have problems, Chile also has problems.” Nevertheless, the President stated that “this common future is built upon a foundation of strict respect for existing international treaties.”

As an example in this context, the President mentioned Chile’s timely response to the United Nations’ request to help protect the peace in Haiti, with the dispatch of a Military contingent to that country.

Chile has achieved its highest levels of integration in the area of trade. “We import and export approximately 60% of our GDP.” Exports have become “the motor of the country’s growth,” supported by the Free Trade Agreements signed by Chile. In 2003, total exports grew by 16%, to more than 21 billion dollars.

Thanks to these successes, the benefits of trade have reached diverse regions of the country, “such as Tarapacá, with its anchovies and alpaca wool; the Biobío region with its meats; and La Araucanía, with its bilberries, cherries, and asparagus. To this is added the wines of the Maule; the grapes, pisco, scallops, and avocados of the central zone; and the meat and dairy products of the Lake District.”

The President asserted that “this year will be even better,” predicting that Chile will become a leading agricultural exporter within ten years, enjoying a diversified presence in the world’s most demanding markets, thanks to the rising international demand for the country’s domestic agricultural products.

Modernity within reach

Chile has taken a great leap forward in the use and spread of information and communications technologies. Today, a million Chilean homes have computers, half of these with Internet access, as do 100,000 businesses.

Without a doubt, the greatest advance has been the incorporation of these tools into the school curriculum. Through the Enlaces Program, 8,000 primary and secondary schools are equipped with Internet-connected computers, 20% with broadband access. “Among our teachers, 85% have been trained in these technologies, and most importantly, 80% of teachers have a computer in their homes.”

With regard to the modernization of the State, the country has reached world-class standards in fiscal transparency. “Chile is internationally recognized for its high level of transparency, its honest practices and its continuing progress in this area.”

New legislation has been put into place to address the issues of personnel management and financial administration in the public sector. Among other regulations, the new labor law for public officials has been fully implemented. The bill, which became law in June 2003, seeks to modernize and professionalize the public-sector workforce, establishing a National Civil Service Authority and a High Public Officials Bureau.

Laws have also been passed to regulate the relationship between money and politics, and public financing for electoral campaigns has been introduced.

Emphasis on the social sphere

“As Chile grows and modernizes, we also seek to make it a more egalitarian country, with increased solidarity, greater equality of opportunity, and more effective social safety nets,” stated the President.

For that reason, this year’s Message centered on the social sphere. The most important announcements affected low-income individuals over age 75 –some 400,000 Chileans– who will see a 9.3% increase in minimum pensions and an 18.8% rise in assistential pensions. The President also announced that 100,000 women eligible for State widows’ pensions will receive support equivalent to 60% of their husbands’ salaries.

President Lagos further emphasized that Chile Solidarity, a program aimed at eradicating extreme poverty, “is already Chilean law, in full operation in 332 townships.” By the end of the current year, 166,000 families will be enrolled in the program, some 75% of the goal of 220,000, and “at a rapid pace, by the year 2007, we will achieve our goal of making Chile a country free of misery.”

In addition, he announced that a onetime payment of 10,000 pesos (17 US dollars) will be provided to all individuals receiving minimum and assistential pensions. “One million Chilean men and women in the neediest households will benefit from this payment, counteracting some of the damage done by rising oil prices.”

Health, education, housing and employment

On the topic of the Health Reform, the President signaled that the main efforts have been focused on improving and expanding primary care. The resources dedicated to this area have doubled between 1999 and 2004, permitting a 53% increase in primary care services along with a 140% increase in dental treatments.

In February, the legal reform to the country’s health authority and management system, known as the AUGE Plan, became law, and the President hopes for approval of the bills on guaranteed health care and the modification of the legal framework for health insurers (Isapres).

Education, with its potential to improve the lives of the poorest citizens, remains another of the President’s central concerns. This year, he announced a significant increase in preschool coverage; the expansion of the Full School Day program to 6,400 additional schools (reaching 89% of the goal promised for 2006); scholarships for more than 5,000 lowincome youth scoring higher than 600 on the University Selection Exam, as well as for students of indigenous origin; and a special program to teach the English language.

The President noted that in 2003, the resources dedicated to housing for the poorest 30% of the population doubled, while between 2000 and 2003, approximately 380,000 permanent housing solutions were provided for needy Chilean families.

Job creation is another of this administration’s main objectives. During 2003, 135,000 new positions were created. “Among these, 60% are salaried positions, and we are also experiencing a recovery in hiring by large companies.”

Constitutional reforms

Once again, the President stressed the need for a Constitution “which can pass the basic test of a modern democracy.” “We urgently need to reform the National Security Council, the Constitutional Court, the provision preventing the removal of the Commanders-in-Chief, and the institution of designated and life Senators.”

At the same time, he indicated that the National Congress must “establish an electoral system that will provide the most faithful reflection of popular sovereignty.”

President Lagos noted that under the current system, voters’ decisions are becoming increasingly irrelevant, a fact which is not unrelated to the failure of two million young Chileans to exercise their right to vote: “It is not good for Chile that our young people isolate themselves from the country’s great decisions.” In response, he called upon legislators “once and for all” to establish automatic voter registration and the voluntary vote.

With equal emphasis, he asked Congress to approve the constitutional recognition of Chile’s indigenous peoples, within a framework that ensures the unity of the nation.

A new society

The year 2003 was significant for the country’s democratic, social and cultural development.

The National Congress approved bills establishing reparations for victims of human rights violations and promoting the collection of more and better information about the past. “I hope that we will also soon be able to approve the creation of a National Human Rights Institute.”

“Chile has finally placed itself on the level of contemporary societies by changing its civil marriage legislation which dated from 120 years ago,” thanks to the approval of the new Civil Marriage Law, “a long-held desire among our citizens.”

In addition, “since August of last year, we have enjoyed a cultural institution,” the National Council of Culture and the Arts, along with the Regional Councils, which will help promote artistic creation and dissemination, maintain and expand the country’s cultural heritage and facilitate the participation of all citizens in Chile’s cultural life.

In the area of public safety, the President pointed to the approval of a bill to increase the number of Carabineros (police force), as well as other measures to help protect communities around the country. He also announced the submission to Congress of a new drug law, a new gun law, and above all, the proposed Juvenile Criminal Responsibility Law, “which will permit us to address the problem of crime committed by young people and adolescents, but also to give them effective opportunities for rehabilitation.”

An industrious country

Four years after President Ricardo Lagos took office, his vision of a “more cohesive, more entrepreneurial Chile, with fewer injustices and more hope” is coming into clearer focus, since “we have never been so close to defeating indigence, to achieving substantial reductions in poverty. We cannot fail to reach this goal.”

Chile has achieved the most favorable economic position in its history, and the government is determined to ensure that this advance is not halted. “We will continue to struggle to achieve economic growth. And thanks to this growth, we will implement public policies that help distribute its benefits to those who need it most. This is the mainspring of my actions as President,” he noted.

“These achievements have allowed us to be seen by the world as an industrious, technologically-advanced country with an entrepreneurial spirit, a country which enjoys legal security, where corrupt practices do not prosper, and whose landscape is transformed each day with great infrastructural projects.”