Today's date:
Fall 1996

Chile: Latin America's Middle Way

Alejandro Foxley was Chile's finance minister in the first civilian government of Patricio Aylwin after General Agusto Pinochet left the Palacio de la Moneda. Foxley is largely credited with Chile's "growth with equity" development model that has been called Latin America's "middle way," much as Sweden was labeled Europe's "middle way" in the early days of the Cold War because it chose neither communism nor capitalism

Under Foxley's guidance, the Chilean government remained on the path of orthodox monetarism, fiscal conservatism, privatization set by General Pinochet but, at the same time, initiated aggressive social spending and an incomes policy to close the gap between the rich and the poor.

Santiago - Too great a gap between rich and poor leads to political instability. That is the history of Latin America. In the 1990s, we ant to leave that history behind.

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