Presidency of Salvador Allende

Chileans marching in support of Allende

In the 1970 election, Allende ran with the Unidad Popular (UP or Popular Unity) coalition. Succeeding the FRAP left-wing coalition, Unidad Popular comprised most of the Chilean Left: the Socialist Party, the Communist Party, the Radical Party, the Party of the Radical Left (until 1972), the Social Democratic Party, MAPU (Movimiento de Acción Popular Unitario) (in 1972, a splinter group – MAPU Obrero Campesino – emerged) and since 1971 the Christian Left.

Allende received a plurality with 36.2% of the vote. Christian Democrat Radomiro Tomic won 27.8% with a very similar platform to Allende's. Both Allende and Tomic promised to further nationalize the mineral industry and redistribute land and income among other new policies. Conservative former president Jorge Alessandri, standing for the National Party, received slightly under 34.9% of the vote.[5]

According to the constitution, Congress had to decide between the two candidates who had received the most votes. The precedent set on the three previous occasions this situation had arisen since 1932 was for Congress simply to choose the candidate with the largest number of votes; indeed, former president Alessandri had been elected in 1958 with 31.6% of the popular vote.

In this case, however, there was an active campaign against Allende's confirmation by Congress, including clandestine efforts to prevent him taking office, and his presidency was ratified only after he signed a "Statute of Constitutional Guarantees". This statute was suggested as a means to convince the majority of Christian Democrat senators that favoured Allessandri, as they doubted Allende's allegiance to democracy, or at least the UP's. After signing the statute, members of the Christian Democrat party in the Senate gave their vote in favor of Allende. It has been argued that given that less than the majority of the voters voted for him, Allende did not have a clear "mandate" to embark in the policies put forward on his program; however, it is also true that in the post-World War II period three out of the four previous presidents of Chile had, like Allende, also been elected with less than 50% of the vote, due in part to Chile's multi-party system. Specifically, the winners of the four presidential elections prior to Allende's 1970 election had won with: 56.1% (the 1964 election of Frei), 31.6% (the 1958 election of Alessandri), 46.8% (the 1952 election of Ibáñez) and 40.2% (the 1946 election of Gonzalez Videla). The legality of the 1970 election itself is not in dispute.

In office, Allende pursued a policy he called "La vía chilena al socialismo" ("The Chilean Way to Socialism"). This included nationalization of certain large-scale industries (notably copper), of the healthcare system, continuation of his predecessor Eduardo Frei Montalva's policies regarding the educational system, a program of free milk for children, and land redistribution. The previous government of Eduardo Frei had already partly nationalised the copper industry by acquiring a 51 percent share in foreign owned mines. The primary U.S. business in Chile at this time was copper mining. The Chilean government sought to fully nationalize U.S. mining operations and the Chilean constitution required "just compensation" to be made according to "minimum international standards." However, the Allende government chose to hold mining companies liable for damages they caused to the state. Subsequently, Chile made significant deductions in computing the amount of compensation due to the North American industries. Such deductions included charges for "loans invested poorly" and "excessive profits" among other reasoning. "Excessive profits" were assessed dating back to the 1950s. Ultimately, deductions for "social and financial malfeasance" when combined with other deductions resulted in the total deductions greatly exceeding the base book values of the mining enterprises. In effect, compensation to three of the five nationalized mines was wholly eliminated by subjective deductions determined by Allende's government.[6] Allende also nationalized coal mining in 1971, a move that was welcomed by the miners of Lota.[7]

Chilean presidents were allowed a maximum of six years in office, which may explain Allende's haste to restructure the economy. He had a significant restructuring program organized.

At the beginning, there was broad support in Congress to expand the government's already large part of the economy, as the Popular Unity and Christian Democrats together had a clear majority. But the government's efforts to pursue these policies led to strong opposition by landowners, some middle-class sectors, the rightist National Party, financiers, and the Roman Catholic Church (which in 1973 was displeased with the direction of the educational policy[1][8]). Eventually the Christian Democrats united with the National Party in Congress.

