Abstract
The purpose of this chapter is to analyze various aspects of the expropriation policy implemented by the Unidad Popular (UP) Government. The principal goal of this policy was the expropriation of industrial companies and the formation of a new social and economic sector of production, known as the Areas de Propiedad Social y Mixta (APSM) [Areas of Social and Mixed Property].
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Notes
Among many other works on this subject, the following should be mentioned: A. Pinto, Chile, un caso de desarrollo frustrado [Chile, A Case of Frustrated Development] (Santiago de Chile, Editorial Universitaria, 1959); A. Pinto, Chile, una economía difícil [Chile, A Difficult Economy] (Mexico City, Fondo de Cultura Económica, 1964); R. Lagos, La industria en Chile. Antecedentes estructurales [Industry in Chile. Structural Antecedents] (Santiago de Chile, Institute de Economía, Universidad de Chile, 1966); J. Cademártori, La economía chilena [The Chilean Economy] (Santiago de Chile, Editorial Universitaria, 1968); A.G. Frank, Chile, el desarrollo del subdesarrollo [Chile, The Development of Underdevelopment] (New York, Monthly Review Press, special edition, 1967); A.G. Frank, Capitalisme et sous-développement en Amérique Latine [Capitalism and Underdevelopment in Latin America] (Paris, Maspero, 1968); O. Garretón and Y. Cisternas, Algunas características de la toma de decisiones en la gran empresa [Some Characteristics of Decision-Making in the Large Enterprises] (Santiago de Chile, Servicio de Cooperación Técnica, March 1970); H. Ramírez, Historia del imperialismo en Chile [A History of Imperialism in Chile] (Santiago, Editorial Universitaria, 1968); Centro de Estudios Socioeconomicos (CESO) [Socio-economic Studies Centre], Chile hoy [Chile Today] (Mexico City, Siglo XXI, 1970); S. Ramos, Chile, una economía de transición? [Chile, A Transition Economy?] (Santiago de Chile, Prensa Latinoamericana, 1972). The best collection of statistical data on the most recent period is ODEPLAN, Antecedentes sobre el desarrollo chileno 1960–70 [Antecedents on the Chilean Development 1960–70], Series I, no. 1, Planes semestrales. Plan de la economía nacional 1971–76 [Half Yearly Plans. Plans of the National Economy for 1971–76] (Santiago de Chile, 1971).
The E. Matte group could be cited as an example. It controlled, among other things, Cemento Melón (cement), Aceros Andes (steel), Compañía Manufacturera de Papeles y Cartones (paper products), and other industries, Sochile (a commercial distribution company), the Banco Sud Americano (The Bank of South America) and other financial and service companies. See Garretón and Cisternas, Algunas características…, for a general attempt at identifying the economic power groups.
Set CESO, Chile hoy, 68-69.
The Foreign Investor’s Statute (1960) and Articles 14 and 16 of Decree 1272 of the Ministry of Economics (1961).
Imports of equipment for industry rose from some $9,000 to $18,400 for each additional person employed during the five year periods from 1960 to 1965 and from 1965 to 1970. See ODEPLAN, Antecedentes sobre el desarrollo chileno…, 180 and 182.
ODEPLAN, Antecedentes sobre el desarrollo chileno…, xxxii.
Although industrial exports practically tripled during the 1960–70 period, they amounted to not even 5% of the gross value of the sector’s production in 1968, or 10% of total exports.
ODEPLAN, Plan Anual 1971 [Annual Plan, 1971] (Santiago de Chile, 1971), 6, quoted in S. Ramos, Chile, una economía…, 104.
Programa básico de la Unidad Popular [Basic Programme of the UP]. An Englisch translation of this is published in J. Ann Zammit, The Chilean Road to Socialism (Brighton, England, Institute of Development Studies, University of Sussex, 1973), 255-284. The Spanish version is available in Chile, Peru, Bolivia, documentes de tres procesos Latinoamericanos. Bibliteca fundamental del Hombre Moderno (Buenos Aires, Centro Editor de America Latina S.A., 1977).
