Although, this looks good on paper and has been perceived as a great achievement by latin-american and world standards, the social cost has been much higher than the economic gains.
The differences between Chile and Australia are indeed many, and common conclusions about these two societies, their economic and social reform approaches, as well as their policy systems cannot be easily drawn from a comparative perspective.
In spite of these differences, however, there are also similarities that could help to identify lessons and, above all, to identify words of caution about the opportunities and pitfalls that can be faced when too much emphasis is placed on micro-economic reforms without due regard to social justice in the context of human development.
The Chile experiment has been indeed a chilly experience for those like myself who have a great commitment to social justice and recognise the intersection of the social and economic spheres as the key to sustainable human development.
The social progress attained in Chile has been abysmal. Throughout the country, poverty continues to be deeply rooted in persistent social, cultural, political and economic inequalities. This has been a direct result of a short lived attempt for a more universal public and centralised social policy system to a more economically focussed private and decentralised regime.
Similar changes in other areas, such as in the labour market deregulation have destabilised the structure and role of labour market institutions, associated social security systems, labour organisations and labour mobility.
A lesson for Australia and particularly those who strongly believe or want us to believe the virtues of economic rationalism, is that a market driven economy alone is not sustainable.
Therefore, governments at all levels must accept their responsibility to enhance the well being of their people and their legitimacy in achieving social cohesion and adequate living standards.
Australia at National and State levels should take into account the global economic factors at play while maintaining social justice, equipping citizens with better skills and learning capacities for dealing with economic and technological change, enhancing political participation and balancing global demands with domestic priorities.
For Local Government, in these times when economic rationalists have taken almost full control of central governments and social justice imperative is no longer recognised, it is a great opportunity to take a stronger leadership stand in re-shaping the future of our communities at local and national levels.
The old cliche that local government is the level of government closest to the people, is not only a truism but is also the last bastion of participatory democracy which can pursue a fairer society and regain a greater balance between social and economic development.
At a local level, Councils can develop social policies aimed at the enhancement of quality of life, independence, well being of its residents and promote social justice, access and equity principles. In an effort to achieve social and economic equilibria, Councils can also develop sustainable development policies promoting social, environmental, cultural and economic integration with a greater emphasis on the creation of opportunities for employment innovation to meet the present and future needs of local communities.
At a national level progressive Councils must initiate strong lobbying with peak organisations opposing the continuation of micro-economic reforms which are in contradiction to the principles of social justice and sustainable development.
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