Balance Sheet: First Year in Government

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Balance Sheet, First Year in Government

Balance Sheet First Year in Government

Research Division Ministry Secretary General of the Presidency March 2011

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Balance Sheet, First Year in Government

A. Introduction. On March 11, 2010 President Sebastián Piñera assumed leadership of the country amid the extraordinary challenges presented by a devastating natural disaster. The President was supported by a political coalition, the Coalition for Change (Coalición por el Cambio), which for the first time was responsible for running the government and lacked a majority in both of the chambers of our national Congress. In addition to addressing the emergency situation caused by the earthquake and the subsequent reconstruction, during its first year, the Government has made significant progress in implementing the program chosen by the people of Chile. Significant results can already be seen in different areas of the government’s platform, which is designed to achieve development during this decade. Through both persuasion and negotiation, the Executive succeeded in getting 48 proposals passed into law during this first year. This can be compared to President Bachelet, whose coalition held a majority in both legislative chambers, and who achieved approval of just 33 laws in the same period, while President Lagos achieved 19 and Eduardo Frei 32. In addition, the number of bills approved totals 47% of all those presented to the legislature, the highest indicator of first‐year legislative effectiveness of the last five governments. Among these laws was the well‐balanced Reconstruction Financing Law which, in addition to ensuring sufficient resources for that huge task, sought to protect the country’s macroeconomic health and stimulate the economy through a permanent reduction in the stamp tax and exemption from first‐category tax for those small and medium‐sized enterprises (SMEs) which reinvest their profits. Also, to incentivize business start‐ups, the Government approved a legislative proposal which reduces by half the procedures and costs required to start a business. It is also worth noting, in relation to public safety, the approval of a law that will place 10,000 new uniformed police (Carabineros) on Chile’s streets and which creates the Ministry of the Interior and Public Safety. In the area of education, the government passed an essential reform to improve the quality of education in our schools. Towards the end of its first year, the Government is promoting other long‐awaited measures, such as the improvement in the tax credit for R&D, which is vital to convert us into a more innovative society; the extension of maternity leave to six months, the gradual and focused elimination of the 7% health contributions paid by pensioners and the Ethical Family Income (Ingreso Ético 2


Balance Sheet, First Year in Government Familiar), designed to eliminate extreme poverty through assistance and incentives for personal development, the first stage of which will begin to be implemented in April. These initiatives reflect a modern center‐right political coalition, quite unlike the traditional stereotypes of that part of the political spectrum. Other reforms adopted during this first year also contribute to this. Examples include the reduction in the areas of competence of military justice, the setting of maximum emissions levels for thermoelectric plants or the implementation of the Bono Auge (priority bonus, which allows people who have priority illnesses or conditions to seek treatment from private healthcare providers if the public system does not attend to them within a certain period of time). There are also other proposals being discussed in Congress, such as automatic voter registration and voluntary voting, which would allow four million Chileans who are currently unregistered to exercise their political rights without being required to complete any type of prior procedure; a proposal which would give married women greater power to manage their own assets and assets held in community property regimes with their husbands; a proposal to grant constitutional recognition to our indigenous peoples; and a proposal to substantially reduce the procedures and time periods required to start a business. Therefore, we are moving ahead with structural changes and reforms, which seek to transform our society into one of opportunities, where there are an ever‐greater number of options for personal fulfillment through hard work and talent, and everyone has the support they need to take the risks inherent in these options. Also notable is the significant international presence of this Government during its first year, with excellent relationships with our neighbors as well as the major global powers, and the solid and consistent defense of principles such as democracy, human rights, peace and respect for international law. Following is an assessment of what has been achieved in this first year of the Government.

B. The situation as of March 11, 2010. 1. Growth Growth below the global average: Although the economic situation around the world has improved over the last 20 years, Chile’s economy, after good performance during the 1990s, began stagnating. Although the previous administration faced the greatest global crisis since the Great Depression during its tenure, it is also true that from 2006 to 2009, the global economy grew by 3.2% while Chile’s only grew at a rate 2.8%. 3


Balance Sheet, First Year in Government Figure 1: Global Growth and Chile’s Growth

Source: Historical data from the IMF World Economic Outlook and the Chilean Central Bank's Monetary Policy Report, December 2010 (global growth adjusted for PPP)

