The myth of privatization and the chilean experience

Abstract

In order to examine the Chilean experience the author analyses the privatization process of companies and State Wealth in Latin America. In the case of the Chilean model the negative effects of the privatization exceeds its positive consequences and disputes the neo-liberal theory that is apparent in each one, a source of economic efficiency and welfare for all. In the context of a new technological and scientific revolution, the role of the new economic classification and the world system of power, the neo-liberal reforms are basically, a political project that signifies the radicalization of the economic dependency and of the political structure of the peripheral world to the major developed societies and to its transnational companies. This confirms the interpretation of Stiglitz, who was awarded the Nobel Prize in Economics.