“What was happening? Publisher: Random House of Canada (first edition) [2] Some such as Nobel laureate Amartya Sen have argued that these policies were deliberately intended to serve the interests of American corporations at the expense of Latin American populations. A detailed inside look at the intellectual formation of the so-called "Chicago boys," the young economists trained at the University of Chicago who came to exercise a great influence during the Pinochet regime and, depending on the biases of the observer, are credited or blamed for Chile's economic miracle. The following presents a short history of these contributions. … Chicago alum Sergio de Castro authored their final recommendation, which they delivered to Navy Admiral José Toribio Merino. [citation needed] It was funded by the Ford Foundation and the Rockefeller Foundation aimed at influencing Chilean economic thinking. The term continues to be used in popular culture, business magazines, press and media. They also never got around to trashing Allende's tough building code, an ideological Free of unions, parliament or opposition media, the Chicago Boys were able to apply a liberal model to Chile that had never been seen before in any other country. Chicagoans were attacked partly because central planning and government controls were still advocated by economists in that region. The training program was the result of the "Chile Project" organized in the 1950s by the U.S. State Department, through the Point Four program, the first US program for international economic development. Most interesting is the author's analysis of how Pinochet's authoritarian governance fit hand in glove with the political views of classic free marketers, ie, democracy too often leads to the protection of special interest groups to the deteriment of truly free markets. De Castro became the economic minister and later the treasury minister. [Americans] also have a lot of inequality and abusive practices of businessman, but it’s not as extreme as in Chile.”. In retrospect, their willingness to work for a cruel dictator and start a different economic approach was one of the best things that happened to Chile. They filmed their parties, their study sessions, and their walks around the campus. It is clear evidence of America’s foreign-policy influence in Chile,” Fuentes told me. Pinochet’s team of U.S.-educated economists, who were known as “the Chicago Boys,” advocated lowering taxes, selling state-run businesses, and encouraging foreign investment. You see, the Chicago Boys made Chile rich, and that’s what did it. Ah, Chile. imperatives for development. The idea, radical in the United States for years following the New Deal, was developed by Friedman in the 1940s and under his leadership of Chicago’s economics department became the intellectual center of free-market economics in America. The story of a group of Milton Friedman's disciples that, backed by a military dictatorship, turned Chile into the first and most extreme neoliberal country in … Merino would be part of the junta that overthrew Allende in a CIA-backed coup in 1973, installing Gen. Augusto Pinochet as the new head of state. Book Description This book tells the extraordinary story of the Pinochet regime's economists, known as the Chicago Boys. [1] While the Heritage Foundation credits them with transforming Chile into Latin America's best performing economy and one of the world's most business-friendly jurisdictions, critics point to drastic increases in unemployment that can be attributed to counter-inflation policies implemented on their advice. The history of Chile and the "Chicago boys" Unfortunately, Chile has been the site of revolution and experimentation for over 30 years now. The production is now looking to distribute the film in the United States—the country where Chile’s “miracle” was born. Suggesting this marked a recovery, they lifted nearly every restriction on foreign direct investment and loans. Business groups are the predominant organizational structure in modern Chile. They also proposed and implemented economic policies which initiated economic developoemt and growth. Chile’s economic success has conventionally been credited to the Chicago Boys, a group of Chilean economists who were – like Guedes – trained under Nobel laureate Milton Friedman at the University of Chicago. Could their program for 'economic freedom,' such a drastic restructuring of the Chilean economy, only have been implemented by an authoritarian regime? No real surprise there. From almost the very start of its independence, Chilean exports have made important contributions to the economic development of the United States. Alessandri rejected El ladrillo, but it was revisited after the 1973 Chilean coup d'état on 11 September 1973 brought Augusto Pinochet to power, and it became the basis of the new regime's economic policy. According to Stephens, the radical free-market policies prescribed to Chilean dictator Augusto