Category: Chile

Earthquake in Chile

Translated by Caroline Letourneau.

I chose two very different articles on the same topic; the Chilean earthquake of February 27, 2010. My principal reasons are because they discuss a recent event, that affected the lives of millions people, the stability of Chile, have foster the solidarity action in the Southern Cone and generated global compassion. This event and its consequences will mark forever Chileans and the history of their country. Moreover, as living in Vancouver, British Columbia where a convergence of two tectonic plates causes the earthquakes felt in the area, we are us too exposed to the eventuality of a great earthquake. Perhaps we can learn some lessons from the Chilean experience.

Source texts: “Terremoto en Chile: tierra, agua, aire y fuego” and “Repercusiones del terremoto en Chile”.

Chile’s Earthquake: Land, Water, Air, and Fire
Cristóbal Orrego, March 1st 2010

I am not going to sketch out a cold analysis, when I have my heart flooded with sorrow.

Chile is a country of wild land, trembling, and rebellious, which bears in its bowels the power of fire. Since Pedro de Valdivia founded the capital city of Santiago in 1941, we have always lived between war trumpets and cries of protests, between fire and floods, and especially between earthquakes . We were not surprised by this disaster of February 27, 2010 for a disaster never surprises a Chilean . Ask any Chilean, anywhere in the world, no one would have denied that we were waiting for it. Between the 1960 earthquake and the 1985 one, half a century; between the 1985earthquake and the 2010 one, half a century. Everyone was waiting for it. There are already a thousand dead. Near me, because now everything is close, there are dead and injured; mutilated, undernourished, and dehydrated ones. The balm of international aid arrives slowly , for it arrived rapidly but we were stunned. Also, Opus Dei bishop, Don Javier Echevarria, before noon, was accompanying his faithful with a very heartfelt letter of his own hand, encouraging everyone to pray, to sustain hope, and to help everywhere.

The authorities lost hours-more than one day-wondering whether or not to bring the military into the streets, while in some cities looting broke loose. Yes, it is understandable, they were scared partly because by those terrible memories of a couple decades old: But now, now, minute by minute modest and defenceless villagers demanded armed protection! Even last night, someone from a southern city was telling that a band of twenty years olds raided homes after curfew. It is when the earth trembles, that the insides of souls are revealed. Yesterday I saw modest people sharing their water, their food, their energy. Yesterday I saw people crying, and I saw people comforting. Most Chileans are like that: they have fire in the heart, like the fire that from below is bursting our land.

But a few do not have fire, but dirt in the soul. It took too long before the authority started to suppress the offenders with the necessary strength! It is a shame to take advantage of the misery of others, to be oblivious to pain and sadness.

The fury of the sea stroke strong, flattened houses and cars, dragged men, women and children. I am thinking of a young woman, inconsolable, unable to retain her four and two year’s old children. And she too, later, was dragged by the sea which denied taking her life. The sea denied killing anyone not wanting to live. This young mother will have to live, sorely, flooded by sorrow, with the deep scar that the infinite cruelty of the sea imprinted on her life. The sea did not despise taking the life her young babies. Now her only chance to keep on living with this pain is if she bares an unshakable faith in eternal life. Rest in peace, may your spirit be present in the family that remains down here mourning.

Friends, I apologize for failing to consider things as should have done an intellectual. Some will ask-So what? – What are worth brainy analysis before the immensity of land, water, air and fire, if life escapes us? Yes, I apologize . Because from the depths of my soul I can only say that, if there is no eternal life, if the telluric forces have the last word, if we are to live without hope, then the truth is that it does not matter to die in a great earthquake or to live slowly for things that now can seems so insignificant. Because if the last word is of this imperturbably trembling land; the fire of solidarity that arises these days from and the Chilean people is surreal And if the water that gives life, solely kills in the end, therefore these words, and theirs, and whichever, are air and dust, air and nothing.

