Recent History

During the years following the constitution of 1925, Chile came to have a very well-developed political system based on a democratic government. Economically, however, Chile faced ever-growing problems. Although it had always been an export nation, between the years 1958 and 1973 Chile's national economy was both closed and floundering. Because prices, industry, and banks were all controlled by the state, rather than the open market, whoever was in power at the time was seen as being in control of the economy, and therefore to blame for problems. Anibal Pinto, a Chilean author, in 1958 predicted that Chile's economy would ultimately result in a political breakdown. Pinto certainly had no idea how accurate his prediction would become.

Between 1960 and 1970, while both conservative and liberal factions of government had numerous supporters, most people in Chile considered themselves to be politically moderate, or "Center".

 
 Party                                    Leaning             Supported by
                                                           
                                                                         
 Socialist/Communist                      Left/Liberal        Working Class
                                                         
                                                                         
 Christian Democrats&                     Center to Moderate  Rising middle class
 Partido Nacional                         Left/Right          Professionals          
                                                              Small Business
                                                              *Peasants (previously ignored by
                                                              all parties until 1964)
                                                        
                                                                         
 Uni�n Democrata Independiente (UDI)      Right/Conservative  Land Owners
 (Began in late 1980'Us)                                      Industry/Big Business
 

Two different presidents, Alessandri (Right) who served from 1958 to 1964, and Frei (Center), who served from 1964-1970, had attempted without success to stabilize the economy. In 1970, the people collectively lost faith in both the right and center, and the Chilean congress (to the surprise of many) threw their support to the left-wing candidate, Salvador Allende, who planned to try socialist reforms to fix the economy. Due to a variety of factors including labor uprisings and anti-communist interventions by the United States, the results were disastrous. Inflation rose to an all-time high of 60%, banks closed, investors left, and a large black market developed offering many common products which were no longer available in stores.

The political distribution which so heavily favored the center positions began to quickly divide under the hardships. Those who supported communist/socialist reforms and supported the Allende government moved even farther to the left forming what was known as the "Unidad Popular", while the Christian Democrats and the Partido Nacional moved to the extreme right and formed the "Democratic Confederation". The result was a drastic political polarization which left very few people in the Center to Moderate philosophical positions. Leaders become more and more rigid, and political compromise became impossible. This great polarization quickly spread to the social sectors, and people began to fight among themselves.

It wasn't long before the politicians and citizens who backed the Democratic Confederation started to support the idea of military intervention. Although accounts and opinions vary as to the extent, it is also clear that the United States also supported a military solution because of the concern of Cuba's support of Allende and the socialist movement, and what were feared to be ties to the former Soviet Union. The solution, it seemed to many, rested in the hands of the Chilean military, and General Augusto Pinochet Ugarte.

This is how a national military, previously a neutral entity until at least the 1960's, was thrust into the world of party politics, and into the escalating conflict. There was no longer any desire for political compromise, public pressure was great, so it seemed that the military had no choice but to take a position and take action.

On September 11, 1973, at seven o'clock in the morning, president Salvador Allende received a call in his private home that there were abnormal movements of troops in Valpara�so. An hour and a half later, the citizens heard on the radio that the country was under the control of the Armed Forces which were asking for Allende's resignation.

Allende had gone to La Moneda, the presidential palace in Santiago. At 11:15 am, the Armed Forces gave Allende an ultimatum: either surrender in three minutes or La Moneda would be bombed. At five minutes before noon, two Hawker Hunter jet fighters, supported by three tanks, began an assault on La Moneda using incendiary bombs. When the attack commenced, the ministers and collaborators of the Unidad Popular government who were inside La Moneda decided to surrender. Salvador Allende, however, remained inside. At approximately 2:15 pm, Salvador Allende died. Some Chileans believe that Allende was killed by the attackers; others believe that Allende committed suicide rather than to be captured. Those who supported Allende called the military's actions a "coup." Those who supported the military called it an "intervention". One thing was certain: the Allende government had come to a violent and abrupt end, and the challenges of the nation were now in the hands of the military.

At the helm of the new Military junta were General Augusto Pinochet Ugarte, Vice Admiral Jos� Toribio Merino, Air Force General Gustavo Leigh Guzm�n, and Director of Carabineros C�sar Mendoza Dur�n. Pinochet had no experience with running governments, let alone dealing with economic disasters. Pinochet solicited the help and advice of several Chilean young men who had studied economics in Chicago in the United States, who later became known as the Chicago Boys. Rather than to retry the solutions attempted by the previous presidents, Pinochet took the advice of the Chicago Boys and decided to set the country on a revolutionary new path. The government would no longer be in control of the economy- Chile would begin to operate an open market. There was much controversy surrounding this plan, and many (even thousands over the years) of those who either opposed the plan, or were suspected of opposition, suddenly "disappeared". The cost for improving the economy, it seemed, would be loss of human rights.

In time, the economic policies of Pinochet began to work. Today, the real Chilean gross national product has increased to 6.2% from 4.0 prior to 1973. Per capita income rose from $2,200 to $4,500, and inflation dropped to 13.5%. Chileans don't talk much about what happened in 1973 anymore, but most everyone has some opinion as to where the country should go next. Some feel that it is time for Chile to transition back to a democratic system. Others who remember the economic problems of the 60's would just as soon see Pinochet remain in power.

In March of 1998, Pinochet stepped down as commander in-chief of the army, symbolizing a step toward redemocratization of Chile. Still, and also symbolic, is the fact that Pinochet has stepped down as dictator only to take up a lifetime appointed seat in Chile�s Senate, a right he wrote into the constitution in 1980. Currently, the country is led by Socialist President, Ricardo Lagos, elected by slightly more than 51% of the popular vote in January, 2000.

Does the current economic upturn justify the human rights atrocities of the early Pinochet regime? If a national situation of a stable political democracy and a dying economy led to a revolution, what can we expect from a nation with a booming economy and a recent dictatorship? If the answers to such questions exist, they do so within the hearts of the Chilean people themselves. Only time will tell what lies on the road ahead.