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How Chile became home to the world’s most radical free-market experiment—and what its downfall suggests about the fate of neoliberalism around the globe In The Chile Project, Sebastian Edwards tells the remarkable story of how the neoliberal economic model—installed in Chile during the Pinochet dictatorship and deepened during three decades of left-of-center governments—came to an end in 2021, when Gabriel Boric, a young former student activist, was elected president, vowing that “If Chile was the cradle of neoliberalism, it will also be its grave.” More than a story about one Latin American country, The Chile Project is a behind-the-scenes history of the spread and consequences of the free-market thinking that dominated economic policymaking around the world in the second half of the twentieth century—but is now on the retreat. In 1955, the U.S. State Department launched the “Chile Project” to train Chilean economists at the University of Chicago, home of the libertarian Milton Friedman. After General Augusto Pinochet overthrew socialist president Salvador Allende in 1973, Chile’s “Chicago Boys” implemented the purest neoliberal model in the world for the next seventeen years, undertaking a sweeping package of privatization and deregulation, creating a modern capitalist economy, and sparking talk of a “Chilean miracle.” But under the veneer of success, a profound dissatisfaction with the vast inequalities caused by neoliberalism was growing. In 2019, protests erupted throughout the country, and in 2022 Boric began his presidency with a clear mandate: to end neoliberalismo. In telling the fascinating story of the Chicago Boys and Chile’s free-market revolution, The Chile Project provides an important new perspective on the history of neoliberalism and its global decline today.
This book tells the extraordinary story of the Pinochet regime's economists, known as the "Chicago Boys". It explores the roots of their ideas and their sense of mission, following their training as economists at the Department of Economics at the University of Chicago. After their return to Chile, the "Chicago Boys" took advantage of the opportunity afforded them by the 1973 military coup to launch the first radical free market strategy implemented in a developing country. The ideological strength of their mission and the military authoritarianism of General Pinochet combined to transform an economy that, following the return to democracy, has stabilized and is now seen as a model for Latin America. This book, written by a political scientist, examines the neo-liberal economists and their perspective on the market. It also narrates the history of the transfer of ideas from the industrialized world to a developing country, which will be of particular interest to economists.
"After a modest increase in Metro fares in Santiago, Chile, last October, twenty Metro stations were simultaneously set on fire. The fare increase was the tipping point of years of social malaise. Days later there were more than a million protesters on the streets. The people of Chile were rejecting low pensions, highway tolls, school segregation, low-quality education, and poor public-health services-the result of decades of neoliberalism. Chile was the prototype for neoliberal policies, first set up under the dictatorship of Augusto Pinochet with the first-hand guidance of economists from the University of Chicago. Under neoliberalism Chile was long seen as an exemplary developing economy, and a testament to the power of privatization and free trade. But all was not well. Sebastian Edwards tells the story of how Chile went from being the posterchild of market-oriented reforms and capitalist modernization to a nation rocked by violence and political upheaval. He narrates the origins of neoliberalism and the role of the "Chicago boys" in designing and implementing these reforms. He explains the tension between poverty reduction and income inequality, which led to seething discontent under the surface of strong economic numbers. The book tells the story of the signature policies first enacted in Chile that came to define the neoliberal way more broadly: the replacement of a traditional pension system with a privately managed system of individual savings accounts, openness and globalization, the fiscal rule, the taming of inflation, and austere health, education, and environmental policies. As Chile now sets out to draft a new constitution, and other countries come to terms with the same set of policies, all under the looming specter of reactionary populism, the book is an authoritative and important assessment of the success of neoliberalism at a pivotal moment in its history"--
A study of Chile's shantytown resistance testifies to the power of popular struggles.
