Skip to main content

The Chilean Economy and heterodoxy in the periphery

In an interview here (in Spanish), Carlos Ominami, ex-finance minister during one of the Consertación administrations, argues that Chile did not really have one model after the coup against Allende, but a sequence of policies, not always coherent, that cannot be reproduced by other countries. Further, he points out that the Chicago Boys did NOT privatize Codelco and actually increased the government revenue associated to nationalized copper.

He also notes that the infamous privatization of the pension system was a complete failure, "the marketing was the best thing about the pension system" according to him, and that forced later Socialist governments to re-introduce a State run system.

In other Chilean news, Esteban Pérez Caldentey gave a talk (here; in Spanish too) at the Universidad de Chile on heterodox (post-Keynesian) approached to economics, opening the door in a traditionally mainstream environment for broader and more pluralistic views.

PS: On Chile model you can read James Cypher's paper in Dollars & Sense here.


  1. Also, Joseph Collins and John Lear's book, "Chile's Free Market Miracle: A Second Look"


Post a Comment

Popular posts from this blog

What is the 'Classical Dichotomy'?

A few brief comments on Brexit and the postmortem of the European Union

Another end of the world is possible
There will be a lot of postmortems for the European Union (EU) after Brexit. Many will suggest that this was a victory against the neoliberal policies of the European Union. See, for example, the first three paragraphs of Paul Mason's column here. And it is true, large contingents of working class people, that have suffered with 'free-market' economics, voted for leaving the union. The union, rightly or wrongly, has been seen as undemocratic and responsible for the economics woes of Europe.

The problem is that while it is true that the EU leaders have been part of the problem and have pursued the neoliberal policies within the framework of the union, sometimes with treaties like the Fiscal Compact, it is far from clear that Brexit and the possible demise of the union, if the fever spreads to France, Germany and other countries with their populations demanding their own referenda, will lead to the abandonment of neoliberal policies. Aust…

A brief note on Venezuela and the turn to the right in Latin America

So besides the coup in Brazil (which was all but confirmed by the last revelations, if you had any doubts), and the electoral victory of Macri in Argentina, the crisis in Venezuela is reaching a critical level, and it would not be surprising if the Maduro administration is recalled, even though right now the referendum is not scheduled yet.

The economy in Venezuela has collapsed (GDP has fallen by about 14% or so in the last two years), inflation has accelerated (to three digit levels; 450% or so according to the IMF), there are shortages of essential goods, recurrent energy blackouts, and all of these aggravated by persistent violence. Contrary to what the press suggests, these events are not new or specific to left of center governments. Similar events occurred in the late 1980s, in the infamous Caracazo, when the fall in oil prices caused an external crisis, inflation, and food shortages, which eventually, after the announcement of a neoliberal economic package that included the i…