Self-contradiction of the Neoliberal State: the Chilean State in Welfare Policies
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In this paper, I question the legitimacy of the neoliberal state per se, and ask an empirical question of whether the Chilean welfare state is truly neoliberal. I investigate three welfare schemes introduced before and after the re-democratization of 1990: The Administradoras de Fondos de Pensiones(AFPs) and the Instituciones de Salud Previsional(ISAPRE) as the cases of privatization; and the Fondo de Solidaridad e Inversión(FOSIS) as the case of decentralization. The AFPs and the ISAPRE, which began in the early stage of the Chilean neoliberalization under the Pinochet regime, are the most prominent welfare programs that directly dictated the neoliberal privatization of social welfare. On the other hand, the FOSIS, which was first introduced upon the return of the democracy under the Concertación regime, reflects the intense effort of the Chilean state to remedy social inequality by means of the tactic of decentralization. Through these cases, I argue that the Chilean state has fallen into the self-contradiction of the neoliberal state, which the intervention of the state is still evident in the implementation of privatization and the control of the central government remains significant in the decentralization process.
Abstract
In this paper, I question the legitimacy of the neoliberal state per se, and ask an empirical question of whether the Chilean welfare state is truly neoliberal. I investigate three welfare schemes introduced before and after the re-democratization of 1990: The Administradoras de Fondos de Pensiones(AFPs) and the Instituciones de Salud Previsional(ISAPRE) as the cases of privatization; and the Fondo de Solidaridad e Inversión(FOSIS) as the case of decentralization. The AFPs and the ISAPRE, which began in the early stage of the Chilean neoliberalization under the Pinochet regime, are the most prominent welfare programs that directly dictated the neoliberal privatization of social welfare. On the other hand, the FOSIS, which was first introduced upon the return of the democracy under the Concertación regime, reflects the intense effort of the Chilean state to remedy social inequality by means of the tactic of decentralization. Through these cases, I argue that the Chilean state has fallen into the self-contradiction of the neoliberal state, which the intervention of the state is still evident in the implementation of privatization and the control of the central government remains significant in the decentralization process.
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