!! History Commons Alert, Exciting News

Context of 'September 1971-September 11, 1973: Chicago University Graduates Draft ‘The Brick’ Report for Chile'

This is a scalable context timeline. It contains events related to the event September 1971-September 11, 1973: Chicago University Graduates Draft ‘The Brick’ Report for Chile. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.

A joint project is started in which students from Chile will be sent to learn economics at the University of Chicago using funding for tuition and other expenses from the US government as well as private organizations such as the Ford Foundation. The University of Chicago’s Department of Economics is at this time a bastion of strict adherence to pro-free market thought. The chairman of this department, Theodore W. Schultz, came up with this plan along with an official from the US government during a meeting in Santiago, Chile, in 1953. Schultz himself stated that he desired that the countries of the third world, “work out their economic salvation by relating to us and by using our way of achieving their economic development.” By 1970, some 100 students from Chile will have sought advanced degrees from the University of Chicago. [Klein, 2007, pp. 59-60]

Entity Tags: University of Chicago, Theodore W. Schultz

Timeline Tags: Neoliberalism and Globalization, US International Relations

“The Brick,” a 500-page economic blueprint later used by Augusto Pinochet to formulate Chile’s economic policy, is drafted by a ten-man group, eight of whom had previously studied at the University of Chicago (see 1956). The group was put together by Orlando Sáenz, president of the National Association of Manufacturers, to “prepare specific alternative programs to government programs” that the military could use. Saenz took this step following a meeting between the heads of various Chilean businesses to discuss plans for toppling the regime of democratically-elected leader Salvador Allende as well as a suitable replacement. [Klein, 2007, pp. 70-71]

Entity Tags: Orlando Sáenz, Salvador Allende Gossens, Augusto Pinochet, National Association of Manufacturers (Chile)

Timeline Tags: Neoliberalism and Globalization

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

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike