Economic neutrality during the cold war: The world bank, the United States, and Pinochet’s Chile, 1973–1977

This paper reconstructs the unknown Chile-World Bank interactions during the formative years of Pinochet’s dictatorship (1973–1977). Prevalent understandings of the WB portray it as a loyal Washington ally. However, new evidence from the WB Archives and additional documents reveal that US efforts to make lending contingent on human rights considerations, thereby forcing the Bank to abandon its so-called economic neutrality, were only partially effective. Pinochet’s case provides a new prism to examine the cold war in Latin America and the Bank’s use of its ‘neutrality’ as a means to reach increasing autonomy from its strongest member states, mainly the United States.