Following a violent coup against democratically elected Marxist President Salvador Allende in
1973, Chile experienced 17 years of military rule under General Augusto Pinochet before
reestablishing its elected civilian democracy in 1990. A center-left coalition of parties known as
the Concertacin has governed Chile for the nearly two decades since the end of the dictatorship.
The coalition has enacted a number of constitutional changes to strengthen civilian control of the
military and to undertake the prosecution of those alleged to be responsible for human rights
violations during the Pinochet-era. Chile has made significant economic progress under the
Concertacin?s free market economic policies and moderate social programs, which have
produced notable economic growth and considerable reductions in poverty.
Current President Michele Bachelet has faced a number of challenges since her 2006 election.
Widespread demonstrations over education, increased militancy by indigenous groups, and
opposition control of the legislature have hindered President Bachelet?s ability to govern. The
international financial crisis is President Bachelet?s latest challenge, though the government?s
timely decision to save recent fiscal surpluses will allow Chile to pursue counter-cyclical policies
and minimize the effects of the economic downturn.
Chile has enjoyed close relations with the United States since its transition back to democracy.
Both countries have emphasized similar priorities in the region, designed to strengthen
democracy, improve human rights, and advance free trade. Chile and the United States have
maintained strong commercial ties, which have become more extensive since the bilateral free
trade agreement between them entered into force in 2004. U.S. officials have also expressed
appreciation for Chile?s leadership and moderating influence in a region increasingly
characterized by political unrest and anti-American populism.
This report?which will be updated as events warrant?provides a brief historical background of
Chile, summarizes recent political and economic developments, and addresses issues in U.S.-
Chilean relations.