The Popular Unity coalition itself was far from unanimous. Allende himself said he was committed to democracy and represented a more moderate faction of his Socialist Party. He was supported by the Communist Party, that—despite being ultimately less committed to representative democracy—favoured a cautious, gradual approach. For example, the Communists urged to find a compromise with the Christian Democrats and supported the application of reforms through Congress. In contrast, the radical leftist wing of the Socialist Party wanted to smash the capitalist system at once, even if that meant violent actions.[9] If one includes smaller parties, Allende's moderate left-wing line was supported by moderate Socialists, Communists, Radicals (Social Democrats merged with that party in June 1972) and part of the MAPU (later: MAPU/OC), whereas the left-wing Socialists (led by Altamirano), the extremist elements of the MAPU, of the Christian Left and the MIR (not belonging to the Unidad Popular) represented the far-left.

Allende believed in peaceful change, arguing that capitalism could be ended in Chile through democratcic means. As he noted in a 1972 speech

My Government maintains that there is another path for the revolutionary process that is not the violent destruction of the current institutional and constitutional regime.

The entities of the State administration act today, not at the service of the ruling class, but at the service of the workers and the continuity of the revolutionary process; therefore, one cannot try to destroy what is now an instrument to act, change, and create for the benefit of Chile and its labor masses.

The power of the big bourgeoisie is not based on the Institutional regime, but on its economic resources and on the complex web of social relations linked to the capitalist property system.

We do not see the path of the Chilean revolution in the violent bankruptcy of the state apparatus. What our people have built over several generations of struggle allows them to take advantage of the conditions created by our history to replace the capitalist foundation of the current institutional regime with another that is adapted to the new social reality.

The popular political parties and movements have always affirmed, and this is contained in the Government Program, that ending the capitalist system requires transforming the class content of the State and of the Fundamental Charter itself. But we have also solemnly affirmed our will to carry it out in accordance with the mechanisms that the Political Constitution has expressly established to be modified.

The great question that the revolutionary process has raised, and that will decide the fate of Chile, is whether the current institutional framework can open the way for the transition to socialism. The answer depends on the degree to which it remains open to change and on the social forces that give it its content. Only if the state apparatus can be crossed by the popular social forces, will the institutionality have enough flexibility to tolerate and promote structural transformations without disintegrating.

Such a transcendental problem was posed crudely from September 4, 1970. The anti-capitalist social forces came to the Government through the regular functioning of the institutional regime. If it had been closed, at that moment the institutionality would have broken down and Chile would have been a victim of the violence unleashed.[10]

Allende also saw his government as representing a transition step between capitalism and socialism, stating in a 1973 speech

Hence, then, also informed by comrade Godoy, I can say that with satisfaction we know that the large centers that bring together the workers of the world, are studying the possibility of a meeting aimed fundamentally at drawing the lines of resistance to the penetration of transnational companies, subjecting countries to the political pressure they exert through venal politicians, or using the influence of their governments, or simply deforming their economy based on a development that only seeks their interests, against the general interest of the country in which they invest their capital. For this reason, it is also when this 20th Anniversary is celebrated, as your Comrade President, along with paying tribute to those who fell in the struggle, and highlighting those who with their life and example have given moral strength to the Central Única of Workers, I have to point out that this Government, which has faced the most powerful enemies from outside and inside; that this Government, in a country where capitalism exists, has its own path according to our history and tradition; that this Government seeks structural changes in pluralism, democracy and freedom; that this Government is an accelerated transition step between capitalism and socialism. That this Government has to make revolutionary changes within the framework of a bourgeois institutional framework, with an autonomous Judicial Branch, where laws are applied that have already lost their content and meaning; that this Government, which has a majority opposition Parliament; that this Government that respects ideological pluralism, doctrines and ideas; that this Government, which like no other, has been respectful of religious beliefs - the Ecumenical Tedeum demonstrates this -; that this Government, which has respected freedom of information, of the press, of assembly and of association, like no other; than this Government, which has not and will never resort to using repressive forces, not even against its most bitter adversaries.[11]

