The Chilean "Economic Miracle": An Empirical Critique

Abstract

The Pinochet regime in Chile has claimed numerous economic achievments, including vigorous growth, intelligent and innovative management of debt and poverty, and an exemplary approach to privatization. This paper examines empirically the historical record of the Pinochet regime in each of these areas. It concludes that the claims of the regime cannot be sustained. The neo-liberal policies of the post-Pinochet Aylwin government are described, together with the institutional context in which these policies are being carried out. Aylwin neo-liberalism is likely to produce economic and social outcomes similar to those of the Pinochet regime. The political consequences of this course are briefly explored.