Background: A three-year-old Marxist government was overthrown in 1973 by a dictatorial military regime led by Augusto PINOCHET which ruled until a freely elected president was installed in 1990. Sound economic policies first implemented by the PINOCHET dictatorship led to unprecedented growth in 1991-97 and have helped secure the country's commitment to democratic and representative government. Growth slowed in 1998-99 but will likely recover in 2000.
Natural hazards: severe earthquakes; active volcanism; tsunamis
Geography Note: strategic location relative to sea lanes between Atlantic and Pacific Oceans (Strait of Magellan Beagle Channel Drake Passage); Atacama Desert is one of world's driest regions
Administrative divisions: 13 regions (regiones singular - region); Aisen del General Carlos Ibanez del Campo Antofagasta Araucania Atacama Bio-Bio Coquimbo Libertador General Bernardo O'Higgins Los Lagos Magallanes y de la Antartica Chilena Maule Region Metropolitana (Santiago) Tarapaca Valparaiso
Constitution: 11 September 1980 effective 11 March 1981; amended 30 July 1989 and in 1993
Legal system: based on Code of 1857 derived from Spanish law and subsequent codes influenced by French and Austrian law; judicial review of legislative acts in the Supreme Court; does not accept compulsory ICJ jurisdiction
Legislative branch: bicameral National Congress or Congreso Nacional consists of the Senate or Senado (48 seats 38 elected by popular vote and 10 appointed (all former presidents are senators for life); members serve eight-year terms - one-half elected every four years) and the Chamber of Deputies or Camara de Diputados (120 seats; members are elected by popular vote to serve four-year terms)
Judicial branch: Supreme Court or Corte Suprema judges are appointed by the president and ratified by the Senate from lists of candidates provided by the court itself the president of the Supreme Court is elected by the 21-member court; Constitutional Tribunal
Political parties and leaders: Chile 2000 - main party is UCCP [Alejandro GARCIA-HUIDBORO]; Christian Democratic Party or PDC [Gutenberg MARTINEZ]; Coalition of Parties for Democracy ('Concertacion') or CPD [Eduardo FREI Ruiz-Tagle] - including PDC PS PPD PRSD; Independent Democratic Union or UDI [Pablo LONGUEIRA]; National Renewal or RN [Alberto CARDEMIL]; Party for Democracy or PPD [Sergio BITAR]; Party of the South or PS [leader NA]; Progressive Center-Center Union or UCCP [Francisco Javier ERRAZURIZ]; Radical Social Democratic Party or PRSD [Anselmo SULE]; Socialist Party or PS [Ricardo NUNEZ]; Union for the Progress of Chile ('Alliance for Chile') or UPP [Arturo ALESSANDRI Besa] - including RN and UDI
International organization participation: APEC CCC ECLAC FAO G-11 G-77 IADB IAEA IBRD ICAO ICC ICFTU ICRM IDA IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU LAES LAIA Mercosur (associate) NAM OAS OPANAL OPCW PCA RG UN UNCTAD UNESCO UNIDO UNITAR UNMIBH UNMOGIP UNTSO UNU UPU WCL WFTU WHO WIPO WMO WToO WTrO
Flag description: two equal horizontal bands of white (top) and red; there is a blue square the same height as the white band at the hoist-side end of the white band; the square bears a white five-pointed star in the center; design was based on the US flag
Economy overview: Chile has a market-oriented economy characterized by a high level of foreign trade. During the early 1990s Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Growth in real GDP averaged 8% during the period 1991-1997 but fell to half that level in 1998 because of tight monetary policies implemented to keep the current account deficit in check and lower export earnings - the latter a product of the global financial crisis. A severe drought exacerbated the recession in 1999 reducing crop yields and causing hydroelectric shortfalls and rationing and Chile experienced negative economic growth for the first time in more than 15 years. Despite the effects of the recession Chile maintained its reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. By the end of 1999 exports and economic activity had begun to recover and a return to strong growth in 2000 is likely. The inauguration of Ricardo LAGOS in March 2000 succeeding Eduardo FREI will keep the presidency in the hands of the center-left Concertacion coalition that has held office since the return of civilian rule in 1990.
Exports: $15.6 billion (f.o.b. 1999) Commodities: copper fish fruits paper and pulp chemicals Partners: EU 27% US 16% Japan 14% Brazil 6% Argentina 5% (1998)
Imports: $13.9 billion (c.i.f. 1999) Commodities: consumer goods chemicals motor vehicles fuels electrical machinery heavy industrial machinery food Partners: US 24% EU 23% Argentina 11% Brazil 6% Japan 6% Mexico 5% (1998)
Disputes international: Bolivia has wanted a sovereign corridor to the South Pacific Ocean since the Atacama area was lost to Chile in 1884; dispute with Bolivia over Rio Lauca water rights; territorial claim in Antarctica (Chilean Antarctic Territory) partially overlaps Argentine and British claims
Illicit drugs: a growing transshipment country for cocaine destined for the US and Europe; economic prosperity has made Chile more attractive to traffickers seeking to launder drug profits; imported precursors passed on to Bolivia; domestic cocaine consumption is rising