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Sebastian Pinera - Source: Reuters -
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The ground shook and buildings swayed as billionaire Sebastian
Pinera took over as Chile's president on Friday, tasked with
rebuilding after a massive earthquake killed hundreds just 12 days
ago.
A series of strong aftershocks rattled central Chile minutes before
conservative Pinera was sworn in at Congress in the port city of
Valparaiso, as Latin American presidents and other dignitaries
looked nervously at the ceiling.
Workers in the capital briefly evacuated swaying office towers and
took refuge in the streets.
Friday's aftershocks were an unsettling reminder of the earthquake
that killed nearly 500 people and damaged infrastructure across
much of south-central Chile, threatening Pinera's election pledges
to boost economic growth to 6% a year and to create a million
jobs.
In Constitucion, heavily damaged in the 8.8-magnitude quake on
February 27, residents scrambled for the hills on Friday after the
navy issued a tsunami alert, but it was later called
off.
Pinera rushed off to the quake zone after swearing in, leaving
behind the presidents who attended his inauguration.
"I felt that my duty was to be here in Constitucion," he said,
dressed in a red zip-up-jacket, in the coastal city known for its
fishing and forestry industry.
The new president has ordered his interior minister to personally
oversee the recovery work of state emergency office Onemi, heavily
criticized for its handling of the earthquake and ensuing tsunamis
that devastated coastal villages.
Chileans hope that Pinera, a Harvard-trained economist, can use his
business acumen to help one of Latin America's most stable
economies rebound from the devastating earthquake.
"The main challenge is to identify priorities to swiftly start the
reconstruction effort. That will be the key variable that will be
evaluated during his administration," said Alberto Ramos, senior
economist with Goldman Sachs in New York.
"This could be the Katrina of President Pinera ... in terms of how
the population perceives the relief and reconstruction effort," he
said, referring to the powerful hurricane that struck New Orleans
in 2005. The slow relief effort damaged US President George W
Bush's popularity.
While mines were mostly unscathed in the world's top copper
producer, the February quake seriously damaged Chile's key wine,
fish and paper pulp industries.
Some analysts see the damage shaving 0.5 to 2.0 percentage points
off this year's economic growth, while others are holding to their
original GDP forecasts of around 5%.
State-owned copper company Codelco, the world's biggest copper
miner, said none of its mines were damaged in Friday's
aftershocks.One, a powerful magnitude 6.9 about 124
km south-west of the capital, was nearly as powerful as the
quake that devastated Haiti in January.
Pinera, a 60-year-old former senator who made a fortune on a
credit cards business and an airline, ranks No. 437 on Forbes'
richest list, which estimates his fortune at US$2.2
billion.
To fund reconstruction, the new leader is likely to issue
international bonds and dip into the country's copper
savings.
Survivors are praying that he gets it right.
"He is a businessman ... and that is what we need right now.
Someone who can create jobs for our kids," said Carlos Fuentes, a
47-year-old fisherman who lost his home and boat when giant waves
rolled over the town of Curanipe after the quake twelve days
ago.
Pinera has announced a programme to provide 4 million of the
neediest families with 40,000 Chilean pesos ($110) this
month.
Frayed nerves
The continued rumbling has frayed nerves, particularly in
hard hit Constitucion and Rancagua, shaken hard by Friday's
aftershocks.
After initial reports of significant damage on Friday, emergency
officials later said there were no reports of damages, injuries or
fatalities.
"Now I'm nervous!" said Delfina Fuentes, 60, on a nearby hilltop
on Friday after abandoning her home in Constitucion, which was
damaged by the February quake.
The handover of power from popular center-leftist Michelle
Bachelet was celebrated with an austere midday ceremony, toned down
out of respect for the dead.
Pinera joins a small group of conservative leaders in Latin
America, where most presidents are leftists or center-leftists. He
is the first conservative leader in Chile after two decades of
center-left rule that has consolidated the country's status as the
most developed country in Latin America.
Bachelet, a pediatrician-turned-politician, left office with a
record 84% approval rating even after criticism of delays in
government aid for victims.
Her government was also slammed for a faulty tsunami warning
system, botched death toll estimates and hesitating to send in
troops to quell violent looting.
