Chicago Boys

from Wikipedia, the free encyclopedia

The Chicago Boys are a group of Chilean economists . Most of them studied at the University of Chicago from 1956 to 1970 and were inspired by the ideas of Friedrich August von Hayek and Milton Friedman . They became very influential in economic and social policy in Chile under the rule of Augusto Pinochet . These economists were convinced of the superiority of free markets , which they tried to realize through privatization and deregulation measures.

Because of the political conditions under the dictatorship , they were initially able to implement their far-reaching reform ideas without making any major cuts. Many critics as well as supporters therefore see the reforms as an important experiment under real conditions that allows conclusions to be drawn about the effects of an economically liberal and monetarist practice. Economists from the Chicago School also gained influence in other Latin American countries and are also often referred to as the Chicago Boys.

Training and organization

The group of economists became known as the “Chicago Boys” because of their connection to the economics faculty of the University of Chicago, even if not all members studied there. Four of the 26 most influential Chicago Boys named by Patricio Silva have degrees from other US faculties. However, the group defined itself through a joint project: The structuralist economic policy prevailing in Chile was to be replaced by the teachings of the Chicago School of Economics. Latin American structuralism was closely associated with the CEPAL (Comisión Económica para América Latina y el Caribe) based in Santiago and its long-time director Raúl Prebisch . It is considered to be closely related to the - but often more Marxist- oriented - approaches of the dependence theory . In contrast to the monetarism of the Chicago School, the Latin American structuralists assumed that market opening and the international division of labor would be detrimental in the long term to the developing countries on the periphery of the world economy due to an expected deterioration in the terms of trade and that only an active industrialization policy would reduce dependence on the Center could decrease. This strategy is also known as import-substituting industrialization .

The Chicago Boys group was closely linked through personal relationships and shared experiences. Therefore, it was able to perform in a coherent manner even during the time of Pinochet's reign, which is believed to be one of the reasons for its success. However, the Chicago Boys did not form a group with a common political program until they returned to Chile. Among the graduates of the Chicago exchange program were some, such as Ricardo Ffrench-Davis and Carlos Massad , who had dissenting political views and were therefore later excluded from the Chicago Boys.

Chilean economists' study visits to Chicago were based on an exchange program based on contracts between the University of Chicago , the Universidad Católica de Chile and the state development aid organization International Cooperation Administration (today: USAID ). The Ford Foundation financially supported later programs. The contracts were initiated by development policy maker Albion Patterson and Chicago economist Theodore W. Schultz . On the basis of his human capital theory, Schultz was convinced that the developing countries of Latin America could only be advanced through improved education. Patterson and Schultz initially contacted the Universidad de Chile , which, due to its structuralist orientation, had reservations about an exclusive partnership with the Chicago faculty, which has distinguished itself as an independent economic school since the 1950s. On the other hand, the dean of the economics and social sciences department of the Universidad Católica de Chile , Julio Chaná, wanted to modernize his department with a focus on economics, so that a cooperation with this university emerged.

In the first years between 1956 and 1964, 26 Chileans went through the training program in Chicago, a total of over 100. Some of the students of this first generation later became professors at Universidad Católica, where one of the first exchange students, Sergio de Castro , had become dean of the business faculty. Under the guidance of Chicago professors, they fundamentally realigned the faculty. With support from the Rockefeller Foundation , Castro and other Chicago boys also went to Argentina and Colombia to teach there. Arnold Harberger , who from 1955 also visited Chile frequently, played a central role in the implementation of the program between the Católica and Chicago and in the training of the students . Milton Friedman, on the other hand, did not have such intensive personal contact with the Chicago Boys, even if most of them attended his courses and some also attended his money and banking workshop . Although the faculty in Chicago was only considered a special economic school from the late 1950s, according to George Stigler, monetarism, neoclassical price theory and the critical attitude towards public regulation were characteristic. George P. Shultz describes the climate at the faculty as very contentious and characterized by open debates between professors and students.

A first grouping of Chicago Boys as a politically relevant group took place in opposition to student protests at the Universidad Católica in the mid-1960s. As a result knüpften Chicago Boys contacts with the PDC and the Gremialisten movement Jaime Guzmán . The so-called gremialistas are a right-wing conservative , Catholic and initially strongly corporatist movement. She had also established herself at the Universidad Católica in the 1960s, was later closely associated with the Chicago Boys and, like them, gained political influence in the early years of the Pinochet regime. The Chicago Boys were able to gain social support, especially from internationally oriented entrepreneurs. The banker and owner of the conservative newspaper El Mercurio Agustín Edwards Eastman set up a 'Center for Social and Economic Studies' (CESEC) in 1968, at which many Chicago boys worked. El Mercurio also got a business section for which the Chicago Boys wrote editorials. According to Rolf Lüders, the Chicago Boys omitted political issues in their discussions in the 1960s; they believed that the goals of a scientifically based economic policy were not negotiable.

The group became a political force of the "new right" in 1970 when the Chicago Boys supported the conservative presidential candidate Jorge Alessandri against Salvador Allende . During Allende's presidency, opposition press and business representatives met weekly in a so-called Monday club in the El Mercurio publishing house . In preparation for the time after the planned coup, this group initiated the creation of an economic policy program. Ten economists - eight of them graduated from Chicago - worked on the script that was later called El Ladrillo (the brick). The Chicago Boys repeatedly referred to this program when they were implementing their reforms.

Economic policy

Starting position

The seat of El Mercurio in Santiago from 1902 to 1983: The meetings of the opposition Monday Club took place here under Allende. After Pinochet's coup, the "El Mercurio" board of directors put Cubillos in touch with the Chicago Boys.

In the 1950s and 1960s, Chile was shaped by the structuralist economic policies of the ECLAC . Accordingly, the Chilean economy first had to be strong enough to face the challenges of the world market through protectionism and industrialization .

After his election in 1970, Salvador Allende began the socialist restructuring of the economy. His measures included nationalization, particularly in the banking sector and copper mining, a sharp increase in government spending and price controls. Many foreign companies, especially US companies, were affected by the nationalization. The US government was urged to impose economic sanctions by representatives of the industry, but decided against an official trade embargo. Rather, together with US companies, it tried to cut Chile off largely from granting loans and development aid. The resulting supply shortages led, among other things, to a strike by truck drivers. This set in motion a chain of events that ended with the fall of Allende. Nonetheless, it remains controversial in the literature whether this policy of the so-called “invisible blockade” can actually be held responsible for the economic failure of the Allende government. The US political scientist Paul E. Sigmund assumes that the measures taken by Nixon were relatively mild in view of the expropriations. The main cause of the high inflation and social unrest lay in Allende's political program. Critical comments on Sigmund emphasize that although he essentially acknowledges the details of the influence exerted, he ultimately does not see “the forest for the trees”. Even Sigmund admits that without external influence, the strikes against Allende would not have escalated so quickly and would not have lasted as long.

In any case, until 1973 a runaway inflation developed . While economic growth had risen to 7.7 percent in the first year of government, Chile experienced a recession in 1973.

After the coup in September 1973 , the military initially headed all important ministries. Without a clear economic policy concept, they were unable to get inflation under control: the inflation rate remained in the three-digit range. Although the generals, as opponents of Allende's socialist government, had a fundamentally liberal economic policy stance, they did not have sufficient contacts with civil society to recruit economic specialists.

First, the Pinochet regime spoke to former ministers of the Christian-Democratic government under Eduardo Frei Montalva . But since they made political demands and wanted to see human rights observed, these attempts failed. Contact with the Chicago Boys came about through Hernán Cubillos, who sat on the board of directors of El Mercurio , and Roberto Kelly. The moment had come for the plan drawn up in El Ladrillo . Sergio de Castro laboriously convinced General Pinochet of the need for market-economy reforms, and by the end of 1974 Pinochet occupied the most important ministries with Chicago Boys.

