Presidential election in Chile: two economic models face to face

Gabriel Boric and José Antonio Kast, the two candidates running for the second round of the presidential election in Chile, during a televised debate in Santiago, December 13, 2021. AP - Elvis Gonzalez

Text by: Pauline Gleize Follow

2 min

Chileans are called to the polls this Sunday, December 19 for the second round of the presidential election.

Still in the running, far-right lawyer José Antonio Kast and the figure of the 2011 student protests for free education, Gabriel Boric.

Two finalists with opposing economic programs.

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Neoliberal model against the welfare state, this is broadly the economic stake of this election.

In defense of the free market: José Antonio Kast.

The lawyer proposes in his program to simplify environmental standards and " 

 "

He also intends to lower corporate taxes to, he assures, attract investment and promote growth.

At the same time, the 50-year-old plans to reduce public spending.

Quite the opposite of Gabriel Boric, then.

Whoever wants to embody a radical transformation of Chile intends to increase the tax on fuel, the income tax of the richest and establish a wealth tax for " 

 ".

These additional tax revenues, which he promises to be progressive, would go among other things to the health system and pensions.

Pensions are on the long list of files between the two candidates in the election on December 19.

A burning issue in Chile.

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Private pension funds or basic universal pensions 

José Antonio Kast was the only one of the seven candidates in the first round to want to keep the private funded pension scheme, a system that was much criticized during the 2019 challenge. 

Very criticized moreover by Gabriel Boric, who wants to put an end to private pension funds.

The 35-year-old MP plans, in the long term, a system based on a basic universal pension, and a contributory share managed by a public body.

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The obstacle of a Parliament without a real majority

Either way, the winner will not have free rein.

The future president will have to deal with a parliament without a real majority.

The left and right each have 25 senators in the upper house

In the Assembly, the left has a very slight advantage with 79 deputies against 76 on the right.

This balance and the rallying race for the second round led the two candidates, who obtained 27.9% for José Antonio Kast and 25.8% for Gabriel Boric on November 21, to temper their speeches.

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