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“The Chile Project” by Sebastian Edwards is an intriguing journey through the ebbs and flows of neoliberalism in Chile. The book offers a comprehensive study of the economic framework that held sway over Chile for an extended period, established during Pinochet’s reign and intensified under successive left-leaning administrations.
The narrative commences with the initiation of the “Chile Project” by the U.S. State Department in 1955. The works objective was to educate Chilean economists at the University of Chicago, the intellectual home of libertarian Milton Friedman. This initiative gave birth to the “Chicago Boys,” a cadre of economists who instituted the world’s most unadulterated neoliberal model for the ensuing seventeen years.
Edwards is a native of Santiago, Chile, and an economist during Salvador Allende’s socialist regime. He offers a distinctive insight into the intellectual discourses surrounding the Chicago School of Economics and Latin America’s economic policies. His deep understanding of the subject is palpable throughout the book.
Key takeaways:
The book is segmented into three parts. The first delves into the early history of neoliberalism in Chile, the genesis of the ‘Chicago agreement’ between Chicago and Universidad Católica de Chile (PUC). It altso delves into the economic turmoil instigated by Salvador Allende’s socialist government. The second part scrutinizes the politics and the neoliberal reforms enacted by two generations of ‘Chicago Boys’ during the Pinochet Dictatorship. The final part discusses the enhancement of the neoliberal Chilean model during the restoration of democracy. It leads up to the eruption of student protests and the rise of new far-left activists and politicians who challenged the consensus.
The neoliberal economic model led to robust growth, alleviated extreme poverty, and bolstered the middle class. However, Edwards discerns that numerous policymakers overlooked glaring, enduring inequalities; corporate conspiracy had undermined free-market competition; and public policy might have overstepped in introducing market competition into education, health care, and retirement pensions.
The book culminates with the cessation of the neoliberal era in 2021, when Gabriel Boric, a youthful former student activist, ascended to the presidency. He declaring that “If Chile was the cradle of neoliberalism, it will also be its grave”. This signaled a notable transformation in Chile’s economic and political terrain.
In summary:
“The Chile Project” transcends the story of a single Latin American nation. It offers a backstage chronicle of the proliferation and repercussions of free-market ideology that dominated global economic policymaking in the latter half of the twentieth century. It furnishes a crucial fresh viewpoint on the history of neoliberalism and its worldwide downturn today.
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Books mentioned in the article: “The Chile Project” by Sebastian Edwards