2. Employment High Unemployment: With the decline in economic growth starting with the Asian crisis, the annual unemployment rate never fell below 7%. In March 2010, the unemployment rate was 9%, equivalent to 700,000 people out of work. 3. Public Safety High Victimization Level: In 2009, according to the National Urban Citizen Safety Survey, 2,203,629 crimes took place in people's homes. This equates to 252 crimes every hour or one crime every 15 seconds. High Fear Level: According to data from NGO Fundación Paz Ciudadana, the percentage of the population who felt insecure increased by 5.4 percentage points between 2002 and 2009, rising from 12.4% to 17.8% in that period. Overcrowded Prison System: Where, in 1990 there were 35% more prisoners than there were spaces for them, by 2010, this figure had grown to 70%. In other words, 170 prisoners are now living in spaces designed for 100 people.

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Balance Sheet, First Year in Government 4. Education Poor performance: Spending on education (in 2009 pesos) was increased annually by 5.7% in 2006, 9.1% in 2007, 12.9% in 2008 and 11.2% in 2009. Meanwhile, and contrary to expectations, performance in the education quality measurement system test known as SIMCE for 4th grade students has seen very limited improvement over the last four years. This implies that 1 of every 3 (31%) students is unable to demonstrate the minimum reading ability to develop and integrate productively into society. Inequality in education: In 2009, students from the highest income level obtained, on average, close to 150 points more in the test than students from families with the lowest income level. This means that students from families with high incomes receive mathematics instruction similar to that of a child in the United States, while students from low‐income families receive an education similar to that of a child in Albania. 5. Healthcare Management deficit: Healthcare spending rose to US$6.165 billion in 20091; since 1990, it has increased five‐fold, and has grown as a percentage of both central government spending and in relation to Chile’s GDP. However, public opinion surveys show that the corresponding improvements in health indicators are not apparent to the people of Chile, as they have consistently criticized the quality of healthcare services. Long waiting lists in the AUGE system (the system for treating priority health conditions): In March 2010, the public health system showed 380,000 Chileans on the AUGE waiting lists, despite the promise of rapid service.

6. Poverty Increase in poverty: From 2006 to 2009, after a sustained decline, the poverty rate in Chile increased from 13.7% to 15.1%, which means that in 2009 there were 350,000 more poor people than in 2006 (growth of 16%). Not only poorer, but living in worse conditions: The income2 of people living in extreme poverty in 2006 was –on average‐ Ch$8,775 below the Poverty Line; by 2009 this difference had risen to Ch$13,162.

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Ministry of Health (MINSAL) figures in 2010 pesos: Ch$3.446381 billion. Average dollar:peso exchange rate in 2009: Ch$559. 2 Figures in 2009 pesos.

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Balance Sheet, First Year in Government 7. Democracy Low electoral participation: While in 1988, 90% of Chileans of voting age were registered to vote, today this figure is only 69%. Low participation among young people: Today there are 3 million Chileans between the ages of 18 and 29, of whom only 700,000 are registered to vote. Discrediting of politics: Just 15%3 of the population says it has “A Lot Of or Some Trust” in political parties.

8. Earthquake Population affected: 12,800,000 people, or 75% of the Chilean population. Cities affected: 5 cities with over 100,000 inhabitants, 45 cities with a population of more than 5,000 and over 900 towns and rural and coastal communities. Deaths and missing people: 524 dead and 31 missing. Damage: The Treasury Ministry has estimated that the total losses amounted to US$30 billion, equal to 18% of GDP. Housing: 220,000 homes were seriously damaged or destroyed. Education: 4,538 schools were damaged (1 in every 3 schools in the affected area), which prevented 1,250,000 students from starting the school year on March 11. Healthcare: 17 hospitals were rendered unusable, a further 22 suffered medium to extensive damage and another 34 had some level of minor damage (75% of Chile’s hospital network was affected). Of the 19,000 hospital beds in the affected areas, 4,249 were destroyed. Public Infrastructure: The damage to public infrastructure included 1,554 kilometers of damaged roads, 212 destroyed or damaged bridges, 9 airports and aerodromes damaged, 28 fishing wharfs completely ruined, 748 rural potable water systems damaged, 41 reservoirs, rainwater collectors and irrigation canals with problems, 53 ports with some level of damage.

