What were the economic policies of Pinochet in Chile?

Among other reforms, they made the central bank independent, cut tariffs, privatized the state-controlled pension system, state industries, and banks, and reduced taxes. Pinochet’s stated aim was to “make Chile not a nation of proletarians, but a nation of entrepreneurs”.

What happened to Chile’s economy?

Chilean exports and GDP per capita rose steadily through the 1980s and 1990s until the Asian crisis of 1997 after which economic growth slowed somewhat. In the post-1973 period there has been a rise in outsourcing, self-employment, informal employment and an increase in women’s share in the labor force.

How did Chile become rich?

Since copper prices continue to rise, Chile’s economy has become one of the strongest in Latin America. Over 40% of Chile’s exports are made up of the red metal, which is also its main source of revenue. The world’s copper is produced by Chile to a greater extent than anywhere else.

How did Chile reduce poverty?

The “easy” first phase represents a combination of high growth, increased wages and minimum wage, expansion in income-support schemes for low-income families, and improved minimum pensions with an immediate impact on poverty reduction.

How did Chile’s economy change in the 1980s?

For instance, Chile’s gross domestic product (GDP) dropped 14.1 percent in 1982 during a strong worldwide recession. Simultaneously, the currency was overvalued, making it even more vulnerable to the decelerating international economy. Capital stopped flowing in, drastically reducing the ability to finance investment.

What type of government did Pinochet establish?

The dictatorship was established after the democratically-elected socialist government of Salvador Allende was overthrown in a US-backed coup d’état on 11 September 1973….Military dictatorship of Chile (1973–1990)

Republic of Chile República de Chile
• 1974–90 Augusto Pinochet
President of the Junta
• 1973–81 Augusto Pinochet

Why is Chile’s economy so strong?

The Chilean economy is growing strongly, fuelled by a rapid vaccine rollout, a large fiscal stimulus, high commodity prices and the short-term impact of extraordinary pension fund withdrawals on consumption.

What were the solutions to Chile’s failing economy?

These reforms included opening the economy to the world, privatizing some state companies, and restraining a severe inflationary crisis through fiscal discipline and tight monetary policy. These pioneering reforms held out the promise of future prosperity for our country.