Sebastián Piñera

Sebastián Piñera
His Excellency
Sebastián Piñera
President of Chile
Assumed office
March 11, 2010
Preceded by Michelle Bachelet
Senator of Chile
for Santiago
In office
March 11, 1990 – March 11, 1998
Succeeded by Carlos Bombal
Leader of National Renewal
In office
May 26, 2001 – March 10, 2004
Preceded by Alberto Cardemil
Succeeded by Sergio Díez
Personal details
Born December 1, 1949 (1949-12-01) (age 61)
Santiago, Chile
Political party Independent (2010–2011)
Other political
National Renewal (Before 2010)
Spouse(s) Cecilia Morel (1973–present)
Children Magdalena
Alma mater Pontifical Catholic University of Chile
Harvard University
Profession Investor
Religion Roman Catholicism
Website Official website

Miguel Juan Sebastián Piñera Echenique (Spanish pronunciation: [miˈɣel ˈxwan seβasˈtjan piˈɲeɾa etʃeˈnike]; born December 1, 1949) is a Chilean businessman and politician. He was elected President of Chile in January 2010, taking office in March 2010.



One year after his birth, Piñera's family moved abroad to Belgium and later to New York City where his father was the Chilean ambassador to the United Nations. Piñera returned to Chile in 1955 and was enrolled in the Colegio del Verbo Divino ("Divine Word College"), from which he graduated in 1967.[1]

Piñera then matriculated at the Pontifical Catholic University of Chile to undertake his undergraduate degree in Business and Administration, from which he graduated in 1971. Upon graduation, he was awarded the Raúl Iver Oxley Prize which is given to the best overall student of each class.[2]

Piñera continued on to study at Harvard University on a partial Fulbright Program for his postgraduate studies in economics. During his time at Harvard, Piñera and a classmate co-authored an article titled, "The Old South's Stake in the Inter-Regional Movement of Slaves" for the Journal of Economic History.[3] After three years at Harvard, Piñera graduated with both a M.A. and Ph.D. in Economics. [4]

Teaching career

Once graduated, Piñera was an educator from 1971 until 1988. He was Professor of Economics at the University of Chile, the Pontifical Catholic University of Chile and Adolfo Ibáñez University. In 1971, he was professor of Economic Political Theory in the School of Economics at the University of Chile and in 1972, was a professor at the Valparaiso Business School.[5]


In 1989, accompanied by Cecilia Morel, Danica Radic, and Paula Délano, Piñera created the Enterprising Women Foundation (Fundación Mujer Emprende), originally called The House of Youth (La Casa de la Juventud). The foundation aims to assist in the development of young women of lower-income.[6]

In 1993, Piñera created the foundation Fundación Futuro, of which he is president and whose directors are Cristián Boza D., María Teresa Chadwick P., Hugo Montes B., Cecilia Morel M., Renato Poblete S.J. and Fabio Valdés C. The head director of the foundation is Magdalena Piñera. The foundation’s mission is to help in Chile’s development of justice, freedom and democracy.[7] The foundation was renamed to Fundación Cultura y Sociedad following Piñera's presidential election win.[8]

Under the Fundación Cultura y Sociedad (formerly Fundación Futuro) the Grupo Tantauco is created with the mission of environmentalism, and is administered by Juan Carlos Urquidi. It was created to support the proposals brought forth by Piñera, which he plans to make effective during his presidency.[9] In 2005, Piñera created Tantauco Park (Spanish: Parque Tantauco) a 1,180 km2 (456 sq mi) private natural reserve which he bought and owns on the south end of Chiloé Island in order to protect 118,000 hectares of the region's unique ecosystem. His foundation runs the park, which is open to the public and is an ecotourist location.

An additional project titled Grupo Tantauco: Derechos Humanos was proposed with the hope of beginning a reconciliation between the Chilean people who suffered human rights violations during Augusto Pinochet's dictatorship.[10]


Prior to becoming President, Piñera owned 100% of Chilevisión, a terrestrial television channel broadcasting nationwide. He also owned 27% of LAN Airlines (LAN) and held 13% of Colo-Colo,[11] a football (soccer) club; among other minor stock positions in companies such as Quiñenco, Enersis, and Soquimich. To avoid a conflict of interests, during 2010, he sold Chilevisión, which was acquired by Time Warner.[12] He also sold his shares of LAN in several rounds between February and March 2010,[13] as well as his participation in Colo-Colo.

