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

2. 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]

3. 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

4. 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

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

7. 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)

9. DEMOCRATIC PRESIDENTS Center-Left alliance: Concertación, renamed Nueva Mayoría (New Majority) for 2013-14 election Patricio Aylwin (1990-94) Eduardo Frei (1994-2000) Ricardo Lagos (2000-06) Michelle Bachelet (2006-10, 2014-) Right: Sebastián Piñera (2010- )

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

13. 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

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

15. Thus is born a “poster child”…