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NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE

NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE. 12. STRATEGIES FOR ECONOMIC DEVELOPMENT. The Liberal Eera (1880s-1920s) Import-Substitution Industrialization (1930s-1970s) The Socialist Alternative (1950s-1980s) Neoliberalism (1980s-present) The “new Left” ALBA.

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NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE

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

  2. 12. STRATEGIES FOR ECONOMIC DEVELOPMENT • The Liberal Eera (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 • Less regulation • Privatization • Liberalizing trade • Reduce tariffs, quotas • Expand exports • Promoting the private sector • Foreign and local production • Stimulate market competition

  4. CHILE: OVERVIEW • Natural Resource: Minerals • 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 (1970-73) • The Pinochet regime (1973-1989) • Neoliberal Politics and Policy • Democracy (1990-present) • Economic uncertainty + reliance on exports (again)

  5. CHILE: BASIC STATS • Population 16.9 million • GNP/capita 8,350 USD • Poverty rate 13.7 %

  6. DEMOCRATIC PRESIDENTS Center-Left alliance: Concertación • Patricio Aylwin (1990-94) • Eduardo Frei (1994-2000) • Ricardo Lagos (2000-06) • Michelle Bachelet (2006-10) Right: • Sebastián Piñera (2010- )

  7. THE WASHINGTON CONSENSUS • Reducing the role of the state: • Less regulation • Less public ownership • Liberalizing trade: • Reducing tariffs and quotas = less protection • Seeking commercial partners • Promoting private enterprise: • Privatization • Foreign investment

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

  9. EXPORTS • Products: copper, fruits and nuts, fish and seafood, wood (and wine) • Partners (2009): • China 16.5 % • USA 11.3 • Japan 9.1 • South Korea 6.5 • Brazil 4.6 • Mexico 4.1

  10. INEQUALITY • Mexico .461 • Argentina .513 • Chile .549 • Brazil .570 • USA .408

  11. Thus is born a “poster child”…

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