Chile's Investment Scare Linked to Constitutional Debates, Says Economist

Chile's unemployment rate climbed to 9.4% between April and June, a figure economist David Bravo attributes significantly to a "scare" in investment driven by the nation's prolonged constitutional discussions. Bravo, director of the Center for Longitudinal Studies at the Catholic University (UC), argued that the period of intense debate over the country's foundational law between 2021 and 2023 deterred crucial investment.

Bravo questioned why Chile has lagged behind other Latin American countries in recovering from the employment crisis triggered by the COVID-19 pandemic in 2020 and 2021. He asserted that Chile's slower recovery stems from "internal causes," pointing to the political processes surrounding the constitutional reform as a primary factor. "We scared away investment with all the discussion... the discussion about constitutional reforms was not free," Bravo stated, referencing the shift from one governing model to another.

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Chile scared away investment, the discussion about constitutional reforms was not free.

His analysis suggests a direct correlation between political uncertainty and economic performance, particularly in job creation. The economist's comments highlight the tangible economic consequences of political instability and the lengthy process of constitutional change. Bravo's perspective frames the current economic challenges not as external shocks but as self-inflicted wounds stemming from domestic political decisions and discourse.

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Why did other Latin American countries emerge from the crisis (of employment) of 2020 and 2021 (caused by the pandemic) and we did not? It is due to our own causes, very internal, ranging from the processes we have had.