NIXON AND LATIN AMERICA: 1973 ALLENDE COUP
Like most of Latin America, Chile endured a turbulent Cold War period. Like much of the region, it had encountered difficulties with creating the civil society necessary for a successful democracy. These difficulties were due to:
However, in spite of these challenges, Chile had succeeded in delivering universal suffrage by 1949.
- Physical geography- this made it very hard to develop infrastructure, especially transportation links. Consequently, it was hard for any government to secure legitimacy in the eyes of its people.
- The legacy of European colonialism- European settlers had failed to build the necessary institutions required for effective government.
- The power of the Catholic Church- a conservative institution by nature and was often allied with ruling elites. The church had consistently thwarted attempts at political reform.
However, in spite of these challenges, Chile had succeeded in delivering universal suffrage by 1949.
Chilean politics and society prior to 1970
Between 1945 and 1970, Chilean politics was dominated by right-wing and centrist parties. However, while there was a gradual process of democratization, Chilean society began to fragment as the political climate became more polarized. Traditionally, Chile had been dominated by social and economic elites but the enfranchisement of more and more (mostly poor) voters meant that there was a rise in the popularity of left-wing politics. These internal pressures would eventually be exacerbated by the external realities of the Cold War.
Between 1945 and 1964, Chile was governed by the right-wing Agrarian Labor Party under the leadership of Presidents Carlos Ibanez and Jorge Alessandri. When in power they:
Between 1964 and 1970, Chile was governed by the centrist Christian Democratic Party under the leadership of President Eduardo Frei, When in power they:
One problem that both parties struggled to deal with was the issue of land reform. The longer leading Chilean politicians failed to this issue, which was common to most Latin American countries during this period, the more polarized society became. These internal pressures came at a time when there was great tension in the region following events in Cuba in the early 1960's and the assassination of Che Guevara by the Bolivian military in 1967. Below is a list of problems that affected Chile prior to 1970. As you can see, many of them were common throughout Latin America during the Cold War period.
Between 1945 and 1964, Chile was governed by the right-wing Agrarian Labor Party under the leadership of Presidents Carlos Ibanez and Jorge Alessandri. When in power they:
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Implemented harsh austerity measures
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Ruled by presidential decrees (Ibanez)
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Borrowed heavily from the International Monetary Fund (IMF)
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Were solidly pro-US
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Were popular with women, who had just won the right to vote
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Encouraged US investment in Chilean copper industry
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Signed up to US President Kennedy's Alliance for Progress
Between 1964 and 1970, Chile was governed by the centrist Christian Democratic Party under the leadership of President Eduardo Frei, When in power they:
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Were strongly supported by the US and Western European countries
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Initiated land reform although were ultimately unsuccessful
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Encouraged the creation of trade unions
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Raised the minimum wage
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Invested in military equipment
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Avoided direct confrontation with the US
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Began partial nationalization of foreign industry
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Borrowed from World Bank and Inter-American Development bank
- Lowered voting age from 21 to 18
One problem that both parties struggled to deal with was the issue of land reform. The longer leading Chilean politicians failed to this issue, which was common to most Latin American countries during this period, the more polarized society became. These internal pressures came at a time when there was great tension in the region following events in Cuba in the early 1960's and the assassination of Che Guevara by the Bolivian military in 1967. Below is a list of problems that affected Chile prior to 1970. As you can see, many of them were common throughout Latin America during the Cold War period.
Reaction to the election of Allende
Although Allende won the most votes in the 1970 presidential election, he had not won enough votes to secure a majority. Due to the nature of Chile's electoral system of proportional representation, it was rare for a presidential candidate to win a majority but it was accepted that the candidate with the most votes would be declared the winner, regardless of the margin of victory.
While Allende was awaiting confirmation of his victory from the Chilean Congress, General Rene Schneider, Commander-in-Chief of the military was fatally wounded in a US-sponsored kidnapping attempt led by other members of the military. Schneider had been a strong supporter and defender of the principle of military non-interference in political and civilian affairs- this principle would later be known as the Schneider Doctrine. The removal of Schneider from his position was designed to eventually lead to the removal of Allende but in the short-term, ended military opposition to his appointment as president. As soon as Allende was sworn is as president, there was a capital flight out of the country, as wealthy Chileans sought to put their savings elsewhere, eventually leading to a massive reduction in the size of government currency reserves. This would prove to be a sign of the economic disruption to come, much of it the result of pressure and sabotage from the Nixon administration in the USA.
