What do the candidates for president of Chile propose to convince Chilean voters that they are the best option?

From implementing a welfare state to maintaining the current neoliberal economic system imposed in Chile 31 years ago and subject to deep criticism from citizens are the main economic proposals of the candidates that are measured this Sunday in the presidential elections of Chile.

Chile must decide which economic path to follow in the process of recovering from the crisis caused by the coronavirus pandemic, which will lead the country to grow in the order of 11% in 2021, but with inflation that doubles the official projection of the Central Bank (6%) and a public debt at levels of 33.1%, supported by the huge state aid given to face the health crisis.

The scenario for whoever wins the presidency is not projected anything auspicious. Behind the “consumption party”This year, also underpinned by the three extraordinary withdrawals of pension funds approved so far by Congress, it is estimated that in 2022 the Chilean GDP will grow only between 1.5% and 2.5%.

Welfare state

The 35-year-old young candidate Gabriel Boric, favored by the leftist alliance Approve Dignity (Broad Front and Communist Party) proposes a change in the model based on the welfare state of European countries, considering that the current Chilean model “it is absolutely stagnant ”.

“A welfare state so that everyone has the same rights, no matter how much money they have in their wallet“, he pointed Boric in an interview with AFP, and pointed to “guarantee universal social rights”.

Among them, the creation of a model of “social security other than a business”, To replace the current individual funded pension system per worker, a pioneer in the world and criticized by a large part of society for not providing decent pensions. In his electoral program, Boric proposes “insure”A minimum pension of 250,000 pesos, equivalent to about US $ 308.

It also raises an increase in the monthly contribution, from the current 10% of salary to 18%, “gradually”And with a large part of the charge to the employer.

Public-private liberalism

The official candidate Sebastian Sichel, 44, projects a free market system with a strong participation of small and medium-sized companies, combined with a strengthened State, quite absent today in the current ultra-liberal model that considers a subsidiary State that gives priority to the private sector in any sphere of activity. investment.

“That we do not have a complex with the State as the old right had, but that the value of entrepreneurship, of innovation is also understood, as (the former German Chancellor) Konrad Adenauer said: ‘As much market as possible, as much State as necessary’“Said the candidate in an interview with AFP.

For the questioned pension system, Sichel It considers a similar model but one that breaks the current oligopoly of Pension Fund Administrators. In the last presidential debate, he mentioned a system similar to Australia’s for maximizing and disseminating options.

“We are thinking that workers can choose if they want their funds to be managed by a public or private institution, for profit or not for profit.Sichel explained.

State capitalism

The candidate of the Christian Democrats, the 51-year-old senator Yasna Provoste, offers Chile a model of capitalism that coexists with the creation of more public companies, according to its program.

A map “transient”To face the economic situation generated by the pandemic and to counteract part of the impact caused on the economy by the social protests that broke out in the country since October 2019.

“Allocate up to US $ 6,000 million annually for four years, which it plans to finance through a recovery in economic growth and fiscal debt.”Explains the Provoste program, the only woman among seven candidates.

Ultraliberalismo de Friedman

The far-right candidate José Antonio Kast, 55, of the Republican Party and another of the favorites to go to the second round, is committed to maintaining the ultra-liberal model imposed during the dictatorship of Augusto Pinochet (1973-1990) as a laboratory for this doctrine economic emanated from the ideas of Milton Friedman at the American University of Chicago.

“A society that prioritizes equality over freedom will get neither“, said closet during a press conference with foreign correspondents, mentioning part of the idea of ​​the American economist.

Its program aims to give the market more freedom of action and reduce the participation of the State in the economy as much as possible. Also reduce the Value Added Tax (VAT.) From 19% to 17%, and increase the job offer for people over 60 years of age and “postpone your retirement”.

“The best way to improve pensions is to postpone the retirement age”, He indicates in point 206 of his program.