Earthquake Consequences in Chile
Francisco Pineda Zamorano, March 1st, 2010

Mindful of the earthquake victims, their families, the thousands of injured, and the two millions homeless, I would like to focus this note on the implications that will have for Chile the terrible earthquake of last Friday. Chile is one of the most prosperous countries of the continent with an average annual GDP growth of 4.1% in the last 15 years. It is true that there are serious problems of redistribution of wealth in the country . There still remain large areas of poverty. However , it is also true that investments in infrastructure, communication, health and education have benefited all Chileans. Chile’s economy is strong and its growing trend was indicating that it could have been considered a developed country in 2020. Its success depends primarily on the diversity and competitiveness of its export oriented economy.

The consequences of the earthquake on the Chilean economic and social machine of progress send the country back (overnight) several positions behind in socio-economic growth index. This also postpones the mandatory investments planned for the country in the coming years . Some experts suggest that at least 10 years will be necessary to return to the level of economic development , of January 2010 . In other words, nature plays nasty tricks and spoils decades of planning pushing the country backward once again.

Chileans are an entrepreneurial people, capable, lucid, and creative. They will find ways to keep on going forward . I have no doubt about it. However, they could use a little help from the international community. It is urgent to renegotiate the Chilean debt to obtain its partial if not total remission. It is urgent to reconsider the geographical priority of Spanish cooperation and return to include Chile as one of the outmost important country, at least for the next 10 years. It is urgent that NGO’s resume their work in Chile especially concentrating their efforts with those who always remain outside institutional intervention.

The country is not yet completely reduced to rubble, however one can almost be certain that the number of dead and injured reported will increase. We must show our solidarity to this beloved country in order that it recovers quickly.

analysis Chile news politics

Earthquake Unveils Hidden Chile

Post author By Jon
Post date May 1, 2010
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Translated by Karen Chang

The ST is from Jorge Ramos’ recent article “Dos Chiles Tras el Sismo,” first published in March 2010, after the Chilean earthquake. The article is an opinion article that examines the underlying social problems such as inequality and poverty in Chile. The ST belongs to a hybrid genre within the written discourse. The ST contains factual reference of the earthquake, which situates the text in the descriptive genre. However, the ST also has a persuasive function that seeks to express the author’s opinion, and his interpretation on the situation.

Source text: “Dos Chiles tras el sismo”

Earthquake Unveils Hidden Chile
Jorge Ramos
March 8, 2010

It’s not about the 8.8 magnitude earthquake that has split Chile into two. What happened is that the earthquake has uncovered the reality of two Chiles. The first Chile is the one marketed abroad : modern, avant-garde, industrious , a country of free trade agreements, an almost first world nation. The other one is the Chile that wasn’t invite to the party, the one who didn’t board the development bus , the home for those ignored by the residents of the Mint Palace (Chile’s Presidential Palace) and the intact skyscrapers of capital Santiago.

This is the ‘primitive Chile’ , according to diplomat and writer Jorge Edwards. It has always been there, he commented, but not many noticed it, until the earthquake shook off the veil . The best evidence of the existence of two Chiles emerged during the riots in the city of Concepción a few hours after the earthquake. The violence caught everyone by surprise . Thousands of Chileans from the ignored Chile felt disconnected and completely isolated from the rest of the country and the central government. They went to the streets to sack shops and supermarkets. Some of them were after food for their families . Others took advantage of the chaos and stole Plasma TVs and refrigerators in a city that didn’t even have electricity. No wonder many Chileans were horrified at the thefts and looting. But, like the filmmaker Jorge Ulla commented, poverty cannot be hidden .

In Chile, as the rest of Latin America, the richest ten percent of the population earns more than half of the nation’s income. The poor continue to be terribly poor, and can barely survive. These poor people were the ones who complained of the absence of aid. They were the ones who were attacked by the army when the president Michelle Bachelet finally decided to send soldiers to control the disturbances a few days later. I can understand her hesitation in making that decision. The army has not attacked the people ever since the cruel era of General Augusto Pinochet . Even Bachelet’s own father died during the dictatorship. It was not an easy decision, but she hesitated too long. That was her first mistake.

