On May 21, as called for by the Constitution, President Ricardo Lagos rendered account to the nation of his administration’s achievements in 2001 and its plans for the coming months.

At the start of his Message, President Ricardo Lagos emphasized that he had arrived from Madrid only 72 hours earlier, where he had signed a Political and Commercial Association Agreement with the European Union. “Chile is entering with dignity through the broad gateway into the developed world,” he stated, adding: “I ask myself why there is growing interest around the world in being associated with this small country.”

The President believes that the reasons include Chile’s economic growth, its strengthened democratic institutions and liberties, and its progress in the quest for equity and social justice.

These are the three focal points for his administration’s actions, as well as the hallmarks that define Chile today: “Because we have been able to achieve growth in spite of adversity, we are viewed as a productive country.” “Because Chile is governed democratically and responsibly, without populism, we are viewed as a reliable country.” “Because Chile invests strongly in the development of its people, and because the people are our priority, we are viewed as a country with a human face.”

Outlining his priorities for the coming year, the President reserved his strongest emphasis for social issues: fighting extreme poverty, reforming health care and improving the coverage and quality of education. 

In the political sphere, President Lagos insisted on the need for Constitutional reform, in order to make the Constitution fully democratic. This includes the modification of the binomial electoral system and the elimination of the institution of appointed Senators, ensuring that all members of Congress are elected by the people.

In concluding his address, the President noted: “Creating a society that is free from poverty and truly more just will require sustained efforts, with a strong emphasis on education and knowledge at their center. In this spirit, working hard at our daily tasks and with our eyes turned toward the future, we must continue to move forward, successfully bridging the legitimate differences existing in our society.”

Chile, a Productive Country

At his inauguration on March 11, 2000, President Lagos stated: “I have listened to the needs of the people. They speak of health, housing, employment, personal security, infrastructure, education and the environment.” The goal he set at that time –and which he now reiterates– is to make Chile a fully-developed, socially just and culturally mature country by 2010, the bicentennial of its independence. 

These objectives have marked his administration’s priorities, and they underlie the accounting he presented on May 21.

Many factors speak in favor of their achievement. Chile’s economic performance has been “recognized and respected in the world,” as the President emphasized. In 2001 –a difficult economic year throughout the world– Chile’s growth rate was 2.8%, four times that of Latin America as a whole, nearly twice that of Europe, and much higher than the world average. Chile rose from a ranking of 24 to 20 in world competitiveness – above Spain, France and Japan. The country’s risk is rated A- by Standard & Poor’s, and its corruption indicators are among the world’s lowest.

To confront the demands and challenges that still remain, the President issued a strong invitation to investors – both domestic and foreign – to bring their confidence, determination and energy to Chile. He also emphasized that although the government will receive less revenue than projected, he will not cut public spending. On the contrary: social outlays will expand by more than 6%, and public investment will increase by approximately 11% in real terms.

President Lagos stressed the country’s growth potential in the international arena, since external trade accounts for more than 65.5% of its GDP. “For Chile, in consequence, globalization is not an option – it is a necessity and an opportunity.” Moreover, The President highlighted that his administration will not resort to isolationist or protectionist policies, no matter what pressures it faces.

Among other recent achievements, he mentioned the advances in infrastructure and public works, including private investments totaling 8.737 billion dollars. A measure enjoying unanimous support was the reform to the country’s capital markets, modifying institutional and tax provisions of the regulations governing insurance companies, banks, mutual funds and investment firms.

Another notable achievement, or “button,” as the President termed it: Chile is now the world’s fifth leading wine exporter, after France, Italy, Spain and Australia.

Chile, a Reliable Country

As positive as the figures are, growth is not an end in itself, President Lagos emphasized; it is an indispensable tool for creating a more just and equitable Chile. This will also entail further reform of the country’s institutions, starting with the Constitution.

According to the President, what is at stake is “the soul of our democratic system.” The Congress “must be the faithful representation of popular sovereignty.” For this reason, he insisted on the need to eliminate the appointed senators, making all members of Congress elected by the citizens, and to modify the binomial electoral system, so that Congress accurately reflects the will of the voting public.

The three administrations of the Concertación coalition have attempted to modify the Constitution, but they have been unable to assemble the required number of votes. Some weeks ago, the President sent a bill to the Senate which reforms, eliminates or replaces 43 of the 123 permanent Constitutional provisions dictated by the military regime. Key points of the bill are the elimination of the appointed and Senators-for-life and the reform of the binomial electoral system.

