Crisis of 1982
Economic history of Chile |
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The Crisis of 1982 was a major
Background
After the socialist reorientation of the economy during the
Boom and burst
The 1982 crisis has been traced to the overvalued
In agriculture, the entrance of
The government response to the crisis priorized the preservation of the international markets over the placation of internal unrest.[5]: 5
Bank interventions
In November 1981, banks were bailed out by the government after they had taken excessive risks: the large Banco de Talca and Banco Español Chile and the small Banco de Linares and Banco de Fomento de Valparaíso.[8] Financial societies (Compañía General, Cash, Capitales and del Sur) were also bailed out.[8] Banco de Talca and Banco Español Chile were nationalized, removing the management and wresting ownership from shareholders (they were later privatized again).[9]
On January 13, 1983, the government made a massive bank intervention, bailing out five banks and dissolving three others.[8]
Agriculture contraction
All sectors of Chilean agriculture except fruit exports and forestry contracted during the crisis, but recovery was fast after 1984.[7]: 26 The number of farm bankruptcies in Chile increased from 1979 to its 1983 peak.[7]: 26
Aftermath
The crisis has been credited of beginning, despite its severe repression, a wave of protest all over Chile against the dictatorship.[3]: 49–62
In the years after the crisis, the economic policy of the dictatorship changed to include price bands for some foodstuffs and a floating exchange rate.[7]: 66
Academic debate
Supporters of the neoliberal policy of the military dictatorship have argued that the crisis started outside Chile and hit the whole of Latin America in the so-called La Década Perdida (The Lost Decade).[3]: 49–62 Historians Gabriel Salazar and Julio Pinto have countered that the type of crisis is a frequently inherent weakness of the neoliberal model.[3]: 49–62 In contrast, economist Milton Friedman blames precisely the country's departure from the neoliberal model and political interventions in matters such as the Chilean peso.[10]
According to Ricardo Ffrench-Davis, the "unnecessary" radicalism of the shock therapy in the 1970s caused mass unemployment, loss of purchasing power, extreme inequalities in the distribution of income, and severe socioeconomic damage.[11] He argues that the 1982 crises as well as the "success" of the pragmatic economic policy after 1982 proves that the radical economic policy of the Chicago boys harmed the Chilean economy from 1973 to 1981 though the economy of Chile recovered quickly and continued to rise rapidly over time.[12]
See also
References
- ^ a b (in Spanish) La transformación económica de chilena entre 1973-2003. Memoria Chilena.
- ^ "Chile and the United States: Declassified Documents Relating to the Military Coup, September 11, 1973". nsarchive2.gwu.edu. Retrieved 2020-12-15.
President Richard Nixon had ordered the CIA to "make the economy scream" in Chile to "prevent Allende from coming to power or to unseat him,"
- ^ a b c d e f g Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores. 2002. Gabriel Salazar and Julio Pinto. pp. 35–62.
- ^ "The Political Economy of Unilateral Trade Liberalization" (PDF). UCLA. 1990. Retrieved 2010-12-06.
- ^ a b c d e f Leiva L., Jorge (1984). "Evolución de la Crisis Económica". Coyuntura Económica (in Spanish). 10. Academia de Humanismo Cristiano: 3–71.
- OCLC 1360456914.)
{{cite book}}
: CS1 maint: location missing publisher (link - ^ a b c d e Rytkönen, P. 2004. Fruits of Capitalism: Modernization of Chilean Agriculture, 1950-2000. Lund Studies in Economic History, 31.
- ^ a b c A 25 años de la intervención bancaria en Chile. Economia y negocios. El Mercurio. January 12, 2008. Retrieved on May 15, 2012.
- ^ What We Can Learn From Chile's Financial Crisis. The Wall Street Journal. September 29, 2008. Retrieved May 14, 2012.
- ISBN 9780226264158. Retrieved 2011-04-08.
- ^ Konrad Adenauer Foundation, Helmut Wittelsbürger, Albrecht von Hoff, Chile's Way to the Social Market Economy
- ^ Helmut Wittelsbürger, Albrecht von Hoff: Chiles Weg zur Sozialen Marktwirtschaft. (PDF; 118 kB); Konrad-Adenauer-Stiftung -Auslandsinfo. 1/2004, pp. 97, 104.