Revised and updated: the definitive primary-source history of US involvement in General Pinochet’s Chilean coup—“the evidence is overwhelming” (The New Yorker). Published to commemorate the fortieth anniversary of General Augusto Pinochet’s infamous September 11, 1973, military coup in Chile, this updated edition of The Pinochet File reveals the shocking, formerly secret record of the US government’s complicity with atrocity in a foreign country. The book now completes the file on Pinochet’s story, detailing his multiple indictments between 2004 and his death on December 10, 2006, including the Riggs Bank scandal that revealed how the dictator had illegally squirreled away over $26 million in ill-begotten wealth in secret American bank accounts. When it was first released in hardcover, The Pinochet File contributed to the international campaign to hold Pinochet accountable for murder, torture, and terrorism. A new afterword tells the extraordinary story of Henry Kissinger’s attempt to undercut the book’s reception—efforts that generated a major scandal that led to a high-level resignation at the Council on Foreign Relations, illustrating the continued ability of the book to speak truth to power. “The Pinochet File should be considered the long awaited book of record on U.S. intervention in Chile . . . A crisp compelling narrative, almost a political thriller.” —Los Angeles Times
An account of the polarization of Chilean society under Augusto Pinochet and of Chile's return to democratic government.
A historical study of Chile's twin experiments with cybernetics and socialism, and what they tell us about the relationship of technology and politics. In Cybernetic Revolutionaries, Eden Medina tells the history of two intersecting utopian visions, one political and one technological. The first was Chile's experiment with peaceful socialist change under Salvador Allende; the second was the simultaneous attempt to build a computer system that would manage Chile's economy. Neither vision was fully realized—Allende's government ended with a violent military coup; the system, known as Project Cybersyn, was never completely implemented—but they hold lessons for today about the relationship between technology and politics. Drawing on extensive archival material and interviews, Medina examines the cybernetic system envisioned by the Chilean government—which was to feature holistic system design, decentralized management, human-computer interaction, a national telex network, near real-time control of the growing industrial sector, and modeling the behavior of dynamic systems. She also describes, and documents with photographs, the network's Star Trek-like operations room, which featured swivel chairs with armrest control panels, a wall of screens displaying data, and flashing red lights to indicate economic emergencies. Studying project Cybersyn today helps us understand not only the technological ambitions of a government in the midst of political change but also the limitations of the Chilean revolution. This history further shows how human attempts to combine the political and the technological with the goal of creating a more just society can open new technological, intellectual, and political possibilities. Technologies, Medina writes, are historical texts; when we read them we are reading history.
The Chile Reader makes available a rich variety of documents spanning more than five hundred years of Chilean history. Most of the selections are by Chileans; many have never before appeared in English. The history of Chile is rendered from diverse perspectives, including those of Mapuche Indians and Spanish colonists, peasants and aristocrats, feminists and military strongmen, entrepreneurs and workers, and priests and poets. Among the many selections are interviews, travel diaries, letters, diplomatic cables, cartoons, photographs, and song lyrics. Texts and images, each introduced by the editors, provide insights into the ways that Chile's unique geography has shaped its national identity, the country's unusually violent colonial history, and the stable but autocratic republic that emerged after independence from Spain. They shed light on Chile's role in the world economy, the social impact of economic modernization, and the enduring problems of deep inequality. The Reader also covers Chile's bold experiments with reform and revolution, its subsequent descent into one of Latin America's most ruthless Cold War dictatorships, and its much-admired transition to democracy and a market economy in the years since dictatorship.
Throughout the colonial period the Spanish crown made numerous unsuccessful attempts to conquer Araucanía, Chile’s southern borderlands region. Contested Nation argues that with Chilean independence, Araucanía—because of its status as a separate nation-state—became essential to the territorial integrity of the new Chilean Republic. This book studies how Araucanía’s indigenous inhabitants, the Mapuche, played a central role in the new Chilean state’s pursuit of an expansionist policy that simultaneously exalted indigenous bravery while relegating the Mapuche to second-class citizenship. It also examines other subaltern groups, particularly bandits, who challenged the nation-state’s monopoly on force and were thus regarded as criminals and enemies unfit for citizenship in Chilean society. Pilar M. Herr’s work advances our understanding of early state formation in Chile by viewing this process through the lens of Chilean-Mapuche relations. She provides a thorough historical context and suggests that Araucanía was central to the process of post-independence nation building and territorial expansion in Chile.
Boldly breaks new ground in studies of Latin American postdictatorial memories by tackling a taboo topic--civilian complicity with the Pinochet regime--that Chilean society has strategically avoided.