Piñera has built an estimated fortune of $US2.4 billion as of March 2011, according to Forbes magazine.[14] His wealth is greatly due to his involvement in introducing credit cards to Chile in the late 1970s and his subsequent investments, mainly in LAN Airlines stock. Piñera acquired shares of the formerly state-owned company from Scandinavian Airlines in 1994, as part of a joint venture with the Cueto family.[14][15]

In 1982, an arrest warrant was issued against Piñera. He was accused of violating the Banking Law during his time as general manager of the Bank of Talca. Piñera spent 24 days in hiding, while his lawyers appealed the order. A writ of habeas corpus was first rejected by the Appeals Court, but then approved by the Supreme Court, acquitting Piñera.[16]

In July 2007, Piñera was fined approximately 680,000 USD by Chile's securities regulator (SVS) for not withdrawing a purchase order after receiving privileged information (an infraction similar to insider trading) of LAN Airlines stock in mid-2006.[17] Piñera denied any wrongdoing and asserted that the whole process was part of a political attack to damage his image. He did not appeal, stating that the court process could take years and interfere with his intention to run again for president in late 2009. Later that month, he resigned from the boards of LAN and Quintec.[18]

Sebastian Piñera's personal wealth has increased over US$200.000.000 during his first year as President of Chile.


Political career

Piñera declared he voted No in the 1988 plebiscite on whether Augusto Pinochet should stay on power until 1997. In 1988 as Pinochet had lost the referendum and Chile was returning to democracy Piñera offered his support for the Christian Democrat Eduardo Frei Ruiz-Tagle in his pre-candidacy for president.[20] Eduardo Frei Ruiz-Tagle was the son of former president Eduardo Frei Montalva whom had together with Piñera's father founded the Christian Democrat Party of Chile and had been appointed ambassador by Frei Montalva. However, in 1989 Sebastián Piñera headed the presidential campaign of Hernán Büchi, a former finance minister of the Pinochet government. During the same election process, Piñera was elected as Senator for East Santiago (1990–1998) and soon after, joined the center-right National Renewal Party. During his term as Senator he was a member of the Senate Finance Committee.

In 1992 Piñera's attempt to become his party's candidate for the following year's Presidential election dramatically ended after he was involved in a scandal known as Piñeragate, wherein a wiretapped conversation between himself and a friend was revealed during a political television show he attended. In the conversation—made public by the television station's owner, Ricardo Claro—he conspired to have his rival for the party's nomination, Evelyn Matthei, cornered during the show by a journalist close to Piñera. The tape was then revealed to have been illegally recorded by a member of the military and given to Matthei, who then gave it to Claro. Matthei stepped down from the presidential race as well.

In 1998, Piñera opposed the arrest and detention of Augusto Pinochet, in London, initiated by Baltasar Garzón, arguing that it was an attack on the sovereignty and dignity of Chile.[21]

Piñera was president of his party from 2001 to 2004. He tried to run for Senator in 2001, but resigned his campaign after the presidential candidate of his alliance -and member of the allied party, the Independent Democrat Union (UDI)-, Joaquín Lavín made it clear he would not support candidates from Piñera's party, insisting on supporting retired Admiral Jorge Arancibia instead.

On May 14, 2005, in a surprise move Piñera announced his candidacy for the 2005 presidential election (RN was supposed to support UDI's Lavín.) He has described his political philosophy as Christian humanism.[citation needed] In the first round of the election, on December 11, he obtained 25.4% of the vote, which placed him in second place. Since no candidate achieved an absolute majority, a runoff election was held on January 15, 2006, between himself and Michelle Bachelet of the governing coalition. Bachelet won the presidency with over 53% of the vote.

Presidential elections of 2009–2010

Piñera celebrates victory alongside wife and family.

