The Chile Project: The Story of the Chicago Boys and the Downfall of Neoliberalism

How Chile became home to the world’s most radical free-market experiment—and what its downfall suggests about the fate of neoliberalism around the globe In The Chile Project, Sebastian Edwards tells the remarkable story of how the neoliberal economic model—installed in Chile during the Pinochet dictatorship and deepened during three decades of left-of-center governments—came to an end in 2021, when Gabriel Boric, a young former student activist, was elected president, vowing that “If Chile was the cradle of neoliberalism, it will also be its grave.” More than a story about one Latin American country, The Chile Project is a behind-the-scenes history of the spread and consequences of the free-market thinking that dominated economic policymaking around the world in the second half of the twentieth century—but is now on the retreat. In 1955, the U.S. State Department launched the “Chile Project” to train Chilean economists at the University of Chicago, home of the libertarian Milton Friedman. After General Augusto Pinochet overthrew socialist president Salvador Allende in 1973, Chile’s “Chicago Boys” implemented the purest neoliberal model in the world for the next seventeen years, undertaking a sweeping package of privatization and deregulation, creating a modern capitalist economy, and sparking talk of a “Chilean miracle.” But under the veneer of success, a profound dissatisfaction with the vast inequalities caused by neoliberalism was growing. In 2019, protests erupted throughout the country, and in 2022 Boric began his presidency with a clear mandate: to end neoliberalismo. In telling the fascinating story of the Chicago Boys and Chile’s free-market revolution, The Chile Project provides an important new perspective on the history of neoliberalism and its global decline today.

About the Author :
Sebastian Edwards is the Henry Ford II Distinguished Professor of International Economics at the University of California, Los Angeles, and a former chief economist for Latin America and the Caribbean at the World Bank. His many books include American Default: The Untold Story of FDR, the Supreme Court, and the Battle over Gold (Princeton) and Crisis and Reform in Latin America: From Despair to Hope.

Review :
"Winner of the Axiom Bronze Medal in International Business, Globalization Category" "A fascinating insider intellectual history of the policies and personalities behind Chile’s economic development in recent decades."---Richard Feinberg, Foreign Affairs "The book presents a magnificent account of Chilean economic policies from the 1950s to the present day, and it will be an invaluable source for students of economic policy."---David Gallagher, Times Literary Supplement "Edwards tells this complex and controversial story superbly."---Martin Wolf, Financial Times "An excellent book. . . . This is the only book on this topic where I feel I am finally getting to the bottom of what happened. . . . Milton Friedman’s famed visit really was quite modest, contrary to what you sometimes hear. Nonetheless he was so persuasive he really did convince Pinochet to proceed with the shock therapy version of reform. . . . Strongly recommended, one of the must-reads of the year."---Tyler Cowen, Marginal Revolution "[Edwards] is one of those rare economists who can explain economic policy in simple and understandable language. He is a good writer and has an eye for a telling anecdote. . . . The Chile Project offers a cautionary tale for policymakers of all political and ideological stripes about the perils of unintended consequences."---Bruce Caldwell, Literary Review "[An] absorbing, mystifying tale of how neoliberal economics took root in the Southern Hemisphere only to be uprooted."---Michael M. Rosen, National Review "Meticulous. . . . Marked by Edwards’s firm grasp of regional politics and lucid explanations of economic theory, this is a valuable primer on a complex subject. " "Detailed yet accessible. . . . A closely argued study of the merits and demerits of free market economics in action." "An outstanding review of the rise and fall of the pro-market consensus and the neoliberal project undertaken in Chile since the 1970s. . . . The book’s prose is so well-crafted, it reads almost as fluidly as a novel."---Pablo Paniagua, Public Choice "Edwards has provided a comprehensive book on a complicated period of Chilean economic history. I recommend it to any interested in Chile, economic history in a broad sense, and for those who are looking for an unbiased view of the Chicago Boys and their influence."---Maximilian Magnacca, Society of Professional Economists "A book that has been badly needed."---David R. Henderson, Financial and Economic Review