Presidency of Salvador Allende

During the bombing of the presidential palace by the Chilean Air Force, President Allende, after mounting a brief armed resistance against the military, eventually died by suicide.

In this case, however, there was an active campaign against Allende's confirmation by Congress, including clandestine efforts to prevent him taking office, and his presidency was ratified only after he signed a "Statute of Constitutional Guarantees".

This statute was suggested as a means to convince the majority of Christian Democrat senators that favoured Allessandri, as they doubted Allende's allegiance to democracy, or at least the UP's.

[citation needed] In office, Allende pursued a policy he called "La vía chilena al socialismo" ("The Chilean Way to Socialism").

The previous government of Eduardo Frei had already partly nationalised the copper industry by acquiring a 51 percent share in foreign owned mines.

At the beginning, there was broad support in Congress to expand the government's already large part of the economy, as the Popular Unity and Christian Democrats together had a clear majority.

In contrast, the radical leftist wing of the Socialist Party wanted to smash the capitalist system at once, even if that meant violent actions.

[9] If one includes smaller parties, Allende's moderate left-wing line was supported by moderate Socialists, Communists, Radicals (Social Democrats merged with that party in June 1972) and part of the MAPU (later: MAPU/OC), whereas the left-wing Socialists (led by Altamirano), the extremist elements of the MAPU, of the Christian Left and the MIR (not belonging to the Unidad Popular) represented the far-left.

The power of the big bourgeoisie is not based on the Institutional regime, but on its economic resources and on the complex web of social relations linked to the capitalist property system.

What our people have built over several generations of struggle allows them to take advantage of the conditions created by our history to replace the capitalist foundation of the current institutional regime with another that is adapted to the new social reality.

The popular political parties and movements have always affirmed, and this is contained in the Government Program, that ending the capitalist system requires transforming the class content of the State and of the Fundamental Charter itself.

The great question that the revolutionary process has raised, and that will decide the fate of Chile, is whether the current institutional framework can open the way for the transition to socialism.

[10]Allende also saw his government as representing a transition step between capitalism and socialism, stating in a 1973 speech Hence, then, also informed by comrade Godoy, I can say that with satisfaction we know that the large centers that bring together the workers of the world, are studying the possibility of a meeting aimed fundamentally at drawing the lines of resistance to the penetration of transnational companies, subjecting countries to the political pressure they exert through venal politicians, or using the influence of their governments, or simply deforming their economy based on a development that only seeks their interests, against the general interest of the country in which they invest their capital.

[11]During its first year in office, the Allende Government achieved economic growth, reductions in inflation and unemployment, a redistribution of income, and an increase in consumption.

The government also significantly increased salaries and wages, reduced taxes, and introduced free distribution of some items of prime necessity.

Groups which had previously been excluded from the state labor insurance scheme (mainly the self-employed and small businessmen) were included for the first time, while pensions were increased for widows, invalids, orphans, and the elderly.

[12] The land-redistribution that Allende highlighted as one of the central policies of his government had already begun under his predecessor Eduardo Frei Montalva, who had expropriated between one-fifth and one-quarter of all properties liable to takeover.

[14] Allende also intended to improve the socio-economic welfare of Chile's poorest citizens; a key element was to provide employment, either in the new nationalized enterprises or on public works projects.

The average Real GDP contracted between 1971 and 1973 at an annual rate of 5.6% ("negative growth"), and the government's fiscal deficit soared while foreign reserves declined.

[28] Amidst declining economic indicators, Allende's Popular Unity coalition actually increased its vote to 43 percent in the parliamentary elections early in 1973.

Allende's Popular Unity government tried to maintain normal relations with the United States, but when Chile nationalized its copper industry, Washington cut off U.S. credits and increased its support to opposition.

[41] Public outrage over the killing of Schneider cooled sentiments for a coup,[1][41] and neither the U.S. nor Chilean military attempted other removal actions in the early years of the Allende administration.

On 26 October, President Eduardo Frei Montalva (Salvador Allende was inaugurated 3 November) named General Carlos Prats as commander in chief of the army in replacement of René Schneider.

[43] In October 1972, Chile saw the first of what were to be a wave of confrontational strikes led by some of the historically well-off sectors of Chilean society; these received the open support of United States President Richard Nixon.

[39][44] [failed verification] The strike was declared by the Confederación Nacional del Transporte, then presided by León Vilarín, one of the leaders of the far-right paramilitary group Patria y Libertad.

[44] The Confederation, which brought together 165 trucking company business associations, employing 40,000 drivers and 56,000 vehicles, decreed an indefinite strike, paralyzing the country.

Its leaders (Vilarín, Jaime Guzmán, Rafael Cumsille, Guillermo Elton and Eduardo Arriagada) expected to topple the government through the strike.

Other than the inevitable damage to the economy, the chief effect of the 24-day strike was to bring the head of the army, general Carlos Prats, into the government as Interior Minister, as a sign of appeasement.

On 22 August 1973, the Christian Democrats and the National Party members of the Chamber of Deputies voted 81 to 47, a resolution that asked the authorities, in reference to "The President of the Republic, Ministers of State, and members of the Armed and Police Forces", to "put an immediate end" to "breach[es of] the Constitution...with the goal of redirecting government activity toward the path of Law and ensuring the Constitutional order of our Nation, and the essential underpinnings of democratic co-existence among Chileans".

[49] He said that Congress was "facilitat[ing] the seditious intention of certain sectors" and promoting a coup or a civil war by "invoking the intervention of the Armed Forces and of Order against a democratically elected government".

Chile inflation rate 1971–1994
Chileans marching in support of Allende
Chile real wages between 1967 and 1977. Orange lines mark the beginning and end of Allende's presidency.