In the 1970s, 'The Chicago Boys' were a group of 25 economists working under which South American dictator's administration to create a free market economy?
"chapter on psychiatric shock therapy and the covert experiments conducted by the psychiatrist Ewen Cameron in collusion with the Central Intelligence Agency. The second chapter introduces Milton Friedman and his Chicago school of economics, whom Klein describes as leading a laissez-faire capitalist movement committed to creating free markets that are even less regulated than those that existed before the Great Depression. Part 2 discusses the use of ""shock doctrine"" to transform South American economies in the 1970s, focusing on the 1973 coup in Chile led by General Augusto Pinochet and influenced by a prominent group of Chilean economists who had"
"Chicago Boys The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom trained at the Department of Economics of the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at the Pontifical Catholic University of Chile. Upon their return to Latin America they adopted positions in numerous South American governments including the Military dictatorship of Chile (1973–90). As economic advisors, many of them reached high positions within those. The Heritage Foundation credits them with transforming Chile into Latin America's best performing economy and"
"period. 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 Domingo Cavallo, Adolfo Diz, Roque Fernández, Carlos Alfredo Rodríguez, Fernando de Santibañes and Ricardo Lopez Murphy, as well as others in Brazil (Paulo Guedes), Peru, Colombia, Uruguay, Costa Rica, and Panama. Chicago Boys The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom trained at the Department of Economics of the University of Chicago under Milton Friedman and Arnold Harberger, or"
"by economists who opposed Salvador Allende's government, with the help from a group of economists the press were calling the Chicago Boys, because they were predominantly alumni of the University of Chicago. The document contained the backbone of what would later on become the Chilean economic policy. According to the 1975 report of a United States Senate Intelligence Committee investigation, the Chilean economic plan was prepared in collaboration with the CIA. The plan recommended a set of economic reforms that included deregulation and privatization. Among other reforms, they made the central bank independent, cut tariffs, privatized the state-controlled pension system,"
"reintroduction to the private market in 1984. After the military took over the government in 1973, a period of dramatic economic changes began. The military junta appointed a group of Chilean economists who had been educated in the United States at the University of Chicago. The Chicago Boys advocated ""laissez-faire"", free-market, neoliberal, and fiscally conservative policies, in stark contrast to the extensive nationalization and centrally-planned economic programs supported by Allende, and the Import substitution industrialization and Structuralist economics supported by Chilean governments since the Great Depression. In a shock therapy Chile was drastically transformed from an economy with a protected"
"which was a University of Chicago monetarist stronghold. The junta then closed down every social science department and fired, exiled or murdered critics of its ideology in the terrorist Project Condor program waged throughout Latin America and spread to political assassination in the United States itself. What the Chicago Boys recognized is that free market ideology requires totalitarian control of the school and university system, totalitarian control of the press and control of the police where intellectual resistance survives against the idea that economic planning should become much more centralized, but moved out of the hands of government into those"
"made to displace development economics as early as the mid fifties, by Milton Friedman's Chicago School. There had been some US government support, as it appeared there was a risk that the developmentalist policies could encourage socialism . However, despite success in setting up franchises in Latin American universities and educating passionate individual free market economists, the efforts had little political effect. However, later events such as the 1973 coup by Augusto Pinochet in Chile brought in governments who strongly favoured free market policies. In other Latin American countries pivotal individual events are much harder to pin down, but a"
"institutions, the Chicago Boys advocated ""laissez-faire"", free-market, neoliberal, and fiscally conservative policies, in stark contrast to the extensive nationalization and centrally-planned economic programs supported by Allende. Chile was drastically transformed from an economy isolated from the rest of the world, with strong government intervention, into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions. From an economic point of view, the era can be divided into two periods. The first, from 1975 to 1982, corresponds to the period when most of the reforms were implemented. The period ended with the international debt"