Radical reforms from 1975 to 1982

In the second half of the 1970s, the regime made greater efforts to compensate for the lack of democratic foundations with economic success. Chile was seen as a test case for testing the Chicago School's liberal economic program. Arnold Harberger invited Milton Friedman on behalf of the Banco Hipotecario de Chile to visit Chile in March 1975. On that occasion, Friedman stated that the country's fundamental problems, i. H. inflation and economic disruption required " shock treatment ". A policy of small steps carries the risk of the patient dying before the treatment takes effect. At Pinochet's personal request, Friedman then wrote him a detailed letter from Chicago with recommendations. In April 1975, Pinochet handed over the economic policy command to a team of four "hardliners" among the Chicago Boys: he appointed Sergio de Castro as Minister of Economic Affairs, Jorge Cauas as Minister of Finance, Pablo Baraona as President of the Central Bank and Roberto Kelly as Head of the Planning Office.

content

In the same month, the Chicago Boys began to fundamentally reshape Chile's economy with far-reaching deregulation and privatization measures.

During the reign of Pinochet, there was a significant expansion of Chile's foreign trade. The decline in exports in the early 1980s can also be clearly seen.

Instead of the previous policy of import-substituting industrialization , Chilean economic policy was now based on the development model of an externally-oriented trade policy . To this end, the Chicago Boys unilaterally dismantled trade barriers and price controls and deregulated and opened the financial market; towards the end of the 1970s they liberalized capital movements. In order to make the Chilean economy more efficient in the sense of the theory of the comparative cost advantage , the import duties were reduced from over 100 to 10 percent. As a result, Chile's foreign trade grew rapidly. The free trade policy came in the early 80s in the crisis, as for a number of reasons such. For example, the overvaluation of the Chilean peso led to a decline in exports and a significant trade deficit .

The Chicago Boys downsized the public sector by returning expropriated companies to previous owners and traditionally privatizing public companies. The public education system has been partially privatized. In 1975 alone, the Chicago Boys under Pinochet cut inflation spending by ministries, government agencies and educational institutions by between 15 and 25 percent. A tax reform reduced the proportion of direct and progressive taxes.

1979 started a program of the "Seven Modernizations" (Siete Modernizaciones) , which should bring market economy principles - in addition to the privatizations in the public sector - also in the area of ​​employment, agriculture, education, health, social security and justice to apply . In labor law, protection against dismissal in the private sector and the right to strike have been abolished.

The Chicago boy José Piñera completely converted the Chilean pension system from a pay-as-you-go system to a funded system against initial resistance from the generals and the opposition, the idea of ​​privatization coming to him while reading Milton Friedman's major work Capitalism and Freedom from 1962. As an alternative to the public health system, which they heavily cut back on subsidies, the Chicago Boys established private health insurance schemes modeled on the US health system . In the field of education, a voucher system was introduced from 1980 to facilitate the free choice between public and private schools.

According to Milton Friedman, the 1975 recession, which caused GDP to shrink by 13%, was the predictable and inevitable consequence of monetary shock treatment to slow monetary growth. In his opinion, however, this was necessary in order to bring about healthy economic growth. Inflation rates fell by the end of the 1970s:

year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
Inflation (%) 508.1 376.0 340.0 174.0 63.5 30.3 38.9 31.2 9.5 20.7

Political implementation

Central to the implementation of the reforms was the National Planning Office (ODEPLAN) , which was only founded as an authority in 1967 . Roberto Kelly took over the management, then Miguel Kast , who quickly established ODEPLAN as the most important advisory organization alongside the Ministry of Finance and the Ministry of Economic Affairs. ODEPLAN organized the exchange with Chicago and prepared legislative projects. In office there was a strong intertwining and cooperation between the economic advisors of the Chicago School and the gremialistas , the majority of whom were politicians and lawyers and who had supported the regime from the beginning. Pinochet granted the Chicago Boys extensive autonomy in their reforms.

According to the economists involved and the Chilean media, the drastic measures to reform the Chilean economy were only possible because of the authoritarian nature of the regime. On the basis of the principles developed by Hayek in The Road to Serfdom , the Chicago Boys were able to transfer their economically liberal ideas to the social and political realms. In their opinion, only “pseudo-democratic” conditions had previously prevailed in Chile, in which parties and organized interest groups had pushed through their ideas to the detriment of the population. Some of the Chicago Boys, such as Álvaro Bardón and Sergio de Castro, even saw the dictatorship as the ideal regime to ensure the neutrality of the market. De Castro, who led the Chicago Boys, wrote that "a person's real freedom can only be secured through an authoritarian regime that uses violence by enforcing equal rules for all".

In order to be able to implement the reforms effectively, intermediate civil society organizations had to be largely eliminated. For example, the Chicago Boys helped break up unified trade union organizations. In 1981, the Chicago Boys drove the professional organizations out of power in order to be able to carry out reforms - especially against the will of the medical profession in the health care system.

Role of the Chicago School

The Chicago Boys were in close contact with members of the Chicago School while working for Pinochet. In addition to Milton Friedman, Friedrich August von Hayek and Arnold Harberger also paid visits, which received a strong response in the Chilean press and internationally. Hayek became honorary president of the Centro de Estudios Públicos and Friedman appeared on state-controlled television with a lecture. 1981 a regional meeting of found Mont Pelerin Society in Vina del Mar instead. On this occasion, Hayek justified the establishment of a dictatorship in an interview with El Mercurio , if this was temporarily necessary to enforce economic freedom as the basis of liberalism. Under certain circumstances, the sacrifice of individual life is also justified in order to ensure the survival of the majority. "The only valid moral standards for the 'calculation of life' can [...] only be private property and the contract."

Although Milton Friedman is often associated with the Chicago Boys, he was never an official advisor and had no direct influence on Pinochet. In his memoir, Friedman explicitly praises the actions of the Chicago Boys and highlights measures such as reducing the state quota, tax, health and pension reforms. In their market-liberal premises, the Chicago Boys resorted to Milton Friedman's teaching - and in particular to capitalism and freedom . In addition to the fundamental monetarist orientation and privatization strategy, more specific reform projects of the Chicago Boys by Friedman and the Chicago economist James M. Buchanan in the years before Pinochet's coup were proposed in academic publications, such as the introduction of education vouchers and the establishment of an individually financed pension fund . However, the Chicago Boys' economic program differed significantly from Friedman's recommendations in two respects: They only gradually reduced import duties and not suddenly, as recommended by Friedman. In addition, Sergio de Castro set the exchange rate for two years from the late 1970s against Friedman's advice. The Austrian economic and social historian Karin Fischer also assumes that the Pinochet regime did not implement the pure teaching of the Chicago school. Rather, ideas from other theoretical traditions, such as the Virginia School of Political Economy and the Austrian School , were taken up and adapted to the country.

Recession 1982/83

The growth (%) of the gross domestic product of Chile (orange) and the average growth of South America (blue) (1971–2008). The 1973 recession fell under the Allende reign, the 1975 and 1982 recessions during the Pinochet reign.

Around 1980 the success of the reforms initially seemed to be confirmed. After the good economic development of the late 1970s, the Chilean experiment had become a showpiece for monetarists and market liberals alongside the reforms by Margaret Thatcher . Friedman coined the expression miracle of Chile in his regular column in Newsweek on January 25, 1982 , when he described the Chilean development as an "economic miracle"; an “even more amazing political miracle” is that the military junta was ready to carry out the market-oriented transformation that it deemed right.

However, this picture was clouded by a severe recession in 1982 , which saw a sharp collapse in real income , a sharp rise in unemployment and a collapse in the financial market . Sixteen of a total of 50 private financial institutions went bankrupt.

