Posted on 01/19/2010 5:47:33 PM PST by Kaslin
Americas: There's nothing like success to breed a taste for it. Chile's dramatic shift from left to right in Sunday's election is that of an already prospering country preparing to soar. Word of this will spread far in the region.
Chile's story is an unusual one in Latin America. Ruled by a level-headed, center-left coalition called Concertacion since the end of the Augusto Pinochet dictatorship in 1990, its leaders nevertheless pursued free-market policies.
Instead of blaming the gringos and waging class warfare in Che T-shirts, they balanced their budget and respected private property. Instead of squandering a $19 billion state windfall from soaring copper prices, they managed it. They continued Pinochet's free-market privatization of pensions without reflexively opposing its origins, and signed free trade pacts with any nation that asked.
Result: poverty cut by two thirds from 45% to 15%, and per capita income up from $1,400 in 1986 to $15,000 in 2009. This built a tax base for Concertacion to do what it valued: expand social services.
It culminated in Chile's coveted invitation to join the ranks of the most developed and economically responsible countries — the Organization for Economic Cooperation and Development (OECD) — last December, a symbolic membership card to the First World.
(Excerpt) Read more at investors.com ...
Any thoughts on the politics and economy of Chile vs. Argentina?
The contrasts are enormous. Where do I start?
Chile is to free market, as Argentina is to socialism. Chile is to transparency as Argentina is to corruption. Chile is to humility as Argentina is to arrogance. Chile is to success as Argentina is to failure. Chile is to great wine, as Argentina is to great beef...and wine.
If Chile is the US of South America, Argentina is the France.
Gracias amigo. I wonder though, how did these once parallel caminos diverge? Both inhabit the bottom of the continent, with some differences based on geography, but a roughly similar history and immigration patterns/demographics.
How did Argentina get so far off of the road to national success?
Is the “great man” theory of history important here? Can a Peron and a Pinochet leave such lasting imprints on entire nations?
(God Bless Pinochet, I say.)
Wow. This thread is blowing up!
Ha ha...
Around the turn of the century (1900s), Argentina was one of the top 10 richest countries in the world.
It is very much a result of the two dictatorships in the 80s. Argentina’s failed. Pinochet broke a few eggs, and created an impressive omelet, even stepping down from power to allow free elections.
Chile was spiraling out of control, with 450% inflation during Allende’s administration.
I heard a joke once...
When God was finishing the earth, he had a lot of extra pieces: beautiful mountains, fertile earth, etc. So he dumped them all into Argentina. To balance it out, he placed Argentinians there.
I guess that ideas do matter, and so do great men at pivotal points. God bless Pinochet for his leadership at a critical moment.
Chile used to be our poor neighbor.While they got the legacy of Pinochet, we have the legacy of Irigoyen and Peron. It took Chile a generation to get where it is now.
When Peron was overthrown by the military in 1955 the generals fearful of a popular rebellion were afraid to dismantle the welfare state that Peron built. Instead both right wing and left wing governments enhanced it. The result is a culture that despises capitalism. But the oligarchy was also complicit, in their economic nationalism they refused to bringing international investment or any company that would compete with theirs. The result is that in 1900 Argentina was the 5th wealthiest nation, today it sits in 86th place.
Argentina’s greatest problem is Argentines, no doubt.
Unfortunately we need our own Pinochet or our own Franco before we become a first world country. It will take several decades, and lots of blood as well.
This country wont change without a civil war unfortunately.
FerFAL
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