Privatization in Chile

PRIVATIZATION IN CHILE….You really need to read all of Larry Rohter’s article in today’s New York Times about Chile’s experience with Social Security privatization, but I can’t resist one excerpt. As background, note that privatization was introduced in 1980 under the military dictatorship of General Augusto Pinochet:

Chile spends about $2 billion a year to pay retirees from its armed forces, according to Mr. Scolari. The military imposed privatization on the rest of the country, but was careful to preserve its own advantages and exclude fellow soldiers from the system. Despite calls that the military be forced to give up its exemption, no civilian government has been prepared to pursue that.

There’s too much other good stuff in the article to know where to begin. Just read the whole thing.