Sebastián Piñera

Miguel Juan Sebastián Piñera Echenique OMCh (; born 1 December 1949) is a Chilean billionaire businessman and politician who served as president of Chile from 2010 to 2014 and again from 2018 to 2022.

The son of a Christian Democratic politician and diplomat, he studied business administration at the Pontifical Catholic University of Chile and economics at Harvard University. He had an estimated net worth of 2.8  billion dollars in 2019 according to ''Forbes'', making him one of the richest people in Chile.

A member of the liberal-conservative National Renewal party, he served as a senator for the East Santiago district from 1990 to 1998, running for the presidency in the 2005 election, which he lost to Michelle Bachelet, and again, successfully, in 2010. As a result, he became Chile's first conservative president to be democratically elected since 1958, and the first to hold the office since the departure of Augusto Pinochet in 1990.

Following the social unrest that erupted in late 2019, Piñera's diminished capacity to govern according to the principle of presidentialism led to claims that Chile is in a state of ''de facto'' parliamentarism or should become parliamentarian.

Early life and education

Piñera is the sixth child of José Piñera Carvallo and Magdalena Echenique Rozas. Among his ancestors on his maternal side is his mother's great-great-grandmother, Luisa Pinto Garmendia, the sister of President Aníbal Pinto Garmendia and daughter of President Francisco Antonio Pinto and Luisa Garmendia Alurralde, who was a descendant of the penultimate Inca emperor, Huayna Capac. He is a nephew of the former oldest living Roman Catholic bishop in the world, Bernardino Piñera, who died in 2020 due to complications from COVID-19.

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

Piñera then enrolled at the Pontifical Catholic University of Chile, from which he graduated in 1971 with an undergraduate degree in commercial engineering. Upon graduation, he was awarded the Raúl Iver Oxley Prize, which is given to the best overall student in each class.

Piñera continued on to Harvard University on a partial Fulbright Program for postgraduate studies in economics. During his time at Harvard, Piñera and a classmate coauthored an article, "The Old South's Stake in the Inter-Regional Movement of Slaves", for the ''Journal of Economic History''. After three years at Harvard, Piñera graduated with both a Master of Arts and PhD in Economics.

Career

Teaching

Piñera was an economics lecturer from 1971 until 1988 at the University of Chile, the Pontifical Catholic University of Chile, and Adolfo Ibáñez University. In 1971, he was in charge of Economic Political Theory in the School of Economics at the University of Chile, and in 1972, at the Valparaiso Business School.

Foundations

In 1989, with 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.

In 1973, 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. The foundation was renamed ''Fundación Cultura y Sociedad'' after Piñera was elected president.

Under the ''Fundación Cultura y Sociedad'' (formerly ''Fundación Futuro''), the ''Grupo Tantauco'' has the mission of environmentalism, and is administered by Juan Carlos Urquidi. It was created to support the proposals Piñera plans to institute during his presidency. In 2005, Piñera created Tantauco Park (Spanish: ''Parque Tantauco''), a 1,180 km2 (456 sq mi) private natural reserve 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.

In fact, Piñera bought the 118,000 hectares in Chiloé through an offshore company in Panama. He has faced pressure to cede eight hectares to sixteen Indian families whose presence pre-dates Piñera's purchase and who have spent years negotiating to obtain title to their familial lands.

An additional project, ''Grupo Tantauco: Derechos Humanos'', was proposed in hopes of beginning a reconciliation between the Chilean people who suffered human rights violations during Augusto Pinochet's dictatorship.

Businesses

Piñera was general manager of the Banco de Talca. In 1982, a warrant was issued for his arrest on charges of violating banking law, in an event where over US$38 Million were not paid to the Central Bank of Chile, Piñera being the Banco de Talca's CEO. The money disappeared and was never paid. Piñera spent 24 days in hiding while his brother, José Piñera, appealed the order, making some calls to underestimate the crime. A writ of habeas corpus, first rejected by the Appeals Court but then approved by the Supreme Court, acquitted Piñera.

Piñera once owned 90% of Chilevisión (a terrestrial television channel broadcasting nationwide). He also owned 27% of LAN Airlines (LAN); 13% of Colo-Colo, a football (soccer) club; and other minor stock positions in companies such as Quiñenco, Enersis, and Soquimich.

In July 2007, Piñera was fined approximately US$680,000 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. Later that month, he resigned from the boards of LAN and Quintec.

To avoid a conflict of interest he sold Chilevisión for $160 million in 2010 to Time Warner. He also sold his shares of LAN in several rounds between February and March 2010, as well as his stake in Colo-Colo.

Piñera has built an estimated fortune of $US2.8 billion , according to ''Forbes'' magazine. 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.

Political career

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.

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.

On 14 May 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.

Presidential elections of 2009–2010

Piñera ran for President of Chile in the 2009–2010 election. Since August 2009, he led in opinion polls, competing with left-of-center candidates Eduardo Frei Ruiz-Tagle, Marco Enríquez-Ominami and Jorge Arrate. On 13 December 2009 election, Piñera placed first in the results with 44.05% of the votes, while Frei placed second with 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, 17 January 2010.

That evening, the third and final preliminary results were announced by the Undersecretary of the Interior. These showing accounted for 99.77% of the total ballot boxes. Of the votes, Piñera received 51.61% and Frei received 48.39%.

Piñera invested an estimated US$13.6 million in his presidential campaign, which included items such as a campaign anthem and "Thank You" banners. Piñera's banners and billboards have carried statements throughout the country such as "Delinquents, your party is over," and "Small businesses, Big opportunities". Piñera's campaign released a featuring a male gay couple, something never seen before in a presidential campaign run in Chile. Amongst his promises were increasing education rates and improving international relations with the neighboring country of Perú.

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

On 28 January, Piñera suspended his membership in National Renewal, becoming unofficially an independent. RN's bylaws require successful presidential candidates from the party to renounce their association to govern the country fairly, foremost with the interest of the people, not with the interest of a political party or particular political philosophy.

Private to public transition

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

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 (19–20, 22 January 2010) in the Santiago Stock Exchange to ease trade. Axxion shares more than tripled before falling 39% on Friday, 22 January. Bachelet's Finance Minister Andrés Velasco urged Piñera to get the sale "sorted out quickly." The value of Piñera's interest in Axxion was estimated at US$700 million, of his US$1.2 billion fortune at the beginning of that week.

On 5 February, 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 US$1.5  billion. 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. On 18 February, Axxion posted a statement on their website confirming the sale of a 21.18% stake in LAN Airlines to the Cueto family for US$1.23 billion. Announcement regarding the sale of the remaining shares was pending until March 2010, when the whole package left Piñera's hands.

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

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. La Nacio
Cuestionan fórmula de fundación para Chilevisión
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. Cristián Patricio Larroulet Vignau, current Minister of the Secretariat of the Presidency of Chile, stated that Piñera was honoring 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.''''. 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, 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'', a 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." Although he will remain part owner, he will take no administrative duties or role while President.

Council of Ministers

Piñera announced his "cabinet of unity" 9 February 2010 in Chile's National Historical Museum. The cabinet is made up of 16 men and 6 women. Amongst Piñera's nominees was Jaime Ravinet, the previous president's defense minister; until accepting Piñera's offer, he had been a member of the Christian Democratic Party. Another nominee was Cristián Larroulet, who was an economic planning adviser under Pinochet. Piñera first met with his new ministers one day later and issued a formal memorandum calling upon all members to renounce