The Genealogy of Jaime Guzmán’s Subsidiary State

Part of the Archival Insights into the Evolution of Economics book series (AIEE)


Subsidiarity, the basic principle of Catholic social thought, seeks to offset the centralization demanded by the administrative state and its redistributive policies. The subsidiary function is compensated by the principle of solidarity which emphasizes social justice and the common good. In 1973, Jaime Guzmán, inspired by Carlism, guided Pinochet’s dismantling of Chile’s administrative state and allowed full implementation of neoliberal policies. Inspired by subsidiarity, Carlism maintained that the state ought not to assume functions which could be performed by lower social bodies. Hayek visited Chile twice, met with Pinochet and Guzmán, and praised the new government for its implementation of subsidiarity. This should not come as a surprise: Hayek’s Constitution of Liberty commends conservatives, like the Carlist thinker Donoso Cortés, for extolling the value of spontaneously grown institutions.


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Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Wilfrid Laurier UniversityWaterlooUSA

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