ABSTRACT
The Chilean manufacturing sector was severely affected by the neoconservative experiment implemented during the period 1974-1982. The Chilean experience was more like a driver just learning to operate his/her brand new car who has to look at the owner's manual to see which gear should be used to go forward. The Chilean economy is recovering from the crisis in 1982, one of its most severe of the present century. For the manufacturing sector, the problem is not only to increase the level of industrial activity, but also to strengthen its technological and productive base, in order to establish new ways of relating to the world economy and of reducing the present levels of vulnerability. Given Chile's large external debt, the scarcity of foreign exchange is a very important factor determining the future development of the economy. Manufacturing's ability to generate and save foreign exchange should thus make it one of the priorities of an industrialization strategy.
