In 1881, Chile signed a treaty with Argentina confirming Chilean sovereignty over the Strait of Magellan but also loosing its colonial rights over Eastern Patagonia. As a result of the [[War of the Pacific]] with Peru and Bolivia (1879–83), Chile expanded its territory northward by almost one-third and acquired valuable nitrate deposits, the exploitation of which led to an era of national affluence. After a [[Civil war]] in 1891 in which President [[José Manuel Balmaceda]] committed suicide, a parliamentary democracy was established, but degenerated into a system protecting the interests of the ruling oligarchy. | In 1881, Chile signed a treaty with Argentina confirming Chilean sovereignty over the Strait of Magellan but also loosing its colonial rights over Eastern Patagonia. As a result of the [[War of the Pacific]] with Peru and Bolivia (1879–83), Chile expanded its territory northward by almost one-third and acquired valuable nitrate deposits, the exploitation of which led to an era of national affluence. After a [[Civil war]] in 1891 in which President [[José Manuel Balmaceda]] committed suicide, a parliamentary democracy was established, but degenerated into a system protecting the interests of the ruling oligarchy. |