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Neoliberalism In Chile -- The Term Paper

" By the end of his regime, Pinochet may have been responsible for the deaths "of at least 3,000 people and the disappearance of many thousands more." (Bidstrup, 2005) the unionization movements, such a critical part of other Latin American nations, had effectively been rooted out. One might state that need not condone the horrors of the Pinochet regime, to grant that some economic successes did result from his policy, and that the reforms may have been necessary. In concrete policy terms, this change enabled an opening of Chile's economies to the world through free trade. Tariffs were reduced and there was an elimination of state-sponsored subsidies of inefficient businesses, combined with an opening of capital markets, relaxation of restrictive labor laws, a reduction in public employees, privatization of state-owned enterprises and changes in formerly inflexible currency regimes and foreign exchange policies. (O'Neil, 2005) it is unlikely that such sweeping and foreign domestic reforms could have been accomplished so quickly, and been sustained in the 1990's in the absence of a military regime.

General Pinochet was a leader who was able to manipulate institutional changes in his favor, while simultaneously convincing the public that he was acting on their behalf. Instead of being constrained by negotiations with other societal forces, Pinochet maneuvered around them so that he was able to move his reform policies forward. (Bansal, 2005, pp. 5-6) Always, he remained inspired by long-standing economic advocates such as the 'Chicago Boys' from within the nation, as well as outsiders and...

However, despite this smooth transition, the legacy of neoliberal policies continued into the new era, again mainly as a result of the institutional changes that Pinochet made, such as his Constitution of 1980, making capitalism virtually part of the nation's government. Thus, in Chile structural and legal institutions, the legacy of the military, and the legacy of past academic economic thought all contributed to the Chilean Miracle, in ways that may make American democrats uncomfortable. Even while democratic principles continue to lag in Chile today, the nation's economic system continues to thrive under a neoliberal, capitalist regime. (Bansal, 2005, p. 22)
Works Cited

Bansal, Dee. (2005) "Efficient or Egregious Economics? A Theoretical Approach to Understanding Neoliberal Economic Reform in Argentina and Chile. http://www.acad.carleton.edu/curricular/POSC/faculty/montero/Dee%20Bansal.pdf

Bidstrup, Scott. (2005) Free Market Fundamentalism: Friedman, Pinochet and the "Chilean Miracle." Economics. Retrieved on 17 Apr 2005 at http://www.bidstrup.com/economics.htm

O'Neil, Shannon. "The Role of Ideas in Neoliberal Economic Reform." Latin American Studies Conference: Papers. Retrieved 17 Apr 2005 http://www.people.fas.harvard.edu/~soneil/papers/sn_LASA2001confpaper.pdf

Sources used in this document:
Works Cited

Bansal, Dee. (2005) "Efficient or Egregious Economics? A Theoretical Approach to Understanding Neoliberal Economic Reform in Argentina and Chile. http://www.acad.carleton.edu/curricular/POSC/faculty/montero/Dee%20Bansal.pdf

Bidstrup, Scott. (2005) Free Market Fundamentalism: Friedman, Pinochet and the "Chilean Miracle." Economics. Retrieved on 17 Apr 2005 at http://www.bidstrup.com/economics.htm

O'Neil, Shannon. "The Role of Ideas in Neoliberal Economic Reform." Latin American Studies Conference: Papers. Retrieved 17 Apr 2005 http://www.people.fas.harvard.edu/~soneil/papers/sn_LASA2001confpaper.pdf
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