How to make a nation prosper
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How to make a nation prosper

After 17 years in power, Chile’s centre-left government coalition is bidding to put a new twist on its successful recipe for strong economic growth and greater social justice, says Michelle Bachelet, the country’s president


The triad of social equity, economic growth and political freedom has always been the pillar of Concertacion governments. To fail in one of these areas would be to fail overall. There are no trade-offs here. For many years, we have proudly explained to the rest of the world the reasons for the success of the Chilean model which lie not only in political stability, governability and economic stability, but also in our ability to devise policies that mean ever greater social cohesion. The Concertacion has shown that this is not just a dream or a theory. We have shown that it is possible to build a fairer society and deepen democracy while, at the same time, achieving greater economic development. In the different historic contexts in which it has been called on to exercise leadership, the Concertacion has shown a remarkable ability to define goals that are challenging, but possible.


Today, our challenge is to lay the foundations of a state that is not only democratic but socially just, while, at the same time, ensuring sustained economic growth and fostering innovation and entrepreneurship in a world that is not only – of course – ever more global, but also more dynamic, open and demanding and far more uncertain. In other words, a project for the renewal of the centre-left based on a renovated vision of society, on modern and supportive public policies that seek to advance towards a state at the service of its citizens and their entitlement to certain basic social goods and fundamental rights.


That is why our message and our proposals find an echo in Chile’s citizens and reverberate through society – sometimes without us realizing this is happening. Last May, that is what we saw in the demands of our secondary schoolchildren when they called on us to advance from education for all to the right to a high-quality education for all. And this is a point I would like to underscore: ours is an historic project, one that could bind together any coalition, a project that we can claim as a new progressive alternative because it combines the best of Chile’s progressive traditions with a renewed and modern vision of today’s world.


A new progressive alternative that responds to new realities by offering new answers, but answers that are responsible, carefully thought out and, above all, grounded in the values to which we have always shared. That is why this new alternative inspires confidence. That is why people trust my government and the Concertacion. We will, of course, continue to seek ways in which to do better, combining the different aspects of our policies in a bid to build a better country and a better world. Internationally, there is debate about policy tools, about how to increase the efficiency of public spending and improve the services provided by the state.


Some people are talking about the construction of a new social model while others talk of a new equalitarianism. We will certainly be following that debate but, crucially, we must have a model that is our own, that is Chilean, and that, rather than attempting to ignore the important structural transformations in the economy and in society that have taken place in recent decades – or, worse, simply resigning ourselves to them – seeks to harness them to the good of the country. What is the immediate and concrete response of public policies to this challenge?


Our answer is the creation of a System of Social Protection – because the risks of exclusion and of the perpetuation of inequalities are very real, because innovation and growth will suffer if people’s basic needs are not met, and because insecurity undermines the fabric of society and encourages behaviour that damages a community as a whole. Our mission is to create a system that is more than just the sum of measures to address specific problems. And that calls for gradual, but unswerving implementation anchored in a clear goal. It calls for a definition of priorities and of the rights that should be guaranteed first. This is what my programme of government did and what we are now putting into practice through the transformations I have proposed as the roadmap of my administration.


Defining priorities
 

First, a pension reform that will, among other things, guarantee a Basic Solidarity Pension that will put an end to discrimination, provide proper savings incentives and foster competition but, in its ultimate goal, means that all Chileans will have a right to a more dignified and decent old age. Then, a ‘second-generation’ educational reform. Once democracy was re-established, we took important measures in this field, but we now face new challenges that we are in a position to address precisely because of those earlier measures. This new reform seeks to increase the equity of our educational system but, above all, to raise standards. Certainly, it starts with pre-school and primary education but also seeks to increase opportunities through to higher education and university.


At the same time, because inequality starts at birth, we are implementing an Infancy Protection System to improve the welfare of very young children and their parents. Our housing policy aims to combat the segregation that affects our cities and to provide better quality and more spacious social housing as well as ensuring neighbourhoods that are safer and more attractive. On healthcare, we are consolidating a pioneering reform that seeks to ensure universal access to care. There, we will certainly face new challenges to which we will find new answers. We have active policies to combat extreme poverty that seek to empower the worst-off members of our society and increase their dignity, rather than relying on handouts. And we are also taking effective measures to increase public safety. Another key aim of my government is to foster citizen participation and giving Chileans a greater say.


That is the fruit of our democracy. But these policies are not isolated points on a check list; they are all necessary as they converge in the task of building a better country. In other words, an entire system at the service of our citizens. And these policies take into account the whole country, from north to south, in a bid to create a level playing field, with clear and fair rules, on which each and every Chilean can have greater access to opportunities.


Michelle Bachelet is the President of Chile

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