Piñera ran for President of Chile in the 2009-2010 election. Since August 2009, he led in opinion polls, competing with Eduardo Frei Ruiz-Tagle, Marco Enríquez-Ominami and Jorge Arrate; all of whom are left-of-center candidates. In the election of December 13, 2009, Piñera placed first in the results by obtaining 44.05% of the votes, while Frei placed second by obtaining 29.6% of the votes. Neither candidate received more than half of the total votes; therefore, according to the Constitution, Chileans returned to the polls for a final run-off election on Sunday, January 17, 2010.[22]

On the evening that day, the third and final preliminary results were announced by the Deputy Interior Ministry. These showing accounted for 99.77% of the total ballot boxes. Of the votes, Piñera received 51.61% and Frei received 48.39%.[23] Eduardo Frei conceded after the first preliminary results, making Sebastián Piñera the new President-elect of Chile. Further results were released by the Chilean Electoral Service on January 25, 2010. Official and final results sanctioned by the Election Qualifying Court were published on the Official Gazette on February 1, 2010.

Piñera's invested an estimated 13.6 millions USD on his Presidential campaign, which included items such as a campaign anthem[24] and "Thank You" banners.[25] Piñera's banners and billboards have carried statements throughout the country such as "Delinquents, your party is over," and "Small businesses, Big opportunities".[26] Also, Piñera's campaign made a cutting-edge move for a right-wing candidate, releasing a national TV spot featuring a male gay couple, something never seen before in a presidential campaign run in Chile. Amongst his promises are increasing education rates and improving international relations with the neighboring country of Perú.[27]

Piñera's victory meant a shift towards the right,[28] breaking two-decades of center-left political leadership and becoming the first elected right-wing leader in 52 years.[29]

On January 28, Piñera renounced his political affiliation to National Renewal, becoming unofficially an independent. Within the party bylaws, it is stipulated that members who are elected to the presidency must renounce their association in order to govern the country fairly, foremost with the interest of the people, not with the interest of a political party or particular political philosophy.[30]


Sebastián Piñera and his Council of Ministers in Chile's National Historical Museum.
Piñera with the former Brazilian president, Lula da Silva.

Private to public transition

The Piñera Cabinet
President Sebastián Piñera Ind. Mar. 11, 2010 – 
Interior Rodrigo Hinzpeter RN Mar. 11, 2010 – 
Foreign Affairs Alfredo Moreno Ind. Mar. 11, 2010 – 
Defense Jaime Ravinet Ind. Mar. 11, 2010 – Jan. 13, 2011
Alfonso Vargas (interim) RN Jan. 13, 2011 – Jan. 16, 2011
Andrés Allamand RN Jan. 16, 2011 – 
Finance Felipe Larraín Ind. Mar. 11, 2010 – 
Secy. Gen. of
Cristián Larroulet Ind. Mar. 11, 2010 – 
Secy. Gen. of
Ena von Baer UDI Mar. 11, 2010 – Jul. 18, 2011
Andrés Chadwick UDI Jul. 18, 2011 – 
Economy Juan Andrés Fontaine Ind. Mar. 11, 2010 – Jul. 18, 2011
Pablo Longueira UDI Jul. 18, 2011 – 
Planning Felipe Kast Ind. Mar. 11, 2010 – Jul. 18, 2011
Joaquín Lavín UDI Jul. 18, 2011 – 
Education Joaquín Lavín UDI Mar. 11, 2010 – Jul. 18, 2011
Felipe Bulnes RN Jul. 18, 2011 – 
Justice Felipe Bulnes RN Mar. 11, 2010 – Jul. 18, 2011
Teodoro Ribera Jul. 18, 2011 – 
Labor Camila Merino Ind. Mar. 11, 2010 – Jan. 14, 2011
Evelyn Matthei UDI Jan. 16, 2011 – 
Public Works Hernán de Solminihac Ind. Mar. 11, 2010 – Jul. 18, 2011
Laurence Golborne Ind. Jul. 18, 2011 – 
Health Jaime Mañalich Ind. Mar. 11, 2010 – 
Magdalena Matte UDI Mar. 11, 2010 – Apr. 19, 2011
Rodrigo Pérez Ind. Apr. 19, 2011 – 
Agriculture José Antonio Galilea RN Mar. 11, 2010 – 
Mining Laurence Golborne Ind. Mar. 11, 2010 – Jul. 18, 2011
Hernán de Solminihac Ind. Jul. 18, 2011 – 
National Assets Catalina Parot RN Mar. 11, 2010 – 
Energy Ricardo Raineri Ind. Mar. 11, 2010 – Jan. 14, 2011
Laurence Golborne Ind. Jan. 16, 2011 – Jul. 18, 2011
Fernando Echeverría Jul. 18, 2011 – Jul. 21, 2011
Rodrigo Álvarez UDI Jul. 22, 2011 – 
Women Carolina Schmidt Ind. Mar. 11, 2010 – 
Culture & the
Luciano Cruz-Coke Ind. Mar. 11, 2010 – 
Environment María Ignacia Benítez UDI Mar. 11, 2010 – 

