Universidad Alberto Hurtado

Pedagogía en historia y ciencias sociales

Chile and foreign trade

during the late government
of Carlos Ibáñez del Campo
and the government of Jorge
Alessandri
impact on the Chilean
economy.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

The decade of 1950 marked the depletion of the economic and political model that one was
coming preparing from the collapse of 1929 and that had been reinforced by the warlike
conjuncture of 1930-1945. Hereby, the alarm that provoked such a fact drove to the appearance,
towards the second half of the decade, of some offers of solution, put in march in the last years of
the government of Carlos Ibáñez and in the first ones of Jorge Alessandri administration. All of
them supposed an explicit abandon of the bosses of the economic in force politics(policy)
(specially in recounted to the nature and the scopes of the state intervention), being seen in the
obligation to contract a North American mission, named Klein and Saks, in order to analyze the
economic problem, and to raise macroeconomic solutions, being in the one that we are interested,
the insertion of Chile to the world market.

In the economic aspect, the central problem of the decade of 50 was the inflation, which
indications would begin to alter the conduct of the most important economic and social actors,
collaborating to creating a sensation of despondency that rapidly overflew to other areas,
constituting the decisive impulse for the incubation of policies that were proposing a different way
towards the development. In effect, the problem was taking root due to the " transformations
experienced by the Chilean economy from the decade of 1930 that had displaced his fundamental
axis of development from the exports towards the internal market "1. That is to say, the economic
growth was promoted by the productive diversification, and very in I make concrete, for the
substitute industrialization of imports. Nevertheless, according to Luis Ortega's article " The Crisis
in the Decade of the Fifties ", with the end of the Second World war the external conditions that
had allowed, and even demanded the economic restructuring of Latin America, tended to
disappear, for what the economic system of substitution of imports should have faced a series of
obstacles originated by his own evolution.

The first obstacle to overcoming " was taking root in the size of the domestic market; estimated
insufficient for an effort of capitalization like that it was imposed "2. For the rest, the difficulty was
presenting also a distributive dimension. Always it existed, the alternative of be opening for the
external markets to place there the manufactured products, idea that woke great interest up in
the principal organs of decision. Nevertheless, according to Imperial sand grouse, even solving the
apparent mistake of markets, there was surviving the problem of the capital origin that they had
to feed the expansion. Since, " during the whole period Chile registered a rate of investment
lower than 10 % of the Geographical Brute(Gross) Productos, too low for a country with
pretensions of development "3.

A last element related to the crisis of the 50 was the new role acquired by the exterior(foreign)
trade, so then though the national economy already was not subordinated to this item in the same
form that before 1930, the " growth inward " according to Imperial sand grouse, it would have

1
Ortega, Luis. “Un modelo en crisis”, la crisis en la década de los cincuenta. En CORFO 50 años de
realizaciones. Santiago. 1989. Pagina. 3.
2
Ibidem.
3
Ortega, Luis. “Un modelo en crisis”, la crisis en la década de los cincuenta. En CORFO 50 años de
realizaciones. Santiago. 1989. Pagina. 4

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

generated another form of provoked dependence , for the own industrialization. In effect, on not
having developed internally the production of technologies, intermediate goods and of the capital
demanded by the ascending manufacturing activity, these they all should be had imported. Of this
form, the deterioration in the terms of exchange prevented that there was generated the flow of
currencies that would have needed an industrial deepening as the one that seemed to be
imposed.

For these factors, and it is the accumulated conflicts that a crisis would be carried out in 1950,
unloading an inflationary storm on a social already enough tense stage. From then one starts
forming a strategy of recovery, shared in his elementary principles for Carlos Ibáñez's
administration, and Jorge Alessandri, for what the period that he understands(includes) from 1955
- 1964 this one sealed by the idea of the "stabilization". In the essential thing - Imperial sand
grouse raises since(as,like) it - she(it) was granting a much more decisive role to the mechanisms
of market, questioning explicitly the Statism that, as according to histo seem had taken possession
in progressive form of public gesticulated.

Immediately after the lean moment of the Chilean economy - given in the Carlos Ibáñez's second
administration of the Field in the country - and the convocation of the consulting one " Klein and
Sacks ", is that there will be taken certain measurements that will point at a return at the
liberalism of the Chilean economy. Later after the election of 1958, Jorge Alessandri - with his
motto " The management for Chile-, will come to the presidency, giving continuity to the policies
proposed by the consulting Kleín and Sacks, implementing macroeconomic liberal policies -
attractive factor and wit for other countries that were looking for relations and commercial
platforms-.

