MONGABAY.COM
Mongabay.com seeks to raise interest in and appreciation of wild lands and wildlife, while examining the impact of emerging trends in climate, technology, economics, and finance on conservation and development (more)
WEEKLY NEWSLETTER
|
|
Chile
Index
After the military took over the government in
September 1973,
a period of dramatic economic changes began. Chile was
transformed
gradually from an economy isolated from the rest of the
world, with
strong government intervention, into a liberalized, worldintegrated economy, where market forces were left free to
guide
most of the economy's decisions. This period was
characterized by
several important economic achievements: inflation was
reduced
greatly, the government deficit was virtually eliminated,
the
economy went through a dramatic liberalization of its
foreign
sector, and a strong market system was established.
From an economic point of view, the era of General
Augusto
Pinochet Ugarte (1973-90) can be divided into two periods.
The
first, from 1973 to 1982, corresponds to the period when
most of
the reforms were implemented. The period ended with the
international debt crisis and the collapse of the Chilean
economy.
At that point, unemployment was extremely high, above 20
percent,
and a large proportion of the banking sector had become
bankrupt.
During this period, a pragmatic economic policy that
emphasized
export expansion and growth was implemented. The second
period,
from 1982 to 1990, is characterized by economic recovery
and the
consolidation of the free-market reforms.
Data as of March 1994
|
|