President-elect Michelle Bachelet, Chile's first woman leader, has pledged to "walk the same road" as the outgoing Lagos administration.

For this "socialist," that means supporting free market policies such as the Free Trade Area of the Americas.

Although Chile is one of the most economically stable countries in the region, it suffers from vast economic inequality, under-funded schools, a broken pension system and anti-union labor laws.

One journalist has proclaimed that Bachelet's election "proves neoliberalism works."

But she is widely seen as a much better choice than Sebastian Pinera, the conservative businessman who ran against her.