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In 1990, Chile emerged from almost 17 years of military rule to become the only Latin American country where a democratic regime coexists with free market policies that actually work. This book explores this paradox, and examines the prospects for future economic growth with income redistribution, under free market rules and democratic politics, by combining history, politics and technical analysis. The author looks at short-term policymaking, the "Chicago boys", education, health, nutrition, infant mortality, the labour market, women, the middle sectors, poverty, housing, privatization, market imperfections, the state, non-government organizations, copper, inflation, external trade, the financial sector, non-traditional exports and the external debt.