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Consorcio Survey, Sept‐Oct 2010

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Balance Sheet, First Year in Government

C. Progress made during the first year of this Government. 1. Growth •

Initiatives implemented or approved: o Exemption from First Category Tax for Small and Medium‐Size Enterprises (SMEs) which reinvest profits (Article 14 quater). o The Stamp Tax was halved. o Implementation of the “Delivery Unit” to oversee fulfillment of the goals of the Government Program. o Creation of the Integrated Foreign Trade System (Sistema Integrado de Comercio Exterior, SICEX), a one‐stop‐shop for exports, which reduces export procedures from 21 to 10 days. o In January 2011, a law was approved to reduce from 27 to 16 the days it takes to complete the procedures required to start a business. o A law was also signed to establish Number Portability, eliminating the costs of switching phone providers and leading to lower prices and better service due to greater competition in telecommunications markets. Initiatives in progress: o A legislative proposal was submitted to Congress which would simplify the process of company incorporation, reducing the time period for it to 2 days. o Legislation to create a National Consumer Agency for financial services (SERNAC Financiero) has already been submitted to Congress. o An extensive Agenda to Modernize the State has begun to be implemented. This is based on four themes, includes reengineering of state entities and processes and encompasses more than 30 institutional changes. Other initiatives have already been started, including “One Chilean, one password” (“Un Chileno, una clave”); the proposal to transfer the National Service for Older People (Servicio Nacional del Adulto Mayor) from the Ministry Secretary General of the Presidency (SEGPRES) to the Planning Ministry (MIDEPLAN) is now being progressed through Congress; meanwhile improvements are being made to the Senior Public Management system. Results:

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Balance Sheet, First Year in Government o

o o

In 2010, Chile’s GDP grew by 5.2%, a figure far above the average for the last 4 years (2.8%). Moreover, starting in the second quarter of 2010, the country saw average annual growth of 6.4%. This is the second‐highest growth rate in 13 years. Between April 2010 and February 2011, the country’s exports, excluding copper, increased by 21% in real terms compared to the same period last year. Including fixed gross capital formation in the second and third quarters of each year, at constant prices, in 2010 investment growth averaged 23.9%, far higher than that recorded for the same period in 2009, in which investment fell by 15.5%.

2. Employment •

Initiatives implemented or approved: o Improvement in training programs: the use of the national training and employment service’s tax exemption scheme for training, known as SENCE, has been strengthened. Active workers and the owners of micro and small enterprises received training vouchers and work training programs have been implemented. o National Employment Exchange: Provides the rapid exchange of information between those seeking jobs and employers requiring a variety of services. o Minimum Salary Commission: establishes the parameters for setting the minimum salary on an annual basis. o Job Security Plan: Currently being implemented, based on the final report submitted on December 7, 2010 by the Special Commission, which proposed 30 measures to improve job security. o Labor Directorate: A modernization plan for this agency was implemented, which has reduced the waiting time for services and increased to 60 the number of employees assigned to enforcement. From 2010 to 2014, 4.2 million hours which users would have spent on bureaucratic procedures will be saved and company compliance with regulations will be monitored remotely. Initiatives in progress: o A legislative proposal concerning teleworking is currently in progress. This law would benefit groups who have difficulty entering the labor force or those who face high commuting costs. o A proposal to expand maternity leave to 6 months was submitted to Congress, in an effort to make it easier for women to work while raising children. Results: o During this Government, more than 470,000 jobs have been created, of which close to half (222,000) are salaried positions. This result is far higher than the original goal of creating 200,000 jobs each year. 8


Balance Sheet, First Year in Government o

o

o

The unemployment rate fell to 7.3% in the moving quarter corresponding to November 2010‐January 2011, which represents a decline of 1.4% from the November 2009‐January 2010 moving quarter. The labor participation rate reached 59.7% in November 2010‐January 2011, an increase of two percentage points since the Government took office. The increase for women is even greater, as it rose from 44.3% to 46.8%. In addition, not only have more jobs been created, but salaries have also increased. According to figures published by the National Statistics Institute (Instituto Nacional de Estadísticas, or INE), the Salary Index for January 2011 grew by 5.7% relative to the same month last year. With these results, we are well on our way to fulfilling our commitment to create more and better jobs.

