The role of State Capacities in the evolution of inequality in Chile between 1850 and 1891

Abstract

Chile has historically suffered from high levels of inequality. Many authors place the origins of this phenomenon in the period often termed the First Globalization (1850-1891). During this period, Chile experienced several commodity booms and engaged in two major armed conflicts. These events had a profound impact on the State’s capacity to extract revenue and to implement economic and social policy. This paper aims to evaluate the evolution of inequality in Chile during this period, highlighting the possible causes. It also examines the development of State Capacities during the same period and analyses the impact that this may have had on inequality.