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To the beginning of reforms in the Chilean economy there was a mechanism state,The political and economic control over a considerable part economic Systems. The important components of this mechanism were:
1. A considerable share of a state ownership;
2. The government economic activities;
3. Restrictions in the field of foreign trade;
4. Extreme degree of monopolisation of a labour market;
5. The state control over mass media.
Economy. By the end of 1972 the government supervised 90 % of manufacture in Mining industry, 84 % of building, 52 % of the processing The industries, 60 % of wholesale trade. The state posessed 75 % Processed farmlands, 88 % of internal credit resources.
In all branches to the state belonged more than 600 corporations and the companies.
Among experts very few people knows, to what degree the Chilean economy of times
- it was similar to a socialist planned economy of type of that that
Existed in the USSR and countries of Eastern Europe. In the early seventies in Chile
The prices on more than 3 thousand kinds of production were on-line established.
The other prices were regulated by the numerous taxes established for Branches, the enterprises and separate kinds of production. Sizes and ways
Calculations of taxes constantly varied that aggravated chaos in economy. To the dress
With price control there was a practice of a direct attachment of suppliers to
Factories, told to the Russian economists that at the time of Alende
The state is directive defined to it suppliers of wholesale parties of tea, the price and
Volumes of purchases, buyers of retail parties of tea, the price and sale volumes.
*3. Restrictions in the field of external it.* Since crisis of the prices on the world
The saltpeter market in 1918, at that time making the main article of the Chilean
Export, for Chile constant expansion of the state was characteristic
Interventions in foreign trade. To the beginning of economic reforms was available
The huge confused system of regulators of foreign trade activities, Stretched from plurality of exchange rates and presence not tariff
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