Chilean Libertarians Propose Selling Codelco and Distributing Funds

A proposal by Chilean libertarians to partially privatize the state-owned copper company Codelco and distribute the proceeds to citizens has sparked significant debate. The plan suggests transferring management control to private entities, with the aim of issuing checks of up to 2 million Chilean pesos to each citizen. Proponents frame this as "popular capitalism," a concept the article critiques as a historical facade used during the Pinochet dictatorship to privatize state assets for the benefit of a select few. The author argues that selling Codelco and distributing cash is the antithesis of popular capitalism, offering immediate relief rather than long-term collective benefit.

The article links this proposal to a broader sentiment of disillusionment and a "save yourself" mentality pervading Chile. This sentiment is attributed to perceived failures in collective solutions, including the 2019 social unrest, the COVID-19 pandemic response, and the constitutional process, all of which are described as ending in disappointment. Recent polls indicate record levels of pessimism about Chile's future, with a majority believing the country's situation will worsen. This widespread pessimism, the author suggests, makes proposals like the Codelco sale and distribution more appealing as a way to secure personal gain from a perceived national collapse.

This logic, the article contends, mirrors the rationale behind previous pension fund withdrawals and the recent tax reform, where immediate personal benefit was prioritized over long-term collective stability. Codelco, historically a source of national pride and funding for social policies, has faced recent challenges including poor financial performance and management issues. The proposal to sell parts of Codelco, previously considered politically unthinkable, is now on the table, fueled by the need to cover fiscal deficits and a narrative that portrays the state as corrupt. The libertarian proposal to distribute the funds directly is presented as a cynical response to this perceived state failure, offering citizens a "souvenir" from a collapsing nation.