Silvia Borzutzky

Vital connections : politics, social security, and inequality in Chile

Vital Connections is the first book-length treatment in English of the evolution of social security in Chile and its privatization under the Pinochet regime. Borzutzkys study contains a dynamic history of Chilean politics, a sophisticated discussion of social inequalities, and an in-depth analysis of social security policies in Chile from 1924 to the present. Her work focuses on three critical historical periods: the mid-1920s, the late 1960s, and the early to mid-1970s. In each of these key epochs, Chile experienced a crisis which prompted a reform of its socioeconomic organization and, consequently, of its social security system. Throughout this concise, readable book, Borzutzky argues that Chiles social security system presented to the world a positive image, while hiding a political reality that was steeped in profound inequality. According to Borzutzky, Chiles social security system helped to create a narrative that portrayed the country as a unified society with a legitimate political system. Efforts on the part of the Chilean people to make this narrative a reality threatened those in power and ultimately led the Pinochet regime to destroy the political system and create a new narrative that stressed individualism, but in actuality perpetuated rampant human rights abuses. Borzutzkys timely analysis is particularly relevant to current considerations of social security reforms. Chiles social security system is often presented as a model for the rest of Latin America and other regions of the world, including the United States. Borzutzkys book highlights the impact of privatization on various segments and aspects of society, including women and the fiscal budget. With an impressive array of historical and current data to support her statements, Borzutzky offers a compelling counter-argument to privatization and to tradtional interpretations of Chilean politics. She offers a new window on the intimate connections between politics, policies, and the distribution of socioeconomic resources in Chile.

The Socioeconomic Implications of Dollarization in El Salvador

This study argues that the costs associated with El Salvadors dollarization clearly outweigh the benefits and that the decision to dollarize was prompted not only by the need to promote economic growth, but also by the impluse to serve the interests of the financial sector and the large entrepreneurs who control the ruling ARENA party. Although the policy facilitates investment and international financial transactions, it has a negative effect on the poor by increasing inequality. To develop this argument, the authors discuss the socioeconomic and political situation in El Salvador at the time of dollarization, examine the Law of Monetary Integration, and analyze the effect of the dollarization policy on the poor.

Social security privatisation: the lessons from the Chilean experience for other Latin American countries and the USA

The purpose of this article is to analyse the economic and social implications of the privatisation of social security in Chile and to draw some lessons from the Chilean experience. The focus of the analysis is on the costs and benefits of the privatised system and its impact on social equity. Thus, the main section of the article is devoted to the analysis of the 20-year-old Chilean experience. This section is followed by a discussion of privatisation in other Latin American countries and the impact that World Banks policies have had on the region. The last section looks at the lessons for the United States and argues against the establishment of a partially private plan in the USA.

Anti‐Poverty Politics in Chile: A Preliminary Assessment of the Chile Solidario Program

This paper addresses what is one of the thorniest issues in Chiles economic policy making today: the question of poverty and the Chile Solidario program which was designed to combat extreme poverty. The paper discusses who is poor in Chile, the problems with the existing data on poverty and extreme poverty, and the content of the program. The paper also contains an assessment of the short term effects of Chile Solidario. Based on the existing data, the conclusion is that Chile Solidario has failed to reduce poverty in the short term.

Pension market failure in Chile: foundations, analysis and policy reforms

This article takes issue with the increasingly influential argument that the privatisation of pensions can be made to serve the public interest, defined in terms of collectivist values. Focusing on Chile, it shows how privatisation has been informed by the anti-collectivist values of neoliberal political economy. Compared with the previous publicly administered retirement system, Chiles distinctive combination of defined contribution individual accounts, and a means-tested retirement income safety-net, has generated a range of sub-optimal outcomes. The salience of path-dependency means that subsequent reforms have, in all essentials, preserved this anti-collectivist approach to retirement income protection.

Conditional Cash Transfers in Latin America and Anti-Poverty Policies in Chile: Why is Chile's Market Economy Unable to Reduce Poverty and Inequality?

This paper starts with an evaluation of the most important CCTs in Latin America. It will then move to discuss the nature and limited impact of Chile Solidario, followed by a discussion of poverty and vulnerability in Chile, and the Ethical Wage approach. The paper concludes by questioning the capacity of market oriented approaches to reduce poverty without resorting to substantial spending in social policies. Because poverty is a multifaceted situation, it requires not just one policy but a multidimensional approach that includes at the very least educational, employment and labor policies.

Commemorating Chile’s Bicentennial and the Coup’s 40th Anniversary During the Piñera Administration

While celebrating the 200th anniversary of Chile’s independence and celebrating or mourning the 40th anniversary of the coup, President Pinera had to confront the past by pursuing several paradoxical policies: denying pardons, closing luxury prisons, continuing with the promotions of military officers involved in human rights abuses, and apologizing for crimes that he never supported. The major accomplishments of the administration were the streamlining of the procedural process; the reduction of the functions of the military courts; and proposing changes in the financing of the Armed Forces. Meanwhile, the 200th anniversary of the country’s independence and the 40th anniversary of the coup provided the space for belated apologies on the part of members of the courts and some right- and left-wing politicians.

The Aylwin Administration: Doing As Much As Possible

This chapter starts with a discussion of the limited nature of the transition to democracy, the nature of politics during Aylwin’s four years; the limited political space given to President Aylwin due to the restrictions imposed by the 1980 Constitution; and the inability of the Concertacion politicians to modify the charter. In turn, the limited power of the President, the Amnesty Decree, and the presence of General Pinochet as Commander in Chief of the Army restricted, both legally and psychologically, the nature of human rights policies. The chapter focuses on President Aylwin’s notion that he did whatever he could, or as much as he could, in the very narrow political space given to him by the threatening and subversive actions of the former dictator and the uncompromising opposition of Union Democratica Independiente. As a result, those involved in the crimes committed between 1973 and 1989 continued to enjoy power and impunity. The chapter analyzes specific human rights policies, including the establishment of the Truth and Reconciliation Commission, the role of the courts, and a failed set of legislative actions to consolidate the architecture of impunity.

The Pinochet Dictatorship: The Destruction of Society and the Construction of Impunity

This chapter contains an analysis of the goals and ideology of the Pinochet dictatorship and a summary discussion of the abuses, the abusers, and their collaborators. A brief analysis of the main human rights organizations formed during the dictatorship is also included. The goal of the chapter is not to provide an exhaustive description of the massive human rights abuses that took place between 1973 and 1989, but to provide a background to the human rights policies enacted between 1990 and 2013, and to highlight some of the worst atrocities committed by the regime

Transitional Justice: A Short Introduction

This chapter contains a brief discussion of the concept of transitional justice and of the transitional justice policies that are applicable to Chile. The chapter’s focus is on the main transitional justice policies implemented in Chile between 1990 and 2014 including amnesties, trials, truth and reconciliation commissions, reparations, apologies, and memorials. Additionally, the chapter discusses the scholarly contributions made by Steven Stern, Cath Collins, Kathryn Sikkink, Naomi Roht-Arriaza, Brian Loveman, and Elizabeth Lira among others.