Economist Milton Friedman’s March 26, 1975, lecture in Santiago, Chile, constituted a pivotal moment in the symbolic transformation experienced by Chilean society during the years of the Pinochet regime.

Although organized by the School of Management and Economics at the Universidad Técnica del Estado (State Technical University) in Santiago, the lecture actually took place at the Diego Portales building, which served as the military junta’s headquarters during its first years of government. Friedman’s speech was published some months later under the emblematic title “Chile y su despegue económicoâ€? (“Chile and Its Economic Take-Offâ€?).¹ It was an event during which certain symbolic components of state culture became detached from their his- torical frames of reference, thereby laying the groundwork for a market-centered matrix within Chilean society — that is, a market culture.² This abandonment of the state planning model of previous decades and the shift toward a free-market economy in Chile were historically coupled with the violent military coup led by General Augusto Pinochet on September 11, 1973, against the socialist govern- ment of Salvador Allende. This political event dramatically interrupted the coun- try’s democratic life by instituting a dictatorship that would last nearly twenty years. The Chile that Friedman visited in 1975 was a country ruled by the heavy hand of military authoritarianism, which had imposed political repression and severe restrictions on free speech: hundreds of people were in prison or concen- tration camps, were subject to torture, or were obliged to seek asylum in foreign territories.³

Set against this scenario, Professor Friedman’s visit to Chile marked a crucial turning point for the country’s economy: at the time, the military junta was trying to decide between continuing the old state-centered economic model or shifting toward a free-market economy. Friedman was certainly not an activist, but at this juncture he performed the role of adviser in a highly publicized fashion. His visit had major consequences for the economic life of the country. His various activities in Santiago, including a face-to-face meeting with General Pinochet, tipped the balance in favor of a structural adjustment to the economy much more drastic than the military regime had previously been willing to risk. In essence, a shock treatment. This facilitated the victory within the regime of advisers who favored economic liberalization.4