Our analysis will be centred on the study of the internal and external situation of the Chilean
economy. For the analysis of the internal situation of the Chilean economy, it will be necessary to
centre on diverse variables that realize of the moments of the Chilean economy - in the proposed
period-, beside also realizing as the opening to the international trade it provoked certain effects
in the social area. For the analysis of the international situation it are that we have considered
pertinent realize of the economic existing relations with other nations, as well as also of those that
were in preparation in the epoch, immediately after the economic liberation that was presenting
Chile (principally in Jorge Alessandri's administration)4. For graficar of better way the previous
thing is that we will present some studies of case where we will expose how it is given beginnings
to these commercial relations, as well as also of for that Chile was one of the best Latin-American
countries to establish commercial relations.

During the first years of Jorge Alessandri's administration we notice promissory results - due to to
the internal measures seizures, since for example the public expenditure orders and to initiate a
plan of public works-, it is possible to see as incentive Alessandri the private investment, looking
for a sufficient flow of the foreign capitals, as well as also it was seeking to stimulate a free-trade
4
Example of this is the case of the beginnings of commercial relations with South Korea, given precisely in
Jorge Alessandri's administration.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

zone5. Nevertheless later everything will fail6, increasing the expense of the condition(state) and
not coming the flow of the foreign capitals that was waited.

Placed in the context of a certain return to the economic liberalism - this as one of the measures
to reactivate the crestfallen Chilean economy-, it is that it is possible to estimate as Jorge
Alessandri - already in his program as candidate for the presidency – he was warning that the
protectionism of the Chilean economy could act in a such way that could accentuate
furthermore(moreover) the lean moment lived by this one in the epoch. For this it is
indispensable to specify that Jorge Alessandri - already in the presidency-, proposes a government
centred on the technical administration, supporting the implementation of macroeconomic liberal
policies - in agreement with the policies proposed by the mission Klein - Sacks-7.

It is under this panorama added to the great catastrophe that supposed Valdivia's earthquake of
1960, that Alessandri's administration will see in the " Alliance for the progress " an opportunity to
obtain help - hint - of The United States, for this is that Jorge Alessandri integrates Chile to this
alliance8, Who was proposing the free trade with other Latin-American9 integral countries of this
one.

5
Jorge Alessandri señala en su mensaje presidencial al congreso, el 21 de mayo de 1959 lo siguiente: “Debo
también referirme a las importantes conversaciones mantenidas por expertos de Chile, Argentina, Brasil y
Uruguay, con el objeto de lograr una efectiva fórmula de colaboración regional. Tales estudios han
permitido concluir que el más adecuado sistema para alcanzar dicha finalidad es el establecimiento de la
Zona de Libre Comercio, con la participación simultanea o progresiva de las demás naciones
latinoamericanas”.
6
It is possible to notice this failure in situations as for example the depletion of the reservations(reserves) of
currencies of the central Banco, of which Jorge Alessandri realizes in his(her,your) account(bill) to the
congress on May 21, 1963, expresses the following thing: “La política de comercio exterior seguida durante
1962 ha tenido como objetivo la reducción del grave desequilibrio de los pagos internacionales. El
agotamiento de las reservas de divisas del Banco Central, obligó durante el año a adoptar un conjunto de
medidas restrictivas para evitar el persistente deterioro en la posición de pagos cuya incidencia repercutió
desfavorablemente en las reservas internacionales del país”.
7
In order that he remains best expressed, we take Jorge Alessandri's words, enunciated in his presidential
message of May 21, 1962, as for the exterior trade it indicated: “La política de comercio exterior seguida
por el gobierno desde fines de 1958, se orientó a poner en término paulatinamente a las restricciones y
obstáculos artificiales para el intercambio del país con el objeto de obtener una nivelación del sistema de
precios, interno y externo, lo cual como he dicho en otras oportunidades es fundamental para que nuestro
código de trabajo funcione sin lesionar los intereses del consumidor y es además indispensable para que el
intercambio a favor del tratado sobre Zona de Asociación Latinoamericana de Libre Comercio se desarrolle
en condiciones favorables para Chile. Además esto se hacía necesario de acuerdo con los convenios
internacionales que nuestro país suscribió hace muchos años, como el del Gatt por ejemplo”, pág 81.
8
It is immediately after this integration, that Alessandri will carry out an agrarian reform, though on a small
scale, since state lands were distributed to the peasants. In addition this small agrarian reform implied the
creation of the Corporation of the Agrarian Reform (Cora) and of the Institute of Agricultural Development
(INDAP).
9
In agreement with this Jorge Alessandri indicates in his presidential message to the congress on May 21,
1960: “Como lo señalara al dar cuenta de la política exterior del gobierno, el 18 de febrero del año en curso

