ABSTRACT
Since the end of the Pinochet dictatorship in 1990, Chile has been a success story of democratic consolidation and economic development. All economic indicators show significant progress. Democratic institutions are strong and getting stronger. Citizens are politically engaged and social movements are flourishing. The origin of the so-called Chilean miracle can be traced back to the neo-liberal economic model adopted under the Pinochet dictatorship, but the pragmatic and gradual approach to economic and institutional reforms championed since democracy was restored explains why Chile has successfully avoided the pro-cyclical boom and bust trend that has characterized most other Latin American economies in the last two decades. Though the quality of life of all Chileans has improved, high levels of inequality remain a dark spot in the otherwise most successful story of economic development and democratic consolidation in Latin America in the past three decades.
