Any economic growth that Chile experienced was not sustainable as it was stimulated by extensive foreign capital. For example, by 1969, US investment in Chile amounted to $846 million, and whilst Chilean-US exports decreased over the years, US imports stayed steady at 39%. The US was also Chile’s main public creditor, accounting for 50% of debt. ~90% of Copper, Chile’s lifeblood, was controlled by four US companies, and in 1970, a quarter of all Chilean industry was controlled by foreigners. Such a magnitude of foreign dependence, creates an unstable economic base that is not self sufficient, wherein, a functional economy is heavily reliant on an outside influx of loans and investment. Allende’s government was not unique in its economic problems, however due to socialist ties, was politically polarized and isolated from the US, who themselves encouraged other Western powers from providing Chile aid, simply exacerbated the problems …show more content…
The polarization can be seen with the 1970 election results; Allende won with only 36% of the vote. Soon after the deterioration of the economy, caused by the UP making blunders under the erroneous Vuskovic plan which degraded the economy, alienated the UP’s ally: the PDC. Moreover, the UP itself became factionalized with radicals and moderates. And thus any of Allende’s programs that could be approved by the UP, could easily by stopped by the opposition who had majority. Whilst this could be seen as counterproductive on part of the opposition, as they would to be harmed by a lack of progress, one must keep in mind that they were funded by the US, with about ~$8M being funded between 1970-73. Also coupled with the fact that, there were coup sentiments fostered by the US as mentioned before all provided incentive for the opposition to oppose Allende, for they could have believed that he would soon be out of office anyway, and it would be simpler to repeal his ideas than change them later. Further supplemented by the fact that many officials were aided by the CIA. For example in in July 1969, “$350,000 was approved for influencing the 1970 congressional elections; ten of twelve CIA-selected candidates