NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE.

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NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE

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]

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

WASHINGTON CONSENSUS Reducing the role of the state  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

CHILE: BASIC STATS Population17.0 million GNP/capita 10,750 USD Poverty rate 11.5 %

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 ( )  The Pinochet regime ( ) Neoliberal Politics and Policy  Democracy (1990-present)  Economic uncertainty + reliance on exports (again)

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- )

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

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

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

Thus is born a “poster child”…