Pinochet by Milton Friedman and his infamous "Chicago Boys" are the reason Chile is a … Pinochet and Chile were heavily involved in Operation Condor, a ... who were known as “the Chicago Boys,” advocated lowering taxes, selling state-run businesses, and encouraging foreign investment. But it … It took nine years of hard work by the most brilliant minds in world academia, a gaggle of Milton Friedman’s trainees, the Chicago Boys. One of the numerous networking organizations for alumni, including the Chicago Boys, is the "Latin American Business Group at Chicago Booth School of Business" (LATAM). CHICAGO BOYS - TRAILER (ENG) from La Ventana Cine on Vimeo. [8] It was presented in 1969 as part of Jorge Alessandri's unsuccessful presidential candidacy. Although the largest and most influential group of so-called Chicago Boys was Chilean in origin, there were many Latin American graduates from the University of Chicago around the same period. The movie, which opened in Chile in November and was directed by Fuentes along with filmmaker Rafael Valdeavellano, explains how Chile ended up implementing the most extreme version of Friedman’s doctrines, while arguing that Chile’s audacious economic experiment was in many ways a field test for the ideas later put into practice by sympathetic leaders like Ronald Reagan and Margaret Thatcher. These economists continued to shape the economies of their respective countries, and include people like Mexico's Sócrates Rizzo, Francisco Gil Díaz, Fernando Sanchez Ugarte, Carlos Isoard y Viesca, Argentina's Adolfo Diz, Roque Fernández, Carlos Alfredo Rodríguez, Fernando de Santibañes and Ricardo Lopez Murphy, Brazil's Paulo Guedes, as well as others in Peru, Colombia, Uruguay, Costa Rica, and Panama. They also proposed and implemented economic policies which initiated economic developoemt and growth. He said the "Chilean economy did very well, but more importantly, in the end the central government, the military junta, was replaced by a democratic society. Slate relies on advertising to support our journalism. Pinochet stepped down in 1990 after his government was overwhelming rejected by the Chilean people in a constitutional referendum. These change have met major resistance from conservative groups. The Chicago Boys, recruited by conservative religious leaders who lent ideological support to the dictatorship, were welcomed to Santiago. Sign up for our NACLA Update for announcements, events, the latest articles, and more! The ideas they brought home from Chicago changed Chilean society forever and made it one of the richest countries in Latin America. They advocated widespread deregulation, privatization, and other free market policies for closely controlled economies. Nowadays, many Chileans believe that the dictatorship primarily made the people close to it very rich, at the cost of the rest of the population. But in 2011, amid massive protests by Chilean students against economic inequality and the rising costs of higher education, journalist Carola Fuentes began to realize that something was changing. In this context the project that would shape Chile’s subsequent history, the “Chile Project,” the cradle of the “Chicago Boys,” was born. About one hundred select students between 1957 and 1970 received training, first in an apprenticeship program in Chile and then in post-graduate work in Chicago. There, they became enthusiastic converts to Friedman’s free-market economic philosophies, which they were then given free rein to implement on an unprecedented scale during Augusto Pinochet’s dictatorship of Chile. Chicago Boys circa 1957, left to right: Luis Arturo Fuenzalida, Alberto Valdés, Larry Sjaastad, Pedro Jeftanovic, and Sergio de Castro. CHICAGO BOYS is their story from their student days through the dictatorship, told by the Chicago Boys themselves. If you value our work, please disable your ad blocker. Back in Chile, the Chicago Boys hoped to implement some of what they had learned in America. 2, PBS Video clip – Chicago Boys and Pinochet, Audio clip – 'Chicago Boys' Leave Lasting Legacy on Chile's Economy, National Public Radio, Attempted assassination of Bernardo Leighton, Committee of Cooperation for Peace in Chile, https://en.wikipedia.org/w/index.php?title=Chicago_Boys&oldid=997349050, Military dictatorship of Chile (1973–1990), Articles with unsourced statements from July 2016, Creative Commons Attribution-ShareAlike License. You are here. [Silvia Bortzutzky, "The Chicago Boys, social security and welfare in Chile", The Radical Right and the Welfare State, Howard Glennerster and James Midgley (eds. The "Miracle of Chile" was a term used by economist Milton Friedman to describe the reorientation of the Chilean economy in the 1980s and the effects of the economic policies applied by a large group of Chilean economists who collectively came to be known as the Chicago Boys, having studied at the University of Chicago where Friedman taught. Chile: The Pinochet Decadetells the story of the rise and fall of the laissez-faire economic technocrats known as the Chicago Boys, who masterminded the experiment and it analyzes the nature of their alliance with General Pinochet. We decided to ask that question to the people who invented our economic model: the Chicago Boys.”