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robertogreco : chicagoboys   9

Chile protests against President Pinera and deep inequality.
“But symbols get scrambled when they’re reused. If a spectacle resurfaces, its meaning rarely remains exactly the same. That’s happened with the Joker, and it’s happening with other old reference points too. Take the loud pot-beating protests that have been taking place all over Chile, called cacerolazos. People leaning out of windows or marching on the streets, loudly expressing their dissatisfaction with the status quo and their support for the protests. (If you don’t know what that sounds like, here’s a video a relative sent me from Oct. 19, taken in the middle-class neighborhood of Ñuñoa.) If you were around and right-wing in 1971, the cacerolazos ringing out all across the country the past week—in rich neighborhoods and poor ones, in cities big and small—might remind you of the March of the Empty Pots, which many forget was actually undertaken by conservative Chilean women to register their opposition to Allende’s socialist government. Those protests were largely and functionally right-wing, but—like the cacerolazos against the government today, which have a very different politics—they also managed to transcend class differences.

Today, the cacerolazo seems to be transcending categories again. Because they seem to be coming from every sector, it’s not clear that Chile’s current situation is reducible to the usual right–left axes. On Friday night, the largest protest in the country’s history gathered, with approximately 1.2 million in Santiago and protests in solidarity all over the country. The sheer size also doesn’t lend itself easily to factionalist descriptions. That’s what sets this moment apart—and makes it seem just very faintly possible that a country that’s been rehashing the same triumphalist and traumatic stories about itself for decades might be able to pivot for a new chapter. While over 120 allegations of human rights violations are being investigated, including possible homicides by law enforcement and allegations of torture and sexual abuse—as well as hundreds of people injured by birdshot—the massive gatherings have not yet resulted in the kind of brutal military crackdown that happened in 1973.

I started here by referring, as for years one had to, to the country’s two protagonists: Pinochet and Allende. They were symbols of two very different Chiles. But when I said that these sights in Chile the past week would be traumatic if you were alive in 1973, I meant it. Many Chileans weren’t alive then. This contingent—young, buckling under increasing costs of living and enormous debt—seems tired of relitigating the past. They’re objecting, at least in part, to the long shadow Pinochet and Allende have cast: to the way Pinochet has been used endlessly as an excuse by the left while they preserved many or most aspects of his economic model; to the way Allende has remained a boogeyman for the right, used to scare children with stories of financial ruin and leftist terrorism. It even makes a certain horribly Freudian kind of sense that breaking the country out of these unproductive narrative recursions would require a strange and terribly dangerous semi-reenactment. With tanks on the streets. Lines in the stores. Fires. Fights.

I don’t want to downplay the intensity of what’s happened the past week. The chaos has many Chileans exhausted and on edge. What began with a student protest over a subway fare hike has exploded into nationwide marches against much more: an unsustainably high cost of living, poverty-level retirements, bad and expensive health care, poor education, and crushing debt, to name a few. President Sebastián Piñera called a state of emergency in the early hours of Oct. 19, deploying the military. Much of the country is now under curfew. As of this writing, 18 people have died. There is footage of soldiers beating civilians; one video captures Carabineros (militarized police) bludgeoning people as they walk by. A TV network aired live footage of soldiers shooting as they drove through a neighborhood in Recoleta. On Tuesday morning, an Argentine TV news team was broadcasting when a soldier lifted his rifle and shot at them with a rubber bullet. By Tuesday night, there was footage of soldiers shooting into a building in Las Condes. Chile’s infrastructure has been heavily damaged in the protests too: After Oct. 18, most of the subway system was severely damaged and temporarily shut down. Dozens of stations were burned. While some lines are partly operational, full function won’t be restored for months. Buses and police precincts and stores were set on fire. Hundreds of small and medium-size businesses throughout the country have had to close due to looting or other damage. Things are loud and frightening and wild.”



