The role of the State in social Development and The Reform of Social Security in Chile and EE.UU.

Abstract

This paper discusses historical and sociological information concerning social legislation in Chile. It points out that privatization of pensions imposed in 1980, transferred under the control of a small group of entrepreneurs and businessmen valuable social resources. This change facilitated the establishment of neo-liberal capitalism and reduced the role of the State in key functions necessary for social well-being. While Chile looks now for new changes in the area of workers' pensions, the United States debates privatization of Social Security established in 1935. The Chilean experience, in this sense, appears contrary to a system based on solidarity and community building proposed by Socio-Economics.