Despite last month’s cabinet shuffle in response to a series of corruption scandals that have shaken Chile’s political establishment, President Michelle Bachelet’s approval rate has dropped to an all-time low of 29 percent, according to a poll conducted by Gfk Adimark.
“Both the anticipated Cabinet change and her annual State of the Union address had marginal positive effects […] however, the tense climate of mistrust and accusations surrounding how political activities are financed were ultimately more important,” said the pollster.
Since taking office for her second term in May 2014, Bachelet has been faced with many challenges, including a series of corruption scandals within her government and family. Last September, an independent national prosecutor’s office and the Internal Tax Service discovered that one of Chile’s largest financial holdings companies, Penta Group, used false invoices and tax fraud to circumvent electoral laws and conceal illegal corporate financing for political campaigns. Additionally, in February, Bachelet’s son, Sebastián Dávalos, was accused of using his influence to obtain a $10 million loan to buy land for his wife’s consulting firm, Caval.
Bachelet has responded to the corruption scandals with a series of anti-corruption measures aimed to restore public faith in Chile’s political system. In addition to her cabinet reshuffle, Bachelet appointed an advisory council to propose new regulations on the ties between politics and business. In her May 21 State of the Union address, Bachelet acknowledged the difficulties facing her government and stated that she was not going to sweep the nation’s recent troubles “under the carpet.” She also discussed her plans to reduce inequality in Chile by providing housing subsidies, greater access to healthcare, labor reform to strengthen unions, and a bill to make universities free for the majority of students.
While Bachlelet has passed important reforms in education, taxation and the electoral system and has announced measures to curb corruption, she faces a challenging job ahead. “There is a political crisis when over 70 percent of the population believes that the political system doesn’t work, that people lie and that the system should change,” said Marta Lagos, director of the regional public opinion firm Latinobarómetro. “As long as the government doesn’t address this crisis, its program of reforms will take a back seat.”