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Salvador Allende's development policy: Lessons after 50 years

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  • Victor I. Espinosa

Abstract

Last year, 2020, was the 50th anniversary of the opening of the ‘Chilean road to socialism’ by Salvador Allende. Although the Allende government is the political reference for the 'socialism of the 21st century’ in Latin America, international supporters tend to disregard the primary cause of its downfall, focusing instead on the circumstances of Allende's death. This article explains the link between the Allende government's development policies and its macroeconomic outcomes between 1970 and 1973. It finds that Chile's economic collapse had an endogenous cause related to government policies. This supports the views of Mises and Hayek on the feasibility of socialist economic policies. Policymakers and commentators should recognise essential lessons from the Chilean experience to learn from past errors and effectively promote Latin America's economic development.

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  • Victor I. Espinosa, 2021. "Salvador Allende's development policy: Lessons after 50 years," Economic Affairs, Wiley Blackwell, vol. 41(1), pages 96-110, February.
    • Handle: RePEc:bla:ecaffa:v:41:y:2021:i:1:p:96-110
    DOI: 10.1111/ecaf.12441
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    Cited by:

    1. Victor I. Espinosa & Miguel A. Alonso Neira & Jesús Huerta de Soto, 2021. "Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World," Sustainability, MDPI, vol. 13(23), pages 1-14, November.
    2. Carlos Rodríguez Braun, 2023. "Squaring the circle: Economic legacies of the Cold War," Economic Affairs, Wiley Blackwell, vol. 43(3), pages 453-457, October.
    3. Víctor I Espinosa & David O Cueva, 2024. "The political economy of fiscal dominance: Evidence from the Chilean government of Salvador Allende," Economic Affairs, Wiley Blackwell, vol. 44(1), pages 118-138, February.
    4. Vicente Moreno‐Casas & Philipp Bagus, 2022. "Dynamic efficiency and economic complexity," Economic Affairs, Wiley Blackwell, vol. 42(1), pages 115-134, February.
    5. Victor I. Espinosa & William Hongsong Wang & Jesús Huerta de Soto, 2022. "Principles of Nudging and Boosting: Steering or Empowering Decision-Making for Behavioral Development Economics," Sustainability, MDPI, vol. 14(4), pages 1-18, February.

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