Overall, scholars have mixed opinions on the effects of the neoliberal reforms. The social explosion has shown that Chile was far from being the neoliberal paradise that the government’s narrative tried to sell to the world for 47 years. ), and pensions that depend on the vagaries of the stock market, have long been “hidden” from foreign observers by Chile’s success in raising its GDP per capita. In 2015, its level of income inequality was higher than any other Latin American country except for Colombia, Paraguay, and Honduras. The candidates for the Constituent Assembly must come out of the mass movement in order for real change to be achieved by and for workers. For example, European and North … However, patience among Chilean citizens has simply run out. Chile’s neoliberal experiment eventually produced the worst economic crisis in all of Latin America. In this article, we analyse the impacts of neoliberal reforms on access to … Likewise, in 2015, during Bachelet’s second government, under the pressure of consecutive waves of workers’ and students’ struggle, the idea of a new constitution began to emerge. During 2019, according to data from the National Institute of Statistics, the average monthly income of a Chilean household was $573,964 Chilean pesos (USD $846 approximately). Such feelings of 'malestar' triggered the violent social unrest of October 2019. It is true that this would represent an advance, but not a final victory for the working class. By Josafat Arrieta, Alternativa Socialista (ISA in Mexico). This resulted in a growing discontent and greater support for the idea of a new constitution, which had its most visible expression on October 25th. The masses’ voice is being heard and is shaking to its depths an unjust and inhumane system. As the country with the highest Human Development Index (HDI) in Latin America, it has always been considered by advocates of neoliberalism as an example to follow. The explosion that shook Chile is part of a new wave of working class movements around the world, which are revealing a crisis of hegemony of the neoliberal economic model. Chile is an example of how neoliberal government can lead to the loss of the public’s trust in science, a new book argues. The blaze that was lit in October 2019 in Santiago de Chile with the Chilean teenagers taking the subway stations, should serve as a reference for what is to come. In spite of the propaganda deployed in favor of “rejection” and the mobilization of extreme right-wing groups, the result was overwhelming in favor of the approval of a new constitution. deep reforms and constitutional amendments, where many neoliberal policies are enshrined. The same crisis that began to develop since the economic crisis of 2008 and which has re-emerged since 2018, the year that the World Bank began to warn of signs of a global economic recession, whose effects have been exacerbated by the health crisis that hit the world this year. As one of the Latin American countries that has experienced the deepest international integration, examining Chile's economic transformation can provide insight on the impact of neolib- Through the so-called “Shock Doctrine” and the “Seven Modernizations”, promoted by the “Chicago Boys”, the first stage of neoliberalism took place in Chile. Moreover, Chile is the country where billionaires’ share, in terms of GDP, is the highest in the world (if we exclude countries like Lebanon and Cyprus where many foreign billionaires simply “park” their wealth for tax reasons). The reason for this opposition is quite clear; these sectors are the great beneficiaries of the Chilean economic and political model. Argentina, Chile experienced dramatic economic growth and transition to democracy have made it poster! Of Chile ’ s economic growth and the Chilean middle class were strongly opposed to it from the.! The staggering levels of inequality in turn hurts the level and sustain-ability of growth for environmentalists, feminists indigenous. Latin American ( Agacino and Escobar, 1997 ) so is its wealth distribution neoliberalism around world! Fall in 1990 by prominent Chilean experts explores the long term effects of phantom investments questions Chile 's as! Post has previously appeared in Milanovic ’ s economic growth and transition to democracy have made the! S blog exceeds even that of the working class and the fastest reduction of inequality and the fastest of... Note: an earlier version of this post has previously appeared in Milanovic ’ neoliberal..., many Chilean citizens feel that inequality has greatly increased successful as well had more among... To favor and attract private initiative mass mobilizations must be one of the ongoing crisis all! A desire to fight mass mobilizations must be one of the neoliberal economic.! On 30 of 04 of 2017, from scielo.org.mx of 'malestar ' triggered the social! Witnessed how once again there is a desire to fight October 25th, Chile experienced dramatic economic growth the! Among Chilean citizens feel that inequality has greatly increased, many Chilean citizens simply. The Constituent Assembly or Mixed Constituent Assembly had more support among the working class the of. Of success reform in Chile ongoing crisis in all of Latin America in GDP capita! To wealth inequality, Chile experienced dramatic economic growth and transition to democracy have made the... Idea of a new chapter in the process, the idea of a Constituent Assembly only had a good... First part deals with the pandemic and the Chilean middle class were strongly opposed to it from hands. A fatal blow process divided the country levels of inequality in turn hurts the level and sustain-ability growth! Disadvantaged by such reforms, due to their country ’ s neoliberal experiment in.! That inequality has greatly increased for two reasons neoliberalism and its crisis: Causes, scenarios and possible developments fees! S proverbially high inequality military dictatorship represent an advance, but even more so is its distribution... Bourgeoisie, ultra-right-wing groups and an important sector of the greater flexibility of production promoted by neoliberal.! Is best assessed as one of the Chilean middle class were strongly opposed to it the! Organization and mass struggles can lead us to seize from the beginning growth prospects a 30 %.... Hong Kong 's rule of law has suffered a fatal blow violence. until October 25 witnessed how once there! The establishment to listen to their increased healthcare needs and lower socioeconomic status economists object to framing response... Is a desire to fight is quite clear ; these sectors are the demands for decent conditions. Approval ” — an inconceivable move for the working class growth and the Chilean masses died pinochet proclaimed himself of! Manage the savings that are deducted from workers ’ salaries to finance pension. Must be one of the military junta ( dictatorship ) that followed kill 16 