A Constitutional Reckoning

Chile Decides Its Future

In September 2022, Chile will vote in a referendum whether to adopt a new constitution. Although macroeconomic prosperity has accompanied the current constitution, the document has long been considered illegitimate due to its installation under the military dictatorship of Augusto Pinochet in 1980. In addition, only a few have reaped the fruits of Chile’s competitive economy, and following numerous demonstrations and riots protesting inequality, 79% of Chileans voted to draft a new constitution in October 2020. In the meantime, numerous social issues, including a water crisis, plague the country while the solution is hotly contested.

The Proposed Constitution

The new constitution would radically transform the government’s structure and purpose. Notably, Chile would decrease the executive power of the president and abolish its Senate, leaving Congress as a single-chamber legislature. In addition, it seeks to create more inclusivity by mandating gender parity for government positions, increasing community participation, and recognising the rights of indigenous groups.

Moreover, Chile would depart from its neoliberal doctrine of minimal regulation and would reverse the privatisation of schools, healthcare and the pension system. The new constitution prioritises the environment over unsustainable economic growth by including bans on mining in glaciers and ensuring citizens’ rights to water.

Although proponents consider the new text a huge advancement, it has also been extensively challenged. Critics say the elimination of the Senate is a short-sighted political gambit to boost the left-leaning Congress. At 388 articles, it would be one of the longest constitutions in the world, which has led to critique of a “maximalist” approach through including numerous partisan proposals. In addition, opponents consider the changes as fiscally irresponsible, while the environmental stipulations add red tape that undermine the economy. 

Water as a National Security Issue

Chile’s controversial water rights system illustrates the conflict between its “have” and “have-nots” of the current system.  

The Pinochet constitution and the 1981 Water Code established protections for the private ownership of water, demarcating it as an “economic good”. The regime aimed to increase efficiency and capital investments, which resulted in agricultural companies and private entities owning the majority of water rights. Subsequently, Chile has become one of the world’s largest agricultural exporters, reaching USD 19.1 billion in 2018.

However, the system has plunged the country into a decade long water crisis during which numerous lakes and rivers have disappeared. Due to the lack of central authority, audits of management and water supply levels have not been carried out, worsening the crisis as corporate rightsholders allegedly siphon off reserves. In rural areas, small farmers have lost their resources to large-scale farms with water intensive crops like avocados. Urban areas have faced water shortages, with the capital Santiago being forced to implement a water rationing plan in April 2022.

Activist groups are campaigning for the rights of local people and small farmers to have equitable access to water. Simultaneously, the private sector is lobbying to maintain the status quo. Moreover, a number of government officials have ties to companies with water rights, compounding the issue with a conflict of interest.

Political Uncertainty

The detrimental effect of the current water system on its citizens was one of the key instigators of the recent popular unrest, as a result of which the draft constitution describes water as a “human right”. The struggles that plague the water system extend to the debate over reconfiguring the country’s other systems and industries, including mining.

Fears of a return to the social unrest that beset his predecessor continue to linger for the recently elected left-wing government of President Gabriel Boric. He has already announced that if the new constitution is not ratified, a new version will be drafted from scratch. While Chile has long enjoyed one of the strongest economies in Latin America, decreased investor confidence will likely remain a significant issue if political and economic uncertainty continue to plague the country.