Right Turn in Chile

Ever since Gen. Pinochet stepped down, Chile has been ruled by socialists who have had the good sense to keep in place the privatized, free-market reforms they inherited. As a result, Chile has the highest standard of living in Latin America.

The socialists have chipped at the edges, however. Recent reforms will severely cripple the most innovative disability social insurance program in the whole world. They will also move the world’s most successful (and completely privatized) social security system back in the direction of pay-as-you-go finance. (The NCPA will publish Estelle James’ study of this soon.)

All of which makes conservative candidate Sebastian Piñera’s victory in yesterday’s presidential election an important milestone in the evolution of Chilean politics.

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