3. Public Safety •

Initiatives implemented or approved: o Creation of Plan Chile Seguro (Safe Chile Plan) 2010‐2014 : This is the most ambitious strategy to have been proposed for public safety and consists of a set of measures and initiatives which seek to reduce by 15% the rate of crimes which take place in homes and by 25% those crimes which occur in public spaces. o The bill was passed to set up the Register of People Convicted of Serious Sexual Crimes against Minors and their Incompatibility for certain Roles. o The bill was passed to increase by 10,000 the number of uniformed police officers (Carabineros) and by 1,000 the number of police detectives (PDI). o The Escuadrón Centauro (Centaur Squadron) was formed, a group of 160 officers who will patrol those areas with the highest levels of crime. o The Barrio en Paz (peaceful neighborhood) Program was implemented in 60 commercial and 20 residential districts throughout the country. o The Carabineros’ Plan Cuadrante was rolled out to 15 municipalities. o Pilot prevention programs are being implemented, such as Plan Vida Sana (Healthy Life Plan), Programa Después de Clases (After School Program) and Programa Vida Nueva (New Life Program). o Prison Plan: 11 short‐term measures have been implemented to improve conditions in prisons. Among the most notable measures are the installation of 4,000 new bunkbeds, improvements to access and visitor areas and an increase of between one and two hours in the recreation period for prisoners. o The number of places in the prison concession system will be increased from 10,088 at present to almost 20,000, which will enable 32% of inmates to have better standards of safety, control and reinsertion. 9


Balance Sheet, First Year in Government o

The law was passed to set up Ministry of the Interior and Public Safety, which will include a Safety Undersecretary. The National Council for Narcotics Control (Consejo Nacional para el Control de Estupefacientes, CONACE) will be replaced by the National Drugs and Alcohol Service (Servicio Nacional de Drogas y Alcohol).

Initiatives in progress: o Proposed legislation to set up alternative punishments to prison (the “electronic bracelet”) is being reviewed by Congress. o The proposed bill to set up the National Fugitives Register has been sent to Congress. Results: o According to the NGO Fundación Paz Ciudadana, the level of victimization fell significantly from 36.5% in July 2010 to 33% in December 2010. This is the lowest it has been in a decade and the largest drop since the register was started. o The figures of Paz Ciudadana indicate that the “high fear” level has dropped significantly; it fell from 17.8% in July 2009 to 12.2% in December 2010, the lowest the figure has been since it began to be measured (May 2000). o The Rate of Police Cases of those Crimes with the Greatest Social Impact (Delitos de Mayor Connotación Social, DMCS), fell by 3.9% in 2010 with respect to the previous year (from 3,641 to 3,498 cases per 100,000 inhabitants). o Between 2009 and 2010, the Rate of Police Cases of Homicide fell by 18.8% (107 fewer homicides in 2010); violent robbery and intimidation fell by 14.5%; muggings fell by 7.0% and assaults by 4.1%. Domestic violence also fell by 3.8%. o In 2010, there were a total of 49,406 drug‐related prosecutions. This figure is 21.5% higher than that for 2009 (it rose from 40,655 to 49,406). In absolute terms, this corresponds to 8,751 more prosecutions. o In 2010 more drugs were seized compared to 2009; the rate for seizure of cocaine paste increased by 25.1% and that for cocaine hydrochloride by 5.8%.

4. Education •

Initiatives implemented or approved: o The Law on the Quality and Equity of Education was passed, which is the most important Educational Reform in this area of recent years. This law includes important improvements and benefits for all the stakeholders of the educational system:

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Balance Sheet, First Year in Government

‐Head Teachers: Head Teachers will be elected through the senior public management system for education and will see a substantial increase in their incomes. They will be able to select their management team and have the right to dismiss up to 5% of the staff per year. They will also be measured against clear targets. ‐ Teachers: There will be significant rewards for high‐performing teachers, especially those who work in vulnerable contexts. Support will be given to those who do not perform well and a bonus of up to Ch$2 million will be given to teachers who retired before December 2010. ‐ Students: The Preferential School Subsidy (Subvención Escolar Preferencial or SEP), a scheme of financial support and follow‐up for schools that enroll disadvantaged students) will gradually include first to fourth grade students. Furthermore, the resources for the Preferential School Subsidy will be increased at all levels with 20% extra for schools where these children are concentrated. ‐ Municipalities: Between 2011 and 2013, Ch$45 billion will be given to a temporary support fund for improving the quality of municipal education. Furthermore, Ch$60 billion will be granted so that municipalities can pay for the early retirement plan for teachers. o SIMCE test in Physical Education: This was applied for the first time between September and October 2010, through a pilot project in which 16,000 eighth grade students from 170 municipalities took part. o SIMCE test in English: This was applied for the first time in October 2010, to more than 237,000 third grade students from 2,600 educational establishments and the results will be known in the first semester of 2011. o Anti Bullying Law: The Education Ministry (MINEDUC) is currently processing proposed legislation to punish cases of bullying in schools. Initiatives in progress: o Currently before the Joint Commission and close to being approved, is the proposed bill to set up the Quality Agency (Agencia de Calidad) and the Education Superintendency (Superintendencia de Educación). Results: o Bicentenary Schools: The first 30 schools of excellence throughout the country gave their first classes. o Teaching Vocational Scholarship: A Teaching Vocational Scholarship was implemented, which seeks to incentivize good students who choose teaching training programs. In 2011, more than 3,000 students with scores of over 600 11