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

Also it is necessary to do allusion to since successive visits of commercial foreign missions they
studied the increase in the commercial exchange, as well as the obtaining of new credits that help
in the development of the country, of this Jorge Alessandri realizes in his annual account(bill) of
1961, where it indicates: " During the period of labor of which I you realize, we have received the
visit of distinguished foreign personalities as well as also of Commercial Missions of diverse
nations friends, whose presence has allowed to study the increase of our exchange and the
possibilities of obtaining new credits and technical help for the reconstruction and the
development "10.

Later the government of Chile under Jorge Alessandri's administration will recognize new
governments so much African as Asians, establishing diplomatic relations with these. This fact
turns out to be significant for some of these countries, since they value the fact of recognition of
his independence, this added to that Chile was seeming to be an economic platform - in spite of
not to having a good economic situation-, it will go to establishing - in some cases - and to intensify
the commercial exchange, for this it is that we will check later the case of establishment of
commercial relations of Chile with South Korea, initiated precisely in the government of Jorge
Alessandri Rodriguez.

First to deal and graficar of better form for what South Korea it wants to establish commercial
relations with Chile it is that we will realize - brief - of the context of the Asian country in
question11. In the text elaborated by the Chilean - Korean Chamber of trade the situation of South
Korea distinguishes itself, realizing of his previous context, during and post establishment of
diplomatic relations with Chile. But what was happening(passing) with South Korea during the
decade of 1960?:

" In 1962, Korea was crossing for diverse economic and political difficulties, they had passed nine
years from the term(end) of the War in the peninsula. One year before the General of Division
Park Chung-hee, had taken the power of the nation to take charge of the legislative, executive and
judicial functions across a Supreme Council of National Reconstruction. In spite of the
characteristic of the restriction to the civil freedoms of the people(village), the President Park it

representantes plenipotenciarios de Argentina, Brasil, México, Paraguay, Perú, Uruguay Chile. Firmaron en
Montevideo el tratado que crea la Zona de Libre Comercio y la Asociación Latinoamericana de Libre
Comercio. Este Tratado entrará en vigor 30 días después de haber sido ratificado por tres de los países
signatarios. Para aquellos que lo ratifiquen posteriormente, comenzara a regir 30 días después de la
respectiva ratificación. Este convenio constituye por sus proyecciones:, uno de los instrumentos comerciales
de mayor importancia que haya suscrito el país. Permitirá a sus participantes, una vez cumplido el plazo de
12 años, previsto para la total aplicación del mismo, tener acceso libre de gravámenes, de importación, a un
mercado de alrededor de 150 millones de personas, en que los productos originarios de la zonas gozarán de
franquicias aduaneras y de otras ventajas que no serán extensivas a países ajenos al convenio”, pág 47.
10
Jorge Alessandri Rodríguez to the National Congress on having inaugurated the ordinary period of
meetings, May 21, 1960. Santiago: Impr. Fiscal de la Penitenciaria, 1960, pág 34.
11
It is necessary to clarify that great part(report) of indicated in this part of this report, was gathered by the
information dedicated and read in the text elaborated by the Chilean - Korean Chamber of trade that
realizes of 45 years of diplomatic relations entity these two nations.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

put as basic aim(lens) of his administration, the industrialization of the companies, reason that led
it to proclaiming the five-year Plan of economic development with which one was giving impulse
to the exports with accent in the frivolous(lewd) industry and of process. The economy would
grow the first year after implementing this plan, in 7,1 %. The industries weighed like: shipping,
self-propelling, electronics and chemistries, they would add with equal success in 1967 in 2 ° five-
year plan. But the development not only happened(passed) for topics as important as the exports,
everything what was necessary to reconstruct, to reactivate and to improve as the education,
electricity, routes of transporte, reforestation, science and technology They were considered in
the beginnings of this decade12 " …. " The image of country desvastado [sic] that had
internationally Korea was changing with all these policies of renovation that in addition allowed
him to initiate and to extend successfully his relations with the exterior, improving his links with
his traditional allies and with the establishment of diplomatic relations with countries of other
continents since it was the case of Chile and other countries in Latin América13.

