This work explains the causes of social policy reform in Chile and
Uruguay in the areas of health care, pensions and education. Until
the 1970s, Chile and Uruguay shared striking similarities. They had
the most universalistic and redistributive social protection
systems of Latin America, their schemes were extremely costly and
continued to develop even after economic recessions. Both countries
faced significant fiscal deficits and demographic changes posed
additional challenges to their systems. Both experienced democratic
breakdowns in 1973.
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