Celebrating the 9th anniversary of the coup at the height of the 1982 banking crisis.

A number of external and internal factors are believed to be the cause of the collapse of the Chilean economy in 1982/83. The peg of the peso to the dollar led to a strong capital inflow in the run-up to the crisis and to an overvaluation of the Chilean peso. As a result of the overvaluation, Chile's exports fell and the country was inundated with cheap imports. The poor regulation of banking and lending, as well as the abundance of money, combined with low interest rates, led to risky business practices in the privatized banking sector. In Chile, many banks also belonged to a conglomerate (so-called grupo). Within the grupo, the banks granted loans to other subsidiaries on inappropriately favorable terms. When these companies announced a need for further financing, the banks also extended non-performing loans or issued new loans to avert impending bankruptcies.

In 1981 and 1982, large amounts of capital from private and public companies flowed abroad. As a result, Chilean currency reserves decreased. As a result of the second oil crisis , the prices of crude oil, which Chile had to import, rose. The interest rate hike implemented in the USA to combat inflation had a direct impact on the Chilean banking system and the credit-dependent Chilean economy because the peso was pegged to the dollar. During the global recession that followed the oil price crisis, the price of Chilean’s most important export good, copper, fell. The country itself slipped into a severe recession, which was accompanied by the collapse of large parts of the heavily indebted financial system. Many companies had to close.

In other Latin American countries, too, there was a debt crisis in the early 1980s. In 1982 Mexico, Brazil and Argentina were also particularly affected. The Latin American debt crisis of the 1980s called the structuralist strategy of import-substituting industrialization into question, as it was no longer pursued in Chile after 1975. During the crisis in the early 1980s, those countries that, as oil-exporting countries, were able to benefit from the increased oil price (e.g. Venezuela ) had a better starting position than Chile . The specifically Chilean combination of internal and external factors led Chile in 1982/83 in the sum of the influences into a much stronger recession than most other states of Latin America.

“Pragmatic Neoliberalism” from 1983 to 1990

Development of the unemployment rate (in%) in Chile (orange) and South America (blue). Also due to the effects of the 1981/82 recession, there was a high unemployment rate in Chile in the 1980s. Another source gives an unemployment rate of almost 30% at the height of the crisis. The unemployment rate in South America averaged 6.6% from 1980 to 1990.

The recession led to social unrest; the so-called “monetarist experiment” was widely considered to have failed. As a result, the Chicago Boys lost their influence on Chilean economic policy.

The Minister of Finance Sergio de Castro introduced a system of fixed exchange rates in 1979 . He stuck to this when more moderate economic advisors pushed for a devaluation of the Chilean peso because of the sharp rise in the number of corporate bankruptcies. De Castro countered that only the strongest and most competitive companies should survive the crisis, but could no longer prevail with his idea and had to leave in 1982. He was replaced by Rolf Lüders , who was also trained in Chicago and advocated state intervention to rescue the banks. After the two largest banks had been taken over by the state in 1982, five more were nationalized in 1983 and two more came under state supervision. The central bank had to pay for the foreign debt. Critics mocked this development as the “Chicago way to socialism”, as more banks were nationalized under the aegis of the Chicago Boys than under the Allende socialist government.

In 1983 other ministers had to resign, including a. José Piñera as Mines Minister. Pinochet filled the ministerial posts through practitioners, initially mainly entrepreneurs, later also administrative officials. In agricultural policy, the new team set minimum prices and granted subsidies for loans. Import tariffs on agricultural products were increased while exports were subsidized. This phase, in which Hernán Büchi gained great influence, is often referred to as “pragmatic neoliberalism ”, as opposed to the more radical reforms based on market principles . Büchi first became Minister for Public Planning (ODEPLAN) in 1983, then Head of Banking Supervision, until Pinochet finally appointed him Minister of Finance in 1984. In response to the financial crisis, he passed a banking law in 1982 that required minimum reserves and established strict banking supervision. His privatization policy, however, continued in the tradition of the Chicago Boys. There was a further reduction in the government quota, particularly in the area of ​​social spending.

During the 1980s, international organizations such as the IMF and the World Bank pushed for a return to strict fiscal policy and the reprivatisation of banks. Towards the end of the Pinochet dictatorship, Chicago Boys were given more positions of responsibility in economic policy.

Democratization

During Pinochet's dictatorship, Chilean economists who were critical of the Chicago Boys' course had to find work either with international organizations such as the ECLAC or the ILO or with private research institutes such as the Society for Latin American Studies (CIEPLAN), as heterodox economists from the universities were dismissed and Pinochet even had critical faculties unceremoniously closed. After democratization, many of the economic policy experts and those in charge were therefore recruited from these organizations. In the economic team of the first democratic government of Christian Democrat Patricio Aylwin in 1990, only three of the 23 members studied in Chicago, of which only one, Andrés Sanfuentes, as president of the Banco del Estado , is counted among the Chicago Boys. Another Chicago graduate was Ricardo Ffrench-Davis , who belonged to the first generation of exchange students, but was an exception alongside Carlos Massad as a supporter of the Christian Democrats among the Chicago Boys. The third team member with a Chicago degree was Roberto Zahler , who later became President of the Chilean Central Bank , who had already publicly criticized the Chicago Boys in 1982 for "the presumption of scientific and absolute truths".

Résumé

The radical reforms of the Chicago Boys were put into perspective in the phase of “pragmatic neoliberalism” and by the democratic governments after 1990 and supplemented by the regulation of banks and social policy measures. Both Büchi and the center-left governments under Ricardo Lagos and Michelle Bachelet basically retained the market economy orientation and free trade policy . Under the center-left governments, however, there was a transition to more pragmatic neo-structuralist economic policies .

More résumés and global influence

While the Chicago Boys in Chile were largely released from government responsibility after 1983 and practically no longer played a political role after democratization, they continued to have influence in the economy and in civil society advisory organizations.

In Chile

Joaquín Lavín as candidate of the Alianza por Chile before the presidential elections in 2005

After the banking crisis of 1982/83, the Chicago Boys and Gremialistas founded the regime- loyal Unión Demócrata Independiente (UDI), which had to go into the opposition after democratization (1989).

Some Chicago Boys returned to universities after being largely disempowered in the early 1980s or after democratization. Others started working for Chilean banks and companies. However, many have also been able to establish themselves as international consultants or join think tanks . So z. B. José Piñera today for the libertarian American Cato Institute states on pension reform. José Piñera had studied at Harvard with his brother Sebastián Piñera , was first minister of labor and later minister of mining under the Pinochet dictatorship and is counted among the Chicago Boys.

His brother Sebastián had criticized the Chicago Boys' economic policy at an early stage. In the presidential elections in Chile (2005/2006) he was able to prevail against the Chicago boy Joaquín Lavín (UDI), but then lost in the runoff election against the socialist Michelle Bachelet . In 2010, Sebastián Piñera won the presidential election and made Joaquín Lavín Minister of Education.

Influence in Latin America and worldwide

In the 1980s and 1990s, economists trained in Chicago (and increasingly also at faculties of the so-called Ivy League such as Harvard or MIT ) were able to gain influence in several other Latin American states with authoritarian regimes based on the Chilean model. In Mexico, this was a group to which Francisco Gil Díaz and later President Carlos Salinas belonged and which had been implementing market reforms since 1985.

In Argentina, Friedman's student Adolfo César Diz was initially under the junta from 1976 onwards as central bank president from 1981 to 1986 and later went to the World Bank as an advisor. Under Carlos Menem , Roque Fernández , who was also trained in Chicago, was central bank president from 1991, and then minister of economics from 1996. More Argentine Chicago Boys followed in important economic and political posts in the mid-1990s.

Other Latin American military governments, for example in Brazil and Paraguay , pursued economic policy programs that were hardly or not at all influenced by the Chicago School.

