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Edition: U.S. Article Slideshow Save Email Print Reprints Most Popular Most Shared Google denies leaving China, seeks negotiations 3:49am EST UPDATE 1-JFK air terminal evacuated after security breach 16 Jan 2010 Apple turns up heat in Nokia battle 4:35am EST Angry Haitians block roads with corpses: witness 14 Jan 2010 U.N. calls Haiti crisis "worst in decades" | Video 10:14am EST Google denies leaving China, seeks negotiations 3:49am EST UPDATE 1-JFK air terminal evacuated after security breach 16 Jan 2010 Navy commissions newest warship, others coming 16 Jan 2010 Q+A: Cost of Iraq, Afghanistan tops $1 trillion 15 Jan 2010 Congress makes job creation top 2010 priority 8:12am EST Chile magnate may oust left, fights Pinochet ghost Simon Gardner SANTIAGO Sun Jan 17, 2010 7:36am EST < 1 / 2 > View Full Size SANTIAGO (Reuters) - A conservative billionaire has a paper-thin lead heading into Chile's presidential election on Sunday as he bids to end 20 years of center-left rule, but is wrestling with the ghost of former dictator Augusto Pinochet. World Airline magnate Sebastian Pinera is seen narrowly beating Eduardo Frei, a former president from the leftist bloc that has governed the world's top copper producer since the end of Pinochet's 1973-1990 dictatorship. A win by Harvard-trained economist Pinera would mark a shift to the right in a region dominated by leftist rulers from Venezuela to Argentina, although no major changes to economic policy are expected whoever wins. Many Chileans are disenchanted with the ruling center-left "Concertacion" coalition, and say the government could have made better use of billions of dollars in copper boom savings. They are also fed up that an old guard dominates politics. Chileans from the dusty mining towns of the arid north to the icy southern coast on Sunday started to arrive at polling stations at 7 a.m. local time (1000 GMT). "Frei was already in power and he didn't do too much," said Adriana Contreras, a 44-year-old housewife in the capital Santiago. "I voted for Pinera to have the change we need. To see a Reuters insider story on the election, please click here: link.reuters.com/cyj83h A MORI poll on Wednesday showed Pinera winning the run-off with 50.9 percent of the vote, against 49.1 percent for Frei -- well within a 3 percentage point margin of error. Pinera, ranked No. 701 on Forbes' global list of the world's richest individuals, won 44 percent in the December 13 first-round vote, while Frei took 29.6 percent. It was the first time the right outpolled the left in a presidential vote since Chile returned to democracy in 1990. With the field narrowed, both Frei and Pinera scrambled to woo the supporters of a maverick independent who divided the left, polled third with 20 percent and missed the run-off. NAIL-BITING FINISH Former film producer Marco Enriquez-Ominami finally gave Frei a lukewarm endorsement on Wednesday, and his support could prove a factor in the race, although analysts say it was likely too little, too late. "I'm undecided," said 46-year-old Julio Hernandez, an apartment building doorman who in the past has voted for the center-left, but in the first leg picked Pinera. "The Concertacion has always had the same politicians. This is a complicated vote for me." Pinera, 60, who made his fortune introducing credit cards to Chile and has a major stake in flagship airline LAN, has benefited from divisions in the ruling coalition. He has also sought to distance himself from the bloody legacy of Pinochet's rule, when more than 3,000 people were killed or "disappeared" and about 28,000 people were tortured, and has reached out to the large middle class. Still, one of his brothers was a minister under Pinochet, some of his aides worked for the dictatorship and he has found himself on the defensive as Frei has cast the right as the former strongman's heirs. Some analysts wonder if a Pinochet fear factor could help swing the vote in Frei's favor. Pinera has vowed to give Chile's state-owned enterprises an overhaul to boost efficiency, promising to create a million jobs and boost economic growth to average 6 percent a year after a contraction in 2009 in the first recession since the Asian crisis a decade ago. MARKET FAVORITE His critics say his plan depends too heavily on the private sector generating jobs and banks on a steady global recovery maintaining copper demand. Pinera could also struggle to push reforms through a divided Congress. "After 20 years I think a change will be good for Chile. It's like opening the windows of your home to let fresh air come in," Pinera told reporters early on Sunday. Pinera is the market favorite, and analysts forecast a win would give extra momentum in the near term to a stock market rally continuing from 2009 on a recovery from global crisis and sharp price gains for the main export, copper. Frei, whose 1994-2000 presidency was shaken by recession, vows to continue with popular President Michelle Bachelet's welfare policies and says his priorities include labor reform. He has also adopted several of leftist Enriquez-Ominami's policies, vowing to overhaul the tax system and boost revenue from mining royalties, and some investors are wary about how far Frei will go to accommodate him. He has also sought to revive memories of the right's support for Pinochet. "We may have made errors, but we did not commit horrors," Frei said during the final days of campaigning. (Additional reporting by Alonso Soto, Rodrigo Martinez, Antonio de la Jara, Aaron Nelsen, Alvaro Tapia, Juana Casas; editing by Peter Cooney and Todd Eastham) World More from Reuters Google denies leaving China, seeks negotiations SHANGHAI (Reuters) - Google Inc enters a second week of high stakes brinkmanship with China's government, amid speculation the firm has decided to pull out of the world's biggest Internet market over cyber-spying concerns. Obama seeks to turn words into deeds on diplomacy CIA bomber video shows militant links: Holbrooke Iraq's "Chemical Ali" gets 4th death sentence Supreme Court to rule on famed death penalty case Saudi shareholder says supporting Citi's CEO » More Top News Flush with oil, but still poor Cabindans, cut off from most of Angola, have deep and complex grievances against their government. The biggest is oil. Full Article Factbox: Angola's province of Cabinda Latest oil prices COMMODITIES Goods on the water Merchants sell their wares from small boats in the traditional style at Thailand's floating market. Slideshow Shrinking Dead Sea Rare "Ring of Fire" eclipse PICTURES © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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