The government of Chile was based on the constitution of 1925 until a coup d'état in 1973. Although it remained nominally in effect, most of the constitution's provisions guaranteeing popular democracy and due process were suspended. A new constitution was approved in 1980 and enacted in 1981 but its major provisions were not fully implemented until 1989.

The 1981 constitution vests executive power in a president, popularly elected for a four-year term, and a cabinet that is appointed by the president. Military leaders continued to control the government until 1989, when the first popular elections for president were held. In 1994 the legislature extended the presidential term to six years.

In accordance with the 1981 constitution, Chilean voters in 1989 elected a bicameral legislature, called the National Congress. The Chamber of Deputies consists of 120 elected members, and the Senate comprises 47 elected members. All citizens age 18 and older are entitled to vote.

The highest judicial body in Chile is the Supreme Court, which has 17 judges. The country also has 17 courts of appeal. Judges are appointed for life by the president from a list submitted by the supreme court judges.

For the purpose of local administration, Chile is divided into 13 regions (including Greater Santiago), which are subdivided into 40 provinces. The governors, who preside over the regions, and the officials who govern the provinces are appointed by the president. Provinces are further divided into municipalities.

All political activity was suspended after the 1973 coup and banned outright in 1977. Political parties were again legalized in 1987. In 1993 elections the center-left Concertación de los Partidos de la Democracia was victorious, winning 70 seats in the Chamber of Deputies. Other victorious parties included the Union Para al Progresso de Chile (47 seats), and several right-wing independents.

Social welfare legislation was first enacted in the 1920s, and by the early 1970s the country's welfare program ranked as one of the most extensive in the world. After the 1973 coup, much of the welfare structure was cut back. The majority of the population, however, is provided free medical care under the auspices of the National Health Service. Workers may be insured to receive old-age pensions, unemployment benefits, disability expenses, and other benefits.

Military service of one year in the army or two years in the navy or air force is compulsory in Chile for all able-bodied 18- or 19-year-old men. In the early 1990s the country's military force of 91,800 people was distributed as follows: 54,000 in the army, 25,000 in the navy, and 12,800 in the air force.

The Chilean economy has, since the early 20th century, been dominated by the production of copper. Since the 1940s the industrial sector has expanded rapidly, largely due to government efforts at diversification. Today Chile is one of the leading industrial nations in Latin America as well as one of its largest mineral producers. In the 1970s efforts were made to boost the output of the neglected agricultural sector and to reduce the country's dependence on imported food; after a slow-down in the production of major crops in the early 1980s, agricultural output improved later in the decade.

Since the leftist administration was deposed in 1973, the government has played a less dominant role in the economy, and most nationalized companies have been returned to private ownership. In the early 1990s the estimated national budget was balanced at $10.9 billion in revenues and $10.9 billion in expenditures. By the 1990s Chile's economy was one of the strongest in South America, earning the country invitations to join the Asia-Pacific Economic Cooperation (APEC) and the North American Free Trade Agreement (NAFTA).

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