The Challenges of Democratic Consolidation

Abstract

In the early 1990s, Chile stood in a favorable position as it rejoined the community of democratic nations. The high rate of growth that began in 1985 continued under the Aylwin government, reaching 10.4 percent in 1992, while inflation moderated. With the exception of Colombia, Chile was the only major economy on the South American continent to finish the 1980s with a per capita GDP larger than that of 1980. High levels of foreign and domestic investment and continued improvement in Chile's export performance suggested that the country's economy would continue to improve.