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Chile during the Cold War. Prior to the Post WWII years, Chile was controlled by populist regimes. After WWII there was a shift politically. There would be a political battle between the right,, left (socialism and communism), and the center. Carlos Ibáñez del Campo.

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Chile during the Cold War

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Chile during the cold war l.jpg

Chile during the Cold War

  • Prior to the Post WWII years, Chile was controlled by populist regimes.

  • After WWII there was a shift politically.

    • There would be a political battle between the right,, left (socialism and communism), and the center.

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Carlos Ibáñez del Campo

  • Ibáñez was a former populist leader of Chile

    • He was elected once again because of the repressive tactics of the Videla gov’t (along with inflation & frozen wages)

  • Ibáñez ran on a populist ticket once again

    • He promised a minimum salary, family allowance for workers, & to listen sympathetically to wage demands

    • There were issues with this populism:

      • He sought loans from North America and the IMF (seen as an extension of US economic and political power)

      • He cut real wages

      • Harsh repression to deal with labor unrest

    • He ended up alienating the Chilean people

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1950’s Elections

  • 1958

    • Many parties are running

      • Jorge Alessandri: ran on a combined conservative and liberal ticket

      • Salvador Allende: FRAP; Socialist-Communist alliance

      • Eduardo Frei: Christian Democrat

    • Results:

      • Alessandri: 31.6% of vote (wins by plurality)

      • Allende: 23.9%

      • Frei: 20.7%

      • 18.8% went to others

        What does this election prove about the voters of Chile?

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1950’s Elections

  • Alessandri as president

    • A true representative of conservative political and economic thought

      • Free enterprise

      • Open door to foreign investment

    • Copper

      • Alessandri tried to get US companies to increase investment in Chilean copper

      • Chilean nationalists were not happy

        • They wanted the US businesses expropriated (does not happen under Alessandri)

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1950’s Elections

  • Alessandri put Chile under the Alliance for Progress in an attempt to help the people of Chile

    • The US were cool with it because they were worried Chile could become another Cuba

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Early 1960’s Political Shift

  • Near the end of Alessandri’s time as leader there were four main political groupings

    • Right: included conservative and liberal parties

    • Centrist radicals

    • Marxist Left: communists and socialists

    • Christian Democrats: located in the center

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1964 Election

  • The right, radicals, & Christian Dems all back the same candidate: Eduardo Frei

    • They called this movement the “Revolution in Liberty”

  • The Left had Allende

    How will this vote differ from the previous election?

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And the winner is…

  • Frei with 56% of the vote

    • They were successful in painting Allende and FRAP as an extension of Moscow

    • It also helped that Frei received over 50% of his campaign funds from the CIA

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Frei’s leadership

  • Main issue: Copper (again)

    • Chilean gov’t would buy into copper companies and reinvest profits in expanded facilities

      • Left attacked this plan as selling out (wanted nationalization)

  • The US kept a close watch on Frei

    • They wanted to maintain the Alliance for Progress and the loans to Chile

  • It was not going as Frei had hoped. He would lose out to reforms made by others in the Revolution of Liberty.

  • The Revolution of Liberty was falling apart amidst disagreements

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1970 Election

  • Resembled 1964 with the other parties back in

    • Christian Dems: Radomiro Tomic-leftist and would not work with right

    • FRAP under new name Unidad Popular (UP): Allende

    • Right: Allesandri

  • Allende wins with 36.3% of the vote

    • Confirmed by Congress of Chile

      For Nixon’s involvement in the Allende regime turn to page 354 in your text

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Chile under Allende

  • Gov’t created massive public spending

    • On labor projects

      • Housing

      • Education

      • Sanitation

      • Health

    • Worker income rose 50% in Allende’s first year!!

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Chile under Allende

  • This increase for workers & the appeal to women (low-income milk distribution, grocery coops) led to support for Allende

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Chile under Allende

  • Problems arise

    • US economic war on Chile’s fragile democratic socialist experiment

      • US covertly

        • embargoed Chilean loans, imports, & exports

        • After an expropriation of a US business the flow of private investment capital stopped

    • This war would force Allende to stop paying off the national debt. He will manage to reach an agreement with US creditors.

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After year one…

  • Economic stagnation & rise of inflation

  • Popularity remained high, but his trouble lied in attempting to appease both the lower and middle classes

  • Expropriation of businesses alienated small and medium sixed business owners who employed 80% of the population.

    • State enterprises were poorly managed.

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After year one…

  • Socialist gov’t did not solve agrarian issue

    • Remained inefficient

  • By fall of 1972, the gov’t faced an economic and political crisis

    • The Chilean oligarchy (who were angered by the socialist movement) and the US would look to take advantage

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After year one…

  • US spent over $8 million to destabilize the Allende regime (great quote on p356)

    • All the disruption by the US and the fact that the upper class controlled most media made it impossible for Allende to win over the middle class

    • The economic crisis was jumped on by the opponents

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  • Military will back someone else (Pincohet) and overthrow Allende

    • Allende commits suicide during raid on presidential palace

      The US heavily influenced the Chilean military.

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