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Pinochet's Economic Accomplices

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Pinochet's Economic Accomplices Pinochet’s Economic Accomplices Pinochet’s Economic Accomplices An Unequal Country by Force Edited by Juan Pablo Bohoslavsky, Karinna Fernández, and Sebastián Smart LEXINGTON BOOKS Lanham • Boulder • New York • London Published by Lexington Books An imprint of The Rowman & Littlefield Publishing Group, Inc. 4501 Forbes Boulevard, Suite 200, Lanham, Maryland 20706 www .rowman .com 6 Tinworth Street, London SE11 5AL, United Kingdom Copyright © 2020 The Rowman & Littlefield Publishing Group, Inc. This book was previously published in Spanish by LOM Ediciones under the title Complicidad económica con la dictadura chilena. Un país desigual a la fuerza in 2019. All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without written permission from the publisher, except by a reviewer who may quote passages in a review. British Library Cataloguing in Publication Information Available Library of Congress Cataloging-in-Publication Data <CiP data here> ∞ ™ The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI/NISO Z39.48-1992. To Antonio Cassese, who forty years ago began to write this book Contents Editors’ Note xi Foreword: From Economic Support of Dictatorship to It’s Not 30 pesos, It Is 30 Years xiii Juan E. Méndez 1 Complicity in Context: It’s the Economy, Stupid! 1 Juan Pablo Bohoslavsky SECTION 1: ECONOMIC COMPLICITY—PAST AND PRESENT 2 The Belated Centrality of the Economic Dimension in Transitional Justice: A Case study 21 Naomi Roht-Arriaza 3 Foreign Economic Assistance and Respect for Civil and Political Rights: Chile—a Case Study 35 Antonio Cassese 4 Cassese’s Great Contributions and Unresolved Complaints 49 Karinna Fernández and Sebastián Smart 5 Contextualizing the Cassese Report: The Dictatorship that Changed the United Nations Human Rights System and its Legacy in Monitoring Economic, Social, and Cultural Rights 63 Elvira Domínguez Redondo and Magdalena Sepúlveda Carmona 6 Transitional Justice and Economic Actors: Latin America’s Protagonism 77 Leigh A. Payne, Gabriel Pereira, and Laura Bernal-Bermúdez vii viii Contents SECTION 2: “PINOCHET’S ECONOMY” 91 7 The Chilean Economic Model and its Subordinate Democracy 93 José Miguel Ahumada and Andrés Solimano 8 Unraveling the Financial Assistance to the Pinochet’s Regime 109 Juan Pablo Bohoslavsky and Mariana Rulli 9 Extractivism as a Policy: From Its Dictatorial Origins to Its Democratic Continuity 123 Sebastián Smart 10 Promoting and Ensuring Inequality: The Distributive Consequences of the Dictatorship 137 Javier Rodríguez Weber 11 Experts and Intellectual Complicity in the Chilean Dictatorship 151 Marcos González Hernando and Tomás Undurraga AQ: Please confirm if SECTION 3: A GAME OF SUPPORT, CORRUPTION, AND insertion of MATERIAL BENEFITS 165 comma is okay in the 12 The Support of the Chambers of Commerce to the Dictatorship 167 title of sec- Rodrigo Araya Gómez tion 3. 13 The Media during the Dictatorship: Between Economic Benefits and Journalistic Complicity 183 Carla Moscoso 14 A Cat with No Bell: The Privatization of the Chilean Pension System during Pinochet’s Dictatorship 203 Mariana Rulli 15 Privatization and Repression: Two Sides of the Same Coin 223 Sebastián Smart SECTION 4: REPRESSIVE RULES AND PROCEDURES FOR CORPORATIONS 237 16 Union Law: Anti-Unionism as a Neoliberal Victory 239 Daniela Marzi 17 “The Employers Do What They Want With Us”: Unions and Workers under the Pinochet Dictatorship 253 Ángela Vergara and Peter Winn Contents ix 18 The Dismantling of the Welfare State and Mass Imprisonment in Chile 267 Silvio Cuneo Nash 19 Pinochet’s Repressive Urbanism: The Violent Neoliberalization of Space in Santiago 283 José-Francisco Vergara-Perucich 20 Autonomy in Times of Economic Complicity: Mining Expansion and Water Practices in Northern Chile 301 Cristián Olmos Herrera 21 Corporate Complicity in Human Rights Violations in Chile: The Case of Forestry Companies and the Mapuche People 323 José Aylwin SECTION 5: CASE STUDIES 341 22 Pesquera Arauco and Colonia Dignidad Cases 343 Karinna Fernández and Magdalena Garcés 23 The Edwards: The Power of a Newspaper 359 Nancy Guzmán SECTION 6: LEGAL ELEMENTS OF ECONOMIC COMPLICITY 373 24 Corporate Responsibility for Complicity in International and Comparative Law 375 Juan Pablo Bohoslavsky 25 Economic Complicity under Chilean Law 389 Pietro Sferrazza Taibi and Francisco Bustos Bustos SECTION 7: CONCLUSIONS AND PROSPECTS 407 26 Present-Day Chile: Genealogy of a Business Paradise 409 Julio Pinto Vallejos Index 000 About the Editors and Contributors 000 Editors’ Note This book was originally published in Spanish by the Chilean publishing house LOM in January 2019. This English edition includes a foreword writ- ten by Juan Méndez, former UN Special Rapporteur on Torture, and several new developments related to the responsibility for economic complicity with the Pinochet’s government. One of the findings of this book is that the physiognomy of the Chilean economy imposed by the dictatorship