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From Pinochet to the 'Third Way'

From Pinochet to the 'Third Way'

Marcus Taylor

(2006)

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Book Details

Abstract

This is a comprehensive analysis of three decades of neoliberal policies in Chile, from the Pinochet dictatorship until today.

Chile is often described as a 'model' of neoliberal development policy. Marcus Taylor questions this description. Examining the contradictions of neoliberlism, he demonstrates how it has created a society that is deeply ridden with inequalities.

Taylor shows how the tensions that arose from this social inequality led to the emergence of a 'Third Way' neoliberalism in the post-dictatorship period. Taylor argues that this new development paradigm has failed. This is a result of the inability of 'Third Way' neoliberalism to transform social relationships and institutions.

The nature of this failure affects the direction of popular movements for social change in Latin America during a time of renewed social and political upheaval.
'A bold, insightful analysis of Chilean political economy from Pinochet to the present'
Professor Ronaldo Munck, Dublin City University, author of numerous books including: Critical Development Theory: Contributions to a New Paradigm (1999), Contemporary Latin America (2002), and Labour and Globalisation: A New Great Transformation (2003).
'The definitive treatment of Latin America's deepest and most prolonged embrace of the neoliberal project. Detailed, incisive, carefully constructed, lean yet sweeping, this book is a supreme dissection of Chile's socially-engineered contemporary dystopia'
James M. Cypher, Professor of Development Studies, Universidad Autónoma de Zacatecas, Mexico

Table of Contents

Section Title Page Action Price
Contents 4
Introduction: Neoliberalism and Social Transformation 9
Three Decades of Chilean Neoliberal Models 9
Key Questions and the Argument of the Book 13
The Layout of the Book 17
1 The Rise and Crisis of National Developmentalism 19
Capitalist Development, Social Structures and the Chilean State 19
Frei's 'Revolution in Liberty' 28
The Allende Regime and the Crisis of the State 31
Summary 36
2 'Chicago to the Rescue' - The Emergence of Neoliberalism in Chile 38
The Materialisation of the Neoliberal Project in Chile 41
From Neoclassicism to Neoliberalism 42
The Economics of Nowhere and the Politics of Chile 46
The State and Neoliberalism 50
Capitalism and the Irrationalities of Neoliberalism 53
Summary 59
3 Neoliberalism and 'Creative Destruction', 1973 - 89 61
From Gradualist Policy to 'Creative Destruction', 1973 - 75 61
The Impact of Creative Destruction 65
Economic Liberalisation and the Primacy of Money Capital 68
Institutionalising Class Relations 72
From Miracle to Crisis and the Collapse of Orthodox Monetarism 76
Responding to the Debt Crisis 77
Second Wave Neoliberalism and the New 'Economic Miracle' 79
Summary 83
4 From Retrenchment to the 'Seven Modernisations' - The Great Transformation of Welfare Institutions 85
Retrenchment and Initial Reforms, 1973 - 78 86
Targeted Social Programmes 89
From Social Assistance to the 'Seven Modernisations' 92
Neoliberalism and Welfare Institutions - Motivations and Theory 93
Education Reforms 97
Healthcare - The Creation of a Dualised System 100
The Privatisation of Pensions 103
Summary 106
5 Towards a Third Way? Power and Politics in Post- Dictatorship Chile 107
Political Protest and the Defeat of the Dictatorship 108
Democratisation and the Limits to the Post- Dictatorship State 111
Authoritarian Enclaves and the Form of the Post- Dictatorship State 112
Organised Interests and the Exercise of Power 115
Capital Accumulation and the State 118
The Growth with Equity Strategy - A Chilean 'Third Way'? 121
Summary 127
6 Production, Power and Exports - The Political Economy of Post- Dictatorship Chile 129
Neoliberalism and Economic Policy in Post- Dictatorship Chile 131
The Social Determinants of the Chilean Export Boom, 1990 - 97 134
Contradictions of the Export Boom 1: Economic Dualisation 140
Contradictions of the Export Boom 2: Enduring Inequality 144
Contradictions of the Export Boom 3 - Overproduction and the Asian Crisis 147
After the Crisis - New Policies for an Uncertain Future? 152
The Return to Export- led Growth 155
Summary 157
7 Labour Institutions and the Politics of Flexibilisation 159
Labour Flexibility - Theoretical Divisions 161
The Concertación and Labour Reform in the 1990s 164
The First Reforms, 1990 - 93 167
Flexibility in Practice 169
The Political Ramifications of Labour Flexibilisation 172
The Lagos Government and the 2001 Reforms 173
Strengths and Limits of the 2001 Labour Reform 175
The End of Labour Reform? 176
Summary 178
8 Growth with Equity? Social Policy and Anti- Poverty Programmes, 1990 - 2003 180
Social Policy and the 'Growth with Equity' Strategy 181
The Limits to Social Policy Reforms 184
Reforming the Education Reforms 188
Health Provision within the Dualised System 192
Pensions and Social Security 195
FOSIS - The Prototype Anti- Poverty Policy 198
Summary 203
9 The Uncertain Future of Neoliberalism 205
References 211
Index 227