210 CultureShock! Chile
were effectively and harshly prevented from bargaining or
demonstrating to improve wages or working conditions,
which had sunk drastically. A number of Chilean firms went
bankrupt in the face of stiff international competition, which
led to further hardship when their employees lost their jobs.
Unemployment increased dramatically and the number of
Chileans living below the poverty line rose to over 40 per
cent. In 1983 the economy fell into a deep recession. It took
over three years for the country to recover.
Many analysts credit the military government with saving
the Chilean economy. However, it should not be overlooked
that the wealthy got wealthier while many Chileans fell
deep into poverty with no means of escaping. Furthermore,
academics continue to debate to this day whether these
severe economic reforms could have been carried out under
a democratic government responsible to the electorate.Current Economy
By the time a democratic government was elected to power
in 1990, the economy was strong. Subsequent democratic
governments have continued with essentially the same
economic policies instituted by the military regime. However,
this has been done in accordance with a wide array of social
policies and programmes, and labour unions were once again
legalised. The greatest consequence of these policies has
been the radical reduction in the number of Chileans living
below the poverty line.Regional Trade Arrangements
The Chilean economy is export led. Non-traditional products
have garnered respect throughout the world for their high
quality, especially Chilean wine, fruit, vegetables, paper and
seafood. Roughly one-third of Chilean products are exported
to Asia, one-third to the European Community and the other
third throughout the Americas (slightly more than half to
other Latin American countries and the remainder going
to North America). When looked at individually, the United
States is the number one recipient of Chilean exports. Yet,
the significance of Asia cannot be ignored. Japan, China and