“On Friday, the Congress was evacuated due to protests outside, a peaceful (if loud) protest that by evening surpassed a million people in Plaza Baquedano alone. Though truckers have denied going on strike for fear of creating food shortages, they joined taxi drivers to bring the highways outside Santiago to gridlock, protesting against high road tolls. Efforts to create enough change are ongoing too: Evelyn Matthei, who served as Piñera’s former minister of labor during his first term, ran for president, and is currently mayor of Santiago’s Providencia district, said in an interview on Friday that the kind of profound change the country needed would require replacing “at least” eight of Piñera’s 24 ministers with people from the middle class with more diverse backgrounds that included (for example) public education experience. In the lower chamber of Congress, the House passed a proposed reduction in the work-week to 40 hours, and the opposition proposed a plebiscite for a new Constitution. To the extent that the demands are legible, the protests seem to be calling, first, for an end to the state of emergency and the military presence, and, more broadly, for a Constituent Assembly—for a new Constitution and a new social contract that sees people more as citizens than as a captive market for corporations seeking government concessions. Many are calling for the resignation of Interior Minister Chadwick, who spearheaded the initial escalation against the fare-dodgers. Others call for Piñera’s ouster. After the extraordinary, nation-wide outpouring Friday evening—Santiago’s protests were made up of almost 7 percent of the country’s population—Piñera tweeted, “The massive, joyous and peaceful protest today, where Chileans ask for a Chile with greater justice and solidarity, opens big roads to future and hope. We all have heard the message. We all have changed. With unity and help from God, we will travel this road to a better Chile for everyone.” Many of the chants had directly insulted him. On Saturday, he announced that he’d asked all his ministers to resign and said he would lift the state of emergency on Sunday if circumstances permitted. The curfew in Santiago is over. No one knows what will happen next.

***

I’ve noticed fewer Joker references over the last few days. And it feels like the potency of certain old spectacles—men in uniform confronting civilians, long grocery store lines—might be diminishing too. After a week of this state of emergency, things are not better in Chile. Things do not get easier when the “happy face” gets replaced by honest feeling. Tourism has plummeted, there are still fires, and people are anxious and angry and tired. But circumstances are not as bad as they could be. It could all go south at any time, but for now—for now—there is not desabastecimiento. The lines are not bread lines. (Yet.) Disturbing though the images of military attacking civilians are, things have not escalated to the familiar point of no return. I don’t know if that’s progress for a country both saturated by and sick of witnessed and inherited traumas. But it is something.

“Do you think Joker inspired any of this?” I asked my cousin Bernardita. “Of course,” she said, “or actually, the reverse: the social discontent inspired this interpretation of the Joker. Without a doubt.”

Whatever use the protesters have made of the Joker, there are obvious limits to his explanatory power. The protesters’ interpretation of the nihilistic clown has also taken some extratextual—and unifying—turns, such as the refusal of some politicians (and even a general) to adopt the rhetoric of war. The Joker snapped and turned on society. Chile is angry, and parts of it did snap. But by and large, the public still cares and has not devolved into nihilism. On Oct. 21, NO ESTAMOS EN GUERRA—WE ARE NOT AT WAR—was projected on the side of the Telefónica building near Plaza Italia, where huge crowds had gathered to reject the military’s enforcement of the curfew and test this version of Chile to see if it has changed. And if it can.”
lililoofbourow  chile  2019  protests  history  salvadorallende  pinochet  inequality  precarity  change  corruption  government  governance  democracy  neoliberlalism  chicagoboys  policy  politics  protest  sebastiánpiñera  michelebachelet  ricardolagos  dictatorship  symbols  symbolism  thejoker  batman  military  mobility  wellbeing  qualityoflife  labor  work  debt  violence  coup  trauma  injustice  justice  reform  constitution  eduardofrei  revolution  resistance  neoliberalism  capitalism  miltonfriedman  victorjara 
october 2019 by robertogreco
Chileans Have Launched a General Strike Against Austerity
"Chile is the original home of neoliberalism, first begun after the overthrow of President Salvador Allende in 1973. If you listen closely to mass protests on the streets today, you can hear Allende's last words: “The people must defend themselves.”"
chile  2019  history  neoliberalism  economics  chicagoboys  miltonfriedman  salvadorallende  felipelagos-rojas  franciscagómez-baeza  capitalism  inequality  privatization  precarity  sebastiánpiñera  imf  society  government  governance  dispossession  debt  credit  pinochet 
october 2019 by robertogreco
Opinion | Chile Learns the Price of Economic Inequality - The New York Times
“Chile is often praised as a capitalist oasis, a prospering and stable nation on a continent where both prosperity and stability have been in short supply. But that prosperity has accumulated mostly in the hands of a lucky few. As a result, Chile has one of the highest levels of economic inequality in the developed world.

Now that inequality is threatening the country’s stability. Santiago, the capital and largest city, has been convulsed by protests that were sparked by an increase in subway fares but that have become an expression of broader grievances: against the poor quality of public health care and education; against low wages and the rising cost of living; against the meager pensions that Chileans receive in old age.

Sebastián Piñera, the billionaire elected president in 2017, initially responded with belligerence, declaring the Chilean government “at war” with the protesters, some of whom have burned buildings and subway stations and engaged in looting — behavior that is undoubtedly criminal and reprehensible.

