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 political sympathies of Salvador Allende in 1973, Chile?s government has implemented an lordly economic restructuring program that replaced state intervention with market incentives and undecided Chile to the global parsimony. This four-phase process transformed the thriftiness from highly 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 straightaway surface. Real wages were cut in half, and public disbursement in preventive health care, primary education, and public book 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: BestEssayCheap.com

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