From success to exhaustion: the economic policy of the government of Salvador Allende

Abstract

This article aims to introduce the reader to the process of economic transformation initiated by the government of Salvador Allende, which was intended to implement the foundations for the construction of a socialist society in Chile. The Chilean left's project, known as the ‘Chilean way’ for Socialism, consisted of leading the country peacefully to socialism through democracy, pluralism and freedom, conquering political power through the electoral path. Throughout our text, we will address both the measures of expansion of the State in the economy, whether through the nationalization of copper, the nationalization of banks and industries and agrarian reform, as well as presenting the negative reflexes of statist policies and the reactivation of the economy which began to be felt at the end of the first year of government, resulting in inflation, shortages, the black market and increasing political polarization among government defenders and sectors of the Chilean right wing.