My friends are all of a fairly libertarian persuasion so the subject of marijuana legalization comes up a lot. Chilean culture is known to be relatively conservative and Pinochet's regime was notorious for rounding up and executing growers so naturally, people wonder if things have loosened up at all. The answer is most definitely yes. The General would be appalled.
Ten years ago, most Chileans associated cannabis with the criminal underworld but a lot has changed since then. Today, there are 500 grow shops in Santiago alone. Even here in Valdivia, which is a much smaller town, there are four grow shops within a ten minute walk of the central plaza.
While it's still illegal to buy and sell marijuana, it is legal to grow and consume it in your home (six plants per house). This has led Chile to become the biggest per-capita consumer in Latin America while fanning the flames of legal reform. A decriminalization bill has already passed the Lower House of Congress and currently, 70% of the population approves of medicinal marijuana use while just over 50% are in favor of total legalization.
As far as I can tell, most of the weed here still comes in from Peru and Paraguay and the quality is much lower than what I was used to in Canada but now that the culture is blossoming in Chile, we're seeing rapid improvements. I'm predicting that the local standards will be up to par in a few more years as home-growers learn from their more-experienced neighbors to the north. The medical marijuana industry is about to explode now too, which should attract investment capital and drive innovation in the field. Strangely enough, the government that once persecuted growers is now poised to become their biggest customer.