During its first year in office, the Allende Government achieved economic growth, reductions in inflation and unemployment, a redistribution of income, and an increase in consumption. The government also significantly increased salaries and wages, reduced taxes, and introduced free distribution of some items of prime necessity. Groups which had previously been excluded from the state labor insurance scheme (mainly the self-employed and small businessmen) were included for the first time, while pensions were increased for widows, invalids, orphans, and the elderly. The National Milk Plan affected 50% of Chilean children in 1970, providing 3,470,000 with half a litre of milk daily, free of charge.[12]

The land-redistribution that Allende highlighted as one of the central policies of his government had already begun under his predecessor Eduardo Frei Montalva, who had expropriated between one-fifth and one-quarter of all properties liable to takeover.[13] The Allende government's intention was to appropriate all holdings of more than eighty basic irrigated hectares.[14] Allende also intended to improve the socio-economic welfare of Chile's poorest citizens; a key element was to provide employment, either in the new nationalized enterprises or on public works projects.

Towards the end of 1971, Fidel Castro toured Chile extensively during a four-week visit.[15] This gave credence to the belief of those on the right that "The Chilean Way to Socialism" was an effort to put Chile on the same path as Cuba.

Chile real wages between 1967 and 1977. Orange lines mark the beginning and end of Allende's presidency.

The short-term economic results of Minister of Economics Pedro Vuskovic's expansive monetary policy were unambiguously favorable: 12% industrial growth and an 8.6% increase in GDP, accompanied by major declines in Chile’s long-endemic chronic inflation (down from 34.9% to 22.1%) and unemployment (down to 3.8%). In 1972 the Chilean escudo changed 140%. The average Real GDP contracted between 1971 and 1973 at an annual rate of 5.6% ("negative growth"), and the government's fiscal deficit soared while foreign reserves declined.[16][17] During this time, a shortage in basic commodities led to the rise of black markets which ended in late 1973 after Allende was ousted.[18]

In addition to the earlier-discussed provision of employment, Allende also raised wages on a number of occasions throughout 1970 and 1971. These rises in wages were negated by continuing increases in prices for food. Although price rises had also been high under Frei (27% a year between 1967 and 1970), a basic basket of consumer goods rose by 120% from 190 to 421 escudos in one month alone, August 1972. In the period 1970-72, while Allende was in government, exports fell 24% and imports rose 26%, with imports of food rising an estimated 149%.[19] However, although the acceleration of inflation in 1972 and 1973 eroded part of the initial increase in wages, the real minimum wage still rose (on average) during the 1971–73 period.[20]

The falls in exports were mostly due to a fall in the price of copper. Chile was at the mercy of international fluctuations in the value of its single most important export. As with almost half of developing countries, more than 50 percent of Chile's export receipts were from a single primary commodity.[21] Adverse fluctuation in the international price of copper negatively affected the Chilean economy throughout 1971-72. The price of copper fell from a peak of $66 per ton in 1970 to only $48–49 in 1971 and 1972.[22] In addition to the hyperinflation, the fall in the value of copper and lack of economic aid would further depress the economy.

Initially, the governing coalition expected the unearned wage increases and the consequent increase in government spending to be corrected once the 'structural changes' like nationalisation and agrarian reforms were completed. However, by June 1972, Allende was beginning to see the economic hazards. The minister of economy was changed and some austerity measures introduced, but to little avail.[23]

Amidst declining economic indicators, Allende's Popular Unity coalition actually increased its vote to 43 percent in the parliamentary elections early in 1973. However, by this point what had started as an informal alliance with the Christian Democrats[24] was anything but that. The Christian Democrats now leagued with the right-wing National Party and other three minor parties to oppose Allende's government, the five parties calling themselves the Confederation of Democracy (CODE). The conflict between the executive and legislature paralyzed initiatives from either side.[25] His economic policies were used by economists Rudi Dornbusch and Sebastian Edwards to coin the term macroeconomic populism.[26]