But most of the protesters are engaged in the peaceful exercise of their democratic rights. And on Tuesday, a chastened Mr. Piñera acknowledge his administration and its predecessors had failed to address their legitimate grievances.

“I ask for forgiveness for this shortsightedness,” Mr. Piñera said. He proposed a slate of reforms, including an increase in the top income tax rate, an increase in retirement benefits, and a guaranteed minimum monthly income.

The protesters’ rage is born of the frustrations of everyday life.

Chileans live in a society of extraordinary economic disparities. The distribution of income before taxes is highly unequal throughout the developed world; by that measure, Chile sits roughly in the middle of the 36 developed democracies that constitute the membership of the Organization for Economic Cooperation and Development. What makes Chile an outlier among those 36 nations is that the government does less than nearly any other developed nation to reduce economic inequality through taxes and transfers. As a result, Chile has the highest level of post-tax income inequality among O.E.C.D. members.

Santiago’s prosperity is undeniable. Viewed from the top of the tallest building in South America, which stands in the middle of a financial district called “Sanhattan,” neighborhoods with luxury apartments, private hospitals and private schools stretch as far as the eye can see.

But Santiago’s poverty also is striking: crumbling public hospitals, overcrowded schools, shantytowns that sit on the outskirts of the metropolis.

And farther from Santiago are cities untouched by the recent boom.

“The people who govern the country seem to be living in a different world from the rest of us,” Enrique Araya, a 49-year-old lawyer, told a Times reporter on Friday as he and his family banged pots outside of a Santiago subway station — a traditional form of protest.

Chile is not suffering from a lack of resources but instead from an unsustainably narrow conception of its obligations to its citizens. The military dictatorship that ruled the country from 1973 to 1990 rewrote the nation’s laws and economic policies and reshaped its institutions to encourage free-market competition and to minimize the role of government. Its legacy endures. Even after increases in recent years, the Chilean government still spends a smaller share of total economic output than every other nation in the O.E.C.D.

The obvious path for Chile is for the government to spend more money improving the quality of life for a vast majority of Chileans, who are exposed to the vicissitudes of a market economy while being denied a sufficient share of the benefits. It is an extreme version of the challenge facing many developed nations, including the United States.

Some Chilean plutocrats appear to be awakening to the reality that Chile cannot sustain broad support for its economic system without a stronger safety net. Andrónico Luksic Craig, chairman of Quiñenco, a financial and industrial conglomerate, wrote on Saturday on Twitter that he was ready to pay higher taxes.

“There is no magic,” he wrote — no alternative to simply spreading the wealth more evenly.

Now that Mr. Piñera has acknowledged the need for change, he faces the challenge of showing that he can chart a new course.”
2019  chile  protests  sebastiánpiñera  history  dictatorship  chicagoboys  capitalism  inequality  policy  neoliberalism  santiago  protest  prosperity  precarity 
october 2019 by robertogreco
The ‘Chicago Boys’ in Chile: Economic Freedom’s Awful Toll | The Nation
"Repression for the majorities and “economic freedom” for small privileged groups are two sides of the same coin."



"A Rationale for Power

The economic policies of the Chilean junta and its re­sults have to be placed in the context of a wide counter­revolutionary process that aims to restore to a small minority the economic, social and political control it gradually lost over the last thirty years, and particularly in the years of the Popular Unity Government.

Until September 11, 1973, the date of the coup, Chilean society had been characterized by the increasing participation of the working class and its political parties in economic and social decision making. Since about 1900, employing the mechanisms of representative democ­racy, workers had steadily gained new economic, social and political power. The election of Salvador Allende as President of Chile was the culmination of this process. For the first time in history a society attempted to build socialism by peaceful means. During Allende’s time in office, there was a marked improvement in the conditions of employment, health, housing, land tenure and education of the masses. And as this occurred, the privileged do­mestic groups and the dominant foreign interests perceived themselves to be seriously threatened.

Despite strong financial and political pressure from abroad and efforts to manipulate the attitudes of the middle class by propaganda, popular support for the Allende government increased significantly between 1970 and 1973. In March 1973, only five months before the military coup, there were Congressional elections in Chile. The political parties of the Popular Unity increased their share of the votes by more than 7 percentage points over their totals in the Presidential election of 1970. This was the first time in Chilean history that the political parties supporting the administration in power gained votes dur­ing a midterm election. The trend convinced the national bourgeoisie and its foreign supporters that they would be unable to recoup their privileges through the democratic process. That is why they resolved to destroy the demo­cratic system and the institutions of the state, and, through an alliance with the military; to seize power by force.

