The welfare state in Chile was transformed from a universal system into a retrenched one regulated by market forces. Welfare policy has recently evolved into a quasi-comprehensive system in which state subsidies and benefits have been expanded but guided by the logic of the private market. These dynamics are largely the result of the interplay between economic globalization and the political transition from democracy to authoritarianism and then the resumption of democratic practices. The efficiency theory of the welfare state argues economic
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A 2013 study studied this question.