In October 1972, Chile saw the first of what were to be a wave of confrontational strikes led by some of the historically well-off sectors of Chilean society; these received the open support of United States President Richard Nixon. A strike by trucking company owners, which the CIA supported by funding them with US$2 million within the frame of the "September Plan", began on 9 October 1972.[34][39] The strike was declared by the Confederación Nacional del Transporte, then presided by León Vilarín, one of the leaders of the far-right paramilitary group Patria y Libertad.[39] The Confederation, which brought together 165 trucking company business associations, employing 40,000 drivers and 56,000 vehicles, decreed an indefinite strike, paralyzing the country.

It was soon joined by the small businessmen, some (mostly professional) unions, and some student groups. Its leaders (Vilarín, Jaime Guzmán, Rafael Cumsille, Guillermo Elton and Eduardo Arriagada) expected to topple the government through the strike. Other than the inevitable damage to the economy, the chief effect of the 24-day strike was to bring the head of the army, general Carlos Prats, into the government as Interior Minister, as a sign of appeasement.[40] Carlos Prats had succeeded General René Schneider after his assassination on 24 October 1970, by two groups, General Roberto Viaux and General Camilo Valenzuela, who had benefitted from logistical and financial support from the CIA. Prats was a supporter of the legalist Schneider doctrine and refused to involve the military in a coup against Allende.

In March and July 1972, Allende and the Christian Democrats tried to forge a compromise. The moderate Party of the Radical Left, representing the UP coalition in March, held talks with the Christian Democratic Party over regulations of nationalized firms, but ultimately failed, as the minister of economy Pedro Vuskovic boycotted the negotiations and carried out legally dubious expropriations. As a result, the Radical Left also left the UP coalition,[9] hence the coalition lost 5 senators and 7 deputies.[13] In July, the resumed talks were almost going to succeed, until the more conservative elements within the Christian Democrat party managed to break off the negotiations. From that point on, the political life of the country was highly polarized between two opposing camps: the governing left-wing Unidad Popular and the right-wing opposition of Christian Democrats who were allied with the National Party, a vehemently right-wing opposition party.

• Vuskovic plan - UP's economic policy
• Chilean nationalization of copper
• Death of Salvador Allende - controversy regarding his death
• Project Cybersyn
• Allendism - ideologies based on Allende's government

• Alan Angell (1993). Chile de Alessandri a Pinochet: En busca de la utopía. Santiago: Editorial Andrés Bello.
• Simon Collier & William F. Sater (1996). A History of Chile: 1808-1994. Cambridge: Cambridge University Press.
• Julio Faundez (1988). Marxism and democracy in Chile: From 1932 to the fall of Allende, New Haven: Yale University Press.
• Anke Hoogvelt (1997). Globalisation and the postcolonial world, London: Macmillan.
• Henry Kissinger (1970). National Security Decision 93: Policy Towards Chile, Washington: National Security Council.
• Alec Nove (1986). Socialism, Economics and Development, London: Allen & Unwin.
• Don Mabry (2003). Chile: Allende's Rise and Fall.
• Sebastián Hurtado-Torres. 2019. "The Chilean Moment in the Global Cold War: International Reactions to Salvador Allende's Victory in the Presidential Election of 1970." Journal of Cold War studies.

• An extensive Spanish-language site providing a day-by-day chronology of the Allende era. The research and detail are enormous.
• The 22 August 1973 document under which the Chamber of Deputies opposed the Allende regime. This is a solid translation of the document, although the introductory note is clearly that of an apologist for the coup.
• Examination of the coup that ended the Allende presidency, including ties to direction by the CIA.
• (in Spanish) Allende's 24 August 1973 response
• National Security Archive's Chile Documentation Project which provides documents obtained from FOIA requests regarding U.S. involvement in Chile, beginning with attempts to promote a coup in 1970 and continuing through U.S. support for Pinochet
• LIFE Magazine July 16, 1971 "Allende: A special kind of Marxist"