In such a context, concentration of wealth is no acci­dent, but a rule; it is not the marginal outcome of a difficult situation—as they would like the world to believe—but the base for a social project; it is not an economic liability but a temporary political success. Their real failure is not their apparent inability to redistribute wealth or to generate a more even path of development (these are not their priorities) but their inability to convince the majority of Chileans that their policies are reasonable and necessary. In short, they have failed to destroy the consciousness of the Chilean people. The economic plan has had to be enforced, and in the Chilean context that could be done only by the killing of thousands, the estab­lishment of concentration camps all over the country, the jailing of more than 100,000 persons in three years, the closing of trade unions and neighborhood organizations, and the prohibition of all political activities and all forms of free expression.

While the “Chicago boys” have provided an appearance of technical respectability to the laissez-faire dreams and political greed of the old landowning oligarchy and upper bourgeoisie of monopolists and financial speculators, the military has applied the brutal force required to achieve those goals. Repression for the majorities and “economic freedom” for small privileged groups are in Chile two sides of the same coin.

There is, therefore, an inner harmony between the two central priorities announced by the junta after the coup in 1973: the “destruction of the Marxist cancer” (which has come to mean not only the repression of the political parties of the Left but also the destruction of all labor organizations democratically elected and all opposition, including Christian-Democrats and church organizations), the establishment of a free “private economy” and the control of inflation à la Friedman.

It is nonsensical, consequently, that those who inspire, support or finance that economic policy should try to present their advocacy as restricted to “technical consid­erations,” while pretending to reject the system of terror it requires to succeed.

* * *

This note on “Allende’s Economic Record” was published next to the piece.

There is a widespread notion—reported by the Amer­ican press, often without substantiation—that the Allende government made a “shambles” of the Chilean economy. It is hardly acceptable to judge an ongoing sociopolitical process only by traditional economic indi­cators which describe aggregate economic features and not the general condition of society. However, when those indicators are applied to Chile, the Popular Unity Government fares very well.

In 1971, the first year of the Allende government, the GNP increased 8.9 percent; industrial production rose by 11 percent; agricultural output went up by 6 percent; unemployment, which at the end of the Frei government was above 8 percent, fell to 3.8 percent. Inflation, which in the previous year had been nearly 35 percent, was reduced to an annual rate of 22.1 percent.

During 1972 the external pressures applied on the government and the backlash of the domestic opposition began to be felt. On the one hand, lines of credit and financing coming from multinational lending institutions and from the private banks and the government of the United States were severed (the exception being aid to the military). On the other hand, the Chilean Congress, controlled by the opposi­tion, approved measures which escalated government expenditure without producing the necessary revenues (through an increase of taxes); this added momentum to the inflationary process. At the same time, factions of the traditional right wing began to foment violence aimed at overthrowing the government. Despite all this and the fact that the price of copper, which represented almost 80 percent of Chile’s export earnings, fell to its lowest level in thirty years, the Chilean economy continued to improve throughout 1972.

By the end of that year, the growing participation of the workers and peasants in the decision-making process, which accompanied the economic progress of the preceding two years, began to threaten seriously the privileges of traditional ruling groups and pro­voked in them more violent resistance. By 1973, Chile was experiencing the full effects of the most destructive and sophisticated conspiracy in Latin American history. Reactionary forces, supported feverishly by their friends abroad, developed a broad and systematic campaign of sabotage and terror, which was intensified when the government gained in the March Congressional elections. This included the illegal hoarding of goods by the rich; creation of a vast black market; blowing up industrial plants, electrical installations and pipe lines; paralysis of the transportation system and, in general, attempts to disrupt the entire economy in such a way as to create the conditions needed to justify the military coup. It was this deliberate disruption, and not the Popular Unity, which created any chaos during the final days of the Allende government.

Between 1970 and 1973, the working classes had access to food and clothing, to health care, housing and education to an extent unknown before. These achievements were never threatened or diminished, even during the most difficult and dramatic moments of the government’s last year in power. The priorities which the Popular Unity had established in its program of social transformations were largely reached."
orlandoletelier  2016  chicagoboys  chile  history  economics  policy  politics  freedom  capitalism  miltonfriedman  socialism  1973  pinochet  salvadorallende  class  work  labor  solidarity  democracy  coup  marxism  neoiliberalism 
april 2019 by robertogreco
Episode 906:The Chicago Boys, Part II : Planet Money : NPR
[This two-parter is, overall, super light-handed on the coup and doesn't investigate enough how Allende's policies were sabotaged by the US and thus the state of the Chilean economy in 1973 was not an indication of their effectiveness, but leaving it here for future reference.]

