Augusto Pinochet: the Omnipresent Contradiction....by Alan Tucker

The regime of Augusto Pinochet is often thought to be a prime example of market principles and economic liberalism. It is noted for its Chicago Boys-style market reforms pushed forward by a military government, and more specifically by Pinochet himself.

All this notwithstanding, one of the legacies left behind by Augusto Pinochet is the contradiction between authoritarian rule and economic liberalism. Preaching duty, self-sacrifice and the fatherland above all, the junta brought in the Chicago Boys, an economic team that studied at the University of Chicago, dedicated to opening the market and allowing the pursuit of self-interest and profit.

The crucial contradiction was the attempt to impose economic freedom under the guise of a military dictatorship. Latin America had never seen such a mixture before. With military dictatorships the norm, economic nationalism and control of the economy were the normal routes to economic policy. Pinochet turned the tables on this formula, decontrolling the economy and liberating economic forces. On the one hand, the government was allowing freedom in the economic sphere while on the other hand, controlling every other aspect of life with its authoritarian rule. Without any type of moral foundation or educational process that would explain the workings of a market economy, Augusto Pinochet decided to open up Chile’s protected and antiquated economy and expose it to the modern world.

While rumors abound about the real Augusto Pinochet, there is nothing in his past that suggests that he ever embraced classical liberalism. He entered military school at the age of 18 and was influenced by a military posture his whole life. The Chilean military was originally shaped by German military advisers and in dress and action, one can recognize similarities. In his own words, during World War II, Pinochet described how the young officers of his time sympathized with the Axis powers, especially Germany. After the War, Pinochet was openly sympathetic to the fascist regime of Francisco Franco and made one of this rare trips abroad to Spain to attend his Franco’s funeral.

No doubt an advocate of reason in regard to military matters and tactics, and especially his war against terrorism, in his private life he followed a different course. He was a practicing Catholic, and believed he had a mandate from God to rule and change Chile, saving it from "Godless communism." In addition to this, Pinchoet engaged in mystical practices such as tarot cards and palm reading, claimed to have seen his father's soul rise from his body and believed in spiritualism.

Basically, he was an authoritarian military man who spent his whole life around military institutions. He was never in favor of the modernizing effects of modern capitalism, the breakdown of traditional ways and the pursuit of "individualism" in opposition to duty and patriotism. Contrary to popular belief, he was never a big supporter of America, despised Ronald Reagan, thought the American Congress was controlled by communists, and believed that only himself and General Franco were defeating communism.

A little known fact in the United States is that in the late 1970's Argentina and Chile were close to going to war over the Beagle Islands. Because of the Kennedy Amendment, United States was prohibited from selling arms to Chile. Facing an army much bigger than his own, Pinochet was infuriated with the United States for denying his country weapons when it faced imminent danger. According to Mary Helen Spooner the author of Soldiers in a Narrow Land: The Pinochet Regime in Chile, Pinochet was so angry with the American government he threatened the American embassador that he would seek support from the Russians.

If true, the anecdote would be a good measure at his anger with the United States. Pinochet hated communism and believed he had a mandate to save Chile for Christianity. He believed communists were "humanoids," a species beyond the normal, "diabolical" and "treacherous," geared to do anything to destroy the fatherland. Much of this anti-communist frenzy was backed up by the belief that this threat had to be exterminated and Chile returned to a country of Christian values backed up by duty and patriotism, and a strong military. But then who were the communists? It could be anyone who opposed the regime, thought differently—anyone with an individualistic style who didn’t subscribe to the authoritarian view of duty and obedience to a higher authority.

An excellent illustration of this type of mental orientation can be found in Isabel Allende’s book, My Invented Country. Allende, a distant relative of the former president, talks about the hysteria that reigned in Chile, much of it aimed at innocent and naive students who believed in some type of socialist utopia where a new type of freedom would reign. Much like the communist hysteria in the United States before it, anyone and everyone who had an individual way of doing things was considered suspect. Admitting that Salvador Allende made some grave mistakes and was naive about economic affairs during his short-lived administration, she concludes that when he was overthrown most of Chile, “hated him.”

