NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE.
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Transcript of NEOLIBERALISM AND THE WASHINGTON CONSENSUS: THE CASE OF CHILE.
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NEOLIBERALISM AND THE WASHINGTON CONSENSUS:
THE CASE OF CHILE
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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]
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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
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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
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CHILE: BASIC STATS
Population 17.0 millionGNP/capita 10,750 USDPoverty rate 11.5 %
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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)
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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- )
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POLICIES IN CHILE
Trade liberalization Unilateral + FTAs Diversification of destinations
PrivatizationStability (low inflation)Foreign investmentPoverty and inequality
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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
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INEQUALITY
Mexico .461Argentina .513Chile .549Brazil .570
USA .408
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Thus is born a “poster child”…