Chilean Economic Shock Therapy

Chilean Economic Shock Therapy Chile is seen to be the quintessential model of liberal restructuring in Latin America in the late twentieth century. After the overthrow of the socialist administration of Salvador Allende in 1973, Chile?s government has implemented an absolute economic restructuring program that replaced state intervention with market incentives and unfasten Chile to the global parsimony. This four-phase process transformed the preservation from super protective industrialized to an open free market economy based on agricultural exports.

The process by which the Chilean economy was stabilized was termed ?shock therapy.? Like other dramatic economic policy changes, the ?therapy? caused the underlying social problems of Chile to at once surface. Real wages were cut in half, and public get over in preventive health care, primary education, and public convey were drastically cut. Unemployment, ?soared to an average of 17.6 percent of the workforce, and hyperinflat...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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