Generally, there is a belief that democracy is connected with development; and furthermore, economic development needs to be present in order for democracy to be established. According to the Council on Foreign Relations, democracies have consistently brought about higher economic performance than autocracies. Furthermore, democracies also have superior levels of social development, with higher literacy rates and life expectancy (Democracy and Development). The governments of Chile, Cuba, and Jamaica seem to be somewhat consistent with this claim since Chile, a democracy, generates a higher GDP per capita than either Cuba or Jamaica. This data focuses specifically on a democratic republic, a communist dictatorship, and a constitutional …show more content…
As Ashley Davis-Hamel tells us in her journal titled Successful Neoliberalism?: State Policy, Poverty, and Income Inequality, Chile began to shift towards neoliberalism during the rule of General Pinochet, after a short experience with socialism while Salvador Allende was in power. Chile experienced two “economic miracles” under Pinochet’s rule, yet these economic booms were heavily influenced by outside factors, such as outside investors. Pinochet heavily reduced government spending on social programs, and embarked on a wave of privatization. Post Pinochet, Chile saw a shift to more equitable economic practices. Although Pinochet made it difficult to change the constitution and the system, his successors were able to implement stronger social welfare programs and were able to produce a growth in real wages. Only with the global recession did Chile see a growth in poverty rates. Davis-Hamel concludes that the neoliberal policies put in place by Pinochet proved to be ineffective, and the balance between neoliberal policies and full government control has proved to be very powerful for Chile’s economic growth