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Country Reports

Chile Country Report

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Risk Level

Low
Moderate
Elevated
High
Very High
Severe
Extreme

Overview

Executive Summary

President Sebastián Piñera took office in March 2018 pledging to review tax and labour arrangements approved under the previous Bachelet administration, which he argued slowed investment. His priorities include a proposed tax reform that simplifies the dual-tax system, which the business-sector views as burdensome, and change pension arrangements that seek to increase contributions by 4% (paid by the employer), and encourage more competition; there is cross-party consensus that existing pensions are inadequate to cover basic needs. The government is also likely to seek labour market changes in 2019 to increase the flexibility of working conditions. The ruling Chile Let’s Go (Chile Vamos) coalition does not have a majority in Congress and will have to negotiate legislation with the opposition, which has the capacity to block the government’s agenda. Delays and amendments to bills are likely in Congress. Chile’s economy grew by 4% in 2018 and IHS Markit forecasts it to grow by 3.4% in 2019 and inflation to reach 3% during the same period. IHS Markit expects private investment to expand in 2019, supported by improved business confidence underpinned by the government’s pro-business agenda and higher copper prices. The government is seeking to reactivate USD28 billion in mining investment through to 2021 by simplifying permit procedures. The death of a Mapuche indigenous youth in November 2018 in unclear circumstances during a shoot-out with the police forces in the southern Araucanía area increases the risk of arson attacks over land restitution against vehicles, warehouses, and machinery belonging to agriculture and forestry companies in the southern Araucanía and neighbouring regions over the coming months.
Last update: March 26, 2019

Operational Outlook

Chile’s operational environment is marked by positive attitudes towards foreign direct investment, highly developed infrastructure, low levels of corruption, and a relatively liberal labour market. The economy is robust and the country has a well-educated population. Foreign companies are treated the same as domestic companies in almost all industries. Chile’s operational outlook is underpinned by consolidated institutions and solid macroeconomic stability. However, increased environmental scrutiny is likely to lead to projects being challenged in courts, causing delays and raising cancellation risks, particularly for mining companies.

Last update: March 26, 2019

Terrorism

Elevated

Terrorism risks in Chile remain low, but there is a moderate risk of anarchist groups targeting banks, public transport infrastructure, offices, and government buildings with improvised explosive devices (IEDs), mostly in the capital Santiago. Two IED attacks against the Santiago metro in July and September 2014 injured at least 14 people. However, these groups consist of a handful of members and appear disorganised. Mapuche indigenous extremists in the southern Araucanía region often carry out arson attacks on rural estates, cargo trucks, warehouses, and assets of forestry firms, in demand of land ownership and rights.

Last update: December 7, 2018

Crime

Public security remains one of the main concerns of the population despite Chile and its capital Santiago having one of the lowest murder rates in Latin America (3.6 victims per 100,000 inhabitants nationwide and 4.4 in Santiago in 2018). Kidnapping and extortion are almost unheard of. Armed robberies, mugging, and petty crime are more common, and there are regular explosive attacks on automated cash machines (ATMs). Confidence in the police, who have generally enjoyed a good reputation for efficiency and incorruptibility, have suffered in 2018 due to embezzlement investigations and allegations of proof-manipulation.

Last update: March 29, 2019

War Risks

In October 2018, the International Court of Justice (ICJ) ruled that Chile did not have the obligation to negotiate with Bolivia sovereign access to the sea, lost during the War of the Pacific (1879–83), but Bolivia is unlikely to drop this demand. There is another dispute with Bolivia at the ICJ, presented by Chile in 2016 over the use of the Silala waters. However, war between both countries is very unlikely.

Last update: March 29, 2019

Social Stability

High

Demonstrations by students, teachers, workers, and civil society occur in Santiago, Valparaíso, and Concepción. Alameda Avenue and Plaza Italia in Santiago are hotspots for protests, although they spread throughout the city centre and occasionally upmarket neighbourhoods, including Providencia. Demonstrations are generally peaceful, but sometimes result in confrontations with police. Looting of stores and damage to bank branches and transport infrastructure can occur. There is a risk of indigenous Mapuche unrest in Araucanía region over land issues; roadblocks and arson attacks on forestry firms' property are likely.

