Economic Freedom and Citizen Repression were Two Sides of the Same Coin in 1980s Latin America

Abstract

As the Latin American political landscape shifted in the 1970s to include several right-wing and authoritarian juntas, social and economic factors caused these regimes to turn to neoliberalism to stimulate their economies and solidify their power. Over the next three decades, neoliberalism impacted most of the region with differing degrees of penetration and longevity. It will be argued that various actors contributed to the rise of neoliberalism in Chile and Argentina, including each nation’s military, key political figures and the University of Chicago’s Economics Department. The way in which power was distributed following the coups of Chile and Argentina decisively determined the entrenchment of neoliberal policies in each nation. It was not until the 1980s debt crisis the stark divergences in neoliberalism’s effectiveness would come to light as each nation fought to recover. Finally, the region’s pattern of economic growth following the crisis will be explored to understand how the legacy of neoliberalism remains intact.