Grenoble Espinoza 2015

Contention, Debates and Policies about Social Inequality in Chile Today
Contention, Debates and Policies about Social

Inequality in Chile Today
Vicente Espinoza
—
Universidad de Santiago de Chile
COES Center for the Study of Conflict and Cohesion
2015-06-12
Colloque International et Pluridisciplinaire. PACTE. Grenoble. 10-12 juin 2015
Introduction
I Merci beaucoup
I Je suis vraiment désolé que ma maîtrise du français est
insufissante
I Mes excuses pour vous addresser en anglais
The Chilean policy puzzle

How could successful social inclusion yield protest and rejection of
the social policy and the model of development?
Interest for comparison
I Reduction of poverty and improvement in the living conditions

of the population with almost no distribution of income.
I Limits to the operation of a system of social protection based
on "ciblage" (target efficiency, means-tested policies).
I Limits of legitimation based on an equal opportunity discourse
I The end of the road for "the neoliberal model"?
The paradox of social inclusion in Chile

I Gross National Income per-capita about $20.000.-US
I Government expects to reach Portugal’s level of income within
the next five years
I Unemployment rate under 10% for the last 20 years
I Massive inclusion in higher education
I Top Human Development Index of Latin America and the
Caribbean
However, the population rejects the social policy and the
model of development
I outcomes and discourses about social policy
I legitimation crisis?
Human development in Latin America and the Caribbean

Evolution of the Human Development Index
Latin−America & Caribe (1980−−2013)
Chile
Cuba
0.8 Argentina
LAC
0.7
HDI level
0.6
0.5
Very High
0.4
High
Medium
Low
1981 1991 2001 2011
Data series from UNDP−HDI

Human development in Chile

Composition of Chilean HDI 1980−2013
0.8
HDI normalized values
0.6
0.4
HDI Global
0.2
GNI
Life Expectancy
Mean Schooling
Expected Schooling
1981 1991 2001 2011
Data series from UNDP−HDI

Reduction of poverty under different policy models

A closer look to poverty in Chile. . .

Access to consumption and services in Chilean households

1992, 2002 y 2013
Items 1992 Census 2002 Census 2013 (CASEN)

Permanent houses / Households 86,3% 90,4% -.-
Drinking water 82,8% 91,8% 96.0%
Energy 91,1% 96,9% 98,0%
Automatic washing machine 48,2% 78,8% 89,0%
Fridge 54,6% 82,1% 82,2%
Car or truck 20,3% 30,7% 32,7%
Line phone 23,6% 51,5% 35,6%
Mobile phone 1,0% 51,0% 90,0%
Computer - 20,5% 51,2%
Home Internet connection - 10,2% 62,0%
Higher education 9,0% 16,0% 23,7%
Inclusion in the higher educational system

Number of undergraduate students. Chile 1983−2013
Total
College
1000 Technical
800
Thousands of undergraduates
600
400
200
1985 1990 1995 2000 2005 2010
years
Source: SIES. Elaboration by author
Decreasing income inequality in Chile. . .

Distribution of per−capita monetary income
Chilean households 1992, 2003, 2013
0.10
1992
2003
0.08
2013
density (kernel estimation)
0.06
0.04
0.02
0.00
0 72 241 965 2171 6000

Equivalent per−capita income USD december 2009
Fuente: Author elaboration from CASEN survey
Let’s take another look on the income distribution

Income distribution in Chile by percentiles 2013 (in bars), 2003, 1992
6000
5000
per−capita income level (USD)
4000
3000
2000
1000
0 20 40 60 80 100
percentiles of income
Poverty and inequality are not the same
I poverty symbolized inequality in the 1990s

I reducing poverty was allegedly defeating inequality
I pro-poor economic growth
I economic growth correlates positively with the reduction of
poverty
I lowest income moved up, toward the median of the
distribution, while highest income continued to grow
I Redistribution: From social minima to living standards
The working poor
Does labor market participation keep workers away from

poverty?
I No. 20% of the current poor are gainfully employed
I 2.447.354 total poor 2011 (15.1%)
I 497.331 poor with an occupation
I 329.162 poor with an occupation working 35 or more hours a
week
I 73.541 poor with labor contract in a firm larger than 200
employees
I Comercial activity comprises the largest number of poor
workers, amounting for 35% of them.
Discrimination in the labor market