"did work their way in bringing about a free society."" The junta to which Friedman refers was a military government that came to power in a 1973 coup d'état, which came to an end in 1990 after a democratic 1988 plebiscite removed Augusto Pinochet from the presidency. In the early 1970s, Chile experienced chronic inflation, reaching highs of 140 percent per annum, under socialist President Salvador Allende, whose government suffered heavy economic sanctions from Nixon's administration. This resulted in a lack of foreign-exchange reserves and falling GDP. The economic reforms implemented by the Chicago Boys had three main objectives: economic"
"international economics, many Latin American countries attempted to industrialize by limiting imports of manufactured goods and subsidizing their own industries. However, in the absence of competition and with government subsidies these companies had little incentive to become efficient or innovative. By the 1980s, the economic problems of these countries became obvious and much of the West's investment in these countries was lost. Chile unwittingly became an experiment in free markets when Augusto Pinochet called in followers of Friedman to evaluate the economy, the so-called Chicago boys. The authors argue that these economic reforms proved successful, but since Pinochet was a"
"Miracle of Chile 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. 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. So the really important thing about the Chilean business is that free markets"
"market, with strong government intervention, into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions. Before 1973 the role of the state was to promote investment and industrialization. The Chicago Boys restricted government intervention and public enterprise activities. Businesses and lands expropriated during the presidency of Allende were re-privatized (with the exception of the copper mines). Price controls were abolished, import liberalized, the financial market and capital flows were deregulated. Labor unions were suppressed. Direct taxes and progressive taxes were reduced or abolished while indirect taxes were raised. The central bank raised"
"of the Military dictatorship of Chile (1973–90), the Pinochet régime allowed professional opportunities for some liberal and left-wing social scientists to work as politicians and as consultants in effort to realize the theoretical economics of the Chicago Boys, but their access to power was contingent upon political pragmatism, abandoning the political neutrality of the academic intellectual. In ""The Sociological Imagination"" (1959), C. Wright Mills said that academics had become ill-equipped for participating in public discourse, and that journalists usually are ""more politically alert and knowledgeable than sociologists, economists, and especially ... political scientists"". That, because the universities of the U.S."
"reforms of the Chicago Boys contributed to post-1983 growth. According to Ricardo Ffrench-Davis, consultant of the United Nations Economic Commission for Latin America and the Caribbean, the 1982 crises as well as the success of the pragmatic economic policy after 1982 proves that the 1975–1981 radical economic policy of the Chicago Boys actually harmed the Chilean economy. The economic policies espoused by the Chicago Boys and implemented by the junta initially caused several economic indicators to decline for Chile's lower classes. Between 1970 and 1989, there were large cuts to incomes and social services. Wages decreased by 8%. Family allowances"
"policy after 1982 proves that the radical economic policy of the Chicago boys harmed the Chilean economy from 1973 to 1981. Crisis of 1982 The Crisis of 1982 was a major economic crisis suffered in Chile during the military dictatorship after years of radical neoliberal reforms. It was the worst economic crisis in Chile since the 1930s Great Depression. Chile's GDP fell 14.3%, and unemployment rose to 23.7%. After the socialist presidency of Salvador Allende (1970—1973), the 1973 coup killed the socialist. The Chicago boys implemented the neoliberal economical policies outlined in ""El ladrillo"". In 1979 however, Chile decided to"
"Crisis of 1982 The Crisis of 1982 was a major economic crisis suffered in Chile during the military dictatorship after years of radical neoliberal reforms. It was the worst economic crisis in Chile since the 1930s Great Depression. Chile's GDP fell 14.3%, and unemployment rose to 23.7%. After the socialist presidency of Salvador Allende (1970—1973), the 1973 coup killed the socialist. The Chicago boys implemented the neoliberal economical policies outlined in ""El ladrillo"". In 1979 however, Chile decided to depart from the principle of free floating exchange rates, with disastrous results. The 1982 crisis has been traced to the overvalued"
"established in all the countries in the Southern Cone of South America (Argentina, Brazil, Bolivia, Chile, Paraguay, Perú and Uruguay) with the support from the US. These countries, along with the US, jointly coordinated the repression, by means of an international terrorist organization called Operation Condor. In economic matters, the dictatorship formally handed over the Ministry of the Economy to the most conservative business associations which promoted economic policies which were openly de-industrialist and neoliberal, and with a maximum expansion of the foreign debt. In 1982, the military government entered into the Falklands War against the United Kingdom in an"
