Chile's Neo-Liberal Revolution: Incremental Decisions and Structural Transformation, 1973–89

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Abstract
This article analyses the surprising emergence of a comprehensive and coherent neo-liberal developmental model during the period of military rule in Chile. Rather than reflecting a clear and definitive choice, the political process that produced this model was characterised by hesitation, policy contradiction, shifting priorities, and incremental choices. This was a result of the military's efforts to deal with two, often conflicting, overarching goals – economic and political stabilisation – as they evolved and were redefined over time. The focus on incremental, iterated decision-making weaves the insights of other explanations based in underlying institutional, coalitional, or ideational factors into a micro-political explanation that is consistent with the substantial variations in policy outcome across different phases of military rule.

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