Regresive educational system
Figure: OCDE. Informe Económico sobre Chile. 2010

Existential inequality
I An experience of abuse or powerlessness that expresses the

asymmetry of power in social life,
I money is one among other elements.
I "disrespect", "outrage" (pasados a llevar), "injustice"
I feelings of humilliation and shame
I Some instances of abuse
I uncareful treatment in public services,
I concealing the addresses to dodge discrimination,
I unfairness in personal selection,
I bosses shouting at their personnel,
I people awaiting long hours to be received,
I responsibles who never show up. . .
From perfect domination to criticism

Agreement on income differences (percentages). ISSP 2000
● PHILIPPINES
50
● CHILE
Income differences necessary for development
BRAZIL ●
40
● CHILE.2009
●
30
● ●
● ● ●●
●
●
●
20
●
● ●
● ● ● ●
●
● ● ●
● FRANCE
●
● ●
●
10
65 70 75 80 85 90 95
Income differences too large

Awareness of inequality
Table: Is it fair or unfair, correct or incorrect that people with higher

income can pay for better education and health services than people with
lower income? (ISSP)
Year ABC1 C2 C3 D E Total
2000 61.0% 51.3% 36.4% 35.5% 34.1% 35%
2009 Health 27.0% 23.6% 22.8% 19.9% 17.1% 20%
2009 Education 24.6% 22.7% 21.3% 19.7% 19.2% 20%
Students Mobilization 2011–2015. . .

Inequality debates
I Opportunities
I Shocking difference in the quality of schools
I Access to college was not meeting promises of upward social
mobility
I Positions (outcome)
I Social protection
I Unions
Social policy and political legitimacy
Chileans were abandoning the public arena for a long time now
I "exit" instead of "voice"
I example: registration as voter
Public policy fuels disaffection

I voluntary voting:
I result: since it was enacted in 2012 the highest turn out has
been 52%
I even the proponents accept it was an error
Contradictory demands
I Is Chilean society at the end of a cycle of neoliberal

hegemony?
I I want to pay for my children education
I I don’t want my children in socially mixed schools
I I want schools that select their students
Inequality and elites

I In Chile the population tried to keep the economic elite was at
bay by balancing its power with a state run by allies.
I Recent episodes of political corruption affecting the whole
political spectrum deepens the legitimacy crisis of political
institutions.
I irregular funding of political campaigns,
I taking advantage of their authority in business deals,
I conflicts of interest.
I Whether legal or illegal they all have in common the collusion
with the economic powers.
I Political authorities were found to receive funds from the very
people they were supposed to restrain.
I For the plain citizen, this kind of deals is a betrayal to their
mandate.

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Contention, Debates and Policies about Social Inequality in Chile Today

Contention, Debates and Policies about Social

The Chilean policy puzzle

Interest for comparison

I Reduction of poverty and improvement in the living conditions

The paradox of social inclusion in Chile

Human development in Latin America and the Caribbean

1981 1991 2001 2011

Data series from UNDP−HDI

Human development in Chile

1981 1991 2001 2011

Data series from UNDP−HDI

Reduction of poverty under different policy models

A closer look to poverty in Chile. . .

Access to consumption and services in Chilean households

Items 1992 Census 2002 Census 2013 (CASEN)

Inclusion in the higher educational system

1985 1990 1995 2000 2005 2010

Decreasing income inequality in Chile. . .

0 72 241 965 2171 6000

Let’s take another look on the income distribution

Poverty and inequality are not the same

I poverty symbolized inequality in the 1990s

The working poor

Does labor market participation keep workers away from

Discrimination in the labor market

Regresive educational system

Figure: OCDE. Informe Económico sobre Chile. 2010

I An experience of abuse or powerlessness that expresses the

From perfect domination to criticism

Income differences too large

Table: Is it fair or unfair, correct or incorrect that people with higher

Students Mobilization 2011–2015. . .

Social policy and political legitimacy

Public policy fuels disaffection

I Is Chilean society at the end of a cycle of neoliberal

Inequality and elites

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