Balance Sheet, First Year in Government points in the University Selection Test (Prueba de Selección Universitaria, PSU) opted for this scholarship, a figure far higher than the 1,824 students with 600 points or higher who enrolled in 2010. 5. Healthcare •

Initiatives implemented or approved: o The necessary measures have been implemented to reduce the length of the AUGE waiting lists. These measures included setting up the Bono Auge (Auge Voucher) in December 2010, to help cut the waiting lists in 2011. o In December, the President was given the report by the Health Advisory Commission (Comisión Asesora de Salud), the result of 4 months’ work. In response, legal initiatives have been driven forward to modify the public and private health insurance system . o In July, 10 new health conditions were included in Plan AUGE. Initiatives in progress: o The proposed bill to authorize the sale of non‐prescription medication in commercial establishments was sent to Congress. o The law to penalize the fraudulent use of sick notes is also before Congress. Results: o The waiting list for AUGE health conditions was reduced from over 300,000 cases in March 2010 to the current number of 107,000 cases.

6. Poverty •

Initiatives implemented or approved: o The Social Protection Registration (Ficha de Protección Social) was completely overhauled, to improve it and the way in which it is applied. o In August 2010, the law was signed to set up the Social Development Ministry. This new ministry will enable Chile’s social policies to be more effective in order to overcome extreme poverty. Results: o The Bono Marzo (March bonus) of Ch$40,000 per dependent family member was given to almost 4 million beneficiaries. This was extraordinary financial help given directly by the Government to Chilean families in light of the implications of the global financial crisis and the earthquake which affected Chile last year. o The Budgetary Law included Ch$64 billion to start up the Ingreso Ético Familiar (Ethical Family Income), which in its first stage will benefit over 400,000 Chilean 12


Balance Sheet, First Year in Government who live in extreme poverty. This benefit will supplement the income of the poorest people, while creating incentives so that they can take decisions which will prevent them in the medium and long term from falling into extreme poverty. 7. Democracy •

Initiatives in progress: o Congress has approved the change in the date of presidential elections, so that they will not interrupt the vacations of the Chilean people, and thus facilitating voter turnout. o The project to introduce Citizens’ Initiatives is now being processed in Congress. This will enable any Chilean man or woman to propose a law, if they have the support of other members of the public. o A constitutional reform is being processed to enable Chileans living overseas to vote, and thus maintain their links with their country. o The bill to facilitate and simplify municipal referenda and public consultations is being processed. o Automatic registration and voluntary voting in elections is being processed, which will add 4 million Chilean people to the electoral roll.

8. Earthquake •

Results: o

o o

One year on from the earthquake, 135,000 housing subsidies have been handed out (61% of the total pledged). Equally, around 74,000 works are underway of which 10,000 have been finished. Of the 100 Reconstruction Master Plans, 47 are finished and have defined, agreed investment portfolios. With regard to the rebuilding of hospitals, around 90% of the medical and industrial facilities are operational; 84% of the operating theaters which were destroyed are now functioning; 14 of the 19 field hospitals which were set up to deal with the emergency have now been dismantled; of the 17 hospitals which were rendered unusable, 94% are operating and 7 are undergoing major repairs. The number of hospital beds has returned 100% to its pre‐earthquake level (19,179), including both temporary and permanent solutions. Finally, 9 Hospitals with Accelerated Construction Schedules, are being built, which will be operational during the first half of this year. 13


Balance Sheet, First Year in Government o o

o

With regard to the rebuilding of public infrastructure, 99.1% of it has been partially or completely repaired after the damage caused by the earthquake. In terms of educational infrastructure, 70% of those establishments which were affected by the earthquake have been supported in their rebuilding or repairs. Mention must also be made of the achievement whereby the 1,250,000 students (35% of all those registered in Chile) who were unable to return to school after the earthquake, were able to do so a mere 45 days after the government took power. The Plan Verano (Summer Plan) was implemented on 15 Chilean beaches to recover and rehabilitate those beaches affected by the earthquake.

