South American Regionalism and Chile. The case of UNASUR Bard College July 11th, 2013 NY, USA Dra. Lorena Oyarzún S. Instituto Asuntos Públicos Universidad de Chile

Discussion topics Subject: Chile in a changing scenario of the international distribution of power. What are the options? In which region?(OAS, CELAC, UNASUR, MERCOSUR, Pacific Alliance)  Brief overview on Chile  Chile’s FP and international insertion strategy (open regionalism)  Chile in Union of South American Nation (UNASUR). What does it mean?

About Chile  Head of State and Government: Sebastián Piñera ( ).  Official language: Spanish  Life expectancy at birth: 78, 8  Unemployment rate: 7%  GDP per capita: $ US  HDI:Chile ranks 1st in LA, 40th out of 187 countries, (UNDP, 2013).  Republic of Chile  Independence: 18 September 1810 (from Spain)  Capital: Santiago  Population: 17,216,945

A little more about Chile  Chile has a market-oriented economy characterized by a high level of foreign trade. 22 trade agreement with 60 countries  Is listed as the most attractive market in Latin America (Global Competitiveness Report of the World Economic Forum, 2011)  Chile got into the OECD (2010). But inequality is the challenge: Gini coefficient: 0.5 (OECD average is 0.31) 15.1% of the Chilean population lives in poverty Education

Chile’s Foregin Policy  Economic Model: Elected government of socialist Salvador ALLENDE was overthrown by a military coup led by Augusto PINOCHET in 1973, who ruled until a freely elected president was inaugurated in Sound economic policies, maintained consistently since the 1980s. “Chicago boys” and Chilean economic model. Liberalization (trade and investement) and privatization (health, education, pensions) Exports account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue.

Chile’s Foreign Policy  Concertación “Coalition of Parties for Democracy” (center-left) ruled since 1990 to march  Focused in reestablishing damaged bilateral, regional and global relations. Special importance on the defense of democracy.  ( ). Center- Right government. Interest in strengthening Chile’s profile as a global trader  Change or continuity?

Alternatives for international insertion  Latin America (LA) found itself in a much-improved position from which to face the global economic and financial crisis.  Economic Grow for LA 3%, Chile (4,4 %) (IMF, 2013)  There is a perception that South America would be no longer backyard (Van Klaveren, 2011).  A regional reordering has taken place, in which neighbors and other regions of the globe are perceived as possible and attractive partners (Oyarzún 2010; Serbin 2010).  US declined influence in South America, China factor, Role of Brazil, Mexico back to the region?

Union of South American Nations  UNASUR (2008) (Argentina, Bolivia, Brasil, Colombia, Chile, Ecuador, Guyana, Paraguay, Perú, Surinam, Uruguay y Venezuela)  Reflects interest of the member states of taking care of their own issues (autonomy) and promote cooperation in a interdependent world.  Pro-active regionalism (not defensive)  Aims: promote and defense of democracy, political dialogue, regional security (South American Security Council), sustainable development, infrastructure integration

Democratic Stability: 2008: Santiago Declaration. Support to President Evo Morales (Instability and conflict betwwen regions inside Bolivia) 2010: Equator and domestic conflict with police forces 2012: Paraguay suspended after President Luego was keep away (Franco, Cartes) 2013: Venezuela’s last presidential elections (Social peace)

Final reflections/ questions  Brazil’s role in UNASUR?  Pacific Alliance competition to UNASUR?  UNASUR as a tool to colaborate and transcend threat perception  Inequality  Democracy  Challenge: build neighboorhood beyond diversity and “historic agenda”

Gracias!!! South American Regionalism and Chile. The case of UNASUR Dra. Lorena Oyarzún S. Instituto Asuntos Públicos Universidad de Chile