1. Introduction

The economic, cultural, political, and social situation of Chile, a forerunner of development in Latin America for decades, shows a nation in transition. After the re-election of the leader of the center-left coalition, Michelle Bachelet, to new–old president in November–December 2013 at the expense of the conservatives under Evelyn Matthei and former president Sebastián Piñera, some observers expect a broad “reboot” of the country. Others, though, remain sceptical that the government of Michelle Bachelet’s second term 2014–2018 (Bachelet II) will be able to implement the deep-reaching reforms it promised.

Despite insecure prospects, there seems to be wide consensus among the political protagonists of the country—regardless of party affiliation—and among most international analysts that reforms are unavoidable in the medium term if the nation’s success story is to continue, and if Chile wants to keep its place within rapid international development. While the Andean nation is still seen by many as an example of progress in South America and—at least to a certain extent—of the potential for progress of the global South, it simultaneously faces a complex constellation. The question is how institutional, political, and social innovations can be incepted without interrupting what has been rightly seen by the international community as a remarkable success story throughout the recent decades. The answer to this question depends not only on economic and financial issues, but in no small part also on the development of political culture, social psychology, and contextual politics, i.e., of identity questions between the polarizing narratives of “center-left” and “center-right.”

This book provides an interdisciplinary overview over Chile’s current situation and analyzes the nation’s resulting main future trajectories. It points towards the achievements, opportunities, and potentials of the country, but also to its main challenges and tasks ahead—both to a certain extent exemplary for the greater regional context.

The questions addressed are: What is Chile’s situation irrespective of media representations and ideological curtains, and beyond simplifications? What are the nation’s main opportunities and problems? And what strategies and policies will be concretely applicable to improve political and social balance, promote broader participation in decision-making processes, widen access to education, create wealth for a greater number of people, decrease inequality, foster reconciliation between antagonist groups, and mitigate ideological divisions?

Last but not least: Will other nations be confronted with tasks similar to those of today’s Chile? If yes, can they learn something from the Andean country’s case, or is the recent story of Chile unique and incomparable? And subsequently: Can Chile become a role model—and if yes, for whom, in what fields, and to what extent?