Piñera became the first billionaire to be sworn into the Chilean Presidency.[31] He offered to sell his shares in major corporations before being sworn in on March 11, 2010, in order to avoid conflicts of interest. Piñera has placed 400 million USD in blind trusts. [32]

The Monday following Piñera's election, expectations of sale from his largest holdings created a surge in trade of Axxion and LAN shares, causing three brief suspensions (January 19–20, 22, 2010) in the Santiago Stock Exchange in order to ease trade. Axxion shares more than tripled before falling 39% on Friday, January 22.[33] Bachelet's Finance Minister Andrés Velasco urged Piñera to get the sale "sorted out quickly."[34] The value of Piñera's interest in Axxion was estimated at 700 million dollars USD, of his 1.2 billion dollar USD fortune at the beginning of that week[35].

On February 5, Piñera confirmed plans to sell his 26.3% stake in LAN airlines at an extraordinary shareholders' meeting for his main holding company, Axxion. Under the pact, Axxion shareholders have agreed to fix the price of the sale, estimated at 1.5 billion USD. The Cueto family, who at that point held 25.5% of LAN through their holding company Costa Verde Aeronáutica, had the first option to purchase the stake.[36] On February 18, Axxion posted a statement on their website confirming the sale of a 21.18% stake in LAN Airlines to the Cueto family for 1.23 billion USD. Announcement regarding the sale of the remaining shares was pending until March 2010, when the whole package left Piñera's hands.[37]

Piñera sold his 9.7% stake in the upscale private hospital Clinica Las Condes at a price of 25,113 CLP per share (48.00 USD) through his holding company Bancard on Tuesday, February 16. The total sale of the 792,000 shares grossed 37.85 million USD and was purchased by the brokerage firm Celfin.[38] The proceeds from the sale will go to paying off Bancard debt.[39]

Piñera announced on February he had the intention to transfer 100% of his stake in Chilevisión to a non-for-profit organization called Fundación Cultura y Sociedad (formerly Fundación Futuro), of which he is owner.[40] The foundation's board will include some of the station's current executives. Under that proposal, Piñera maintains the right to remove and replace the foundation's president at any given time.[41] Cristián Larroulet, current Minister of the Secretariat of the Presidency of Chile, stated that Piñera was honouring his promise of removing himself from private corporations, as Chilevision will become the property of a non-profit organization. MP Cristián Monckeberg (RN), stated there is no law obligating Piñera to do otherwise and thus this decision is legally legitimate.[40]. The option above finally did not take place, Piñera decided to sell the TV station, and after a failed attempt in May 2010 with the Linzor Capital investment fund,[42] the President announced it sold Chilevisión to Time Warner, in late August 2010.

Piñera said he won't sell his 12.5% stake in Blanco y Negro, company that owns the nation's popular soccer team Colo-Colo. He has stated, "We want big things and not only achieve local victories. The idea is to return the Copa Libertadores to Chile. That is our great goal."[43] Although he will remain part owner, he will take no administrative duties or role while President.[44]

Council of Ministers

Piñera announced what he calls his "cabinet of unity" on Tuesday, February 9, 2010, at 18:00 hours (local time), in Chile's National Historical Museum. The list of names was presented the previous day to the leader of the National Renewal Party, Carlos Larraín, and the leader of the Independent Democratic Union, Juan Antonio Coloma. The cabinet is made up of 16 men and 6 women, with an average age of 49. Amongst Piñera's nominees is Jaime Ravinet, who is defense minister of the current president's cabinet and a former member of the Christian Democratic Party, from which he resigned upon accepting Piñera's cabinet offer. Also a nominee is Cristián Larroulet, who was an economic planning adviser under Pinochet.[45]

Chilean Government's transitional logo.
Chilean Government's current logo.

