CIEPLAN IN CH THE PATH TO :OWER I n September of 1973. Chile’s social-fabric was ripped apart when a military coup led by General August0 Pinochet brought the country’s history as a democratic republic to an abrupt halt. This uprising ushered in an era of dictatorship that was to last 17 years. Throughout this dark period of Chilean history, democracy, free debate, and the equitable distribution of resources were all low priorities on the agenda of a government with a well-documented record of human rights abuses. For the people of Chile, this was a time many would rather put behind them. But there are signs of change in this coastal South American country. A Following the overthrow of leave that institution in the wake of the special plebiscite in October 1988 gave President Salvador Allende in 1973, military coup and, anticipating a Chileans an opportunity to reject the new government assumed control lengthy period of rigid dictatorship, set Pinochet’s claim to power. Presidential of the entire state structure. All about establishing a centre that would and congressional elections took place opposition was crushed and become a refuge for independent a year later, resulting in a clear-cut thousands of the deposed work. The work was to be done by a victory for the opposition coalition, government’s supporters were killed highly select group of academics who, known as the Concertacibn or forced into exile. like themselves, were economists but Democratica. In university circles, academics were viewed themselves as social scientists The new government took over in persecuted, social and economic committed to achieving a deeper March 1990 and, despite formidable research centres were shut down, and understanding of a situation beyond obstacles, President Patricia Aylwin the military intervened in the details and figures. has succeeded in achieving reforms universities, often appointing its own Soon after Cieplan was started it that even members of his own party leaders as university presidents. Any established its basic mission: to reflect had thought impossible. suspicion of dissent was pounced on on the process of events in Latin How did this process of reform and punished - opponents were America and formulate potential come about and who are the people expelled or forced to resign from their solutions to the problems of that made it possible? jobs. development and authoritarianism. In the fields of economic and social These developments were not In the atmosphere of persecution science research, much of the credit unique to Chile. The same events and repression, it was difficult to do goes to the members of the Latin occurred in other Latin American academic research. “The dictatorship, American economic research countries ruled by authoritarian in the most general terms, disturbed corporation, Cieplan (Corporacihn de governments in recent decades. Chile’s the freedom and tranquillity required Investigaciones Econ6micas para case does, however, have some for academic work,” Joaquin Vial, a Latinoamerica). This organization unique aspects, particularly in the member of Cieplan’s current board of acted as a kind of think tank where a resilience of its academic community directors, notes. “From the research team of scholars headed by Alejandro and its willingness to carry on research perspective, it made access to official Foxley, now the Minister of Finance, in trying circumstances. information difficult and also meant worked throughout Pinochet’s regime Basic Mission that manipulated and falsified data and to research and examine problems of The advent of Cieplan was no statistics were provided. The most underdevelopment and accident. It was founded by visible sign of the repression was the authoritarianism in Latin America. It researchers at the national planning absurd banning and seizure of a book was no easy task. research centre (Centre de Estudios de despite the fact that its contents had la Planificaci6n National) at Chile’s already been published in the media.” Universidad Cathlica, directed by Alejandro Foxley. They were forced to 18 IDRC Reports, April 1132 Pinochet’s government’s refused to Instrument Makers Among the hundreds of books, give Cieplan permission to operate In this context, one 0fCieplan’s most papers, and research reports produced legally, and research projects were important roles was to produce by Cieplan, experts point to the subsequently developed with well-researched studies that would importance of “Politicas internatiOnal financial support. IDRC provide an accurate record of Chilean Macroecon6micas” (macroeconomic was one of the organizations who economic trends. They compiled basic policies), a document that represents provided the funding that was crucial statistics on inflation, social spending, the fruit of years of study on a range of to Cieplan’s existence. national accounts, employment, and economic and development issues “The support which IDRC provided wages. Cieplan even brought about a common to Latin America and is throughout the 1980s for our complete revamping of the consumer considered “a Latin American classic macroeconomic research studies price index (CPI) when researchers which contains the best answers from enabled us to develop instruments and discovered that this indicator had been the South to the North based on criteria for formulating sound falsified by the government during the scientific analysis.” macroeconomic policy” says Mr Vial. crucial period between I975 and 1977. The relationship between risk and “Its contribution, moreover, enabled us There was also ongoing analysis of the development of Chile’s political to track the economic situation, a vital such issues as determining factors in process deepened in the 198Os,when task which allowed a group of the balance of payments, the process the political and economic crisis researchers to observe events and of setting prices and wages, the prompted outbursts that were develop tools for monitoring operation of the labour market, the suppressed with extreme severity by economic developments in great financial system, and an assessment of the dictatorship. Under these detail. In addition to forming opinion, the tools used for monetary and fiscal circumstances, nongovernmental it thus facilitated the transfer of power analysis. organizations like Cieplan became to informed people who were Another direction of Cieplan’s meeting places where intellectuals and prepared to assume the responsibility studies was the systematic analysis of social and political leaders could of governing the country.” conflict resolution in other countries. exchange ideas on possible solutions Research was conducted with a view to the country’s problems. They thus to studying solutions applied to helped build the bridges that were conflicts that might suggest lessons for necessary and paved the way for the Chile and Latin America. process that culminated in the emergence of Concertaci6n Democratica in 1988. One former member of Cieplan, now a senior government official, Cieplan in Government explained that “the economy was a battle ground and an area where great Before Chilean President Patricia Aylwin announced the make-up of his debates developed, but in addition to Cabinet, it was taken for granted that his Minister of Finance would be the criticism we also assumed that it Alejandro Foxley, Chairman of Cieplan, and that this research centre would was necessary to think about a new also provide the individuals who would assume major responsibilities in government.” the economic and social fields. In addition to distinguished academic Joaquin Vial adds that “the basic credentials, all of them have worked for years preparing the policies, thesis underlying many of the ideas at programs, and instruments for the process of restoring democracy. Cieplan and later adopted by the The following members of Cieplan were in the end called upon to fill the Concertacion Democratica was that following positions in government areas of consensus had been produced l Alejandro Foxley, Minister of Finance in Chile - despite or perhaps as a . Rem? Cortazar, Minister of Iabour and Forecasting result of the dictatorship - that were - Jose Pablo Arellano, Budget Director much broader than those that had . Pablo Pinera, Deputy Minister of Finance existed historically. There was a - Ricardo French-Davis, Research Director of the Central Bank of common yearning among the people Chile for stability and economic progress - Nicolas Fkmo, Chile’s Executive Director at the World Bank and a shared desire to salvage the l Manuel Marfan, Advisor to the Ministry of Finance and positive achievements of the military Coordinator of Macroeconomic Policy regime and integrate the traditional . Mario Marcel, Research Director of the Budget Department values of egalitarianism and solidarity,” . Ignacio Walker, Advisor to the President’s Office he says. “Our traditional values l Claudia Serrano, Head of Social Services for the apparent in such fields as education, Municipality of Santiago health, and forecasting could perhaps l Esteban Jadresic, officer in the Research Department of the Central Bank IDRC Reports, April 1992 19 POPULARIZING SCIENCE IN NEPAL be integrated with some of the positive aspects of the dictatorshio such as respect for the private sector, increased efficiency, and competitiveness.” The development of these thoughts in a manifesto called “El consenso econ6mico es posible” (economic consensus is possible), was key to ending the dictatorship and is reflected