Various social and economic reforms were carried out by the Popular Unity government during its time in office. A policy of nationalization was pursued, with the expropriation of the first company, a textile factory, announced on December 2, 1970. Others followed over the next several months, and the opposition congress unanimously approved a constitutional reform for the nationalization of copper and other resources, expropriating large foreign companies without compensation. Only the banks resisted Popular Unity's attempts to nationalize them. a mandatory minimum wage was set up, the right to social security was extended to all part-time workers, and free milk for certain groups was introduced. A redistributive economy strategy was carried out, which led to the share of domestic income allocated to labor rising by 11% in 1971. The building of a subway in Santiago was also rescheduled to ensure that blue collar neighbourhoods would be the first to benefit and rents were lowered. Legal recognition was bestowed upon the Central Confederation of Workers, a leading labor organization. Following a labor agreement, workers were provided with representational rights on the funding board of a Social Planning Ministry. More workers also became entitled to a particular holiday benefit. Earnings were sharply increased, while the real value of the minimum wage by 1973 was nearly twice as high as it was in 1970. Exemptions from taxation for those on lower incomes were raised, and improvements in social security benefits were made. Minimum old age and disability pensions, for instance, were increased to 100% of the level of the minimum industrial wage while family allowances for those living the countryside were made the same as for those living in cities. A decree was signed that provided for the extension of a Law on Workplace Accidents and Occupational Diseases to cover 2.5 million students, while a constitutional amendment made social security a fundamental right. A law was passed aimed at ensuring the continuation of mortgage operations for those experiencing unemployment, and illiterates were given the right to vote. A National Secretariat of Women was set up, which was aimed at supporting female workers through services such as communal laundries and food programs. Domestic employees were provided with legal status as workers, and an independent social security fund was set up to provide coverage for various groups such as the self-employed. Various educational initiatives were carried out, including an anti-illiteracy campaign, free meals at school, free college education, new adult secondary schools, the provision of breakfasts to elementary school students, an expansion of scholarships for Mapuche children, a holiday camp programme, a law that aimed to provide help with transporting students in need to higher education centers, a National Board of Pre-Schools, which was intended to provide children under the age of five with educational and other services, and big increases in the distribution of various school supplies like free textbooks. Agreements were also made with the State Technical University and University of Chile that enabled many workers to access higher education. A state publishing house called
Editora Nacional Quimantú was established, which printed books at low prices. A number of programs were launched to improve service provision for those on lower incomes, while tourism was encouraged, with 16 state resorts set up that provided workers with leisure, cultural activities, and sport. Extra maternity clinics, hospitals, and neighborhood health-centers were also constructed, a successful campaign aimed at preventing childhood diarrhea and bronchopneumonia was launched, and volunteers were sent to southern Chile to provide medical care to a neglected segment of society. Housing construction was encouraged, with tens of thousands of new homes built, and families living in camps or squatter settlements given priority. Social infrastructure projects were launched and sanitary units built while grassroots organizations involving residents were encouraged. A volunteer campaign (partly coordinated with student federations) was launched that focused on providing basic services like electricity and water in low-income areas together with urban improvement plans. An extension of housing loans to poor individuals was also carried out. Irrigation and urban sanitation programs were carried out and nutritional support for children and pregnant women was expanded, and the level of malnutrition amongst children fell. In addition, dental and medical services were expanded, and infant mortality fell by 90% during the first two years of Allende's presidency. In general terms, fiscal expenditure increased between 1971 and 1973 by 8.4%. This allocation of resources led to positive outcomes, including an increase in the quantity of milk delivered together with BCG, influenza and polio vaccinations. A
Land Reform program was initiated; which built on the previous land reform programme of Allende's predecessor Frei. During the Popular Unity’s time in office, roughly 100,000 peasant families became property owners as a result of land redistribution. Courses in bookkeeping, tractor driving and farming techniques were introduced, and the amount of credits provided to smallholders was greatly increased; with the number of beneficiaries increasing from nearly 39,000 in 1970 to over 90,000 in 1972. Loans were also provided to members of cooperatives, and interest rates on loans to farmers were reduced. The main beneficiaries of the Frei and Allende land reforms were the peasants already working the land. The process was similar to that of
sharecropping, in which the owners of the land pay people to work the land. The peasants working the land keep a percentage of the profit, while the rest goes to the owner. The reform policies rarely addressed the small land holders, turning them against the Allende government. Although the UP did not gain full power of the government with Allende’s election, it did gain the administrative and economic ability to limit the power of business owners through expropriations and strengthen the urban working classes and rural peasantry. One large difference between Christian Democrat and Popular Unity governments was their reactions to
tomas, or seizures of land by the peasants. Frei’s government would not expropriate any land that had been seized, but Allende accelerated expropriations. This led to a massive movement to seize land. In 1967, there were 9 seizures, but in 1971, there were 1,278. Half of these seizures occurred on farms below the land limit of expropriation. The government established peasant councils that were supposed to represent peasant interests. Their failure in doing this played a large role in Allende’s loss of favor among the peasantry. A series of programs, including pay equality, resulted in diminishing incentives to work, and productivity fell. More positively, the agrarian reform under Popular Unity resulted in a significant rise in the peasant standard of living, an increase in peasant political awareness and activity, and the expropriation of all latifundios. However, it was not as extensive, or as successful, as it was expected to be, and Allende lost their potential support. ==Composition (1969–1973)==