THE CRISIS OF THE NEOLIBERAL STATE, INEQUALITY AND ECONOMIC DEMOCRACY
DOI:
https://doi.org/10.22370/pe.2023.15.4021Keywords:
Chile, neoliberalism, economic development, the neoliberal state, deregulation, privatization, crisis, income and wealth inequality, economic democracyAbstract
The Neoliberal economic model in Chile, imposed after the military coup of September 1973 that deposed Dr Allende’s government, led to an abrupt end of the experiment in economic redistribution and political and economic democratization initiated by
Allende. The military with the “Chicago boys” privatized public enterprises, social security and extended the market logic to education, health, and other social activities. A key piece in this capitalist restoration was the building of the neoliberal state. This article examines typologies of the State (developmentalist, welfare, minimal/neoliberal) and its relevance to understand Chilean policies, studies the main determinants of Chilean inequality, identifies the resilience of the neoliberal state despite the social resistance it engenders and explains the potential of the economic democracy approach as a less unequal and democratic alternative of economic organization.
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