It is across these two paragraphs that we notice as South Korea on having suffered a real
transformation of his economy, I need to look for platforms to be able to achieve that his economy
was going out to the world, for such an effect Chile turned out to be the perfect platform of South
Korea in Latin America, beside establishing an interesting commercial exchange, which after four
decades will be intensified furthermore(moreover) by the signature(company) of an agreement of
free trade.

Now portrayed well the context of South Korea and refer to why the establishment of commercial
relations, it is that we affirm - in the light of the reading of the notable text previously - that an ally
looked For South Korea in Chile, the Korean companies on having seen that the workforce of his
own country was increasing in price - what was reducing the successful impulse of his economy -
they sought to invest(invert) in other countries, beside opening new markets for his products
which were going from frivolous(lewd) industry - wardrobe - to heavy industry - domestic
appliances-. Chile for his part saw in South Korea a perfect market that it was needing of certain
raw materials beside managing to attract to the Korean capitals that were searching bought where
to invert. Immediately after this example it is necessary to indicate Jorge Alessandri's vocation of
promoting to Chile as a country that he can turn out to be a great commercial associate, who was
seeking to establish commercial relations for a joint development, this is valuable in the promotion
and allusion appellant and continues that Jorge Alessandri was doing to the Latin-American free-
trade zone, as a perfect instance to achieve a joint development of the American countries,
relation that also is possible to apply to those countries that were possessing and to establish
commercial relations with Chile.

12
Cámara de comercio Chileno-Coreana, Informativo Chile-Corea n° 293, Especial "45 años de Relaciones
Diplomáticas entre Chile y Corea", pág 4.
13
Cámara de comercio Chileno-Coreana, Informativo Chile-Corea n° 293, Especial "45 años de Relaciones
Diplomáticas entre Chile y Corea", pág 5.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

In another area between(among) the measures of the mission Klein and Saks, his principal
aim(lens) was to contain the inflation. In effect for the committee adviser the principal person in
charge of this imbalance(disruption) was " the public sector, which across his chronic budget
deficits was concealing an unequivocal tendency to consume more than it was taking produced "14
What was corresponding in consequence, was to disable the excessive intervention of the State
and to transfer the care of the basic imbalances to the free game of the market. With the above
mentioned end the suggested measures " They were combining the fiscal austerity with the
liberalization; decrease of expenses and of fiscal transfers, reduction of the public administration,
credit restriction, elimination of the automatic readjustments, suppression both of the subsidies
and of controls of prices, and exchange liberalization and of the exterior trade "15. Consequently,
the deep sense of this initiative was rescued and put again on the rug by the government of
Alessandri, who were thinking that the economic crisis only could conspire restricting the state
action and stimulating the private initiative.

For it towards support - and this point is in the one that we are interested - in the opening of the
exterior trade, in the elimination of the fiscal deficits, and in the retirement of the governmental
still in force controls and in the strict subordination of the readjustments to the increases of the
productivity. In effect, the foreign investment was thought that with the opening on the outside
(endorsed by a type of the only and fixed change) it had to exercise a healthy anti-inflationary
influence, since it was controlling the inflation and guaranteed the free access to the foreign
exchange market, it would have to start flowing generously towards the country. This way
liberated the economy of an oppressive statism and distorsionador, the economy had to react
towards a boss of more dynamic and realistic development.

For the mission Klein and Saks, the international trade and the foreign investments perform
supreme importance in the improvement of the standard of life in Chile, there shows us the
program of stabilization of the Chilean economy. Since, "a politics directed to the national serious
autarchy excessively costly and completely impossible to support in the practice "16, even if it
should apply only to certain items of merchandise, since they would be, the agricultural and
industrial products. The natural resources of Chile are more extensive and his more efficient
people in certain relatively specializing activities. This means - according to the mission - that of
the resources of Chile a major profit will be obtained if they are exchanged freely by the
specializing products of other countries, and if the country uses the potential of investment of
other nations to accelerate his own economic development.

The threat of the inflation always was latent. Even more when the results of her were making feel
strongly in the pockets of the wage earners, who to this height already were shaping a manifesting
organized body that was not hesitating to go out to the streets to improve his living conditions.
Though the government of Ibáñez intensified year after year the rise in the remunerations,

14
Ibid, pag 6.
15
Ibidem.
16
“El Programa de Estabilización de la economía chilena y el trabajo de la misión Klein & Saks”. En centro
de investigaciones y acción social. Santiago, Chile. 1958. Pagina. 31

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

seeming to be a social successful politics the fatal consequences of the rise in the prices and the
fiscal deficit that this was carrying were his serious mistakes, finishing his mandate with an
inflation near to 86 %.

