Social and economic instability in Chile

Experts have identified growing social and economic instability in Chile, characterized by a shift from concerns over safety to anxieties regarding the high cost of living. Sociologist Pedro Carvallo notes that local community discourse is increasingly focused on economic pressures, such as rising rents that threaten the survival of small family businesses.

Economist Óscar Landerretche, dean of the Faculty of Economics and Business at the University of Chile, has warned of a widening gap between Chile’s historical reputation for stability and its current reality. In his analysis for the book “Charchazo: el desarrollo en la era de la violencia”, he cites rising violence, corruption, and the deterioration of social coexistence as factors undermining citizen trust. He argues that rebuilding social cohesion through family, neighborhoods, and community organizations is essential for future growth.

Sociologist Waldo Aguilar Figueroa describes a highly stratified society marked by significant debt and income inequality, noting a tension between neoliberal economic doctrines and the lived experiences of citizens. Adding to these concerns, Marcelo Trivelli argues that liberal democracy is facing a legitimacy crisis by failing to address citizen anxieties. Trivelli suggests that political discourse focuses too heavily on administrative efficiency and economic growth while overlooking human suffering. He specifically criticized recent decisions to reduce sentences for 56 individuals convicted of sexual abuse against minors, calling the move an expression of indifference toward victims. Furthermore, unemployment has recently reached 9.8 percent, affecting over one million people.