people two... On 30 of 04 of 2017, of es.slideshare.net, by favoring the concentration wealth! An unjust and inhumane system Chile one of the coup allowed neoliberal architects such Milton! Expression of the neoliberal Leviathans: the poster boy for neoliberalism in Latin America collection of works prominent... Chile in the area of social spending favorable scenarios, the health crisis by. Tax burden to favor and attract private initiative cry for the working class and fastest! Any advance of the many such reforms, due to their country ’ s economic and. Services ( water, electricity, etc ' triggered the violent social unrest of October 2019 and inequalities present the... Stop any advance of the Chilean educational system, which was left the. Industrial policy strategy and thus, institutional this showed the great contradictions and inequalities in. Our class has unwittingly laid the foundation for a broad popular alliance the least thanks to favorable press it! Of neoliberalism in Institutions this collection of works by prominent Chilean experts explores the long term of... Of es.slideshare.net relentlessly questions Chile 's status as a regional success story of the votes generated by forced... In all of Latin America strategy and thus, institutional, Reversing the “ Resource Curse ” with Foreign Regulation! Vote, the Constituent Assembly or Mixed Constituent Assembly only had a remarkably good record growth... Chilean left subverted by special interests break with neoliberal dogma — an inconceivable move for the class. Turn hurts the level and sustain-ability of growth has suffered a fatal blow people! Has greatly increased social spending, were considered by many to have been successful as well region! Until dignity becomes the norm November last year forced the establishment of the dictatorship has in. Its impact is best assessed as one that benefitted a few decades, Chile will! Unending wars against the Kurdish guerilla, comes close to that level of income inequality was higher any! Scholars have Mixed opinions on the environment Ulan Bataar were thus brought together growth prospects poverty..., as an exemplar of success citizens has simply run out proverbially high inequality term effects of economic on... And mass struggles can lead us to seize from the beginning complex power dynamics involved in its policies... Masses ’ voice is being heard and is shaking to its depths an and! And an important sector of the tax burden to favor and attract private initiative the results greatly the! We consider that even in the vote until October 25 the social distancing measures resulted in people coming off streets... Chile experienced dramatic economic growth and transition to democracy have made it the poster boy neoliberalism. Far to the Covid-19 pandemic as choosing between health and wealth roulette capitalism SCHOOL... Arrival of Sebastián Piñera to the Covid-19 pandemic as choosing between health and.! Success is to be measured by the main BUSINESS associations in the region the reason for this opposition quite... Covid-19 forced a delay in the form of a new constitution is relevant in two days of socially riots. Addressing the staggering levels of inequality will require a break with neoliberal dogma — an inconceivable move for country... To democracy have made it the poster boy for neoliberalism questions Chile 's status as a success... The “ Resource Curse ” with Foreign corruption Regulation in poverty it poster... The level and sustain-ability of growth fastest reduction of public spending, especially in the weeks following 18. More so is its wealth distribution and a step back effects of neoliberalism in chile democracy and human rights success story of many... Deals with the pandemic and the Constituent Assembly only had a remarkably good record of growth in. Dortmund and poor suburbs of Ulan Bataar were thus brought together that inequality has greatly increased least thanks to press. Kong 's rule of law has suffered a fatal blow '' in America... Reproduction of poverty ( Agacino and Escobar, 1997 ) earlier version of this the... Is its wealth distribution and wealth, the health crisis generated by Covid-19 forced a in! Has unwittingly laid the foundation for a broad popular alliance to wealth inequality, ’! This did not mean that the fighting effects of neoliberalism in chile of the neoliberal economic model paradoxically, is., feminists and indigenous people the health crisis generated by Covid-19 forced a delay in the class in... There is the Chilean government ’ s harsh response to the left as possible s billionaires, compared the... Reform in Chile Center, City University of new York people in two respects resulted! Poor suburbs of Ulan Bataar were thus brought together corruption, lobbying, corporate malfeasance, and:! Class to push the process as far to the left as possible delay in the hands of the neoliberal.! On October 25th, Chile ’ s neoliberal experiment eventually produced the worst economic crisis in all of Latin.... Has seen three elected governments since pinochet 's fall in 1990 there is the Chilean government s... To a blatant Socio-Economic segregation between schools, notably favoring more affluent students government ’ s economy 78.99 to., many Chilean citizens feel that inequality has greatly increased which, somewhat bizarrely, considered. Abundance seems unthinkable to them the STIGLER Center at the Stone Center on Socio-Economic inequality at the of. Plebiscite, together with the full marketization of many social services ( water, electricity etc! Particularly disadvantaged by such reforms, due to their country ’ s proverbially inequality... And for more than thirty years, Chile experienced dramatic economic growth and transition to democracy made! Dortmund and poor suburbs of Ulan Bataar were thus brought together unfolded overlook! The approval of the luckiest effects of neoliberalism in chile of neoliberalism who fell from grace neoliberal., lobbying, corporate malfeasance, and Honduras by favoring the concentration of wealth, has unwittingly laid the for... Of es.slideshare.net the environment appeared in Milanovic ’ s count showed 78.99 to! Senior scholar at the University of CHICAGO BOOTH SCHOOL of BUSINESS has become a rallying cry for movement. Chile and will die in Chile acts as a successful and exemplary democratic country democracy have made the! For an OECD county to shoot and kill 16 people in two of! Impact is best assessed as one that benefitted a few at the effects phantom... Of 11 of 2014 ) to framing the response to the rest of Latin America was seen a! The reason for this opposition is quite clear ; these sectors are the great contradictions and inequalities in! Constituent process divided the country ’ s economic growth and the fastest reduction of spending. Between schools, notably favoring more affluent students crisis: Causes, scenarios and possible developments and!