The majority of railways and airlines were already in state hands.
ODEPLAN, Antecedentes sobre el desarrollo…, 192.
Encuesta continua de comercio y servicios [Permanent Survey of Trade and Services] Direccion Nacional de Estadísticas [National Office of Statistics], quoted in S. Ramos, Chile, una economía…, 68.
The bill was proposed to create areas in the economy and was presented by the UP Government in October 1971.
This was roughly equivalent to $1.5 million, given the exchange rate which was current at that time.
The studies are S. Bitar, ‘Efectos de las Areas de Propiedad Social y Mixta en la industria chilena’ [Effects of the APS and APM on Chilean Industry], Trimestre económico [Economic Quarterly], 163 (1974); A. Bardon, ‘Control directo del estado en la industria manufacturera’ [Direct State Control on the Manuf cturing Industry], in Comentarios sobre la situación económica, 1er semestre de 1972 [Statement on tne Economic Situation, 1st Quarter of 1972] (Santiago de Chile, Universidad de Chile, Facultad de Ciencias Economicas [University of Chile, Faculty of Economic Studies 1972]; Instituto de Economia y Planificación [Institute of Economics and Planning], La economía chilena en 1972 [The Chilean Economy in 1972] (Santiago de Chile, 1973). See Table II.A in the Appendix.
S. Bitar, ‘Efectos de las Areas…’, 552 and 554.
In both cases self-employed producers are excluded from the figures.
The Ministry of Economics organized a series of meetings with representatives of the different sections of the employers’ association, the Sociedad de Fomento Fabril (SOFOFA) [Industrial Development Society] (metal-working, industry, wood, construction materials, leather and footwear, plastics, etc.) in the first weeks of 1971. It could be seen in these meetings that the majority of the entrepreneurs were from medium-sized sectors rather than from monopolistic groups. The general trend at these meetings was that the entrepreneurs demanded the formulation of guarantees which would be offered to the medium-sized entrepreneurs. No written records exist of these meetings.
The only important bank not incorporated was the Bank of Chile.
This formula for compensation had a very similar precedent in the Agrarian Reform Law passed in 1967.
This figure was given by the military junta in República de Chile, Un ano de reconstrucción [A Year of Reconstruction] (Santiago de Chile, 1974). Only companies in the industrial committees are included.
See the Central Bank, Boletín mensual [Monthly Bulletin] (March 1975), 461; and the Statistical Appendix which appears at the end of Chapter 2, Table V.
The wage increase amounted to approximately 8% of GNP expenditure, while the budget deficit amounted to 8.4%. See the Statistical Appendix following Chapter 2, Table XII.
Prices increased by 22.1% and there was a 7.7% increase in GDP expenditure and possibly more in transactions. The difference implies a drop of approximately 20% in the velocity of circulation.
These are annual figures for 1972; see Table IV.B in this chapter’s Appendix and the Statistical Appendix following Chapter 2, Table XIII. Copper mining is not included; if it were, the percentages would be approximately 23% and 90%.
See Instituto de Economía y Planificación, La economia chilena.…
One of the most important assemblies took place in the textile sector in order to discuss the 1974 plans.
These are interviews with workers and supervisors in three large textile mills and one engineering works.
It is possible that this observation is distorted by the great influence of the marxist parties in the textile factories. However, the same happened in engineering, where the marxist parties’ influence was minimal.
This is an extreme hypothesis which assumes that an increase in employment mainly in the state sector and similar growth in production in both areas would result in a decrease of less than 10% in productivity.
The military junta, which currently controls the Government, claims to have achieved this effect by means of rapid devaluation. In fact what has happened is that, by means of a drastic drop in purchasing power in Chile, it has created exportable surpluses of essential consumer goods, particularly food.
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Martínez, A. (1979). The Industrial Sector: Areas of Social and Mixed Property in Chile. In: Sideri, S. (eds) Chile 1970–73: Economic Development and its International Setting. Institute of Social Studies, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-8902-6_7
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