In Pursuit of “Growth with Equity”: The Limits of Chile's Free-Market Social Reforms

1997 ◽  
Vol 27 (2) ◽  
pp. 207-215 ◽  
Author(s):  
Pilar Vergara

The economic and social strategy developed by the democratic governments in Chile since 1990 has been based on the premise that free-market policies promoting growth and economic stability must continue, but should be combined with social policies designed to promote greater equality. This new set of policies produced quick and positive results in the context of strong economic growth. The reduction of poverty was its crowning achievement. However, not all the Concertación's redistributive efforts have enjoyed the same level of success. Inequalities in income distribution are again increasing. Significant segments of society, such as subsistence farmers, rural migrants to cities, women and youth who lack vocational training—as well as an important segment of the middle class that had been impoverished during the military regime—are being systematically marginalized from the benefits of economic growth and social policy. The fundamental problems of current Chilean social policy are rooted in the privatization of social sectors under the military government and the resulting dual model of social welfare.

Author(s):  
Lee J. Alston ◽  
Marcus André Melo ◽  
Bernardo Mueller ◽  
Carlos Pereira

This chapter discusses the military government and the belief in “developmentalism” which motivated the institutions put in place by the regime. Developmentalism rested on top-down technocratic planning and was a coalition between the military and the business community, both domestic and foreign. Import substitution policies along with state-led industrialization brought economic growth in the late 1960s and into the mid-1970s. But, the Brazilian miracle of the late 1960s and early 1970s began to sputter out, and, moreover, political rights became more constrained. The years of censorship and a closed political system sowed the seeds for a more open political order. Above all, the failure of the expansionist strategy of growth through import substitution accompanied by inflation and external debt became self-evident. Citizens also began to blame the government for not reducing economic and social inequality. The dominant belief that economic growth should precede social inclusion started losing political support.


1992 ◽  
Vol 34 (3) ◽  
pp. 65-88 ◽  
Author(s):  
David Scott Palmer

In Just 20 Years Peru has shifted from beacon of hope to basket case. As late as the mid-1970s, Peru's reformist military government (1968-1980) appeared to offer significant possibilities for economic and political development (defined as improved distribution of income and greater participation by the citizenry). From 1940 to 1975, economic growth and low inflation had been the norm. A major agrarian reform during the military docenio (12-year rule) created production cooperatives nation wide; the industrial community gave workers a meaningful management role in the operation of their firms. Both stirred the imagination of many Peruvians and the academic community alike.


1996 ◽  
Vol 38 (4) ◽  
pp. 1-33 ◽  
Author(s):  
Eduardo Silva

Chile’s return to democratic rule with sustained economic growth provided the opportunity for some much-welcomed political space that, it was hoped, would permit the country to attend, at long last, to a number of pressing issues which had been long deferred, if not ignored, by the previous military government. Some of those issues, such as the consolidation of democracy, poverty, and human rights, had been the subject of considerable study by scholars. Much less studied, however, although also on the agenda, was the promise to address Chile’s environmental problems, which had become much exacerbated under the laissez-faire economic model favored by the military regime. Because the new democratic administrations have followed through on that promise, the Chilean example lends support to that hypothesis which holds that environmental concerns in developing countries can be addressed more effectively under economically stable democratic regimes than by authoritarian political systems.


1976 ◽  
Vol 8 (1) ◽  
pp. 29-51 ◽  
Author(s):  
George Philip

Most recent literature on military government is extremely skeptical of the possibility of effective military reformism. This scepticism, encouraged by various behavioural hypotheses, has been further strengthened by a number of cross-sectional analyses, which seem to show that most military governments are unstable, conservative, and indifferent at economic management.1 The military government in Peru, therefore, appears to be something of an exception. Its first President, General Velasco, stayed in office for nearly seven years, and his successor, General Morales Bermúdez, has promised that the nature of the regime will not be drastically changed. Even more important, the Government claims to have carried out a comprehensive set of agrarian, industrial and social reforms that were aimed at bringing Peru out of its former underdevelopment. Moreover, the Government has claimed to have achieved all this during a seven-year period in which the conventional criteria of economic success – a substantial growth in real income per capita, a moderate rate of inflation and a reasonably stable exchange rate – also appear to have been met.


2015 ◽  
pp. 86-99 ◽  
Author(s):  
E. Avraamova ◽  
T. Maleva

The loss of country’s socio-economic development stability puts on the agenda the problem of finding solutions contributing to the maintenance of Russian households’ welfare. The authors believe that these solutions lie in the broader area than applying various instruments of monetary support. The most effective solutions are related to the actualization of own resources of households that can act as a safety margin as well as a source of social development. The attempt to evaluate the households’ resource provision and highlight the significance of each resource enabling or creating barriers to the growth of households’ welfare is made in this article. On the basis of received conclusions social policy areas directed at preserving or enhancing the welfare are defined.


