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Economy / Chile


July 2012 | Risk Summary

After a series of arson attacks on July 19-20, Chilean President Sebastián Piñera held a meeting on security policies in the southern state of Araucanía, which is heavily populated by the indigenous Mapuche population. A local business group said there had been 127 acts of violence from January to July this year, exceeding the 117 acts reported for all of 2011. Government officials have stated that the attacks are not related to the historical tensions, often over land rights, between the Mapuche population and other residents. Should violence continue to escalate, however, perceptions of ethnically-based conflict in the region could affect the political risk outlook for southern Chile.

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