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Context of 'September 11, 1973: CIA Policies in Chile Lead to Assassination of Allende, Rise of Pinochet'

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CIA covert policies (at an expense of $8 million from 1970-73) lead to a coup d’etat in which Allende is killed and Augusto Pinochet brought to power. [Kornbluh, n.d.; Time, 9/24/1973; US Congress, 12/4/1975, pp. 148-160; BBC, 11/14/2000] After Allende’s assassination, US Secretary of State Henry Kissinger will explain to Congress, “The issues are much too important for the Chilean voters to be left to decide for themselves.” [Hunt, 9/1/2009, pp. 8]

Entity Tags: Henry A. Kissinger, Augusto Pinochet, Salvador Allende Gossens

Timeline Tags: US International Relations, US-Chile (1964-2005)

Sergio De Castro, leader of the Chicago University movement in Chile and the head author of “The Brick,” is made a chief economic adviser to Augusto Pinochet’s authoritarian regime almost immediately after the overthrow of the democratically elected government of Salvador Allende. During the first one and a half years of Pinochet’s rule, Chile is subject to a large array of neoliberal economic reforms. These include the privatization of state-owned firms, financial deregulation, removal of import tariffs, a ten percent cut in government spending (with the notable exception of military spending), and the termination of price controls. As a result, the cost of basic goods will skyrocket while domestic industries are put out of business by imported goods. Orlando Sáenz, who originally recruited the Chicago School graduates to redesign the Chilean economy (see September 1971-September 11, 1973), will declare the consequences to be “one of the greatest failures of our economic history.” [Klein, 2007, pp. 79-80]

Entity Tags: Sergio De Castro, Augusto Pinochet, Orlando Sáenz

Timeline Tags: Neoliberalism and Globalization

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