Word: chileanization
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Dates: during 1970-1979
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...Jorge Videla, the head of the ruling military junta, announced on national television that his new regime was deeply committed to human rights, based on "profound Christian convictions." The smooth and relatively bloodless coup followed by constant reassurances stemmed from a well-defined plan to avoid comparison with the Chilean situation at all costs...
Pinochet and his military junta had not wasted any time in showing their repressive intentions, and after the bloody coup which overthrew Allende in September of 1973 quickly turned Chile into a murderous police state. The horrified reaction of the world press to the Chilean repression was widespread and still rang loudly in the ears of Videla and his co-conspirators. In addition, a U.S. Senate committee had just published its findings of CIA involvement in the Chilean coup, and the image of a murderous Pinochet aided by CIA support had become prevalent in an uncomfortable U.S. press...
...hard, repressive line. Videla, Agosti and Massera count on two things. This carefully orchestrated two-stage process may allow them to carry out repressive measures under less international pressure. Furthermore, the solidarity campaigns organized in the United States, Canada and Europe, which were so successful in saving many Chilean lives, have somehow become exhausted. Almost three years after the fall of Allende, the situation in Chile, needless to say, has not become any better, yet international outrage and concern have decreased. The Argentine military is thus carrying out a systematic campaign of repression coordinated with police action that might very...
Friedman himself does not defend the results. Says he: "It's absurd to talk about Chile as if it is an important test of my ideas. I don't even know if they have been carrying out my policies." His colleague Arnold Harberger complains that the Chileans have in fact been violating a prime tenet of Friedmanism: that a nation's money supply should expand at a steady but moderate pace. The Chilean money supply jumped 27.5% in this year's first quarter alone. The Chicago Boys retort that they have cut down as rapidly...
...controversy brings up the deeper question of whether Friedman's theories are really applicable to a poor, inflation-ridden country. Says one Chilean university economist: "In an underdeveloped country like Chile it is less possible to have a free-market economy than it is in a developed one. It is a question of size and scale." It is also a question of history: since the 1930s the government has tightly controlled key parts of the Chilean economy. Prices and wages have traditionally been set by the government; the major industries have long been monopolies. Competition, the present Chilean government...