Vuskovic Plan
Chilean economic program (1970–1973)
The Vuskovic Plan was the basis for the economic policy of the Popular Unity (UP) government of Chilean President Salvador Allende. It was drafted by and named after his first Economics Minister Pedro Vuskovic, who had worked before with the CEPAL. Although good results were obtained in 1970, following massive levels of United States intervention in Chile , hyperinflation made a comeback in 1972. By 1973 inflation was still soaring, the country had no foreign reserves, and GDP was falling.
Background
The overall stated objective of Allende's Popular Unity government was to achieve a transition to socialism by democratic means. This would involve a combined political and economic program aimed at wresting control of the economy out of the hands of business owners and placing it in the hands of the state. It would then be easier to dismantle the various institutions connected with Western capitalism. The key figure in the economic policy of Salvador Allende’s UP government was the first Minister of the Economy, Pedro Vuskovic. In accordance with Keynesian economics, he wanted to implement a massive redistribution of revenue by raising salaries and increasing public expenditure, through which the buying power of the population would increase and accordingly consumption in general. These measures would activate the idle capacity of the Chilean productive apparatus (which was relatively large) and generate a climate of prosperity. If this strategy paid off, it would have had the effect of strengthening the government’s position and allowing it to advance its revolutionary program much faster.
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The citation trail is more important than the brevity of the summary: it shows where individual claims can be examined in context. The source revision retrieved here is dated Sep 27, 2026. The linked authority identifier is Q7943706. None of the 0 selected statements returned an explicit reference. The first chronological checks are 1970, 1972 and 1973.
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