1. NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE

2. TAKEAWAYS FROM VIDEO Title: “Garden of the Forking Paths”
Setting: Argentina
Themes: Social bases of political conflict and polarization; “old” vs. “new” Argentina
Key figures: Juan and Eva Perón, Carlos Saúl Menem [note successors: Néstor Kirchner and Cristina Fernández de Kirchner]

3. 12. STRATEGIES FOR ECONOMIC DEVELOPMENT
The Liberal Era (1880s-1920s)
Import-Substitution Industrialization (1930s-1970s)
The Socialist Alternative (1950s-1980s)
Neoliberalism (1980s-present)
Free Trade
Countermoves: MERCOSUR and ALBA
Poverty and Inequality

4. WASHINGTON CONSENSUS Reducing the role of the state Liberalizing trade
Less regulation
Privatization
Liberalizing trade
Reduce tariffs, quotas = less protection
Expand exports, seek partners
Promoting the private sector
Foreign and local production
Stimulate market competition

6. CHILE: BASIC STATS Population 17.0 million GNP/capita 10,750 USD
Poverty rate %

7. CHILE: OVERVIEW Natural Resource: Minerals Export-Import Growth
Nitrates
Copper
Sparse migration
Export-Import Growth
Pacific Coast connections
Copper as key
Political democracy (of sorts)
Democracy and Military Rule
Party politics (1940s-70s)
Socialism via democracy? Salvador Allende ( )
The Pinochet regime ( )
Neoliberal Politics and Policy
Democracy (1990-present)
Economic uncertainty + reliance on exports (again)

9. DEMOCRATIC PRESIDENTS
Center-Left alliance: Concertación, renamed Nueva Mayoría (New Majority) for election
Patricio Aylwin ( )
Eduardo Frei ( )
Ricardo Lagos ( )
Michelle Bachelet ( , 2014-)
Right:
Sebastián Piñera (2010- )

12. POLICIES IN CHILE Trade liberalization Privatization
Unilateral +
FTAs
Diversification of destinations
Privatization
Stability (low inflation)
Foreign investment
Poverty and inequality

13. EXPORTS
Products: copper, fruits and nuts, fish and seafood, wood (and wine)
Partners (2009):
China %
USA
Japan
South Korea
Brazil
Mexico

14. INEQUALITY
Mexico .461
Argentina
Chile .549
Brazil .570
USA .408

15. Thus is born a “poster child”…