During his first official meeting with his Council of Ministers on Wednesday, February 10, Piñera issued a formal memorandum calling upon all members to renounce their positions in all private companies by the 28th of February in order to avoid conflicts of interest. The memorandum also said that in regards to national heritage, secretaries of state whose affiliation with companies having direct receipt of fiscal monies must either remove themselves from those associations or honor the restrictions of their competitors.[46] Ten of his 22 ministers have involvement in companies with significant financial means.


Sebastián Piñera and his Council of Ministers in Chile's Palacio de Cerro Castillo.

Piñera was sworn in as the 35th President of the Republic of Chile on March 11, 2010, in a ceremony held in a plenary session of the National Congress in Valparaíso. In the same ceremony, Piñera's Cabinet ministers were sworn in. The ceremony was also marked by a 6.9 Mw earthquake and subsequent aftershocks that upset the invitees. Shortly after, the National Congress building was evacuated due to a tsunami alert that proved to be false a couple of hours later. On October 12, 2010, Piñera rallied his countrymen in the rescue of 33 trapped miners, all of whom were rescued after 70 days following a mining accident. "Chile will never be the same," he said to the miner's foreman, Luis Urzúa, as he (the last of the miners to emerge from the cavern) greeted Piñera, in a broadcast carried live across the globe. Despite much goodwill in Chile following this many Chileans are still waiting on Piñera to rectify anti-terrorism laws in Chile which effectively mean the indigenous Mapuche people can be dealt with as "terrorists." This matter has led to hunger strikes which started before the mining disaster, and are set to continue afterwards.[47]

In January 2011 he faced the protest in Magallanes Region in response to proposed increase in the price of the natural gas by 16.8% in that region. The protests left more than two thousand cars isolated while trying to cross from the Argentine province of Tierra del Fuego to the province of Santa Cruz through Chilean territory. Another 1,500 tourists were left without movement in Torres del Paine National Park after routes to Puerto Natales and El Calafate were cut.[48] As concequence, on January 14, the Minister Secretary General of Government Ena von Baer announced changes in Sebastián Piñera's Government cabinet, including the resignment of Ricardo Raineri as Energy Minister. Laurence Golborne became Mining and Energy Minister, on January 16.[49]

Amidst the severe 2011 Chilean student protests Piñera shuffled his cabinet and removed Joaquín Lavín from the post of minister of education. With respect to the protest, Piñera has defended for-profit activity in education and proposed to legalize it, rejecting the students demands for the public ownership of educational establishments.[50] As of August 2011, Piñera's public approval has declined precipitously amidst continuous protests, to the extent that polls indicate that he is the least popular Chilean leader since Augusto Pinochet. As such, Piñera's chances of passing sought reforms are seen as increasingly remote. [51] Sebastian Pinera is currently the worst evaluated president in the history of Chile, including the dictatorship (1973-1990), in terms of credibility and population trust. His approval is as low as 22% by the Chilean population according to CERC survey.[52]


