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Neoliberalism & Democratic Constraints, 1973-2003

Neoliberalism & Democratic Constraints, 1973-2003. Socialism to Dictatorship. Chile experiences a large scale repression after the coup. Ruled by a 4 man military junta headed by General Pinochet.

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Neoliberalism & Democratic Constraints, 1973-2003

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  1. Neoliberalism & Democratic Constraints, 1973-2003

  2. Socialism to Dictatorship • Chile experiences a large scale repression after the coup. • Ruled by a 4 man military junta headed by General Pinochet

  3. The junta abolishes all political parties, supported civil liberties, dissolved Congress, banned union activities, prohibited strikes and collective bargaining, and erased Allende’s agrarian and economic reforms. Jailed and put to death thousands of Chileans. Set up 6 concentration camps. War on Democracy: Chile State Terrorism

  4. Influenced by a group of economists that studied at the U of Chicago under Milton Friedman. They implemented neoliberal and free market doctrines. Public spending was cut, all state companies privatized, the peso was devalued, and import duties sharply reduced. Pinochet & The Chicago Boys

  5. Superficial & Short lived Foreign loans went to Chilean banks that profited by borrowing at 12% and lending at 35 to 40%. Problem = The borrowing companies did not invest in production, but used the loans for speculation in real estate. The “Economic Miracle”

  6. Bankruptcies multiplied Sharp Decline in Production Unemployment rose 30% and wages fell 20% Earthquake of 1985 Chile’s foreign debt in 1991 was in per capita terms one of the heaviest debt burdens in the world. 1980 – The Bubble Bursts

  7. Policy of swapping debt for ownership of Chilean industries and natural resources. Results in growth of foreign control of the economy. Pinochet’s Solution

  8. Great landowners profited Rural population lost land, profits, suffered police repression, and endured chronic unemployment. Farm workers were prevented from forming unions and denied welfare benefits. The situation was even worse in urban areas (unemployment / living conditions). The Rural & Urban Situation

  9. Pinochet damaged women’s social position in society. He restored potestad marital, authorizing a husband’s legal control over his wife and her property. Eliminated women’s protective labor legislation. Restricted access to unemployment compensation. Disqualified women for legislative positions. Reduced women’s median income. Women & Resistance To Dictatorship

  10. Women’s Department organizes public demonstrations against Pinochet. Women’s anti-dictatorial struggles also become increasingly anti-patriarchal as well. “Democracy in the nation and in the home.” Women Play Active Role In Political Opposition

  11. Pinochet calls a Plebiscite (1988), in which Chileans voted 54.6% to 43% to deny him a new term as president. Pinochet would still stay in power for 1 more year until his successor was elected, be head of the military council, appoint 1/3 of the Senate, and become a Senator for life. The meant a continued influence of Pinochet’s economic, political, and social policies to varying degrees on Chile and future administrations. Maneuvering To Remain In Power

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