Chile: the balanced view : a recopilation of articles about the Allende years and after

AN OVERVIEW OF THE CHILEAN ECONOMIC POLICIES(*) Statements by Fernando Léniz, Jorge del Canto, Walter Sedwitz, and Pauto Rosenstei1J8Rodan. l. Statement by Mr. Fernando Léniz, Former Chilean Minister oiEeon0 8 mies. l. ANTECEDENTS In accordance toa widely experienced custom, the Government of Chile has come toO this Annual Meeting sponsored by the CIAP with the purpose of informing about the behaviour of the Chilean econortly in 1973, and making clear the objectives and policies which will direct its actions in the year just now commencing, and the programmes which will give real meaning to the progress of the country's social and economic development. lt seems opportune to recall, at the beginning of this expositioÍl, that these ¡neetings first took place on the initiative of the Latin American nations more than 10 yearsago, thus setting up an unprecedented practice in the developing world and which has become a very usefl,J1 mechanism, that as well as making a critical analysis of the efforts of develop– ment made by our countries, channels and coordinates the technical and foreign financial cooperation necessary to complete the coul'ltries' own efforts. We have come here at acrucial moment in the history ofourcountry. The serious events which occurred during the last 3 years led to such a crisis of the political, economic and ~ocial systems, that the Armed Forces had to intervene so as to reestabl ish the fundamental values that had always been the backbone of our life as an organized society. As has happened with other political processes, the eve'nls of last September in our country, and the efforts the whole Nalion is making to reestablísh normality as soon as possible, have often been misinterpreted. It is not our intention to indulge in unending discussions, just lo justify what is now being done. Due to these factors, at the very beginning, the new Government asked fqr the coopera– tion of international organizations so as to make a delailed study of the state of affairs at the end of the previous Administration. Anirrefutable impartial technical judgment was thus obtained, as both the CIAP and the Inlernational Monelary Fund made a great effort lo have a clear vision of the state and behaviour of our national economy, as detailed as circums– tances permitted, because unfortunately there was often a shortage of information. A realistic evalualion ofthe monetary and financial situation was made, and ofthe balance of international payments. The elaborate:reports made out make il not worthwhile to distract the attention of this gathering by a detailed account of the statu qud at the end of the previous ¡\drninistration. I willlimit myselfto speaking, as a frameworkfor reference, ofthe most}mportant points of the economic, social and political crisis, so that ít may be understood that the actíons of the present Government must necessarily take in two fíelds of action that are an inseparable part of a whole, but Wilich require a national effort and forms of external cooperation t~at are of different fypes. By this I meant that Chile faces, on the one hand, the urgentneed to (*)Statements belore the Subeommittee al the Inter-Ameriean Cammittee 01 the Allianee lar Progress (CIAP), during the meetings an Chile heId in Washington D.C., January 30. February 5, 1974. 203