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

2. 12. STRATEGIES FOR ECONOMIC DEVELOPMENT
The Liberal Era (1880s-1920s)
Import-Substitution Industrialization (1930s-1970s)
The Socialist Alternative (1950s-1980s)
Neoliberalism (1980s-present)
The “new Left”
ALBA

3. 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

4. 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)

6. CHILE: BASIC STATS Population 16.9 million GNP/capita 8,350 USD
Poverty rate %

8. DEMOCRATIC PRESIDENTS
Center-Left alliance: Concertación
Patricio Aylwin ( )
Eduardo Frei ( )
Ricardo Lagos ( )
Michelle Bachelet ( )
Right:
Sebastián Piñera (2010- )

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

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

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

14. Thus is born a “poster child”…