While reports of what took place are cloudly, there was no doubt that left-wing forces were intent on duplicating Cuba in Chile, and opening up Latin America to a Marxist revolution. It was a divided country, falling into chaos and economic disarray, many on the left ignorant of the most basic economic principles and intent on establishing a socialist utopia with only their wishes and hopes to support them.

Most everyone agrees that when the coup took place it was supported by the vast majority of people. Allende had been chosen in a three-way election by a small margin. He was a democratically elected socialist but he never ran on a platform of a Marxist revolution, nor did he reveal to the population his plans for nationalizations and state control of the economy. His presidential campaign was full of platitudes about social justice and democratic control of the economy.

Ironically, in the early coup plans, Pinochet was left outside of the loop by the other military men. He was believed to be a loyal military man, loyal to his duty and to Allende. It was Allende who had appointed him as chief of staff of the army in the hope of forstalling military action even though other men, loyal to the government, were available. In one of those historical ironies of history both men had faced off against each other earlier in their careers. Allende believed Pinochet was an uneducated bumpkin "too unskilled to even deceive his own wife." Pinochet believed Allende was a traitor to his principles: a communist who loved women, liquor, fine clothes and the joys of night life.

After the coup, the Social Democrats and the conservatives all believed the military would return the country to civil rule and establish elections within six months. What they didn't count on was the deep-seated resentment of the Chilean military and their belief that they were treated like "dirt" by the political establishment. Pinochet, himself, despised politicians of all stripes and considered them charlatans and frauds. He had other plans for Chile and the fatherland, which he considered, "more important than family, the most important thing God gives to a man."

Once in power Pinochet showed a side of himself few had ever seen. He took control and slowly removed and eased out of power almost all the generals who had conspired with him. Anyone who posed a threat was sent packing and in some cases murdered. General Prats, who preceeded him as commander in chief, was murdered in Argentina and General Bonilla, one of his co-conspirators, died in a helicopter crash under very strange circumstances. Other generals like Gustavo Leigh, head of the air force and co-conspirator in the plot against Allende, were transfered or quietly retired into oblivion.

An internal intelligence agency called DINA was formed under Manuel Contreras, who was puritanical, messianical and violently anti-communist. Under the direction of Contreras, Communist Party members were murdered and tortured, but even more, anyone at anytime was subject to seizure and arrest. People were snatched off the street and were never seen again. There was no judicial review or overview. One's name could appear on a list, perhaps for political affiliation or perhaps for a resentment from someone in power, and this could mean torture and imprisonment.

More than anything, Pinochet was lord and master of the country and answered to no one. His regime, although economically very different, from Cuba, had a security apparatus similar to the Cuban dictatorship: repression of opposition, censorship, imprisonment without judical recourse—a one party regime that answered to no one with Pinochet at the top, pulling the strings. Ironically, Castro and Pinochet had met during Castro's month-long visit at the beginning of Allende's government. Pinochet served as Castro's escort. In his own words, Pinochet disliked Castro, who he considered a "big-mouth" who never stopped talking.

Nonetheless, although both men stemmed from different ideological postures, their pursuit of power was similar and their one-party rule replications of each other in crucial areas. In the end, both men rid themselves of anyone who challenged them—Pinochet disposing of Gustavo Leigh his main rival as well as Carlos Prats; and Castro, doing the same in Cuba, arresting and jailing Huber Matos for 20 years, one of his closest lieutenants and a comrade who triumphantly entered Havana at his side. Then, too, both men lost rivals in mysterious plane accidents, Camilo Cienfuegos, the charismatic and beloved revolutionary in Cuba, and General Bonilla in Chile. Many critics say, Che Guevara's ill-fated trip to Bolivia was a manipulation by Castro to rid himself of a potential rival who despised the Soviets, the same Soviets Castro was later to rely on as his saviors.