Allende immediately began a social revolution which sought to alleviate the extreme poverty in the country. His policies included:
Ultimately there were 3 different groups that created the political, economic and social instability that in turn would lead to the military coup which would remove Allende from power:
- Opposing the awarding of loans and credits by the IMF and World Bank
- Encouraging Kennecott and Anaconda to cut back on production, thereby disrupting the international copper market which was crucial to the Chilean economy
- Put diplomatic pressure on other Latin American countries to sever ties with Allende
- Funded the opposition groups in Chile
- Use the CIA to organize the truckers' strikes
While Allende was awaiting confirmation of his victory from the Chilean Congress, General Rene Schneider, Commander-in-Chief of the military was fatally wounded in a US-sponsored kidnapping attempt led by other members of the military. Schneider had been a strong supporter and defender of the principle of military non-interference in political and civilian affairs- this principle would later be known as the Schneider Doctrine. The removal of Schneider from his position was designed to eventually lead to the removal of Allende but in the short-term, ended military opposition to his appointment as president. As soon as Allende was sworn is as president, there was a capital flight out of the country, as wealthy Chileans sought to put their savings elsewhere, eventually leading to a massive reduction in the size of government currency reserves. This would prove to be a sign of the economic disruption to come, much of it the result of pressure and sabotage from the Nixon administration in the USA.
Allende immediately began a social revolution which sought to alleviate the extreme poverty in the country. His policies included:
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The nationalization of industry and banks, especially the US-owned copper industry
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The introduction of a ‘people’s assembly’
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An increase in government social services
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The expropriation of large land holdings (land reform)
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Closer diplomatic and political ties with Cuba and the USSR
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The introduction of government mandated wage increases and price-fixing
Ultimately there were 3 different groups that created the political, economic and social instability that in turn would lead to the military coup which would remove Allende from power:
- The militant far-left . Allende was the leader of the Unidad Popular (Popular Unity or UP) party which was essentially a coalition of left-wing groups. Allende was a moderate socialist who had trouble controlling the far-left wing of his party. These factions of the UP were growing impatient with what they perceived to be the slow pace of his reforms and advocated a more radical agenda. They were greatly influenced by the Castro revolutionaries in Cuba and pushed for violent revolutionary struggle. While many of Chile's peasant and working classes ignored their calls for revolution, there were instances of workers and peasants seizing factories and land when they were dissatisfied with the extent of Allende's nationalization and land reform policies.
- Chile's right-wing. Increasing allied with the Chilean military, especially as economic strife increased, they were extremely concerned by Allende's social revolution which threatened their business interests. Allende's associations with the militant far-left was also a big concern and both ends of the political spectrum antagonised the other. These groups worked with the CIA and the Nixon administration to launch truck driver strikes and create greater social unrest.
- The United States. Richard Nixon had instructed the CIA to "make the [Chilean] economy scream". A key part of that was the organization of a truck drivers' strike which created massive shortages in food and other essential resources. The Nixon administration also voted against Chile receiving IMF and World Bank loans to shore up their fragile economy. The Nixon administration were not only acting out of fear that Communists would seize control in Chile, but as in Guatemala in 1954, were intervening to protect US business interests, in this case, the US-owned copper industry, which included such companies at Kennecott and Anaconda, and US telecommunications company IT&T. The US helped to undermine the Allende government by:
- Opposing the awarding of loans and credits by the IMF and World Bank
- Encouraging Kennecott and Anaconda to cut back on production, thereby disrupting the international copper market which was crucial to the Chilean economy
- Put diplomatic pressure on other Latin American countries to sever ties with Allende
- Funded the opposition groups in Chile
- Use the CIA to organize the truckers' strikes
Pinochet and the September 11th Coup
Following the death of General Rene Schneider, General Carlos Prats was appointed Commander-in-Chief of the Chilean Army. Like Schneider, he was also a firm believer in the principle of military non-interference in politics. However, Prats' downfall was his attempt to please both supporters and opponents of the Schneider Doctrine in the military. To supporters of the doctrine, the appointment of Prats as vice-president weakened him and made him appear as a puppet for the increasingly polarizing figure of Allende. At the same time, Prats had inferred to opponents of the doctrine that he would intervene if economic and political developments rendered the situation in Chile too chaotic; they therefore perceived his continued support of Allende as a betrayal. Eventually, in August 1973, Prats realised he had lost the support his colleagues in the military and resigned. He was replaced by General Augusto Pinochet.
Meanwhile as the economy was disrupted by food shortages, high inflation and depleted currency reserves, Allende was becoming increasingly autocratic in order to bypass an uncooperative congress. Allende's use of Presidential decrees was criticized by many and lost him the support of Frei's PRC, who had been instrumental in supporting his appointment in 1970. With prominent supporters of the Schneider Doctrine few and far between in the military, Pinochet ordered a coup d'etat against Allende within one month of taking up his post as Commander-in-Chief. Allende was killed in mysterious circumstances and Pinochet's subsequent repressive and cruel military dictatorship lasted until 1990.
Meanwhile as the economy was disrupted by food shortages, high inflation and depleted currency reserves, Allende was becoming increasingly autocratic in order to bypass an uncooperative congress. Allende's use of Presidential decrees was criticized by many and lost him the support of Frei's PRC, who had been instrumental in supporting his appointment in 1970. With prominent supporters of the Schneider Doctrine few and far between in the military, Pinochet ordered a coup d'etat against Allende within one month of taking up his post as Commander-in-Chief. Allende was killed in mysterious circumstances and Pinochet's subsequent repressive and cruel military dictatorship lasted until 1990.
