Destructive Riots in Chile

Running head: DESTRUCTIVE RIOTS IN CHILE
DESTRUCTIVE RIOTS IN CHILE
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DESTRUCTIVE RIOTS IN CHILE1
Executive Summary
The paper aims to analyse the impact of Chilean protests on the overall economic operations
of the country. The paper begins by presenting the various reasons behind the onset of the
protests. It describes the individual perspective over the dictatorship of the Chilean
government. Additionally, the report includes the various demands of the protesters and their
views against the president. Lastly, the paper includes the possible impact of the ongoing
riots over the neoliberal market of Chile. Furthermore, the report anticipates the future
negative impact of the riot on the macroeconomic performance of the country. Additionally,
it includes the various policy attempts of the government to control the destruction.

DESTRUCTIVE RIOTS IN CHILE2
Table of Contents
Introduction................................................................................................................................3
Reasons behind the onset of Chilean riots.................................................................................3
The outcome of the Chile riot on domestic factors................................................................4
The demand of the protestors.................................................................................................5
The economic impact of the protest...........................................................................................6
Government initiatives to control riots..................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

DESTRUCTIVE RIOTS IN CHILE3
Introduction
Chile is located in the western region or range of South America and is famous for its
viticulture. The country is characterized by high inequality in income distribution and low
wages for a majority of the population. The standard of living is continuously dropping due to
the rapid increase in expenditure of the majority of the population. This high cost of living is
affecting the lives of many and increasing levels of poverty in the region. Despite a stable
GDP growth rate and inflation level, the economy has relatively poor living standards. This
poor living condition is mainly because of the unequal income distribution (Paredes, Iturra &
Lufin, 2016). The lower and the middle-income population are unable to maintain their
average rates of affordability as well. The wage rates are low that restricts the residents from
purchasing commodities. As a result, there are widespread protests against the increase in
rates of public transportation and other expensive products or services. This inflation has led
to the creation of civil protests, which is transforming into bitter riots within the economy.
The protests began on 20 October 2019 and are continuing.
Consequently, several economists have anticipated a negative outcome of the
continuation of this riot. This paper is formulated to present a brief overview and the causes
of the riot. Additionally, it tries to display the possible impact of these protests on the
economic factors and neo-liberalism aspect of the economy.
Reasons behind the onset of Chilean riots
Long before the increase in fare of the Santiago metro service, the thought of protests
incepted in the minds of the suffering population. Chile is known as one of the unequal
income distribution regions of South America. The residents of the country are affected by
the low wages and salaries offered by employers in Chile. These have created wages as well
as income inequality among the population (Hartmann et al., 2017). There is a wide disparity
between the upper-class individuals and low-income earners. In addition to the increase in
metro fares, there is a hike in rates of buses and other forms of public transports (Bucknell et
al., 2016). The metro prices witnessed an increase of 30 pesos that is about $ 0.04 US dollar.
The ministry of transportation of Chile decides the adjustments in the prices of public
transport in the country.
Moreover, the crucial reason behind the increase in prices of transportation in Chile is
the continuous rise in world petroleum prices (Troncoso & de Grange, 2017). The rate of
increase in transport fares was more than the rate of increase in income of the population. The