In this context there had to be unrolled the economic policies of the successive government of
Alessandri Rodríguez. The recommendations of the signature Klein and Sacks of 1956, which did
not supply major effects in the previous government, was progressively puttings in march from
1959. The great challenge now was to introduce reforms to a long history of state interventionism
in the economy, that father was crawling from Alessandri and with major force from the ascent of
the Popular Front and the successive radical governments, being Ibáñez the continuer of that
political - economic counterfoil who was fractured by the ascent in the seventies and three of the
“junta militar”.

Representative of the businessmen and of the political right and economic Alessandri was
projecting for the country an opening towards the international trade or, in precise terms, an
opening to the liberalization of the relations of market. The program of stabilization of the new
government was proposing in general lines a decrease of the charges of import and elimination of
the prohibitions to the exterior trade17; to relieve the deficit in the scale of payments there would
be received large sums of international financing and in addition, the exports would be stimulated;
and readjustments to the remunerations, being the latter essential point in the task for reducing
the tax expenditure that, since we were improving, was forming a part essentially of the
inflationary problems of the previous government, since they were financed by excessive inorganic
emission being one of the principal imbalances that was increasing the inflation.

Precisely the latter point was one of that received enough attention on the part of the
government: the readjustment to the remunerations. In the first year of the administration
Alessandri the remunerations were increased in almost a hundred per cent with regard to the
inflation of the previous year, that is to say, were kept almost constant. Nevertheless these
percentage theoretical considerations, the things would be different in the practical plane.
Really(exactly), the readjustments of the remunerations might be esperables due to the new
inflationary panorama (33 % for 1959). Nevertheless, advanced the time they would diminish in
enough percentage points. The national system of remunerations was divided in a biassed way
between personnel and workers, system that was emphasizing the intellectual and physical
element, respectively. For the case of the first ones it was governing a vital salary (SV) that was
readjusted anually beside being more of the double of high place. For the second ones, they
governed the minimum wages, already out industrially or agricultural. The variation to which we
will mention in this paragraph is that of 1961 - it is necessary to annotate that a long before this
year were seen introducing different readjustments-, year in which it entered(approached) in
force a new law of readjustment . This one consisted " of an increase of 16,6 % of the minimal

17
To stimulate the foreign and national investment major state interferences would not intervene. Likewise,
the government expanded the investment in public works and housings to stimulate furthermore(moreover)
the private investment. These expansions were financed, especially, by external lendings.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

remunerations. For the wage earners with major revenues that the minims [clearly the particular
personnel who were enjoying a vital salary], the readjustment reached the sixth one of a vital
salary, for the personnel, and the same proportion of a minimum wage, for the workers. Once
again it produced(operated on) this way the discrimination between(among) both wage earners'
categories "18.

Minimal income fixed by law

Montos % respecto SV

AÑOS SMA SMI SV SMA SMI

1959 203,80 321,20 690,60 29,5 46,5

1960 247,47 321,20 690,90 35,8 46,5

1961 293,83 411,72 860,04 34,2 47,9

1962 339,45 478,88 1.001,28 33,9 47,8

1963 444,94 592,76 1.239,84 35,9 47,8

Fuente: Ricardo Ffrench Davis, “Políticas económicas en Chile: 1952-1970”, Ediciones Nueva
Universidad, Santiago de Chile, 1973, p. 340.

The agricultural minimum wage (SMA) – position in march from 1953, which already was an
advance - was the one that experienced major rises in his readjustments from 1959 until 1963 year
of the debacle in all the wages. For 1959 both the SMA and the SMI (industrial minimum wage)
experienced rises of 9,8 % and 0,9 %, respectively. These rises were kept - with the alone
exception of 1960 when the SMI diminished in-6,6 %-until 1962, changing considerably from the
following year when all the wages experienced a fallen rotunda: SMA-11,6 and SMI-16,5,
respectively19.

18
Ricardo Ffrench Davis, “Políticas económicas en Chile: 1952-1970”, Ediciones Nueva Universidad,
Santiago de Chile, 1973, p. 206.
19
Todas estas cifras fueron extraídas de: Ricardo Ffrench Davis, “Políticas económicas en Chile: 1952-1970”,
Ediciones Nueva Universidad, Santiago de Chile, 1973, p. 345.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

The differences continue with the familiar(family) assignments.

