Chileans are heading to the polls for a referendum on a new constitution that prioritizes social rights and the environment, potentially steering a global investor favorite further away from its pro-market ethos.
Voters will approve or reject the proposed charter written by a left-leaning Constitutional Convention, thus either replacing or keeping the basic laws enacted during the 1973-1990 dictatorship. Polls indicate the new constitution will be shot down, though Sunday’s ballot is obligatory for the first time in over a decade, meaning that uncertainty is running high as turn-out spikes.
Chile’s vote is captivating investors who have had to navigate years of political tensions in one of Latin America’s richest nations. The country is split between supporters who say the text will enshrine greater equality, and detractors who argue changes go too far, crippling investment opportunities and growth. The referendum is also a test to President Gabriel Boric, who is counting on broad legal changes to implement his progressive social agenda.