Last update: December 7, 2018

Health Risk

Very high

Vaccines Required to Enter the Country

No vaccinations are required to enter the country.

Vaccines Recommended for All Travelers

Routine vaccinations: Consult your doctor to ensure all routine vaccinations - such as for diphtheria, tetanus, polio, tuberculosis, influenza, measles, mumps, pertussis, rubella, varicella, etc. - are up to date (include booster shots if necessary).

Vaccines Recommended for Most Travelers

Hepatitis A: The vaccine is given in two doses, six months apart, and is nearly 100 percent effective. The WHO recommends the vaccine be integrated into national routine immunization schedules for children aged one year or older.

Typhoid fever: The typhoid fever vaccine can be administered via injection (administered in one dose) or orally (four doses). The vaccine is only 50-80 percent effective, so travelers to areas with a risk of exposure to typhoid fever, a bacterial disease, should also take hygienic precautions (e.g. drink only bottled water, avoid undercooked foods, wash hands regularly, etc.). Children can be given the shot beginning at two years of age (six for the oral vaccine).

Vaccines Recommended for Some Travelers

Hepatitis B: The WHO recommends that all infants receive their first dose of vaccine as soon as possible after birth, preferably within 24 hours. The birth dose should be followed by two or three doses to complete the primary series. Routine booster doses are not routinely recommended for any age group.

Rabies: The rabies vaccination is typically only recommended for travel to remote areas and if the traveler will be at high risk of exposure (e.g. undertaking activities that will bring them into contact with dogs, cats, bats, or other mammals). The vaccination is administered in three doses over a three-to-four week period. Post exposure prophylaxis is also available and should be administered as soon as possible following contact with an animal suspected of being infected (e.g. bites and scratches).

Last update: April 5, 2019

Natural Risks

Severe

Chile, spread along the Andes mountain range, is particularly vulnerable to natural disasters.

The country is situated along the Nazca fault (north) and experiences a great deal of seismic activity. On February 27, 2010, an extremely violent earthquake with a magnitude of 8.8 - one of the strongest earthquakes recorded in over 100 years - struck the country; the earthquake and subsequent tsunami left more than 700 people dead (including 350 in Constitución) and caused considerable material damage. More recently, in September 2015, an 8.4-magnitude earthquake struck off the coast of Chile, resulting in material damages in the Coquimbo region and at least 15 deaths, as well as some 3000 aftershocks; the Chilean government received much praise for its prompt response to the earthquake and ensuing tsunami threat. Generally speaking, due to stringent building standards and earthquake-resistant construction techniques, the vast majority of earthquakes do not result in any major infrastructural damages or casualties.

Chile, located along the Pacific Ring of Fire, is also home to a number active volcanoes, e.g. the Calbuco, Guallatiri, Chaitén, Llaima , Lascar, Copahue, etc. Eruptions can lead to evacuations, flight disruptions, and health hazards due to volcanic ash in the air.

Last update: April 5, 2019

Transportation

Moderate

Driving restrictions are regularly introduced in the Santiago region during periods of particularly high air pollution (see HEALTH section). This is most common during the fall and winter months (May to September).

Primary and secondary roads are generally in good condition. However, winter storms can result in hazardous driving conditions and/or closed roads, particularly in mountainous areas (e.g. at border crossings with Argentina) and in the south.

Air travel is safe.

Last update: April 5, 2019

Practical Information

Climate

The climate is arid in the north, Mediterranean in the center (Santiago, Valparaiso), and cold in the south.

In the center of the country, summers (December to February) are hot (28°C) and dry while winters are cool (10°) and rainy. Heading south, the climate becomes temperate but rainy throughout the year with the exception of summer. In the extreme south of the country (Patagonia), temperatures are cool (11°C in the summer) with regular rain and strong winds throughout the year.

Useful Numbers

Country Code: +56
Ambulance: 131
Police: 133
Fire Dept.: 132

Electricity

Voltage: 220 V ~ 50 Hz

Outlets:

Last update: April 5, 2019