In this paper the author investigates the true nature of Chile’s economic performance. Chile remains firmly rooted to neo-liberal economic policies in Latin America and is often cited as a success story, especially in the current changing context in the continent. However, the author points out that the fallout of such neo-liberal economic policies in Chile has resulted in overt dependence on exports of raw materials and natural resources, a concentration of economic wealth through emergence of oligopolistic firms with monopsonistic features especially in retail sector, a complete privatisation of basic amenities like power, water supply, banking etc, with the logical fallout of high unemployment and one of the worst income inequalities in the world.

March 10, 2007.