1945 ◽  
Vol 39 (1) ◽  
pp. 97-100
Author(s):  
Heinz Guradze

Within the last few years, changes have been carried out in the public administration of Germany which will affect the military government to be established during and after Germany's defeat. Their general trend has been to subordinate state (i.e., Reich, regional, and local) administration to the Party, which has been vested with more and more power. This is of particular interest in the light of the present “total mobilization,” in which the Party plays a dominant part. To some extent, the changes discussed in this note show a definite trend toward decentralization, although there has been no actual delegation of powers to smaller units, since all power remained in the hands of the Party—this being, of course, the reason why the Nazis could afford to “decentralize.” On the local level, the reforms aimed at tying together the loosening bonds between the régime and the people. Only the most recent emergency measures of “total mobilization” are touched on in this note.1. Gauarbeitsaemter. When the Reichsanstalt was created in 1927–28, the Reich was organized in 13 economic regions, each having one regional labor office (Landesarbeitsamt). The idea was to establish large economic districts containing various industries so that a crisis in one industry could be absorbed by the labor market of another within the same district, thus creating “ausgleichsfaehige Bezirke.”


2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Luane Flores Chuquel

This current work studies the human rights violations suffered by indigenous peoples during the period of the Brazilian CivilMilitary Dictatorship. Likewise, it makes some notes about the beginning of the violations in a moment before this dark period. On this path, even before the Military Coup was launched in the year 1964 (one thousand nine hundred and sixty-four), the Indians were already experiencing constant usurpations of their rights at the expense of irresponsibilities commanded most of the time, by those who should watch over their rights lives. As will be seen, the violation and disrespect for Human Rights in the face of these peoples ended up becoming common and gaining strength mainly in the beginning of the implementation of the military regime. Negligent attempts at acculturation and "emancipation", in addition to inconsequential contacts with isolated peoples, culminated in the destruction and predatory logging of their lands. Missing processes of terribly violating demarcations of indigenous areas promoted the expulsion of countless peoples, causing the Indians to fall into a life totally surrounded by hunger, begging, alcoholism and prostitution. All in the name of the so-called “economic advance”, which aimed at building roads, in what was called “occupation of the Amazon”? As frequently stated by the authorities at the time, the Amazon rainforest was seen and understood as a “population void” by the Military Government. According to this thought idealized by the disgusting dictators and supporters, it will be observed that the cases of violations of Human Rights have been systematically “legalized”. The life, land and culture of indigenous peoples were left in the background. Depending on this brief narrative developed through documentary research, based on a hypothetical-deductive method, the intention is to rescue the martyrdoms of that time, demonstrating what actually happened to indigenous peoples during the Military Regime, in the simplest attempt to remember or even disclose to those who are unaware of this part of history. All that said, don't you forget. So that it never happens again.


2015 ◽  
Vol 7 (4) ◽  
pp. 327-353 ◽  
Author(s):  
Muhammad Ali Nasir ◽  
Mushtaq Ahmad ◽  
Ferhan Ahmad ◽  
Junjie Wu

Purpose – The purpose of this paper is to provide a different context for considering issues of financial stability and instability, with reference to economic growth and price stability in particular. Design/methodology/approach – This paper pursued an empirical exploration of six pillars of financial stability, based on a data set for the UK extending from 1985 (Q1) to 2008 (Q2), through the construction of a vector error correction model, including an impulse response function analysis. Findings – The findings show a strong association between the financial and economic stability even in a non-crisis regime. This includes, for example, a strong association exists between the stock market and the real economy; exchange rate appreciation may not provide for long-term real economic growth; inflation does not contribute to real economic growth, both the sensitivity of the economy to yields and a significant lag in transitional effects from financial markets to the real sector; a positive role of credit creation within a non-crisis regime; exchange rate appreciation affects purchasing power; and potential points of linkage between sovereign debt activity and general price levels. Research limitations/implications – The findings should be considered in the context of a concept of the economy as fundamentally dynamic and subject to complex cumulative processes. Practical implications – The findings indicate there is a role for state oversight and intervention within a non-crisis regime based on the complexity of possible interactions that may undermine financial and price stability, with consequences for their association with economic growth. Originality/value – The study provides a new perspective for considering issues of financial stability and instability.


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