Business Power in post-authoritarian Chile: explaining regulatory continuity in the pension system, 1990-1994

Abstract

It is hardly controversial to contend that economic elites wield a disproportionate political influence in Latin America. In this context, one critical area which we require a better understanding of is the influence of business on the development of social policies.Chile offers a fascinating puzzle in this regard: why did a centre-left coalition, elected on a platform of “creatinga social security system with more elements of solidarity” end up passing reforms that consolidated the private, individually managed pension scheme imposed by the military regime (1973-1990)? This paper attempts to shed light on this question, focusing on the debate around the old-age pension system during the first Concertación government, the Aylwin Administration (1990-1994). In summary, this work shows that despite the new democratic setting, the Chilean economic elite continued to control the policy process by means of multiple mechanisms.