The Chilean War

The tragic outcome of the Popular Unity (UP) government led by Salvador Allende marked a turning point in the history of Latin American societies. The destruction of the continent's most vigorous and organized socialist movement put an end to the reformist political agenda aimed at overcoming the economic, social, and cultural foundations perpetuating underdevelopment and external dependency in the region. The defeat of the Chilean revolution coincided with significant transformations triggered by the structural crisis of capital. It signified the conclusion of the long cycle of post-war capitalist development and the beginning of a process of globalization in business encouraged by major transnational corporations. The exhaustion of Fordism, the crisis of the Welfare State, and the failure of Keynesianism initiated a period of sustained capital offensive against labor and public policies.