Webinar Frontal Trust: Keys to understanding the political moment

Many events have occurred in Chile and in the world in recent times. This is why we decided to invite the researchers Loreto Cox and Juan Pablo Luna, to give us their vision and to discuss the current political events. Both agreed that there is much to do to improve the quality of the State.

Last Thursday, July 29, Loreto Cox, an expert on the manner in which Chilean political institutions operate, and Juan Pablo Luna, an analyst of political party systems and of political representation, had a conversation with the editor of Diario Financiero and DFMÁS, Marily Lüders, on the current political situation in Chile.

Both speakers addressed the current situation, providing details and data on events that are taking place in Chile and the world. Loreto Cox, a PhD. in Political Sciences, noted that “one of the biggest problems we face today is the lack of trust in institutions. Between 2015 and 2019, confidence rates fell in all of them.” Ms. Cox added that “during the past decade the world observed instability and very high levels of inequality and low levels of redistribution.” In turn, Juan Pablo Luna, a PhD. and a Master of Political Science of University of North Carolina, Chapel Hill, noted that “Chile has a complicated mixture of elements in its hands, because in addition to being a part of a global crisis of institutions, it faces a crisis of liberal democracy.”

After the speakers’ presentations, the floor was opened for questions, many of which dealt with the crisis of the political system and of politicians, of emerging political parties, the profile of voters, the phenomenon of violence, and the search for long-term solutions.

Luna was emphatic when he said that Chile and Chileans are demanding solutions from the political system that are very difficult to resolve. “The crisis in Chile has three elements. The first concerns the model of economic and social growth, which not only generates inequality, but also has structural limits. The second component concerns the fragility of the Chilean State and the third, the crisis of politics.”

On redistribution, Loreto Cox said that we are far from having a strong redistributive State, ensuring that there is plenty of room to grow in redistribution without sacrificing economic growth. “Among the OECD members, Chile is one of that redistribute the less.” Luna added that “there is much to improve in terms of quality of the State. Not only in taxes, but also in how income is used and how spending is carried out.”

At the end of the meeting, Loreto recommended the book of Juan Pablo Luna, “Instead of Optimism,” which in 2017 warned of the impending crisis in the political system. Juan Pablo, for his part, invited to read the book “The Great Transformation.” by Karl Polanyi, a Hungarian economist. This book discusses the social and political upheavals that occurred in England during the introduction and development of the market economy.

The meeting lasted more than an hour and was broadcast live through the digital platforms of Frontal Trust and the website of Diario Financiero.