"several reasons, including the expropriation of 600 businesses by the Allende government, a tiered exchange rate that distorted markets, protectionism, and the economic sanctions imposed by the Nixon administration, inflation was high (with various accounts between 150% and 1000%), the country had no foreign reserves, and GDP was falling rapidly. By mid-1975, the government set forth an economic policy of free-market reforms that attempted to stop inflation and collapse. Pinochet declared that he wanted ""to make Chile not a nation of proletarians, but a nation of proprietors."" To formulate the economic rescue, the government relied on the so-called Chicago Boys"
"the economic policies of Ronald Reagan and Margaret Thatcher. In the years since the reforms were introduced, the economic system implemented by the ""Chicago Boys"" (a label given to this group of economists) have mostly remained in place. A film titled ""Chicago Boys"", which had a highly critical view of the economic reforms, was released in Chile in November 2015. Chicago school of economics The Chicago school of economics is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, some of whom have constructed and popularized its principles. In the context"
"trauma"" affected about 200,000 persons.; this figure includes individuals killed, tortured or exiled, and their immediate families. About 30,000 left the country. The four-man junta headed by General Augusto Pinochet abolished civil liberties, dissolved the national congress, banned union activities, prohibited strikes and collective bargaining, and erased the Allende administration's agrarian and economic reforms. The junta embarked on a radical program of liberalization, deregulation and privatization, slashing tariffs as well as government welfare programs and deficits. Economic reforms were drafted by a group of technocrats who became known as the Chicago Boys because many of them had been trained or"
"also, up to recent restrictions, had invested significantly in the property markets. In 1955, a select group of Chilean students (later known as the Chicago Boys) were invited to the University of Chicago to pursue postgraduate studies in economics. They worked directly under Friedman and his disciple, Arnold Harberger, while also being exposed to Hayek. When they returned to Chile in the 1960s, they began a concerted effort to spread the philosophy and policy recommendations of the Chicago and Austrian schools, setting up think tanks and publishing in ideologically sympathetic media. Under the military dictatorship headed by Pinochet and severe"
"1970). The right-wing economist appointed by a National Reorganization Process dictatorship installed in 1976, José Alfredo Martínez de Hoz, implemented a sweeping program of financial deregulation and free trade which by 1981 collapsed under the weight of a US$37 billion foreign debtmost of it the result of a wave of private currency speculation and government military spending. Alemann's brother, Juan Alemann, served as Treasury Secretary during the dictatorship, and was nearly killed by a bomb placed in his residence in 1979, allegedly by a Montoneros guerilla operative. Named Economy Minister by a new dictator, General Leopoldo Galtieri, in December 1981,"
"undeveloped sectors of economy and was stagnant, despite land reforms in the 1960s and 1970s, from 1930 to 1980. In the mid-1970s under the influence of the Chicago Boys, Pinochet's military dictatorship initiated profound changes oriented to a ""neoliberal"" economic model. The democratic governments that succeeded the dictatorship since 1990 have largely continued its economic policies, but increased social spending and reduced poverty. Chilean exports and GDP per capita rose steadily through the 1980s and 1990s until the Asian crisis of 1997 after which economic growth slowed somewhat. In the post-1973 period there has been a rise in outsourcing, self-employment,"
"of as many as 80,000 people and the torture of tens of thousands. According to the Chilean government, the number of executions and forced disappearances was 3,095. Under the influence of the free market-oriented neoliberal ""Chicago Boys"", Pinochet's military government implemented economic liberalization, including currency stabilization, removed tariff protections for local industry, banned trade unions and privatized social security and hundreds of state-owned enterprises. These policies produced what has been referred to as the ""Miracle of Chile"" by Nobel prize winning economist Milton Friedman, but critics state that economic inequality dramatically increased and attribute the devastating effects of the 1982"
"social repression, the Chicago boys implemented radical economic reform. The latter half of the 1970s witnessed rapid and extensive privatization, deregulation and reductions in trade barriers. In 1978, policies that would reduce the role of the state and infuse competition and individualism into areas such as labor relations, pensions, health and education were introduced. These policies resulted in widening inequality as they negatively impacted the wages, benefits and working conditions of Chile's working class. According to Chilean economist Alejandro Foxley, by the end of Pinochet's reign around 44% of Chilean families were living below the poverty line. According to Klien,"