Yves Dezalay and Bryant Garth point out that the US-Chile transfer was not one-sided, but that a “remarkable history of export and import” underpinned the credibility of the Washington Consensus and laid the groundwork for structural adjustments following the election of Ronald Reagan prepared. While the World Bank still saw the reforms of the Chicago Boys in Chile as a model for economic and political leadership in the 1980s, the political style changed in the course of the 1990s and more emphasis was placed on human rights, democracy and the participation of those affected. In 1998 Joseph Stiglitz declared the end of the Washington Consensus as chief economist of the World Bank. Since then, the principles of good governance have been sought as the new model for macroeconomic conditionality in international lending.

rating

The reforms of the Chicago Boys were controversial in economic and social science literature with regard to the effectiveness of their economic effects and the political legitimacy of their occurrence. The members of the Chicago School, who supported the Chicago Boys in their reforms, received public criticism for their commitment.

Economic and socio-political aspects

Development of the gross domestic product per inhabitant of Chile (blue) and South America (orange) in US dollars (current prices). Pinochet's reign is highlighted in gray.

If the Chicago Boys are held responsible for the financial crisis in the early 1980s, they are often given the credit of having set the course for further good economic development. The stability of monetary value and the increasing growth of the Chilean economy since the late 1980s and early 1990s are praised as the lasting success of market orientation . Nevertheless, this long-term record of their work is also controversial. The influence of the Chicago Boys on economic growth is assessed differently. Proponents of the reforms refer to statistics according to which Chile, for example, recorded an average growth in gross domestic product of 2.7 percent in real terms from 1981 to 1990, which is above the growth rates of other large Latin American countries such as Brazil, Mexico, Venezuela, Argentina and Peru lay. Other authors point out that real economic growth between the early 1970s and the end of the dictatorship in 1990 was relatively low and below the Latin American average. Various Chilean economists, citing declining developments in the investment rate and per capita gross domestic product during the rule of Pinochet, refuse to speak of an economic miracle.

It is also questionable to what extent the long-term development is due to the reforms of the Chicago Boys. In the opinion of Ricardo Ffrench-Davis , the former chief economist of the Chilean central bank and today's advisor to the UN Economic Commission for Latin America ( ECLAC ), the radical nature of shock therapy prevented higher growth among the Chicago Boys because periods of high growth were followed by severe recessions. Only in the phase of pragmatic economic policy did the economy get on a sustainable growth path.

The Californian economist James M. Cypher points out that during the privatization between 1975 and 1978, the Chicago Boys awarded state-owned companies below the market price on a large scale, whereby they mainly favored a few large corporations. This is to further concentrate the already large by Grupos come embossed Chilean economy.

The partial privatization of the health system meant that a growing number of citizens no longer had access to health insurance cover. Since patients sometimes have to pay extremely high co-payments and the health insurance coverage shows considerable gaps in coverage, the reformed health system has developed into a two-class medicine for patients with unpredictable and often existential financial risks.

It is also emphasized that the social differences have intensified drastically. It is statistically proven that the economic policy of the Chicago Boys already in the first few years led to a sharp drop in monthly consumer spending of the poorest 20 percent of the population. Consumer spending has also declined in the lower middle class and middle class. The upper middle class, on the other hand, had a little more money available, and the richest 20 percent of the population were able to expand their consumer spending significantly:

households 1969 1978
20% (poor) $ 164 $ 113
20% (lower middle class) $ 255 $ 203
20% (middle class) $ 337 $ 297
20% (upper middle class) $ 443 $ 456
20% (rich) $ 862 $ 1,112

Overall, during the Pinochet dictatorship from 1973 to 1990 there was a moderate increase in unemployment from just under 5 to more than 7 percent, which increased even further after democratization until 2000. By the time the Chicago Boys took over political office, unemployment had risen to over 18 percent in a first recession, and in the second recession in 1982, when most of the Chicago Boys were fired, unemployment was over 25 percent.

year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
Unemployment (%) 4.7 9.2 18.3 19.2 18.1 13.8 13.4 13.2 20.0 25.0

Even a proponent of reforms like Gary Becker admits that market reforms have not solved all the problems facing Latin American societies. For example, according to a study by the World Bank, there is greater economic inequality in this region than in other parts of the world, in large part because schooling and other social policy expenditures for the poor have been inadequate.

Technocracy and Authoritarian Rule

Burning of Marxist literature in the first days of the military regime. In November 1986 Pinochet had 15,000 copies of a book by
García Márquez burned in Valparaíso . There were over 3,000 political murders in Chile during the dictatorship. In the period from 1973 until shortly before the end of the dictatorship in 1990 , 94 percent of a total of around 27,000 political prisoners, including 13 percent women, were tortured according to the Valech Commission . According to conservative estimates, there were 30,000 opponents of the regime who went into - in some cases forced - political exile.

The connection between liberal economic reforms and technocratic or authoritarian politics is also controversial . The work of the Chicago Boys is often described as a kind of technocratic revolution "from above" that was not limited to economic policy issues. The Chicago Boys wanted the neoliberal market approach, and thus the belief in individual action instead of the responsibility of the state, to permeate society as a whole. In retrospect, critics within the Ford Foundation felt that this ideological orientation, which was already laid out in the conception of the exchange program, was too one-sided: the interests of developing countries would not be served by enforcing a single perspective.

The failure of the first radical reform phase is attributed to the fact that textbook knowledge of the Chicago school was applied to an overly rigid and ideologically charged kind of technocrats. In doing so, the authoritarian regime shielded them from the expertise of social interest groups and the concerns of those affected. Accordingly, a division of labor between the economic liberal reforms of the Chicago Boys and the political rule of Pinochet is sometimes assumed, in which the authoritarian exercise of military power increased in order to keep those affected by economic reforms in check. The political scientist Carlos Huneeus who teaches at the Universidad Católica today, however, draws the conclusion from a study of the ODEPLAN that there was no division of labor between economists (whom he calls "ODEPLAN boys") and a more politically oriented group of gremialists, but that both by different means the same goal had pursued a "protected democracy" (protected democracy) to build. An important step towards this goal was the "Constitution of Freedom" (La Constitución de la Libertad) from 1980, inspired by Friedrich August von Hayek and drafted by the leader of the committee, Jaime Guzman , which gave the economically liberal idea of ​​freedom a high priority in relation to the Democracy, however, served to set these limits and to redefine them.

The fact that North American economists such as Milton Friedman and Arnold Harberger supported the Chicago Boys despite the human rights violations in Chile earned them harsh criticism from colleagues. The divergence of political and economic freedom in Pinochet's Chile meant that opposition Chilean economists were able to give the term “neoliberalism” a negative connotation by distinguishing it from classical liberalism, which (as in Hayek's theory) is intrinsically inseparable both forms of freedom were intended.

According to Orlando Letelier , “repressions against the majority and economic freedom for small privileged groups in Chile were two sides of the same coin”. On the other hand, Sebastián Edwards , former chief economist of the World Bank for the Latin America and Caribbean region, who was trained at the Universidad Católica and in Chicago during Pinochet's time, assures : “The Chicago Boys were not part of the Pinochet conspiracy […] Contrary to the claims of some critics the policy of the Chicago Boys was not dogmatic, rigidly carried out, and rejected by the population as a whole. Equally false is the claim that the Chicago Boys were natural allies of the military government that came to power in 1973. "

With regard to the legitimacy of the reforms, it is also controversial to what extent foreign political actors, especially the USA, have influenced and controlled the reforms. Naomi Klein's bestseller The Shock Strategy introduced this question to a wider audience. Klein describes the exchange program with the University of Chicago primarily as a move by the USA to achieve hegemony over Latin American economics. According to Valerie Brender, she neglects the analysis of economic development and comparison with other development aid and exchange programs in the USA.