Chilean’s fear towards the army seems hereditary. It’s as though it has been passed down from generation to generation through their genes. I have never seen a Latin American country respect their army so much. “Not even a bird flies without authorization” a military told me. He wasn’t joking. The journalists had to submit. We could only enter Concepción with a safe-conduct permit from the military. The curfew only allowed people go out from their houses for six hours a day to look for water and food. However, sometimes this was an impossible task. It was incredible to see that almost every business and office closed for days in the second biggest city of the country.

The second mistake was Bachelet’s government not warning the inhabitants of the towns on the southern coast the risk of a tsunami after Saturday’s earthquake. The army had already admitted their mistake. But it was tragic that many lives were lost because of bureaucratic inefficiency. The Third mistake was that Chiles’ reputation of self- reliance crumbled a few days after the earthquake. A government official stated that offers of international aid would be studied. But he mentioned nothing about accepting them. The vague and inept response stopped international aid when lives could be saved, and the populations in the most affected areas could receive help.

President Bachelet did not say anything about the minister’s statement and it took her six days to clarify that Chile never turned down international aid. I suppose that the sight of Peruvian President Alan Garcia offering help — in spite of the two countries’ long-standing maritime disputes and historical tensions – was too difficult for Chile’s politicians to swallow . But these are extraordinary moments.

The Fourth mistake was that the aid did not go to the people most affected by the earthquake. I talked to many people in the city who lost their homes, who were living on the streets, and hadn’t received a single piece of bread . This made the president’s earlier statement that there had been no interruption in food and gasoline provisions seem utterly absurd . If Bachelet walked a few blocks without bodyguards, she would realize that this was not true.

The fifth mistake was Bachelet’s paralysis in the Mint Palace . The earthquake overwhelmed Bachelet. The Chileans wanted her to be in control of the situation. But, she delayed to visit the worst hit towns and cities. Mind you , she was a good president in normal times but not during times of crisis.

Now, it’s the new president Sebastian Piñera’s turn, to fulfill the expectations of the people. His mission, he said, is not about rebuilding the country, but to rebuild it better. And it’s true. Chile’s fundamental problems are not the cracks caused by the earthquake or the cities destroyed by the Tsunami. The fundamental problem is that some people kept pace with modernity, but did not realize that millions of their countrymen were left behind, without hope, and without a way to catch up. With the collision of tectonic plates, the Chilean society may foresee what is to come. If the tension caused by inequality is not relieved , then the next problem might be greater. Piñera’s challenge will be to unite two Chiles into one. If he doesn’t, the country runs the risk of experiencing a shock even greater than the Feb. 27 quake.

business Chile news politics

Employers call on the Chilean Government

Post author By Jon
Post date May 1, 2010
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Translated by Kyla Burke-Lazarus

The article is taken from El Mercurio, a newspaper from Santiago, Chile. The article is found in the “Economía y negocios” or the “Business and Economy” section of the paper. The article addresses the impact the earthquake, that shook Chile on February 27th, 2010, had on the Chilean economy. The article continues to weigh proposed plans to fund the reconstruction, and stresses the need for reconstruction. The ST is informative and persuasive, the text tries to convince the reader that tax increase are not necessarily the most beneficial way to raise the required money.

Source text: “Empresarios piden al Gobierno entregar plan de financiamiento y acelerar reconstrucción”

Employers call on the Chilean Government to Deliver a Financial Plan to Accelerate Reconstruction
Lina Castaneda and Victoria Reyes

To respond to the recent earthquake the Chilean government must now raise U.S.$9.3 billion. Whatever the plan to finance this large sum may be, it will have drastic implications for the economy. The union managers of banking, construction, mining, agriculture, and trade agreed that the final arrangements adopted should not rely n one source of funding but rather be as balanced as possible.

Representatives of various economic sectors gathered yesterday at the seminar, “Economic Projections: Solutions for Sectors,” organized by the Santiago Chamber of Commerce. It was agreed that the government should devise a financial plan that will accelerate reconstruction.
A major concern for the Agriculture Sector is how the funding plans will affect the strength of the dollar. “Unfortunately the days pass, and we continue to wait for a proposed plan. The uncertainty doesn’t help,” says Ema Budinic, manager of research at the National Agriculture Society (SNA).

