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Extra resources for Social Movements And Free-market Capitalism In Latin America: Telecommunications Privatization And The Rise Of Consumer Protest

Sample text

Economic policy under the Import Substitution Industrialization (ISI) economic development model also favored an alliance of business, the middle class, and bureaucrats. Authoritarian Privatization and Delayed Consumer Mobilization 47 As most historians explain it, the 1960s saw the introduction of urban slum dwellers and peasants into the political game. The Frei government of the 1960s implemented mild land reform and other social policies, but not enough to stave off increasing demands for political representation and economic benefits.

It was feasible for companies to use cross-subsidies to 32 Social Movements and Free-Market Capitalism in Latin America drive competitors out of the market. Thus, it was possible (and probable) that residential users of local services would end up being charged a subsidy used by a firm to compete unfairly in long distance and other lucrative services. The Mixed Effects of Privatization on Residential Consumers The privatization of telecommunications benefited many Latin Americans to a very large degree.

Explaining the Emergence of Consumer Movements 29 Latin American countries privatized and otherwise restructured their telecommunications industries to a more radical degree than any other region during the 1980s and 1990s. Chile was the pioneer; its two state-owned companies were completely privatized by the late 1980s. Other countries followed Chile’s example, and by the end of 1999, of the 89 telecommunications companies privatized worldwide during the two decades, 25% were in Latin America.

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