A good measure of the power of Pinochet was that most of the economic reforms taken by his regime were pushed through because everyone was afraid of him. Most of the high-ranking generals opposed market reforms, as did most of the protected businessmen, the Church, just about every institution of power in Chile. Such groups as the influential, ultra-nationalistic, Fatherland and Liberty, that wanted a nationalistic style economy lost out to the Chicago Boys, who were persuasive in their arguments for economic reform.

Thus, for the first time in history, the world witnessed a case of a country being forced to be economically free. Without any type of philosophical or moral foundation for the capitalist reforms, Pinochet's government went forward with economic reforms. There has been a lot of speculation about the Chicago Boys, and Pinochet's role in allowing them to make the changes. Most of the biographers of Pinochet speculate that he wanted to leave a legacy for Chile, something that would leave him a positive image for posterity. Initially, the military regime started out with military men as economic advisors, which proved to be a disaster. With his country on the brink of disarray, Pinochet was intelligent enough to know something had to be changed. The Chicago Boys got his attention—Sergio and Jaime Guzman—and the rest is history.

What one saw in Chile was probably unique in history--University of Chicago economists opening up the economy, while the secret service and the military imposed a repressive regime that censored newspapers, prohibited most opposition parties, intimidated government workers, and imposed an all-knowing security apparatus that gave Pinochet the confidence to boast that, “not a leaf moves in Chile without my knowing it.”

In the end, General Pinochet saved Chile from communism by imposing a military dictatorship for 17 years. Surprisingly, he gave up political power voluntary by submitting to a democratic referendum in which he was defeated by the opposition. He bowed to popular demand but he imposed himself as the head of the army, senator for life, and had his military men in all key positions.

Like many historical figures, he induced his own defeat by travelling to England, against the advice of his own counselors, and thus, once in prison, his invulnerability was exposed and his powers were slowly stripped away.

Chile today is governed by the Socialist Party and has been for over ten years. Thus, the dubious practice of instilling market reforms and capitalism under the guise of an authoritarian regime proves once again that Ayn Rand was right. Capitalism has to have a moral foundation to be appreciated and to succeed. Today, without this foundation and with Chile as the flag-ship example of economic success in Latin America, there is almost no talk of how this success was achieved, and the word capitalism in reference to Chile's success is rarely mentioned. The present president, Michelle Bachelet, described the economic success under Pinochet to “the modernization of the Chilean State.”

At one time, Pinochet was believed to be an “unselfish” warrior who saved Chile from disaster, but recent revelations prior to his death about million-dollar bank accounts in the United States, have tarnished his reputation. Even with this, at the time of his death, he commanded a loyal and committed following, and was especially popular amongst women of the older generation. Historically, Pinochet was another Latin American caudillo in line with Alfredo Stroessnner, Hugo Banzer, Jorge Videla and Leopoldo Galtieri, all contemporaries of his age. His legend and legacy will always be the rise of Chile to economic prominence and the contradiction between economic freedom and the repressive, one-party dictatorship of the Pinochet years.

References

María Eugenia Oyarzún, Augusto Pinochet: Diálogos Con Su Historia Conversaciones Inéditas Editorial Sudamericana, Santiago, 1999

Augusto Pinochet, El Día Decisivo, Editorial Renacimiento, 1982

Mary Helen Spooner, Soldiers in a a Narrow Land: The Pinochet Regime in Chile, University of California Press, Los Angeles, 1994

Pamela Constable and Arturo Valenzuela, A Nation of Enemies: Chile Under Pinochet,
W. W. Norton & Company; New Ed edition (May 1993)

Isabel Allende, My Invented Country, Harper Row, 2003

Note: Salvador Allende was the uncle of the writer, Isabel Allende. Salvador Allende's daughter, is also named Isabel. She is a legislator presently serving in the Chilean congress.