Another point of criticism of the relationship between the Chicago Boys and the Chilean dictatorship lies in the restructuring of Chilean civil society through economic reforms. On the one hand, the Chicago Boys' scientific habitus served as a basis for legitimizing the dictatorship to justify their authoritarian politics; on the other hand, the massive dismantling of trade union organizations and the monopoly of the media in the hands of the military and oligarchy led to a massive displacement of political figures Topics from the public space. Current statements by prominent Chicago Boys show that to this day they are not prepared to take a critical distance from the Pinochet dictatorship, as José Pinera (brother of the incumbent president and Minister of Labor and Mining under Pinochet) praises the military junta to liberate Chile from a communist dictatorship and describes it as a step that was necessary to free the country from an “illiberal democracy”.

Opinions of the Chicago professors

Gary Becker

In 1997, Nobel Prize winner and Chicago professor Gary Becker said of the Chicago Boys:

“In retrospect, her willingness to work for a cruel dictator and develop a different economic approach was one of the best things that could happen to Chile. […] Chile went from a pariah state controlled by a dictator to an economic model for all developing countries. Chile's accomplishments became even more impressive when the government was transformed into a democracy. [...] Your teachers are proud of their well-deserved honor. "

- Gary Becker on the Chicago Boys.
Milton Friedman (2005)

Milton Friedman said in 1991 about the expression "miracle of Chile" coined by him almost 10 years earlier:

“I have nothing good to say about the political regime that Pinochet imposed. It was a terrible political regime. The real miracle of Chile is not how well it has done economically; the real miracle of Chile is that a military junta was willing to go against its principles and support a freemarket regime designed by principled believers in a free market. "

“I have nothing good to say about the Pinochet political regime. It was a terrible regime. The real miracle of Chile isn't how well the country has performed economically. The real miracle of Chile is that a military government has been willing to go against its principles and support a free market order designed by principled people who believe in the free market. "

- Milton Friedman on the so-called "miracle of Chile"

Overview of the Chicago Boys

The following Chilean government members or advisers are supported by Patricio Silva u. a. counted among the Chicago Boys:

  • Sergio de la Cuadra (Minister of Finance 1982–1983)
  • Sergio de Castro (Minister of Economic Affairs 1975–1976, Minister of Finance 1976–1982)
  • Martín Costabal (responsible for the 1981–1984 budget, Minister of Finance 1989–1990)
  • Pablo Baraona (Minister of Economic Affairs 1976–1979)
  • Alvaro Bardón (State Secretary in the Ministry of Economic Affairs 1982–1983)
  • María Teresa Infante (Minister for Labor 1988–1990)
  • Miguel Kast (Minister of Planning 1978–1980, Minister of Labor 1980–1982, President of the Central Bank 1982)
  • Roberto Kelly (Secretary of Commerce 1978–1980)
  • Felipe Lamarca (Director of the Tax Authority SII 1978–1984)
  • Joaquín Lavín (advisor to the Ministry of Planning, editor of the commercial section of El Mercurio )
  • Rolf Lüders (Minister of Economic Affairs 1982–1983; Minister of Finance 1982)
  • Juan Carlos Méndez (responsible for the budget 1975–1981; World Bank economist 1982)
  • Andrés Sanfuentes (advisor to the central bank and budgetary authority)
  • Jorge Selume (responsible for the 1984–1989 budget)
  • Francisco Soza ( CORFO 1975)
  • Juan Villarzú (responsible for the budget 1973–1975, then World Bank economist , Banco Concepción from 1978)

Chicago Boys with degrees from other US faculties:

  • Hernán Büchi (Minister of Finance 1985–1989, MBA Columbia)
  • Carlos Cáceres (Governor of the Central Bank 1982–1983, Secretary of the Treasury 1983–1984, Secretary of the Interior 1988–1990, MBA Cornell)
  • Jorge Cauas (Treasury Secretary 1974–1976, MA Columbia)
  • José Piñera (Minister of Labor 1979–1980, Minister of Mines 1980–1981, PhD Harvard)

See also

literature

  • Sebastián Edwards: Chile, Latin America's Brightest Star. In: Left Behind: Latin America and the False Promise of Populism . University of Chicago Press, 2010, ISBN 978-0-226-18478-4 .
  • Sebastián Edwards, Alejandra Cox Edwards: Monetarism and Liberalization: the Chilean Experiment , University of Chicago Press, 1991.
  • Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346.
  • Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 .
  • Patricio Silva: In the name of reason: technocrats and politics in Chile , Penn State Press, 2008, ISBN 978-0-271-03453-9
  • Patricio Silva: Technocrats and Politics in Chile: From the Chicago Boys to the CIEPLAN Monks. In: Journal of Latin American Studies , Vol. 23, No. 2 (May 1991), pp. 385-410.
  • Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, 1995.
  • Urs Müller-Plantenberg : "The Black Utopia of the Chicago Boys", in: Willi Baer & Karl-Heinz Dellwo: Dictatorship and Resistance in Chile , Laika Verlag, Hamburg 2013, ISBN 978-3-942281-65-2