Further concrete achievements:

• The reform to the criminal justice system is being implemented in five of the country’s regions; the time required for judgments has been cut by half. New facilities for appeals courts have been created, and the appointment of judges to 24-hour duty for the most serious cases has been approved.

• In the area of public safety, the Carabineros and detective national police forces have been provided with higher budgets and modernized communications systems. In addition, care centers for victims of violent crimes have been established throughout the country.

• The censorship of the filmmaking industry has been eliminated.

• The digital signature law has been enacted.

The President devoted a special chapter of his Message to the civilian-military relationship in Chile, where he states “we have taken substantial steps forward.” The Armed Forces “are today exclusively dedicated to their assigned task, national defense. And through national defense, they contribute to Chile’s progress, development and well-being.” Currently, efforts are focused on two main objectives: updating the country’s defense policy and modernizing its military institutions.

With respect to Chile’s indigenous peoples, the President reiterated his pledge to transfer 150,000 hectares of land to the Mapuche people. In addition, scholarships have been provided for students, a cultural fund has been created, and new areas of development have been promoted. A bill has also been sent to Congress to provide constitutional recognition to the indigenous peoples. However, the President stated categorically that “we will not accept violence as a valid means for achieving results.”

Chile, a Humane Country

The central elements of the President’s Message were aimed at the people: Chile’s quest for equity and social justice, its concern for its poorest citizens, and its efforts to increase the quality of life for all.

“With my head held high,” as the President stated, he affirmed that his administration had fulfilled its pledge from the previous year’s Message: 155,602 new jobs have been created. In addition, thanks to training programs implemented in cooperation with private industry, many temporary contract workers were able to keep their jobs. More than 700,000 workers were trained during 2001. The President also pointed to the approval of labor reform and unemployment insurance measures.

With the firm determination to eliminate extreme poverty by the end of his term, the President announced that the nation’s poorest families would receive a protective voucher, calling it “a minimum of dignity to which every Chilean family is entitled.” A further program, Chile Solidario (Chile in Solidarity) will also be created, consisting of loans to poor families that combine assistance with a path to a better future. Thanks to this program, “the poorest of the poor will have guaranteed access to health, education and social security.”

In housing, the most ambitious program ever to be undertaken in Chile has been put into practice, involving the construction of 15,000 expandable, mortgage-free housing units. They are aimed at the poorest 20% of the population, who have difficulties obtaining and paying a mortgage. Starting in 2003, the number of homes constructed annually will rise to 25,000. A side benefit of this program is the creation of a significant number of jobs.

In education, “the key to the future,” the number of four- and five-year-olds from extremely poor families attending preschool and receiving free meals has expanded substantially. More than a third of elementary school-aged children currently benefit from targeted State services, through the Rural Program and the “900 Program” serving the country’s nine hundred most underprivileged schools.

The administration intends to increase mandatory schooling from eight to twelve years, while further increasing funds to provide computers and Internet connections to the public schools. Family savings accounts will be created to finance children’s university studies; to encourage saving, the State will match or double the amount accumulated in interest, in accordance with the student’s socioeconomic situation.  

In health care, the priority will be placed on primary and emergency services. Waiting times for appointments have already been reduced to less than 48 hours for infants under one year and senior citizens over age 65, and daily hours have been expanded in all clinics. 

The great step forward, however, will be the AUGE Plan (Acceso Universal con Garantías Explícitas, or Universal Access with Explicit Guarantees), which lies at the heart of the administration’s health care reform. It is a comprehensive plan which benefits all Chileans and includes all illnesses in their various stages, including the most serious and costly ailments, such as heart disease, cystic fibrosis, cancer and AIDS.

The plan does not discriminate on the basis of age, sex or economic condition, and it is mandatory for both the public and private sectors. It provides overarching primary care, 365 days a year, with special emphasis on health promotion and preventive care. 

In concluding his Message, the President issued a call to “work together for Chile”: “Let us take care of what we have. It is an effort that requires every one of us. Let us improve our institutions, and let us unleash the enormous creative energies present in this country. Let us be worthy of the path opened up by the founders of our Republic, and let us leave to future generations a more prosperous, more just and more humane Chile, where all can feel that they live in a country in which dignity is accorded to every person.”