Chile during the Cold War
• Prior to the Post WWII years, Chile was
controlled by populist regimes.
• After WWII there was a shift politically.
– There would be a political battle between
the right,, left (socialism and communism),
and the center.
Carlos Ibáñez del Campo
• Ibáñez was a former populist leader of Chile
– He was elected once again because of the repressive tactics
of the Videla gov’t (along with inflation & frozen wages)
• Ibáñez ran on a populist ticket once again
– He promised a minimum salary, family allowance for
workers, & to listen sympathetically to wage demands
– There were issues with this populism:
• He sought loans from North America and the IMF (seen as an
extension of US economic and political power)
• He cut real wages
• Harsh repression to deal with labor unrest
– He ended up alienating the Chilean people
1950’s Elections
• 1958
– Many parties are running
• Jorge Alessandri: ran on a combined conservative and
liberal ticket
• Salvador Allende: FRAP; Socialist-Communist alliance
• Eduardo Frei: Christian Democrat
– Results:
• Alessandri: 31.6% of vote (wins by plurality)
• Allende: 23.9%
• Frei: 20.7%
• 18.8% went to others
What does this election prove about the voters of Chile?
1950’s Elections
• Alessandri as president
– A true representative of conservative political and
economic thought
• Free enterprise
• Open door to foreign investment
– Copper
• Alessandri tried to get US companies to increase
investment in Chilean copper
• Chilean nationalists were not happy
– They wanted the US businesses expropriated (does not happen
under Alessandri)
1950’s Elections
• Alessandri put Chile under the Alliance for
Progress in an attempt to help the people of
Chile
– The US were cool with it because they were worried
Chile could become another Cuba
Early 1960’s Political Shift
• Near the end of Alessandri’s time as leader
there were four main political groupings
– Right: included conservative and liberal parties
– Centrist radicals
– Marxist Left: communists and socialists
– Christian Democrats: located in the center
1964 Election
• The right, radicals, & Christian Dems all
back the same candidate: Eduardo Frei
– They called this movement the “Revolution
in Liberty”
• The Left had Allende
How will this vote differ from the previous
election?
And the winner is…
• Frei with 56% of the vote
– They were successful in painting Allende
and FRAP as an extension of Moscow
– It also helped that Frei received over 50%
of his campaign funds from the CIA
Frei’s leadership
• Main issue: Copper (again)
– Chilean gov’t would buy into copper companies and reinvest
profits in expanded facilities
• Left attacked this plan as selling out (wanted nationalization)
• The US kept a close watch on Frei
– They wanted to maintain the Alliance for Progress and the
loans to Chile
• It was not going as Frei had hoped. He would lose out
to reforms made by others in the Revolution of Liberty.
• The Revolution of Liberty was falling apart amidst
disagreements
1970 Election
• Resembled 1964 with the other parties back in
– Christian Dems: Radomiro Tomic-leftist and would not
work with right
– FRAP under new name Unidad Popular (UP): Allende
– Right: Allesandri
• Allende wins with 36.3% of the vote
– Confirmed by Congress of Chile
For Nixon’s involvement in the Allende regime turn to page
354 in your text
Chile under Allende
• Gov’t created massive public spending
– On labor projects
• Housing
• Education
• Sanitation
• Health
– Worker income rose 50% in Allende’s first
year!!
Chile under Allende
• This increase for workers & the appeal
to women (low-income milk distribution,
grocery coops) led to support for
Allende
Chile under Allende
• Problems arise
– US economic war on Chile’s fragile democratic
socialist experiment
• US covertly
– embargoed Chilean loans, imports, & exports
– After an expropriation of a US business the flow of private
investment capital stopped
– This war would force Allende to stop paying off the
national debt. He will manage to reach an
agreement with US creditors.
After year one…
• Economic stagnation & rise of inflation
• Popularity remained high, but his trouble lied
in attempting to appease both the lower and
middle classes
• Expropriation of businesses alienated small
and medium sixed business owners who
employed 80% of the population.
– State enterprises were poorly managed.
After year one…
• Socialist gov’t did not solve agrarian
issue
– Remained inefficient
• By fall of 1972, the gov’t faced an
economic and political crisis
– The Chilean oligarchy (who were angered
by the socialist movement) and the US
would look to take advantage
After year one…
• US spent over $8 million to destabilize
the Allende regime (great quote on
p356)
– All the disruption by the US and the fact
that the upper class controlled most media
made it impossible for Allende to win over
the middle class
– The economic crisis was jumped on by the
opponents
9/11/1973
• Military will back someone else
(Pincohet) and overthrow Allende
– Allende commits suicide during raid on
presidential palace
The US heavily influenced the Chilean
military.