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• 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

1950’s Elections• 1958

– Many parties are running• Jorge Alessandri: ran on a combined conservative and

liberal ticket; son of a former pres. Of Chile• Salvador Allende: FRAP (Popular Action Front or Frente

de Acción Popular); 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

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)

Alessandri • 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

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

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?

US involvement! US became more involved in many LA countries due to Cuban Revolution

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

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

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 (you have already read this, right?)

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!!

Chile under Allende

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

Remember the term Populism? How does Allende fit as a populist leader?

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.

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 sized business owners who employed 80% of the population.– State enterprises were poorly managed.

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

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

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

9/11/1973

• Military will back someone else (Pinochet) and overthrow Allende– Allende commits suicide during raid on

presidential palaceThe US heavily influenced the Chilean

military.

This is what you studied last year with Mrs. Dalle-Valle!