9. International Relations and Human Rights The Government of President Piñera has succeeded in maintaining fluid and cordial relations with the rest of Latin America. He has also maintained excellent relations with the key powers around the world, as can be seen from the President’s visits to the United States, the European Union, Japan, China, Israel, Palestine and other countries. o 7 Heads of State or Government were present as President Piñera was sworn in as President of Chile on March 11, 2010. Six Heads of State have visited Chile since then. o In 2010 the President met with 25 Heads of State or Government, among them representatives from 14 of the 19 countries which make up G‐204. In short, President Sebastián Piñera has shown a level of international leadership rarely seen in Chile. o On the matter of Human Rights, the Government has made important strides such as the Reform of the Anti‐terrorist Law and Military Justice, the constitution and also the positive relationship it has maintained with the National Institute of Human Rights (Instituto Nacional de Derechos Humanos), which started up during this administration, as well as the decision to extend the timeframe for the Valech Commission II. o

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The twentieth member is the European Union as a whole.

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Balance Sheet, First Year in Government 10. Rescue of the Miners

The tragedy of the 33 miners, who were trapped 700 meters underground for a period of 70 days shocked and moved Chile. However the effort to rescue them not only ended happily but also produced other positive results. It reinforced national sentiments and the evidence of what we can achieve together increased our confidence in our ability to transform Chile into a much better, more just, freer and more prosperous society.

It also revealed the new form of governing, because it showed how a sense of urgency and efficient working can be transformed into the means of achieving something so noble as saving the lives of 33 workers. 11. Legislative efficiency since 1990

During its first year, the government of President Piñera sent 103 proposed bills to Congress to advance the Government Program and to deal with the process of rebuilding Chile. The following table reveals the government’s efficiency and effectiveness in terms of legislative performance. The rate of approval for legislative proposals during the first year of government is the highest since 1990 and the figure for bills passed is higher than for the last three administrations. Figure 2: Legislative Effectiveness during the first year in Government President

Entered

Passed

Effectiveness

Aylwin

164

76

46%

Frei

128

32

25%

Lagos

78

19

24%

Bachelet

89

33

37%

Piñera

103

48

47%

Source: Own development

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Balance Sheet, First Year in Government

D. Conclusions 2010 was a difficult year for Chile, and the Government was obliged to address enormous challenges during the first year of its administration. However it also brought important benefits to Chile, as it was a time of national unity, in which we realized how much we can achieve by working together and how much we can trust in our ability to make Chile a better society. For its part, the Government left its mark as the months went by. The search for excellence became apparent with the appointment of the Government teams. The response to the emergency after the earthquake and the rescue of the miners showed how a sense of urgency and work well done can be put to the service of noble, valuable causes. On May 21, the Government made clear its determination to fulfill its Program, which is designed to accelerate Chile’s transformation into a developed country. The commemoration of the Bicentenary was the most symbolic of many moments in which the government expressed its desire for national unity. The relationship with Congress, which resulted in the highest level of approval for legislative projects of the last five governments during their first year in power, was marked by the decision to persuade and negotiate agreement so as to achieve the Government Program, which expresses the democratic will of the Chilean people. Our commitment to consumers’ and workers’ rights, to SMEs, to the extension of democracy, to human rights, the environment and the indigenous peoples, as well as our international performance all reveal a modern center‐right political coalition. The public accounts given at year end by the President, 22 Ministers and 15 Regional Governors showed the government’s determination to be judged by results and not by intentions. The challenge for our second year is to do even better than we did in this first year. Of course this assumes we will continue along the same well‐chosen path. It also implies accelerating the reforms necessary to speed up the pace on our path towards development, continuing the rebuilding of Chile with excellence and speed and consolidating the international leadership achieved by President Piñera. It is also important to make improvements where necessary, strengthening coordination with the parties of Coalición por el Cambio, finding ways to institutionalize and give greater breadth to it. We need to communicate our achievements, focus on those matters of greatest importance to the majority of the Chilean people and improve the general and political coordination of the government.

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