Chile
achieved independence from Spain in 1818. In the 19th century Chile
became one of the most important powers in Latin America. In 1861
Chile obtained a democratic government.
The
liberal politician, Arturo Alessandri was the most powerful figure
between the wars. He held power in 1920-24, 1925 and 1932-1938. He
introduced social reforms that were opposed by the military but Chile
remained a democratic country.
The
Communist Party was the strongest in South America and participated
in Popular Front governments under Aguirre Cedra and Gabriel Videla.
However, a right-wing government established after the Second
World War led to the Communist Party being proscribed.
The
Christian Democratic Party was the most popular political group in
the 1950s and 1960s. However, in 1970 Salvador
Allende,
the leader of the Chilean Socialist Party, was elected president.
He therefore became the first Marxist in
the world to gain power in a free democratic election. The new government
faced serious economic problems. Inflation was running at 30 per cent
and over 20 per cent of the male adult population were unemployed.
It was estimated that half of the children under 15 suffered from
malnutrition.
Allende's
decide to take action to redistribute wealth and land in Chile.
Wage increases of around 40 per cent were introduced. At the same
time companies were not allowed to increase prices. The copper industry
was nationalized. So also were the banks. Allende also restored diplomatic
relations with Cuba, China
and