Chile rejected the second proposal for a new constitution in as many years, prolonging uncertainty and highlighting the failure of the nation’s political system to channel social discontent into a new set of basic laws.
With 99% of votes counted in Sunday’s referendum, 56% rejected the text while 44% backed the document. The result, broadly in line with recent polls, means the current charter from the Augusto Pinochet dictatorship remains in place.
For investors, the vote confirms that the market-friendly rules of one of Latin America’s richest nations will remain intact for now. The outcome provides greater short-term certainty, given that President Gabriel Boric’s administration has promised not to seek a third attempt at a new charter. Still, it also fuels broad discontent with politics and represents a huge disappointment for thousands who had taken to the streets for a new constitution.