  1. ^ (Spanish) Universia Sebastián Piñera Perfil
  2. ^ (Spanish) "Caminos cruzados", El Mercurio, .
  3. ^ Kotlikoff, Laurence J. & Piñera, Sebastián (1977), "The Old South's Stake in the Inter-Regional Movement of Slaves, 1850-1860", Journal of Economic History 37 (2): 434–450, 
  4. ^ (Spanish) Sandoval, Roberto Castillo (July 30, 2009), "La tesis doctoral de Sebastián Piñera", Noticias secretas, 
  5. ^ (Spanish) "Sebastián Piñera Echeñique - Senador", Reseñas parlamentarias - Biblioteca del Congreso Nacional de Chile, 
  6. ^ (Spanish) Fundacion Mujer Emprende Quienes Somos
  7. ^ (Spanish) Fundanción Futuro Quienes Somos
  8. ^ (Spanish) Terra Semana clave para fundación a la que Piñera traspasará propiedad de Chilevisión
  9. ^ (Spanish) Piñera2010 Conoce las propuestas medioambientales del Grupo Tantauco
  10. ^ (Spanish) Piñera2010 Grupo Tantauco: Derechos Humanos
  11. ^ (Spanish) "Piñera aumenta participación en Colo Colo", La Nación, August 21, 2007, 
  12. ^,s01=1.html
  13. ^ "UPDATE 4-Chile's Pinera to sell remaining LAN stake". Reuters. March 24, 2010. 
  14. ^ a b "Sebastian Pinera - Forbes", Forbes: The World's Billionaires, March 9, 2011, 
  15. ^ "LAN Airlines 2007 annual report, p. 29" .
  16. ^ La Nacion: Inversionista en Fuga
  17. ^ Ethisphere Magazine: Insider Trading
  18. ^ (Spanish) "Piñera deja el directorio de Lan y su socio Cueto inicia apelación por multa de SVS", La Nación, August 1, 2007, 
  19. ^
  20. ^ Piñera y sus raíces DC, La Tercera
  21. ^ Piñera y su acalorado apoyo a Pinochet en 1998. La Nación, 10 de diciembre de 2009 (part of the speech can be seen at Youtube).
  22. ^ Moffett, Matt (December 14, 2009), "Billionaire Leads Chile Election", Wall Street Journal, 
  23. ^ (Spanish) Republica de Chile Votación Candidatos por País
  24. ^ Piñera's Campaign Anthem
  25. ^ Piñera's Thank you Banners
  26. ^ Piñera Campaign Billboard
  27. ^ Living in Peru: Chilean candidate Piñera says he'll maintain good relations with Peru if elected
  28. ^ Gardner, Simon (December 9, 2009), "Chile right seen ousting left in first since Pinochet", Reuters, 
  29. ^ PBS Newshour Chile Elects First Right-Wing President in 52 Years
  30. ^ (Spanish) El Economista Piñera renuncia a su militancia para gobernar
  31. ^ Rohter, Larry (January 15, 2006), "Chile Is Ready to Elect a President Unlike Any Other", New York Times, 
  32. ^ Reuters UPDATE 1-Chile's Piñera begins LAN stake sale process
  33. ^ The Wall Street Journal Chile Piñera's Axxion Falls 39% After Trading Resumes
  34. ^ Bloomberg Business Week Axxion Falls After Post-Election Surge as Halt Lifted (Update2)
  35. ^ Chile's billionaire new president profits from share surge
  36. ^ Reuters Piñera's Axxion approves LAN stake sale
  37. ^ Reuters UPDATE 2-Chile's Pinera offers Cuetos $1.23 bln LAN stake
  38. ^ (Spanish) La Universal Piñera vende acciones de clínica en Chile
  39. ^ Bloomberg Pinera to Auction 36 million USD Las Condes Stake (Update1)
  40. ^ a b (Spanish) La Nacion Cuestionan fórmula de fundación para Chilevisión
  41. ^ (Spanish) Radio Bio Bio Ex “Fundación Futuro” cambia de función y queda como dueña de las acciones de Chilevisión
  42. ^ "Chilean President Pinera sells TV station". Reuters. May 15, 2010. 
  43. ^ El Economista Colo-Colo, la pasión de Piñera
  44. ^ (Spanish) El Diario Exterior El presidente empresario
  45. ^ Financial Times Chile’s Piñera unveils ‘cabinet of unity’
  46. ^ (Spanish) Europa Press Piñera pide a sus futuros ministros renunciar a sus cargos en empresas antes del 28 de febrero
  47. ^ Mapuche hunger strike in Chile highlights the real problem facing President Sebastián Piñera
  48. ^ "Minuto a minuto: Masivo acto en apoyo a Magallanes frente a La Moneda" (in Spanish). The Clinic. January 11, 2011. Retrieved January 12, 2011. 
  49. ^ "Piñera concreta su primer cambio de gabinete al aceptar la renuncia a otros tres ministros". El Mercurio Online. January 14, 2011. Retrieved January 15, 2011. 
  50. ^ Cadena Nacional de Radio y Televisión: Presidente Piñera anunció Gran Acuerdo Nacional por la Educación Government of Chile. July 5th of 2011. Accessdate July 5th of 2011
  51. ^ Teen shot in Chile anti-Piñera protest dies Financial Times. August 26th of 2011. August 26th of 2011
  52. ^

External links

Political offices
Preceded by
Michelle Bachelet
President of Chile

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