CAMSED is proud to host Dr. Guillermo Larrain who will introduce his new book: The Stability of the Social Contract in Chile: Perspectives From Within the Middle Income Trap


March 13, 2020 | 5pm | ARB | S1

Abstract: In the last 30 years, Chile has been one of the most successful economies in Latin America, not only in terms of income growth and social coverage but also, for some years now, in terms of reducing the high initial levels of inequality . The social explosion that broke out in October 2019 is then paradoxical: why is there such a social explosion in a successful country? Why have democratic institutions lost so much prestige among citizens? Why do acts of such violence and destruction occur? The surprise with which some observers look at these events comes from a dominant utilitarian perspective. In a previous book of 2013, “The Other Model”, we pointed out that Chile’s malaise comes from a “deficit of the public sphere” derived from the extreme degree of influence of market logic in society. The problem is not markets per se, but the marketization of society. In this book I use a complementary, contractualist vision, based on concepts of game theory. In this logic, the social contract is by nature fragile and must adapt to the beliefs and expectations of society. The Chilean problem, from this perspective, is that the formal social contract – the Constitution – is excessively rigid and has not accompanied the evolution of a society that has changed as much or more than its economy. From this perspective, the constitutional process that has begun is an essential part of an institutional response to the social explosion. The book proposes a series of contents that should be considered in the constitutional debate.

Speaker Bio:
Prof. Guillermo Larrain is a PhD Economics from the Ecole des Hautes Etudes in Sciences Sociales (EHESS) and is an economist at the Catholic University of Chile. He is currently Associate Professor in the Department of Economics at the University of Chile. He was Vice President and then President of the State Bank of Chile, Superintendent of Securities and Insurance, Superintendent of Pensions and Economic Policy Coordinator of the Ministry of Finance. His book “The Other Model. From the neoliberal order to the public regime” had record sales in Chile.

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