Web links

Remarks

  1. Rawi Abdelal, Mark Blyth and Craig Parsons: Constructing the International Economy , Cornell University Press, 2010, ISBN 0-8014-7588-0 , p. 41.
  2. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , p. 135.
  3. Joseph L. Love: The Rise and Decline of Economic Structuralism in Latin America: New Dimensions , In: Latin American Research Review , Vol. 40, No. 3 (2005), pp. 100-125, 100f.
  4. ^ Joseph L. Love: The Rise and Decline of Economic Structuralism in Latin America: New Dimensions , In: Latin American Research Review , Vol. 40, No. 3 (2005), p. 119. Cf. also Valerie Brender: Economic Transformations in Chile: The Formation of the Chicago Boys.  ( Page no longer available , search in web archivesInfo: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF; 1.0 MB) In: American Economist , April 1, 2010.@1@ 2Template: Dead Link / relooney.fatcow.com  
  5. ^ Stephanie Blankenburg, José Gabriel Palma and Fiona Tregenna: structuralism. In: Steven N. Durlauf and Lawrence E. Blume (Eds.), The New Palgrave Dictionary of Economics, Second Edition, 2008.
  6. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , p. 93.
  7. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , pp. 89 ff.
  8. ^ Compare, for example, Carlos Huneeus: Technocrats and Politicians in an Authoritarian Regime. The “ODEPLAN Boys” and the “Gremialists” in Pinochet's Chile. In: Journal of Latin American Studies (2000), Vol. 32, pp. 461-501, 479.
  9. ^ A b c d Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 127.
  10. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 109 ff.
  11. ^ A b c d Valerie Brender: Economic Transformations in Chile: The Formation of the Chicago Boys.  ( Page no longer available , search in web archivesInfo: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF; 1.0 MB) In: American Economist , April 1, 2010.@1@ 2Template: Dead Link / relooney.fatcow.com  
  12. ^ Johan van Overtveldt: The Chicago School: how the University of Chicago assembled the thinkers who revolutionized economics and business . Agate, Chicago 2007, ISBN 978-1-932841-14-5 , pp. 348-353 .
  13. Yves Dézaley, Bryant G. Garth: The internationalization of palace wars: lawyers, economists, and the contest to transform Latin American states. University of Chicago Press, 2002, ISBN 0-226-14426-7 , p. 114.
  14. ^ Verónica Montecinos and John Markoff: Economists in the Americas. Edward Elgar Publishing, 2009, ISBN 1-84542-043-8 , p. 151.
  15. Claudia Rosett, quoted from Milton Friedman and Rose D. Friedman: Two Lucky People: Memoirs. University of Chicago Press, 1999, ISBN 0-226-26415-7 , p. 403.
  16. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , p. 89.
  17. James Cypher: The Political Economy of the Chilean State in the Neoliberal Era: 1973-2005. In: Canadian Journal of Development Studies , Vol. 26, No. 4, 2005, pp. 763, 768.
  18. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , pp. 209 f.
  19. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , p. 91.
  20. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 247.
  21. ^ A b Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , pp. 247f.
  22. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , p. 92.
  23. See Patricio Silva: In the name of reason: technocrats and politics in Chile, Penn State Press, 2008, ISBN 978-0-271-03453-9 , p. 147.
  24. Francisco Enrique González: Dual transitions from authoritarian rule: institutional regimes in Chile and Mexico, 1970-2000 , JHU Press, 2008, ISBN 0-8018-8800-X , p. 23.
  25. ^ A b Paul E. Sigmund: The "Invisible Blockade" and the Overthrow of Allende. In: Foreign Affairs , Vol. 52, No. 2 (January 1974), pp. 322-340, here p. 337.
  26. ^ Paul E. Sigmund: The "Invisible Blockade" and the Overthrow of Allende. In: Foreign Affairs , Vol. 52, No. 2 (January 1974), pp. 322-340, 338f.
  27. For example Elizabeth Farnsworth: Chile: What Was The US Role? (1) More than Admitted. In: Foreign Policy , No. 16 (autumn 1974), pp. 127–141, here p. 133.
  28. ^ Gil Merom: Democracy, Dependency, and Destabilization: The Shaking of Allende's Regime. In: Political Science Quarterly , Vol. 105, No. 1 (Spring 1990), pp. 75-95, 85, footnote 33.
  29. ^ Sebastian Edwards: Left Behind: Latin America and the False Promise of Populism. University of Chicago Press, 2010, ISBN 978-0-226-18478-4 , p. 102.
  30. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 16.
  31. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 16.
  32. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 18.
  33. ^ A b Mario Sznajder: Hayek in Chile. In: Dan Avnôn, Avner De-Shalit: Liberalism and its practice. Routledge, London 1999, ISBN 0-415-19355-9 , pp. 50, 54.
  34. Milton Friedman and Rose D. Friedman: Two Lucky People: Memoirs , University of Chicago Press, 1999, ISBN 0-226-26415-7 , pp. 398 f.
  35. Genaro Arriagada Herrera: Pinochet: the politics of power. Thematic studies in Latin America. Routledge, London 1988, ISBN 0-04-497062-5 , p. 80.
  36. Milton Friedman and Rose D. Friedman: Two Lucky People: Memoirs , University of Chicago Press, 1999, ISBN 0-226-26415-7 , p. 399.
  37. ^ Anil Hira: Ideas and economic policy in Latin America: regional, national, and organizational case studies. Greenwood Publishing Group, 1998, ISBN 0-275-96269-5 , p. 80.
  38. Patricio Silva: In the name of reason: technocrats and politics in Chile, Penn State Press, 2008, ISBN 978-0-271-03453-9 , p. 143.
  39. Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Cambridge / London: Harvard University Press, 2009, pp. 305–346, 306.
  40. ^ Ricardo Ffrench-Davis: Economic Reforms in Chile. From Dictatorship to Democracy , Ann Arbor: The University of Michigan Press, 2002, ISBN 978-0-472-11232-6 , p. 10.
  41. ^ Sebastián Edwards, Alejandra Cox Edwards: Monetarism and Liberalization: the Chilean Experiment. University of Chicago Press, 1991, p. 109.
  42. Ricardo Ffrench-Davis: Economic Reforms in Chile From Dictatorship to Democracy , Ann Arbor: The University of Michigan Press, 2002, ISBN 978-0-472-11232-6 , p. 10.
  43. ^ Nicola Phillips: The Southern Cone model: the political economy of regional capitalist development in Latin America , Routledge, 2004, ISBN 0-415-34088-8 , p. 76.
  44. ^ Kristian Niemitz: Funded old-age provision using the example of Chile. DiplomicaVerlag, Hamburg 2008, ISBN 978-3-8366-5903-1 , p. 14ff.
  45. ^ Kristian Niemitz: Funded old-age provision using the example of Chile. DiplomicaVerlag, Hamburg 2008, ISBN 978-3-8366-5903-1 , p. 32.
  46. ^ Geraint Johnes and Jill Johnes: International handbook on the economics of education , Edward Elgar Publishing, 2007, ISBN 1-84720-196-2 , p. 371.
  47. ^ Milton Friedman, Two Lucky People , The University of Chicago Press, 1998, ISBN 0-226-26414-9 , p. 405
  48. ^ Robert G. Wesson: Politics, policies, and economic development in Latin America . Hoover Press, 1984, ISBN 0-8179-8062-8 , page 5.
  49. ^ Carlos Huneeus: Technocrats and Politicians in an Authoritarian Regime. The “ODEPLAN Boys” and the “Gremialists” in Pinochet's Chile. In: Journal of Latin American Studies (2000), Vol. 32, pp. 461-501, 485 f. See Verónica Montecinos and John Markoff: Economists in the Americas , Edward Elgar Publishing, 2009, ISBN 1-84542-043-8 , p. 151.
  50. ^ Carlos Huneeus: Technocrats and Politicians in an Authoritarian Regime. The 'ODEPLAN Boys' and the 'Gremialists' in Pinochet's Chile , in: Journal of Latin American Studies (2000), Vol. 32, pp. 461–501, 481 ff.
  51. Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Cambridge / London: Harvard University Press, 2009, pp. 305–346, 306.
  52. Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile , Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 29 f.
  53. Patricio Silva: Technocrats and Politics in Chile: From the Chicago Boys to the CIEPLAN Monks. In: Journal of Latin American Studies , Vol. 23, No. 2 (May 1991), pp. 385-410, 395.
