Chilean History - Essay Example

 For Chile to have accomplished what it has accomplished this far, there has been history that will not be forgotten soon. Chile was under a military dictatorship that lasted for sixteen and a half years after years that needed much reform. The years after 1973, (1973-1990), were characterized by military dictatorship that saw people lose their lives while some went missing.

Chile’s import strategy was faced with an overvaluation of the domestic currency. The prices of agricultural products began decreasing to the point that the government had to intervene for there to be regulation. Chile was also faced with an earthquake in 1960 plummeted the economic and social welfare of the people deeper. Public infrastructure was affected the monetary loss was more than anticipated. In addition, the present was the social injustice from those who were supposed to be leading. New social groups emerged who pushed for certain reforms. These new social groups differed with leaders about certain conditions, which included the living conditions of people. The major social problems were the issue with the Roman Catholic Church whose political, social, and economic affairs were looked at (Collier, Simon, and William, 122). The Popular Unity government made efforts to reform the economy.

It started with the initiation of economic transformations which included a program that involved nationalization (the nationalization program had legislations, requisitions, and involvement of stakeholders), an increase in real wages, reduction of inflation, urging of economic growth, an increase of product consumption and this was mostly for those who were poor. Another initiative the government took was the reduction of economic independence in the rest of the world. This would lead to a significant increase in the economic value of Chile.

Most of these reforms were to be accomplished by boosting the aggregate demand and strict price controls (Collier, Simon, and William, 155). The government took over the copper mines and other foreign firms, banks, and large estates. In 1971, by a unanimous vote of Congress, the government nationalized the foreign copper firms. Also in the same period, the government removed the emergency legislation to allow it to take over and control industries without the approval of Congress (Collier, Simon, and William, 202).

Keynesian measures were applied to increase salaries and wages, thus increasing the purchasing power of the working and middle classes. Though economically the party was on the path to success, politically, the party leader, Allende faced problems holding his party together. The party also faced different views from the opposing political parties but still managed to make and maintain ties with other nations (Allende, 154). The Pinochet regime sought to repress women and had neoliberal economic and social policies that hurt the poor. The Chilean military overthrew the Popular Unity government in a violent coup.