The Treasury needs to finance about U.S.$ 2,500 million for the next four years. The various potential funding sources will have different impacts on relative prices, explains Alejandro Alarcon, the general manager for the Association of Banks. For example, suppose everything was financed with fiscal deficit, as a result the exchange rate would fall and interest rates would rise.

In the same vein, Javier Hurtado, head of research at the Chilean Chamber of Construction, explains that “if funds are raised by borrowing a lot of dollars internationally, the exchange rate would be negatively affected; if it is mostly local borrowing it will impact the interest rate, and if comes from tax increases, it will affect productivity. ”

Projections by sector:

Banking It’s projected that loans will increase by 10 % this year. For March, April and May, a negative Monthly Index of Chilean Economic Activity (IMACEC) is projected. This figure, which is measured by the Central Bank, aims to estimate the progress of the Chilean net production of goods and services during the period of one month and is an approximation of the Gross Domestic Product (GDP) in the short term. GDP for the first quarter is expected to be close to zero. An inflation of 3.5% has been calculated, with an investment growth of 15%, and a GDP of 4.5% for the year.

Mining Mining will grow by 6% this year, producing five million eight hundred thousand tons of copper and exporting U.S. $ 43 billion worth of materials. The price of copper is projected to be around U.S. $ 3.2 and $ 3.3 per pound.

Agriculture The current realized loss in this field is estimated at U.S. $ 760 million and future losses are expected to increase by 5%. The wine sector will fall between 8 and 10% and crops between 5 and 8%, due to smaller harvests and climate problems.

Industry This sector’s activity should grow between 1.5% and 2.5% over the course of the year. March will show a sharp drop in industrial production and will be the month hardest hit by the earthquake. Exports in March fell from U.S. $ 1.5 billion to 1.0 billion dollars.

Trade It’s estimated that the trade sector’s GDP will be 6%; investments will grow by 15%; and household expenditure by 4%. Sales will increase by 5% and employment by 2.5%. An increase in late fees in the earthquake-affected areas is foreseen. In any event, the South African World Cup should be beneficial to this sector.

Construction Due to the earthquake, housing costs are calculated to increase to U.S. $ 3,943 million and lost capital from stocks is anticipated to reach U.S. $ 20 billion. The sector will grow by 7.2%, even though industries will be affected by a lower income. Investments in reconstructions will enhance the infrastructure of the construction sector, this trend will continue to grow.

Tax Hikes: Not a Good Time

Not all trade unions firmly reject a possible increase in corporate taxes, but the consensus is that it is not a good time to do so.

In that vein, Alvaro Merino, head of research at the National Mining Society (Sonami), affirms that any tax increase carries with it higher costs to business.

As a general rule, higher taxes on production affect investment decisions. At a time when investment companies are ready to support reconstruction, the manager of Research of the Santiago Chamber of Commerce (CCS), George Lever, believes it would be a good idea to explore ways to help channel this support, instead of resorting to the traditional tax hikes.

“We must be very careful in making temporary tax decisions in times of crisis, because historically the increases became permanent and only tax reductions are able to be reversed,” says Lever. He added that there are divisions within large companies that have been badly affected by the disaster and are unlikely to survive even a minimal tax hike.

He sees the initiative to raise donations for disaster relief as a good way to channel the goodwill that exists in businesses.

The National Agriculture Society (SNA) would prefer if the plan to fund reconstruction did not have a component to raise taxes at all. However, because this unrealistic, they hope the increase will be as small as possible, explains the manager of Studies, Ema Budinich.

This, he says, is because tax hikes do not always result in a proportional increase in revenues. This is because there are different loop holes, within the existing legal standards, that companies use to pay less taxes.

Budinich also stresses the need to improve the disaster relief innitiative’s ability to distribute the revenues in a decentralized way, “This is a concept that aims to achieve a democratic system where taxpayers express their preference for how theur tax money is spent.”

However, Javier Hurtado, of the Chilean Chamber of Construction (CCHC), warns that the U.S. $155 million expected to be collected from the initiative does not compare with U.S. $ 9,300 million the Treasury needs to raise.