Familiar assignments:

Liquid Annual Amount % I concern EMPART--------------

YEARS SSS Civil personnel Particular Personnel SSS CEPP
(CEPP) (EMPART)

1959 33,63 67,20 95,82 35,1 70,1

1960 33,63 69,20 109,56 30,7 63,2

1961 38,84 79,28 126,72 30,7 62,6

1962 39,49 78,49 128,70 30,7 61,0

1963 45,73 90,14 157,20 29,1 57,3

Fuente: Ricardo Ffrench Davis, “Políticas económicas en Chile: 1952-1970”, Ediciones Nueva
Universidad, Santiago de Chile, 1973, p.341.

If the wages were unequal and the familiar assignments continued being crushing
different, the panorama becomes complex when to it we add the inflationary levels of last year of
the administration Alessandri. Really(Exactly), 48 % of inflation that was registered in 1963 made
get down the wages abrupt. Though the nominal adjustment of the salaries was high, the real)
value would say the opposite. For this year the nominal rises of the SMA and SMI were 31,1 % and
23,8 %, respectively, whereas in real terms they were, for the first one, of-11,6 and of-16,5 %, for
the second one. This panorama repeated itself in all the rest wages registered previously, though,
obviously, with major costs for those of minor income.

In the opinion of Ffrench Davis, the readjustments of the first three years of government,
though they were successful as for his real increase, rested considerably " on an external massive
indebtedness. Hereby, the economic situation was resting in a weak base and, for nature, volatile

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

"20. Definitively, the macroeconomic imbalances experienced during the government of Alessandri
suffer from many mistakes, which to ours to deal were enormous. First that everything, we think
that to have expanded in a noisy way the imports21 was a great negligence, since though the
exports grew - though enough little, even they diminished in 1961 4,3 points - and the fiscal
investment did the own thing, though in an exiguous way (with injection of resources in housing,
etc.), The scale of payments turned out to be in five years of government deficit: the average of
exports between(among) 1959-1963 was 479,38 million dollars22, whereas the imports, to which
since(as,like) we will remember one exempted them from great part of the taxes, they were
499,24 million dollars. Therefore, as we were saying, the majority income were, on the one hand,
the tributary ones, but even more those who were coming from lendings in currencies foreign
currencies.

In spite of all these harmful elements that we have seen, we would like to finish with a few
positive indicators: the rate of unemployment from 1960 until 1963. We believe that though the
wages did not represent satisfactory levels of well-being, yes we believe that the level of
unemployment of the indicated period is a positive element of Alessandri Rodríguez's
management.

In December, 1960 the percentage of suspended civil servants in the great Santiago was
promoting 47,9 %, of a whole of 2.087,2 (in thousands of persons) and by the end of his mandate,
namely 1963, it descended to 29,3 % of a whole of population in Santiago of 2.310,9. That is to
say, the rate of unemployment in four years got down 18,6 %. The average of unemployment in
his management was 36,15 %. Therefore, though the wages of those who are working might be
minors (Of fact, we believe that they are minor, since it has been a constant until today, as the
informal work and the low wages for concept of qualification or work itself; of fact, we notice it in
the explicit difference that was done between workers and personnel), the decrease in the
unemployment is undoubted23.

20
Ibid, 207.
21
One of the principal aims of the government with the impulse of the imports was precisely that the
exporting businessmen were inverting more and were competing against the avalanche of imports. Hereby
one believed that the exports would increase considerably.
22
Ibíd. p.p.273-275
23
Estos últimos indicadores sobre cesantía y población total en el gran Santiago fueron extraídos de: Banco
Central, “Indicadores económicos y sociales de Chile: 1960-2000, elaborado y editado por el Departamento

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

On the basis of exposed in previous paragraphs, there will be established the "positive"
aspects of the economic opening stimulated by the government of Jorge Alessandri Rodríguez,
focusing primeramente; in the first part of his government, which is understood from 1958 until
1960; Appearing the mystery of whom he was benefiting these positive aspects, and the real
concretion of the reparation of the national economy proposed by Alessandri.

From the first instance Jorge Alessandri Rodríguez gives beginning to his government with
the support of the conservative and liberal sector of the Chilean middle class, specifically of the
industrial and financial sector; of which, it was a part and furthermore now his representative. His
economic initiatives established environment to the reparation of the national economy (on
having tried to stop the inflation that already was seizing decades it was tormenting the national
economy), for which, this one I try to establish a rationalization of the administration it publishes;
across the designation of the diverse departments to technical personnel, attorneys and
engineers.

