Abstract
The study of allocation of resources for military purposes to the Chilean Armed and Police Forces during the last thirty years can be analyzed in two periods: 1952—1973, when inward oriented strategies of economic development prevailed under a democratic regime, and 1973—1980, when the authoritarian government implemented an externally oriented strategy of economic development. Differences in the process of allocation of resources and in the forces affecting the decision-making process will emerge. Also the distinct impact of the military expenditure on development strategies should be clearly noted. This report is based on the main studies of the process of development during the thirty year period, on our own reconstruction of economic statistical data and military expenditure information available to the public, and on research of the allocation of resources for military expenditure during the democratic regime.
Highlights
The study of allocation of resources for military purposes to the Chilean Armed and Police Forces during the last thirty years can be analyzed in two periods: 1952-1973, when inward oriented strategies of economic development prevailed under a democratic regime, and 1973-1980, when the authoritarian government implemented an externally oriented strategy of economic development
The study of the role of military expenditure in the development process during 1952-1973 will focus on four themes: (a) the forces affecting the decision-making process of budget allocation to the military, where we will consider the place of the Armed Forces within the Chilean political structure, their functions, and the way they interact with those who hold power, in sum who makes decisions; (b) factors influencing the process of allocation of resources: defence and international problems and internal security and order, the reason for military expenditure; (c) trends in military expenditure, how much was spent; and (d) the impact of military expenditure on the development strategies
The growth of milex was the result of the progressive abandonment of the traditionally professional role of the Chilean Armed Forces within the context of Latin America's new politicization of the military, the enlargement of their establishments and acquisition of new types of weapons
Summary
The study of the role of military expenditure in the development process during 1952-1973 will focus on four themes: (a) the forces affecting the decision-making process of budget allocation to the military, where we will consider the place of the Armed Forces within the Chilean political structure, their functions, and the way they interact with those who hold power, in sum who makes decisions; (b) factors influencing the process of allocation of resources: defence and international problems and internal security and order, the reason for military expenditure; (c) trends in military expenditure, how much was spent; and (d) the impact of military expenditure on the development strategies. President Alessandri tried instead to reach an agreement with other Latin American governments in order to stop the pressure on the scarce State-controlled resources Since his strategy of development presupposed the shrinkage of fiscal expenditure, limitation of disbursement for military purposes was crucial due to the difficulties in cutting other items within the context of a democratic regime while taking social demands into consideration. During the Ibanez period milex as a percentage of the GDP grew almost 1 0/0; in Alessandri's years the relationship milexlGDP was higher, but mainly due to stagnation in the product; under Frei the relation declined until 1969 but increased significantly in 1970 to over 4.5 % during the last two years of Allende. Zahler et al Chile 1940/1975, Treinta y cinco aflos de discontinuidad economica, ICHEH, Santiago 1978, p. 71
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