Some Thoughts on Bachelet and Business
A friend of mine in the business world is currently working in Chile, and has now spent several years there. He said he had been thinking about the feedback he’s been getting from Chilean business people about President Bachelet, namely that they don’t like her economic strategies, and believe that with Piñera the current economic boom could have led to 8-9% growth, whereas Bachelet will be unable to achieve the same.
My first reaction is that we should not be surprised that conservative business people would grumble after seeing a socialist elected instead of one of their own. When has business anywhere ever rejoiced about such an outcome?
But I also wonder about the power of perception and conventional wisdom. I tend to agree with Matthew Shugart’s appraisal of Bachelet, that she really has no record of being “leftist” and therefore somehow unfriendly to business. It may well be that business people will either a) change their minds, as many have with Lula in Brazil; or b) keep complaining even while making very nice profits.
What also struck me was that even if the Chilean business right is so concerned, it has clearly been unable to convince the rest of the country. President Lagos left office with a 70+% approval rating. Bachelet’s, meanwhile, is not as high but still over 50% in her first several weeks. It also may well be that people in business are among the few who look back with nostalgia on the economic policies of the Pinochet years, while many Chileans—especially women and the young—are more skeptical.