  54. Patricio Silva: Technocrats and Politics in Chile: From the Chicago Boys to the CIEPLAN Monks. In: Journal of Latin American Studies , Vol. 23, No. 2 (May 1991), pp. 385-410, 396.
  55. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile , Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 30.
  56. ^ Judith A. Teichman: The politics of freeing markets in Latin America: Chile, Argentina, and Mexico. UNC Press, 2001, ISBN 0-8078-4959-6 , pp. 183f.
  57. Rossana Castiglioni: The Politics of Retrenchment: The Quandaries of Social Protection under Military Rule in Chile, 1973-1990. In: Latin American Politics and Society. Vol. 43, No. 4 (Winter, 2001), pp. 37-66, 58 f.
  58. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 36.
  59. ^ The Mont Pelerin Society: Past Meetings.
  60. Jerzy Szacki: Liberalism after communism , Central European University Press, 1995, ISBN 1-85866-016-5 , pages 155 f.
  61. Interview in El Mercurio of April 19, 1981, German translation quoted from Dieter Plehwe and Bernhard Walpen : Scientific and science-political production methods in neoliberalism. Contributions of the Mont Pèlerin Society and radical think tanks to the acquisition and maintenance of hegemony. In: PROKLA . Journal for Critical Social Science , 115 (1999), pp. 203-235, here p. 230 f.
  62. ^ Sebastian Edwards: Left Behind: Latin America and the False Promise of Populism. University of Chicago Press, 2010, ISBN 978-0-226-18478-4 , pp. 101 f.
  63. See Milton Friedman and Rose D. Friedman: Two Lucky People: Memoirs , University of Chicago Press, 1999, ISBN 0-226-26415-7 , pp. 398 ff.
  64. George Ritzer : Globalization: A Basic Text. John Wiley and Sons, 2009, ISBN 1-4051-3271-X , p. 111.
  65. ^ Geraint Johnes and Jill Johnes: International handbook on the economics of education , Edward Elgar Publishing, 2007, ISBN 1-84720-196-2 , p. 371.
  66. ^ Emily S. Andrews: Pension reform and the development of pension systems: an evaluation of World Bank assistance , World Bank Publications, 2006, ISBN 0-8213-6551-7 , p. 61.
  67. ^ Sebastian Edwards: Left Behind: Latin America and the False Promise of Populism. University of Chicago Press, 2010, ISBN 978-0-226-18478-4 , p. 102.
  68. Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Cambridge / London: Harvard University Press, 2009, pp. 305–346, 337.
  69. ^ Sebastián Edwards, Alejandra Cox Edwards: Monetarism and Liberalization: the Chilean Experiment. University of Chicago Press, 1991, pp. Xvii.
  70. a b c Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346, here p. 329.
  71. Sebastián Edwards, Alejandra Cox Edwards: Monetarism and liberalization: the Chilean experiment. University of Chicago Press, 1991, pp. 202 f.
  72. Romeo Rey: History of Latin America from the 20th Century to the Present , CH Beck, Munich 2006, ISBN 3-406-54093-7 , p. 43 f.
  73. Rudolf Schröder: Conflict Management, Sociocultural Heritage and Economic Progress: On the Different Development Successes of the Countries of East Asia, Africa and Latin America , Mohr Siebeck, 1999, ISBN 3-16-147206-3 , p. 126.
  74. Akhtar Hossain and Anis Chowdhury: Monetary and financial policies in developing countries: growth and stabilization , Routledge, 1996, ISBN 0-415-10870-5 , pp. 54 f.
  75. Patricio Meller, Christian Morrisson: Adjustment and equity in developing countries. Organization for Economic Co-operation and Development, OECD Publishing, 1992, ISBN 92-64-13619-3 , p. 32.
  76. Rudolf Schröder: Conflict Management, Sociocultural Heritage and Economic Progress: On the Different Development Successes of the Countries of East Asia, Africa and Latin America , Mohr Siebeck, 1999, ISBN 3-16-147206-3 , p. 126.
  77. ^ Gavin O'Toole: Politics Latin America. Pearson Education, 2007, ISBN 1-4058-2129-9 , p. 442.
  78. ^ Peter Winn: Victims of the Chilean miracle: workers and neoliberalism in the Pinochet era, 1973-2002 , Duke University Press, 2004, ISBN 0-8223-3321-X , p. 42.
  79. ^ Sebastián Edwards, Alejandra Cox Edwards: Monetarism and Liberalization: the Chilean Experiment. University of Chicago Press, 1991, p. XVII, cf. also p. 165.
  80. ECLAC : Barbara Stallings, Jürgen Weller, Job Creation in Latin America in the 1990s: The Foundation for Social Policy, Santiago de Chile, July 2001, Table 4 (page 15), PDF ( Memento of the original from January 31, 2012 on the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.eclac.cl
  81. ^ Carlos Fortin: The Failure of Repressive Monetarism: Chile, 1973-83. In: Third World Quarterly , Vol. 6, No. 2 (Apr., 1984), pp. 310-326; Sebastian Edwards: Monetarism in Chile, 1973–1983: Some Economic Puzzles. In: Economic Development and Cultural Change. Vol. 34, No. 3 (Apr., 1986), p. 535. See also the references in Jean Drèze, Amartya Kumar Sen: Hunger and Public Action. Oxford University Press, 1991, p. 231.
  82. a b Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346, here p. 330.
  83. ^ Robert G. Wesson: Politics, policies, and economic development in Latin America . Hoover Press, 1984, ISBN 0-8179-8062-8 , p. 8.
  84. Eduardo Silva: From Dictatorship to Democracy: The Business-State Nexus in Chile's Economic Transformation, 1975-1994. In: Comparative Politics. Vol. 28, No. 3 (Apr., 1996), pp. 299-320, 308 f.
  85. See e.g. B. Francisco Enrique González González: Dual transitions from authoritarian rule: institutional regimes in Chile and Mexico, 1970-2000 , JHU Press, 2008, ISBN 0-8018-8800-X , pp. 98f.
  86. Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346, here p. 332.
  87. Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346, here p. 331.
  88. Fernando Ignacio Leiva: Latin American neostructuralism: the contradictions of post-neoliberal development , University of Minnesota Press, 2008, ISBN 0-8166-5328-3 , pp. 69 f.
  89. Patricio Silva: Technocrats and Politics in Chile: From the Chicago Boys to the CIEPLAN Monks. In: Journal of Latin American Studies , Vol. 23, No. 2 (May 1991), pp. 385-410, here p. 407.
  90. Patricio Silva: Technocrats and Politics in Chile: From the Chicago Boys to the CIEPLAN Monks. In: Journal of Latin American Studies , Vol. 23, No. 2 (May 1991), pp. 385-410, here p. 407.
  91. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 306.
  92. ^ Roberto Zahler: El Neoliberalismo en una Versión Autoritaria. In: Revista de Estudios Sociales 1982, No. 31, p. 50.
  93. Edwards p. 105f.
  94. Fernando Ignacio Leiva, Toward a Critique of Latin American Neostructuralism in: William C. Smith, Laura Gomez-Mera, Market, State, and Society in Contemporary Latin America , Blackwell Publ., 2010, ISBN 978-1-4443-3525- 5 , p. 33.
  95. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 255.
  96. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , p. 255.
  97. ^ Robert G. Wesson: Politics, policies, and economic development in Latin America . Hoover Press, 1984, ISBN 0-8179-8062-8 , p. 9.
  98. Yves Dézaley, Bryant G. Garth: The internationalization of palace wars: lawyers, economists, and the contest to transform Latin American states , University of Chicago Press, 2002, ISBN 0-226-14426-7 , p.46 f.
  99. ^ Judith A. Teichman: The politics of freeing markets in Latin America: Chile, Argentina, and Mexico , UNC Press, 2001, ISBN 0-8078-4959-6 .
  100. ^ Judith A. Teichman: The politics of freeing markets in Latin America: Chile, Argentina, and Mexico. UNC Press, 2001, ISBN 0-8078-4959-6 , p. 138.
  101. ^ Gary S. Becker: Latin America Owes a Lot to Its 'Chicago Boys'. ( Memento of the original from July 24, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. In: BusinessWeek June 9, 1997. @1@ 2Template: Webachiv / IABot / www.hoover.org
  102. Cf. also Romeo Rey: History of Latin America from the 20th Century to the Present , Verlag CH Beck, 2006, ISBN 3-406-54093-7 , p. 43 f.
  103. ^ Cf. Nicola Phillips: The Southern Cone model: the political economy of regional capitalist development in Latin America , Routledge, 2004, ISBN 0-415-34088-8 , p. 65.
