Political Opposition: La Concertacion (1985-1990)

The economic crisis in 1982 dealt a huge blow to the legitimacy of Pinochet's political and economic regime. Sergio de Castro, one of the original "Chicago Boys," was fired from his post as economic minister the same year, and economic policy in Chile became immediately more practical, less doctrinaire. The banking and financial sectors were essentially "bailed out" by the most conservative political-economic regime Chileans had seen in over a half-century. In the domestic unrest that resulted from the crisis, Pinochet sacrificed the most dogmatic supporters of the market, and in the process bought time for his own regime and saved market capitalism in Chile.

The political opposition to the regime formed out of the 1982 upheavals and by 1988 had coalesced under the auspices of the Concertacion de Partidos por la Democracia (also known as Concertacion por el 'No'),or simply la Concertacion. The Concertacion was made up of the former Christian Democratic and Socialist political parties, together with numerous other minority parties and ex-Communisits. It was a center-left coalition whose initial stated goals were to bring institutional democracy back to Chile. The recuperation of democracy in Chile was faced by several challenges as the result of a sixteen-year dictatorship; first, the regime had been personalized by General Pinochet, then institutionalized by the 1980 plebiscite. Second, the economic aspects of the regime had attempted to restructure society according to the neoliberal model, and had largely succeeded despite the 1982 economic crisis.

In October of 1988, a plebiscite was held to determine the future of Chilean democracy. A 'yes' vote was a vote for General Augusto Pinochet to be president of the country for eight more years. A 'no' vote (this is the origin of "la Concertacion por el 'No') was a vote for free and fair elections of the president and parliament, and a transition back to democracy. 54.71 percent of the voting public cast their votes for 'No.' The transition back to democracy had begun, and the Concertacion was in a position to benefit. In the presidential elections of December 1989, former Christian Democrat Patricio Aylwin, candidate of la Concertacion, beat out the government candidates and was inaugurated as President in March 1990.

Pinochet preserved a certain amount of power in the new government by maintaining his post as commander-in-chief of the armed forces, and by having the power to appoint a certain percentage of the senators in parliament. Aylwin's presidency was thus defined by his battles to democratize the constitution and legitimize the rule of la Concertacion. Through a series of constitutional reforms, human rights commissions, and electoral reforms, Aylwin and the following president Christian Democrat Eduardo Frei attempted to diminish the totalitarian legacy of the Pinochet regime and create a more stable, and authentic, democratic system.