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Article ID: CBB706625383

Democratic Socialism in Chile and Peru: Revisiting the “Chicago Boys” as the Origin of Neoliberalism (2019)

Comparative Studies in Society and History
Volume: 61
Issue: 3
Pages: 654-679

DOI: 10.1017/S0010417519000239

URI: http://www.cambridge.org/core/journals/comparative-studies-in-society-and-history/article/democratic-socialism-in-chile-and-peru-revisiting-the-chicago-boys-as-the-origin-of-neoliberalism/5F6E439DF716ADF2BBF504AEC01CA1B9

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Democracy Economics Neoliberalism Cross-national interaction Socialism 20th century, late Peru Chile

In the 1950s and 1960s, the U.S. government paid the economics department at the University of Chicago, known for its advocacy of free markets and monetarism, to train Chilean graduate students. These students became known as the “Chicago Boys,” who implemented the first and most famous neoliberal experiment in Chile after 1973. Peruvian, Mexican, and other Latin American economics students followed a similar path and advocated a turn to neoliberal policies in their own countries. The Chicago Boys narrative has become an origin story for global neoliberalism. However, the focus on this narrative has obscured other transnational networks whose ideas possess certain superficial, but misleading, similarities with neoliberalism. I examine Chilean and Peruvian engagements with Yugoslavia's unique form of socialism, its worker self-management socialism, which was part of a worldwide discussion of anti-authoritarian socialism. I first introduce the Yugoslav socialist model that inspired those in Chile and Peru. I then examine socialist discussions in Chile and Peru that called for decentralized, democratic socialism and looked to Yugoslavia for advice. I conclude by examining the 1990s postponement of socialism in the name of a very narrow democracy and realization of neoliberalism. The Chicago Boys story assumes the easy global victory of neoliberalism and erases what was at stake in the 1988–1994 period: radically democratic socialism on a global scale.

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