ANALYSIS: Comparing the economic records of dictatorship and democracy in Chile [Samuel Valenzuela]

Chilean economic growth during the Pinochet years was only 1% per year on average. The big spurt in growth with macro-economic stability has occurred in the years after the transition to democracy in 1990. The economy since then has almost tripled in size, and now has the highest per capita income in Latin America. The democracy dividend came in the form of a huge increase in foreign direct investment, which over these years has totaled about 120 billion dollars. Foreign investors did not really believe in the stability of the military regime.



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