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The Search for Macroeconomic Stability and Growth under Persistent Inequality: The Case of Chile

In: Pro-Poor Macroeconomics

Author

Listed:
  • Andrés Solimano
  • Molly Pollack

Abstract

The Chilean economy is praised in international financial circles for combining an open, market-oriented economy with prudent macroeconomic management. Most of the policies of external opening, liberalization and privatization were undertaken under military rule in the mid-1970s and 1980s. The return to democracy in the early 1990s consolidated the prevailing economic model and placed more emphasis on poverty reduction and social protection. However, the persistence of inequality of income and wealth distribution has remained a stubborn feature of the Chilean model. As Chile faced a presidential and parliamentary election by the end of 2005, the inequalities of income, wealth and opportunities became the centrepiece of national debates on the future of the Chilean economy and society.

Suggested Citation

  • Andrés Solimano & Molly Pollack, 2006. "The Search for Macroeconomic Stability and Growth under Persistent Inequality: The Case of Chile," Social Policy in a Development Context, in: Giovanni Andrea Cornia (ed.), Pro-Poor Macroeconomics, chapter 10, pages 217-247, Palgrave Macmillan.
    • Handle: RePEc:pal:sopchp:978-0-230-62790-1_10
    DOI: 10.1057/9780230627901_10
    as

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