  104. Yves Dézaley, Bryant G. Garth: The internationalization of palace wars: lawyers, economists, and the contest to transform Latin American states , University of Chicago Press, 2002, ISBN 0-226-14426-7 , S. 114th
  105. Nicolas Guilhot: The democracy makers: human rights and international order , Columbia University Press, 2005, ISBN 0-231-13124-0 , p. 189.
  106. ^ Sebastian Edwards: Left Behind: Latin America and the False Promise of Populism. University of Chicago Press, 2010, ISBN 978-0-226-18478-4 , p. 106.
  107. See Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346, here p. 306.
  108. ^ Enrique R. Carrasco: Autocratic Transitions to Liberalism: A Comparison of Chilean and Russian Structural Adjustment. In: Law and Contemporary Problems , Vol. 5, pp. 99–126, here p. 101, fn. 5.
  109. Jorge Nef: The Chilean Model: Fact and Fiction. In: Latin American Perspectives , Vol. 30, No. 5 (September 2003), pp. 16-40, here p. 17.
  110. With relevant evidence Enrique R. Carrasco: Chile, Its Foreign Commercial Bank Creditors and its Vulnerable Groups: An Assessment of the Cooperative Case-by-Case Approach to the Debt Crisis. In: Law & Pol'y Int'l Bus. , Vol. 24 (1993), pp. 273, 308, fn. 154. Cf. also Ricardo Ffrench-Davis: Economic Reforms in Chile: From Dictatorship to Democracy. University of Michigan Press: Ann Arbor, 2002.
  111. JM Albala-Bertrand: monetarism and Liberalization: The Chilean experiment: With a New Afterword. In: The Economic Journal , Vol. 102, No. 414 (Sep., 1992), pp. 1258-1260, here pp. 1259f; Jorge Nef: The Chilean Model Fact and Fiction. In: Latin American Perspectives. Vol. 30, No. 5, (Sep., 2003), pp. 16-40; Eduardo Silva: From Dictatorship to Democracy: The Business-State Nexus in Chile's Economic Transformation, 1975–1994. In: Comparative Politics Vol. 28 (1996), pp. 299-320; Ricardo Ffrench-Davis: Economic Reforms in Chile: From Dictatorship to Democracy. University of Michigan Press: Ann Arbor, 2002.
  112. ^ Helmut Wittelsbürger, Albrecht von Hoff: Chiles way to the social market economy. (PDF; 118 kB) In: Konrad-Adenauer-Stiftung -Auslandsinfo. 1/2004, pp. 97, 104.
  113. James Cypher: The Political Economy of the Chilean State in the Neoliberal Era: 1973-2005. In: Canadian Journal of Development Studies , Vol. 26, No. 4, 2005, pp. 763, 764 f.
  114. James Cypher: The Political Economy of the Chilean State in the Neoliberal Era: 1973-2005. In: Canadian Journal of Development Studies , Vol. 26, No. 4, 2005, pp. 763, 765.
  115. ^ Gary L. Albrecht, Ray Fitzpatrick, Susan Scrimshaw: Handbook of social studies in health and medicine , SAGE, 2003 ISBN 0-7619-4272-6 , p. 449.
  116. Jens Holst: Health insurance in Chile: a model for other countries? in: International public health , Volume 8, Jacobs, 2001, ISBN 978-3-932136-83-2 , p. 3.
  117. ^ Jean Drèze, Amartya Kumar Sen: Hunger and Public Action. Oxford University Press, 1991, p. 231.
  118. ^ Robert G. Wesson: Politics, policies, and economic development in Latin America . Hoover Press, 1984, ISBN 0-8179-8062-8 , p. 7.
  119. See Helmut Hertwig: Ten years of dictatorship in Chile - the results of a monetarist model experiment. In: Blätter für deutsche und internationale Politik , 8/1983, pp. 1124–38, here p. 1128. Cf. Sandra Leiva, Jaime Sperberg and Dirk Koob: Exclusion processes in Latin America Labor market and old-age security-related exclusion using the example of Chile and Uruguay. In: Latin America Analyzes 3, October 2002, pp. 3–28, here p. 12.
  120. See Helmut Hertwig: Ten years of dictatorship in Chile - the results of a monetarist model experiment. In: Blätter für Deutsche und Internationale Politik , 8/1983, pp. 1124–38, here p. 1128.
  121. ^ Gary S. Becker: Latin America Owes a Lot to Its 'Chicago Boys'. ( Memento of the original from July 24, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. In: BusinessWeek June 9, 1997. @1@ 2Template: Webachiv / IABot / www.hoover.org
  122. Patricio Silva: In the name of reason: technocrats and politics in Chile , Penn State Press, 2008, ISBN 978-0-271-03453-9 , p. 143.
  123. ^ Oppenheim, Lois Hecht: Politics in Chile. Democracy, Authoritarianism, and the Search for Development. Boulder: Westview 1999, quoted from Karin Fischer: Chile: From a neoliberal pioneer to a model for growth with social balance? In: Latin America Analyzes. 17, 2/2007, pp. 157-175, here p. 159.
  124. ^ Juan Gabriel Valdés: Pinochet's Economists: The Chicago School of Economics in Chile. Cambridge University Press, Cambridge 1995, ISBN 0-521-45146-9 , pp. 194 f.
  125. Eduardo Silva: From Dictatorship to Democracy: The Business-State Nexus in Chile's Economic Transformation, 1975-1994. In: Comparative Politics Vol. 28 (1996), pp. 299-320, here pp. 305 f.
  126. ^ Mario Sznajder: Hayek in Chile. In: Dan Avnôn, Avner De-Shalit: Liberalism and its practice. Routledge, London 1999, ISBN 0-415-19355-9 , pp. 50, 53f.
  127. Karin Fischer: The Influence of Neoliberals in Chile before, during, and after Pinochet. In: P. Mirowski, D. Plehwe (eds.): The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective , Harvard University Press, Cambridge / London 2009, pp. 305–346, here pp. 327 ff.
  128. ^ Andre Gunder Frank: Economic Genocide in Chile: Open Letter to Milton Friedman and Arnold Harberger. In: Economic and Political Weekly. Vol. 11, No. 24 (Jun. 12, 1976), pp. 880-888; "Factual Politics" and "Terror Economics". In: Economic and Political Weekly. Vol. 12, No. 1/2 (Jan. 8, 1977), pp. 11-12.
  129. ^ Taylor C. Boss and Jordan Gans-Morse: Neoliberalism: From New Liberal Philosophy to Anti-Liberal Slogan. In: Studies in Comparative International Development Vol. 44, No. 2, 2009, ISSN  0039-3606 , p. 151, doi: 10.1007 / s12116-009-9040-5 .
  130. "Repression for the majorities and economic freedom for small privileged groups are in Chile two sides of the same coin." Orlando Letelier: The Chicago Boys in Chile: Economic Freedom's Awfull Toll. In: The Nation. August 28, 1976. Jorge Nef: The Chilean Model Fact and Fiction. In: Latin American Perspectives. Vol. 30, No. 5, (Sep., 2003), pp. 16-40, here p. 17.
  131. ^ Sebastian Edwards: Left Behind: Latin America and the False Promise of Populism. University of Chicago Press, 2010, ISBN 0-226-18478-1 , p. 105; Originally: "In fact, the Chicago Boys were not part of the Pinochet conspiracy [...] Contrary to what some critics have argued, the Chicago Boys' policies were not dogmatic, rigidly implemented, and ultimately rejected by the population at large. It is also incorrect to claim that the Chicago Boys were the natural allies of the military government that seized power in 1973. "
  132. Naomi Klein: The Shock Strategy - The Rise of Disaster Capitalism , Frankfurt / M .: S. Fischer, 2007, chap. 2 u. 3.
  133. Urs Müller-Plantenberg: "The Black Utopia of the Chicago Boys" in: Willi Baer and Karl-Heinz Dellwo: Dictatorship and Resistance in Chile, Hamburg 2013, p. 336 f.
  134. http://www.josepinera.com/articles/articles_restored%20democracy.htm
  135. ^ Own translation after Verónica Montecinos and John Markoff: Economists in the Americas , Edward Elgar Publishing, 2009, ISBN 1-84542-043-8 , p. 153.
  136. Archive link ( Memento of the original from September 22, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Milton Friedman: Economic Freedom, Human Freedom, Political Freedom.  @1@ 2Template: Webachiv / IABot / www.cbe.csueastbay.edu
  137. Silva lists a total of 26 Chicago Boys (including one woman) and mentions the ministers v. a. State Secretaries, Heads of Authorities and Advisers, P. Silva: Technocrats and Politics in Chile: From the Chicago Boys to the CIEPLAN Monks, in: Journal of Latin American Studies , Vol. 23, No. 2 (May 1991), pp. 385-410 , here p. 391.
This article was added to the list of excellent articles on December 8, 2010 in this version .