Milton Friedmanesque reforms helped create South America’s most prosperous nation.There are now two South Americas,” says Chilean economist Rolf Lüders, a former prime minister under Augusto Pinochet. The old South America, which remains mired in populism and Marxist rhetoric, includes Argentina, Bolivia, Ecuador, Nicaragua, and Venezuela. The new South America is democratic and free-market-oriented, and includes Brazil, Chile, Colombia, Costa Rica, Paraguay, Peru, and Uruguay. Chile is undoubtedly the most prosperous and stable country in the group, with an annual real growth rate averaging 5.5 percent over the last 15 years and a per-capita annual income of $12,000, the highest...