Chilean President faces “government of reconstruction” following earthquake

March 31, 2010 by gblewis81

New President Sebastian Pinera took office less than two weeks after an 8.8 magnitude earthquake hit Chile’s second largest city, Concepcion.  The quake and the tsunami it triggered killed nearly 500 people, and damaged 1.5m homes leaving thousands living in tents waiting for emergency housing. 

Mr Pinera’s inauguration ceremony was shaken by a 6.9 magnitude aftershock, as an indication of the impact that the quake will have on forthcoming Chilean policy.   Mr Pinera has recognised that he faces a “government of reconstruction”, saying "We have a debt, a task to rebuild our country... As president I will lead that reconstruction process.”   

Mr Pinera has said that the cost of rebuilding will be at least $30bn (£20bn), which represents nearly 20% of Chilean GDP.  Financing the reconstruction will require reallocation of funds from other areas and in part will come from savings and exportation of copper, of which Chile is the world’s largest producer.  

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