CHILE: An Economy Besieged

Just after midnight, a small gray van pulled up at a downtown Santiago bar. Within moments, anxious Chileans were swarming around it and buying low-grade black market meat at twice the officially pegged price—despite the fact that national police headquarters was just 2½ blocks away. Day and night, long lines stretch in front of shops as people wait and hope for the chance to buy a pack of cigarettes, a bag of sugar, some powdered milk or cooking oil.

Troubled Chile is now worse off than ever, and officials of President Salvador Allende's far-leftist government have been rolling out...

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