" It is for this important to establish that the presence of personeros of the industrial middle class
in the government stimulated the development of certain ideas counterfoils that inspired all his
politics during this one period, consisting of the conviction of which the investments you were
extracting and the free enterprise it was constituting the bases of the economic progress of the
country "24.

From this one perspective, Jorge Alessandri, theoretically not only was representing the
hope of a small social privileged sector, but rather; the beginning of a substantial improvement in
the inequality of the income of great part of the population; relating to this, it is necessary to
argue(indicate) that the antagonistic reality of that hope, stays awake in the comparative
concretion of the orientation of the government, since this one aposto to " The grades reinforce
companies linked to the exportation - between them the factory of papers and cartons, directed
by the same one-, for which I try to bringing the internal and external capitals of investment "25.

Publicaciones de la Gerencia de Investigación Económica, Chile, 2001, sección Empleo, desempleo e

ingresos del Gran Santiago, p. 578.
24
Pablo González Casanova, Berlamino Elgueta y Alejandro Chélen, América Latina Historia de medio
Siglo, Tomo I América del Sur, Breve Historia de Medio Siglo en Chile, Las dos caras de la reacción, Pág.
245. Editorial Siglo veintiuno.
25
Ibid, 245.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

From an ingenuous look it can be found that those companies linked to the exportation,
would stimulate the increase so much of employments, since of the income of the rest of the
population. But the " GINI's coefficient had in 1960 an approximate value of 0.46. A half of the
population was perceiving 30 per cent of the revenue, on the other hand that other one was
perceiving 70 per cent, and the poorest decil of the population was generating a 1.6 per cent of
26
the income, while the richest 34.9 per cent ".The economic opening stimulated by Jorge
Alessandri, only he would have been of benefit to a small sector of the population, which from the
first instance it would be divided between the industrial, financial capitals and landowners, since
“The opening of internal markets; he avoids the extension of the own internal market, which
implies internal previous transformations, as the agrarian reform; the one that determines in turn
the redistribution of the power "27. From this dynamics of I prevail economically and politician, the
asymmetric relations are established concerning the perception of the income of the country,
between a limited sector of the society; and the least privileged wide sector.

It is necessary to establish, that the benefits acquired by virtue of the economic opening of the
government of Jorge Alessandri, were of character diminished so much to level of income as in his
duration; It is for this that the certain relevancy of Jorge Alessandri's economic opening
establishes in the main with the Latin-American Association of Free Trade (ALALC), this is reflected
in the index of liberalization of the economy which is established from 1961-1963.

Tariff and index of liberalization.

Equivalent tariffs Index of Liberalization

(Percentages) (Ordinal)

1960 43.1 8

1961 43.1 10

1962 94.1 3

26
Rolf Lüders, Veinticinco Años de Ingeniería Social en Chile: “ Un Breve Ensayo sobre la Historia
Económica del Periodo Económico de 1963-1985”, Bases Ideológicas, El Pragmatismo y sus Resultados,
Pág. 335.
27
Pablo González Casanova, Berlamino Elgueta y Alejandro Chélen, América Latina Historia de medio
Siglo, Tomo I América del Sur, Breve Historia de Medio Siglo en Chile, Las dos caras de la reacción, Pág.
245. Editorial Siglo veintiuno

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

1963 94.1 328

Since we can observe the liberalization of the economy, it had his culminating point between the
years of 1960-1961 ten as(according to) the index can be estimated, then the economy " returned
to the protectionism that I characterize the previous government ".

In economic and social terms the economic opening promoted by Jorge Alessandri Rodríguez, it
was of momentary character (since already it had been mentioned previously); which in practical
terms did not have major economic incident (and if it had it, it was of short duration). The
benefits extracted from this economic opening were scanty, of big social and political costs on the
part of the middle class, which; she was a beneficiary of her , from a perspective so much
economic understood by industrial businessmen, and in certain form of the continuation of the
domain owner of a large estate in the agrarian sector. On there having no been in Jorge
Alessandri's economic offer a structural reform of the economic relations of power .

Consequently, the current difficulties of the country force to call again the attention on the fact
that he has entrusted in too much time in an alone product of exportation to finance so much the
expenses in foreign currency as in the fiscal, like that budget the mission " He believes that the
rapid development of the exports of mineral of iron and the favorable expectations of export
cellulose, new products of the industry salitrera and a quantity of agricultural products, they
promise to diminish this dependence during the next years "29, from inserting Chile to the exterior
trade.