by force, which benefited a few at the expense of the majority of the population, is still in place. This fact explains, to a great extent, why toward the end of 2019, millions of Chileans protested in the streets against the brutal levels of inequality and why the state reacted with cruel repression against them. Again, in May 2020, the most disadvan- taged groups hit harder by the COVID-19-induced crisis are repressed in the streets when claiming that due to the economic impact they are suffering from hunger. The political and economic power of the corporate accomplices of the dictatorship shaped the Chilean Constitution, created in 1980 during the Pinochet’s government, as it has one of the most regressive declarations of economic, social, and cultural rights in the region, with practically no refer- ence to social justice. This is why, in the context of the ongoing constitutional reform process in Chile, recognizing the highest legal status of economic, social, and human rights as well democratizing the generation and distribu- tion of resources in the country to ensure their realization, is intrinsically linked to the accountability of the dictatorship’s accomplices. In his most recent book, Samuel Moyn argues that human rights are “not enough” to address social and economic inequality. We will not contest this idea here; we will just say that it very much depends on what we consider human rights law and its implications for the economic policies. As seen xi xii Editors’ Note in this book, we believe a precondition for a truly transforming social and economic agenda in Chile is that the Pinochet’s economic accomplices, in particular those still benefitting from the radical inequality in the country, are held accountable. Foreword From Economic Support of Dictatorship to It’s Not 30 pesos, It Is 30 Years Juan E. Méndez As the English version of this book sees the light, the conventional wisdom about the “economic miracle” that Chile represents lies shattered under the weight of massive and sustained protests that question the very foundations of the economic model that was first imposed during the Pinochet dictator- ship and left virtually untouched after the return of democracy thirty years ago. In particular, the mass mobilizations that have continued to grow in the final quarter of 2019 point out the fallacy of President Piñera’s statement, in early October of that year, that Chile was an “oasis” of peace and consensus in a continent marked by instability and authoritarianism. Today, Chileans in large numbers are demanding a fair distribution of wealth and an end to radi- cal inequality. In that sense, Chile has joined similar struggles in all of Latin America, in particular against economic policies premised on guaranteeing growth by rewarding—and even guaranteeing—concentration. To be sure, that model had seemed successful in Chile and virtually nowhere else in the region. For about four decades, the Chilean economy had produced successful outcomes, if measured in purely macroeconomic terms. The country had seemed to find a niche within a global economy that allowed it sustained growth through exports of its traditional resources such as cop- per, but also of some agricultural and agro-industrial products. The accom- modation of Chile to the needs and demands of the dominant economies of the world was made possible also because of a political consensus whereby center-left and center-right parties succeeded each other through free and fair elections without challenging the fundamentals of the economic model that was Pinochet’s enduring legacy. It would be unfair to present that consensus as leaving the structures of the dictatorship wholly untouched. In the three decades since the return xiii xiv Foreword of democracy, the Chilean political system did not only yield sustainable economic growth. In incremental steps, it also abolished undemocratic institutions such as the “senators for life” that guaranteed that pinochetista power would not be threatened by the majority’s rule. In terms of social and economic justice, democracy did lift the quality of life for the poorest among Chileans. However, life for the working poor and middle classes continued all this time to be hard. The promise of prosperity for the majority of Chileans was marred by insufficient investment in public education and health, and by a privatized pension system that seemed to guarantee inequality not only in salaries and public benefits but also in the rewards for labors of a lifetime. The Constitution left by Pinochet was amended (and improved upon, of course) several times in the democratic period. Significantly, however, even now that Constitution contains clauses that guarantee the inequality of dis- tribution of wealth and rewards. That elevation of policy choices to consti- tutional hierarchy had made it virtually impossible for Chileans to improve their democracy through the political process, and hence the spectacular mobilizations that have shown to the world the weakness of the economic success story that had been Chile.
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