Poverty and Tyranny – Folha de S. Paulo, July 9, 1972
by Plinio Corrêa de Oliveira
The letter from Mr. Carlos del Campo, Professor of Economics at the Catholic University of Santiago, Chile—the beginning of which I transcribed last Sunday—has aroused understandable interest. Modern men elevate their fascination with experimentation to the level of idolatry. Anything that has not been subjected to experimental testing is unlikely to win their trust. Naturally, as a tragic communist experiment is now unfolding in Chile, so close to us, it should be of great interest to us.
Therefore, to meet the needs of several readers, I offer here some additional information about the situation in Chile, as contained in the final part of the aforementioned letter, which I am pleased to transcribe.
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“Professor, here are additional data on my country’s economic situation that confirm the earlier forecasts.
“Copper production (which accounts for 80% of Chilean exports) has fallen sharply. Chuquicamata, one of the world’s largest copper mines, produced 18,000 tons in December 1971 and only 12,500 tons in January of this year. Production at El Teniente, the second most important mine, which was 195,000 tons in 1970, fell to 162,000 tons in 1971.
“Approximately 80% of the banking system was placed under government control through a massive acquisition of shares, using the state’s purchasing power. One effect of this initiative was that the system incurred a loss of 38 million escudos in the last fiscal year.
“In Chile, the land reform program, which leftists and ‘progressives’ present as a panacea for boosting production, reducing food imports, and raising workers’ wages, has produced economic chaos, as the government itself acknowledges.
“Food imports increased by 80% in 1971. In the first three months of this year, total imports had risen to $313 million, of which 76% were foodstuffs. On the other hand, the peasants who ‘benefited’ from the land reform are being practically supported by the government through the Agrarian Reform Corporation (CORA); this is because their debts to that body, which originated from loans and advances based on future income, cannot be paid off since that income is insufficient.
“As you can see, Professor, the socialist reforms have impoverished those whom demagogic propaganda claimed would benefit. The touted workers ‘liberation’ consists of making them slaves to the state, on which their livelihood now depends.
“What will happen to those who refuse to submit? The answer is obvious: Those who still want to retain their freedom will be reduced to ‘social outcasts’ and ‘enemies of the people’ through persecution and all forms of pressure and threats.
“Professor, this letter has become too long. However, I believe it would be interesting to consider the measures my country’s communist government is taking in light of this situation.
“Forced by the chaotic situation that its economic policy has led Chile into and seeking to achieve one of Marxism’s ultimate goals—establishing the dictatorship of the proletariat—the government has begun to control the distribution of all essential and even non-essential goods, such as automobiles and household appliances.
“The government is using two systems to control distribution: rationing and the ‘Supply and Price Boards’ (SPBs) system.
“‘Supply and Price Boards’ agencies operate in neighborhoods to regulate retailers and consumers and prevent hoarding. They are composed of the “Juntas de Vecinos” (Residents’ Committees) and “Centros de Madres” (Mothers’ Centers) in the area, along with local union representatives. Where such organizations do not exist, they can be formed by five residents.
“These organizations are part of the Communist Party’s apparatus for implementing its regime of persecution and slavery. An official Communist Party document titled ‘First National Plan for 1,500 Supply and Price Control Boards’ outlines the steps required to establish such boards to ‘mobilize a large number of people (especially women) not involved in political activity to carry out an agile regimentation and political work with retailers in an ideological struggle about the problems of supply shortages and control government officials as to their suitability.’ Each communist cell has been tasked with organizing a certain number of ‘Supply and Price Boards.’ To date, 560 SPBs have been established in the province of Santiago alone.
“The rationing system applies to durable goods, such as cars, refrigerators, and televisions. All distribution is managed by a state entity that sets quotas for retailers. In other words, much of the distribution of consumer products, especially food, is in the hands of the state, both through the distribution monopoly and through neighborhood organizations run by the Communist Party.
“As can be seen, a full communist structure is being established in Chile, as in Cuba, where each individual’s consumption is controlled through ration cards. They are thus imposing a neighborhood dictatorship that enslaves the population, threatening to cut off their supply of essential products if they do not give in to its pressures.
“As you can see, Professor, the fruits of communism are evident: misery and slavery.
“When private property and free enterprise are restricted, economic activity necessarily declines, leading to the situation Chile faces today.
“Chile has been the victim of a process that began with Christian Democracy and peaked during the Frei administration.
“Much of the clergy, business leadership, and even politicians considered to be on the right supported the fundamental reforms initiated by Frei, including land reform. Today, we see the consequences.
“May this experience in Chile help our sister countries reject the siren song of socialist and communist demagogues, which often emanates from the depths of sacristies and the most refined salons.