. This article tests the long-standing hypothesis that the privatization reform implemented by the “Chicago Boys” during the Pinochet regime facilitated the creation of new groups and hence the renovation of the country’s elites. Enter your keywords . A detailed inside look at the intellectual formation of the so-called "Chicago boys," the young economists trained at the University of Chicago who came to exercise a great influence during the Pinochet regime and, depending on the biases of the observer, are credited or blamed for Chile's economic miracle. “This exchange was part of the State Department’s investment plan to expand their influence in Latin America, in a moment when they were concerned about the growth of Soviet ideas in the region. They recorded their everyday lives as normal students, long before they became the economic leaders of Chile’s military government. From 1964 to 1970, President Eduardo Frei led a "revolution in liberty." This plan involved an agricultural … Some of them bought video cameras, an unimaginable purchase in Chile in those years, and recorded their time in Chicago, footage that is used in the film. 1, NPR Planet Money - The Chicago Boys Pt. The film recounts how in 1956 the University of Chicago and Santiago’s Universidad Católica—with the help of Ford Foundation—signed an exchange agreement to send young economics students to the United States to learn more about “monetarism,” the theory that governments should refrain from regulating the market, whenever possible, with the exception of managing the money supply. The Chicago Boys implemented a program that dropped the rate of inflation from about 1000 percent per year to about 10 percent per year. What were they willing to do to achieve their goals? Blame the Chicago Boys”. “A lot of things, such as the privatization of the pension system, for example, were discussed in the United States a long time after being implemented in Chile,” Fuentes said. The Chicago Boys rose to prominence as leaders of the early reforms initiated in Chile during General Augusto Pinochet's rule. That rage boiled over into the recent protests. Deeply involved in the preparation of the 1975 military coup in Chile, the so-called Chicago Boys convinced the Junta generals that they were prepared to supplement the brutality, which the military possessed, with the intellectual assets it lacked. And how do they see the long-term results today? Search . There is now a Chilean film titled Chicago Boys.[9][10]. What were they willing to do to achieve their goals? Becker’s conclusion about that episode? That makes Chile by far the freest economy in the region, even if it is not in the Top 10 globally. Its main architect was José Piñera, now a scholar at the Cato Institute. It had its origins in 1953 with Albion Patterson’s Plan Chillán. Some analysts partially attribute the success to a group of economists from Chicago. 2020 Documental sobre los 'Chicago Boys' … The Chicago Boys' ideas remained on the fringes of Chilean economic and political thought, even after a group of them prepared a 189-page "Program for Economic Development" called El ladrillo ("the brick"). asks Fuentes. “Chicago Boys believe that their reforms helped Chile’s economy to grow, but if we discuss development in a more multidimensional way, I think we’re really behind.”. During Allende’s rule, the Chicago Boys continued working on their economic project, which was finally named el ladrillo—the brick, because it was so big. All contents © 2021 The Slate Group LLC. The "Chicago Boys" -- Chilean men who studied free-market economic theories at the University of Chicago in the 1950s and '60s -- are often credited for Chile's relatively healthy economy. Upon their return to Latin America they adopted positions in numerous South American governments including the military dictatorship of Chile (1973–1990). Hayek, Friedman, and the Chicago Boys Does neoliberalism work? Two Lucky People: Memoirs. Upon Augusto Pinochet’s coup d’état in 1973, the Chicago Boys were appointed to remedy Chile’s economy that suffered from hyperinflation and a budget deficit amounting to 25 percent of GDP … Chile developed a good export economy, including the export of fruits and vegetables to the northern … History; Staff & Board; Write for NACLA; Contact Us; Search form. But in the years since, the economic system implemented by the Chicago Boys has mostly remained in place. As a number of people have pointed out, there’s this little matter of … There is some real meat in this text addressing the nature of the Chicago School economics imported to Chile by the Chicago Boys. 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