"dictator who came to power in a coup and had many political opponents murdered the whole idea of free market reform became linked to fascism. While the authors and Friedman claim that these reforms eventually promoted democracy, they acknowledge that this issue and their interpretation of events is extremely controversial. Bolivia was hit with hyperinflation as well. During the 1980s, economist Jeffrey Sachs was sent as a consultant and new President Gonzalo Sànchez de Lozada reined in inflation in the 1990s by severely cutting government spending. While Bolivia remained a very poor country, the authors argue that it is better"
"dubbed the ""Chicago Boys"". The term was truly born after Bolivia successfully tackled hyperinflation in 1985 under Gonzalo Sanchez de Lozada, using Sach's ideas. In particular Sachs and Sanchez de Lozada cited West Germany as inspiration where, during a period over 1947-48, price controls and government support were withdrawn over a very short period, kick-starting the German economy and completing its transition from an authoritarian post-War state. Neoliberalism rose to prominence after the 1970s and neoliberal shock therapy became increasingly used as a response to economic crises, for example by the International Monetary Fund (IMF) in the 1997 Asian Financial"
"a clash with the opposing ""laissez-faire"" camp of classical liberals, like Ludwig von Mises. Most scholars in the 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as Eucken, Röpke, Rüstow and Müller-Armack. Although Hayek had intellectual ties to the German neoliberals, his name was only occasionally mentioned in conjunction with neoliberalism during this period due to his more pro-free market stance. During the military rule under Augusto Pinochet (1973–1990) in Chile, opposition scholars took up the expression to describe the economic reforms implemented there and its proponents (the ""Chicago Boys"")."
"1960s) in Latin America as well as the region's highest-paid, most unionized working class. The economy, however, declined during the military dictatorship from 1976 to 1983, and for some time afterwards. The dictatorship's chief economist, José Alfredo Martínez de Hoz, advanced a corrupt, anti-labor policy of financial liberalization that increased the debt burden and interrupted industrial development and upward social mobility. Over 400,000 companies of all sizes went bankrupt by 1982, and neoliberal economic policies prevailing from 1983 through 2001 failed to reverse the situation. Record foreign debt interest payments, tax evasion, and capital flight resulted in a balance of"
"the economy by supporting the export of coffee. Between 1898 and 1920, Manuel Estrada Cabrera granted significant concessions to the United Fruit Company, an American corporation that traded in tropical fruit, and dispossessed many indigenous people of their communal lands. Under Jorge Ubico, who ruled as a dictator between 1931 and 1944, this process was intensified, with the institution of harsh labor regulations and a police state. In June 1944, a popular pro-democracy movement led by university students and labor organizations forced Ubico to resign. He appointed a three-person military junta to take his place, led by Federico Ponce Vaides."
"of its entire yearly budget for just two dreadnoughts, a price that did not include later in-service costs, which for the Brazilian dreadnoughts was sixty percent of the initial purchase. The continent became a battlefield of the Cold War in the late 20th century. Some democratically elected governments of Argentina, Brazil, Chile, Uruguay, and Paraguay were overthrown or displaced by military dictatorships in the 1960s and 1970s. To curtail opposition, their governments detained tens of thousands of political prisoners, many of whom were tortured and/or killed on inter-state collaboration. Economically, they began a transition to neoliberal economic policies. They placed"
"reforms were implemented, in sharp contrast to Allende's leftist policies, advised by a team of free-market economists educated in American universities known as the Chicago Boys. Later, in 1980, the regime replaced the Chilean Constitution of 1925 with a new constitution. Pinochet's plans to remain in power were foregone in 1988 when the regime accepted democratic displacement in a referendum that opened the way for the reestablishment of democracy in 1990. However, the military remained out of civilian control in the years after the end of junta itself had lost power. Since 1970, after he narrowly won a three-way election,"
"""Miracle of Chile"" in reference to Augusto Pinochet's support for liberal economic changes in Chile carried out by the ""Chicago Boys"". Their implemented economic model had three main objectives: economic liberalization, privatization of state owned companies, and stabilization of inflation. These market-oriented economic policies were continued and strengthened by successive governments after Pinochet stepped down. At the time, Milton Friedman stated that the Chilean experiment was ""comparable to the economic miracle of post-war Germany."" Some of Pinochet's neoliberal policies were continued after the termination of his 17-year-long dictatorship, though with more social policies to counter the great social-economic inequality. According"