"This is the second part in our series on Marxism and capitalism in Chile. You can find the first episode here. [https://www.npr.org/sections/money/2019/04/10/711918772/episode-905-the-chicago-boys-part-i ]

In the early seventies, Chile, under Marxist President Salvador Allende, was plagued by inflation, shortages, and a crushing deficit. After a violent coup in 1973, the economy became the military's problem.

Led by Augusto Pinochet, the military assigned a group of economists to help turn around Chile's economy. They had trained at the University of Chicago. They came to be known as the Chicago Boys.

Today's show is about the economic "shock treatment" they launched. It eventually set Chile on a path to prosperity, but it did so at an incredible human cost. One that Chileans are still grappling with today."

["#905: The Chicago Boys, Part I" description:

"Chile is one of the wealthiest, most stable economies in South America. But to understand how Chile got here--how it became the envy of neighboring countries --you have to know the story of a group of Chilean students who came to study economics at the University of Chicago. A group that came to be known as the Chicago Boys.

In the 1960s, their country was embracing socialism. But the Chicago Boys would take the economic ideas they had learned at Chicago and turn them into policies in Chile. They ended up on the front lines of a bloody battle between Marxism and capitalism, democracy and dictatorship."]

[via: "Detainees would be electrocuted, water boarded, had their heads forced into buckets of urine and excrement, suffocated with bags, hanged by their feet or hands and beaten. Many women were raped and for some detainees, punishment was death." https://twitter.com/zunguzungu/status/1118167201846968320

who also points to the source of that quote: https://www.amnesty.org/en/latest/news/2013/09/life-under-pinochet-they-were-taking-turns-electrocute-us-one-after-other/ ]
chile  chicagoboys  economics  policy  politics  2019  history  pinochet  salvadorallende  miltonfriedman  dictatorship  coup  democracy  capitalism  socialism  authoritarianism  noelking  jasminegarsd  cia  us  intervention  propaganda  marxism  cuba  fidelcastro  cubanrevolution  neoliberalism  freemarketcapitalism  cuotas  finance  financialization  wealth 
april 2019 by robertogreco
The United States Didn’t Just Help Topple Allende—We Trained the Economists, Too | The Nation
"A new documentary, Chicago Boys, looks at the Chilean economists who brought neoliberalism from the halls of Chicago to the policies of Latin America."
chicagoboys  economics  miltonfriedman  chile  history  pinochet  us  salvadorallende  economists  policy  politics  greggrandin  2015  1973  coup 
september 2017 by robertogreco
The Other September 11 - Forbes
"I distinctly recall the Chilean coup of September 11, 1973 very clearly. I was attending a graduate economics course at Harvard that was taught by a protégé of the University of Chicago’s Professor Milton Friedman. One of my fellow students was Sebastian Pinera, a member of one of Chile’s oldest families, a future billionaire owner of Chile’s airline LanChile, & since Dec 2009, President of Chile.

Back then, Sebastian had somehow  gotten word halfway through our class that President Allende had been overthrown. He was  jubilant—“We won!,” he cheered.

Our economics professor apparently shared Sebastian’s delight. Like many other American economists, he viewed Pinochet’s overthrow as a great victory for the neoliberal economic doctrines that had been preached by for decades by leading Chicago economists like Professor Friedman & Arnold Harberger—at that point, still without much acceptance in First World countries. Both later consulted actively for General Pinochet’s junta…"
9/11  chile  history  sebastiánpiñera  pinochet  1973  chicagoboys  us  miltonfriedman 
september 2011 by robertogreco
The Chicago Conspiracy | Subversive Action Films
"The Chicago Conspiracy is a documentary three years in the making. The project was filmed in Chile, and the story extends into the Mapuche indigenous lands of Wallmapu. The concept for the film was born with the death of a former military dictator. We celebrated in the streets of Santiago with thousands of people after hearing the news: General Augusto Pinochet was dead. His regime murdered thousands and tortured tens of thousands after the military coup on September 11, 1973. We celebrated both his death and the implication that the political and economic system which put him in power might itself be mortal. We began this documentary with the death of a dictator, but we continue with the legacy of a dictatorship." [via: http://thefreeskool.wordpress.com/2010/05/04/hello-world/]
economics  anarchism  anarchy  mapuche  chile  film  documentary  conspiracy  chicagoboys  pinochet 
june 2010 by robertogreco

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