SOCIAL-POLICY IN A FAST-GROWING ECONOMY - THE CASE OF CHILE

Chile has adopted a package of free-market, neo-liberal social policie s. This follows a pattern established by the country's largely success ful economic policies, Neo-liberal social policy consists of a series of two-tier systems, which are not in contradiction with the economic model. On the contrary, a key function of the social policies is to su pplement a dynamic style of capitalist economic development through a number of mechanisms. These include: improving the skills, education a nd health standards of the labour force; increasing savings in a priva tely-run pension system; reducing labour costs to firms; and providing a safely net to those whom the ''trickle down'' does not reach. The p aper examines social policy in three sectors: pensions, health and edu cation. It explores historical roots, present characteristics, and the degree of success or otherwise of policy in these sectors. The discus sion refers a the role played by the legacy of the Pinochet military d ictatorship (1973-90), the interface between public and private sphere s, the whole question of social policy in fire context of fast economi c growth under free-market conditions (and the possible presence of ca usality links), the changing balance of power between suppliers and us ers of social sector services in favour of the latter, the threat of m arket failure, and questions such as whether these policies hare been successful and whether (or why) Chileans are prepared to accept this u nequal two-tier system.