The Chilean economic miracle revisited

This article examines some basic principles of socioeconomics and communitarianism as exhibited in the case of Chile. The socioeconomic hypothesis o of primary concern is the argument that the market economy functions best when contained within a properly structured social capsule. The communitarian hypothesis of principal interest is that, in purely Humean terms, modern societies achieve “refinement” when they possess a strong network of community organizations which compete for dominance over the political system without undermining the fragile democratic rules of the game.Chile is used as a case study for two reasons. First, between 1965 and 1995 it experienced two extremes of socioeconomic organization and then achieved what appears to be a viable balance. Second, Chile is often cited as an example of the superiority of the neoliberal approach over the more balanced approach of socioeconomics. The article concludes that Chile's experience provides stronger support for the socioeconomic and communitarian views than for the neoliberal model.