Consequently, in order to extract the major advantage of these opportunities, it is necessary to

follow a suitable politics specially in what concerns the managing of the type of change.
Nevertheless, the mission sees as varied obstacles areas, such as: The costs of many of the
industries since they are high due to the fact that monopolistic practices exist in the production
and distribution of materials and of the equipments used by the industries, or because certain
taxes have a high charge on the costs. In addition, they observe antiquated technologies or the
lack of effective campaigns of sale. On the other hand, we observe the problem of the deficient
mass media and the evil been of the Chilean ports, that impede considerably the movement of

28
Rolf Lüders, Veinticinco Años de Ingeniería Social en Chile: “ Un Breve Ensayo sobre la Historia
Económica del Periodo Económico de 1963-1985”, Bases Ideológicas, El Pragmatismo y sus Resultados,
Pág.351
29
Ibíd. Pagina.32

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

the goods from the producing centers towards the world markets. Consequently, there is
necessary a politics that aspires to solutions of long scope, which destines measures to overcome
the above mentioned structural obstacles. On the other hand, for a good insertion to the world
market, a basic reform is necessary to the customs tariff, which " must allow to the country to
eliminate all the quantitative prohibitions of import that still are in force "30.

30
Ibídem.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

Bibliography.

Ortega, Luis. “Un modelo en crisis”, la crisis en la década de los cincuenta. En CORFO 50 años de
realizaciones. Santiago. 1989

Cámara de comercio Chileno-Coreana, Informativo Chile-Corea n° 293, Especial "45 años de

Relaciones Diplomáticas entre Chile y Corea",

“El Programa de Estabilización de la economía chilena y el trabajo de la misión Klein & Saks”. En
centro de investigaciones y acción social. Santiago, Chile. 1958.

Ricardo Ffrench Davis, “Políticas económicas en Chile: 1952-1970”, Ediciones Nueva Universidad,
Santiago de Chile, 1973

Banco Central, “Indicadores económicos y sociales de Chile: 1960-2000, elaborado y editado por el
Departamento Publicaciones de la Gerencia de Investigación Económica, Chile, 2001, sección
Empleo, desempleo e ingresos del Gran Santiago

Pablo González Casanova, Berlamino Elgueta y Alejandro Chélen, “América Latina Historia de
medio Siglo, Tomo I América del Sur, Breve Historia de Medio Siglo en Chile, Las dos caras de la
reacción”, Editorial Siglo veintiuno.

Rolf Lüders, Veinticinco Años de Ingeniería Social en Chile: “ Un Breve Ensayo sobre la Historia
Económica del Periodo Económico de 1963-1985”, Bases Ideológicas, El Pragmatismo y sus
Resultados.

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Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.
Universidad Alberto Hurtado
Pedagogía en historia y ciencias sociales

Chile. Presidente. Mensaje de S. E. el Presidente de la República don Jorge Alessandri

Rodríguez al Congreso Nacional al inaugurar el período ordinario de sesiones, 21 de Mayo
de 1959. Santiago: Impr. Fiscal de la Penitenciaría, 1959.

El Presidente de la República don Jorge Alessandri Rodríguez al Congreso Nacional al

inaugurar el período ordinario de sesiones, 21 de Mayo de 1960. Santiago: Impr. Fiscal de
la Penitenciaria, 1960.

El Presidente de la República don Jorge Alessandri Rodríguez al Congreso Nacional al

inaugurar el período ordinario de sesiones, 21 de Mayo de 1961. Santiago: Impr. Fiscal de
la Penitenciaria, 1961.
El Presidente de la República don Jorge Alessandri Rodríguez al Congreso Nacional al
inaugurar el período ordinario de sesiones, 21 de Mayo de 1962. Santiago: Impr. del
Servicio de Prisiones, 1962.

El Presidente de la República don Jorge Alessandri Rodríguez al Congreso Nacional al

inaugurar el período ordinario de sesiones, 21 de Mayo de 1963. Santiago: Impr. del
Servicio de Prisiones, 1963.

El Presidente de la República don Jorge Alessandri Rodríguez al Congreso Nacional al

inaugurar el período ordinario de sesiones, 21 de Mayo de 1964. Santiago: Impr. del
Servicio de Prisiones, 1964.

Autores: Ignacio Córdova, Fernando Fouillioux, Raymond Valenzuela, Patricio Ríos, Felipe Sanzana.