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Absurd Alhazred
Mar 27, 2010

by Athanatos
This whole topic really makes me want to re-read all my Project Cybersyn stuff, particularly~Cybernetic Revolutionaries, although it is somewhat didactic. I believe I first heard about it on these forums.

It was misunderstood as a way of centrally managing the economy from Santiago, but really the purpose was to facilitate better working of the economy in a kind of biological structure, where the head office would only deal with emergencies that can't be handled at lower levels. Unfortunately, its implementation was doomed because for it to work you had to have buy-in all the way from the factory worker up to senior management, and class antagonism even between workers and the engineers training them in the factory-level equipment was just too large.

The one real achievement (at least as far as the Allende administration is concerned) of the program was the use of Telex machines to alleviate the effects of the 1972 transport strike. (The wikipedia description fails to mention these facts, but they do appear in Cybernetic Revolutionaries, and I think in Beer's account in his Brain of the Firm, one of the main books in which he proposed his Viable System Model for business/government/social distributed regulation and control.)

The story of Project Cybersyn is very interesting in how it interacts with what the UP were trying to do, and how the failure reflects problems with implementing computational solutions to social problems. A book about a similar attempt in the Soviet Union under Khruschev is From Newspeak to Cyberspeak, again, recommended on these forums. A more whimsical account can be found in Red Plenty, a fairy tale with citations and notes of more or less the same era.

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Absurd Alhazred
Mar 27, 2010

by Athanatos

wateroverfire posted:

Cybersyn was doomed because in order to be embraced by the Chilean bureaucracy every step of every calculation would have to be printed out in triplicate, taken by hand to the ministry to be stamped/validated, then returned by hand to the appropriate official's desk where it would sit for weeks before being punted to the next official in the process. =(
Those don't seem to be the obstacles that the project actually encountered, at least according to Beer himself or to Medina in her research on the topic. The project had a lot of official support going quite a ways through the government, being backed by Allende himself and by CORFO. Do you have any evidence to the contrary? Medina in particular seemed to have gotten information from a large variety of sources, including Fernando Flores, who is more of a centrist business-type Senator now, if I'm not mistaken.

Absurd Alhazred
Mar 27, 2010

by Athanatos

wateroverfire posted:

It was just a cynical comment based on my frustration dealing with Chilean bureaucracy. =)
Wait, so you're saying that this is post-Pinochet bureaucracy?

quote:

More seriously, I think you would have a hard time implementing a Cybrsyn-like system in Chile even today. It's hard enough to find workers who have had exposure to and feel comfortable using database products like simple ERP systems. I can't imagine what it would have been like in the early 70's. That's separate from the mathematical intractability of the modeling problems. This came up a couple of times, I think, in the Marxism thread when some of the economists who post occasionally in D&D got involved.

Well, the idea was that workers wouldn't need to learn anything complicated. I think it came down to basically "upvoting" or "downvoting" how they were doing, dealing with whatever they could themselves, and it only involving people higher in the hierarchy if things went horribly wrong; and each level at the hierarchy had a mostly tractable problem at their scale. It was tractable because the effort was distributed and recursive, and the idea wasn't to be optimal, just to respond better than without the right communications. On some level, he was trying to simply mirror and improve existing hierarchical structure that he'd found in the British military, and a variety of businesses as an operations researcher.

I'm not going to lie, while cybernetics is really interesting for me, and I've read a lot about its history, and while I do have a background in computer science, I have not really researched this topic enough, other than to know that the whole "perfect market" thing is rubbish. But approximating NP-hard problems with polynomial-complexity algorithms is a an active field of research, and you don't really need to have an exact solution to have something that works better than the status quo. Beer's specific solution may or may not have worked; but with all of these issues, it seems to me that questions of politics, power, and cultural inertia come in much earlier than any kind of computational limit.

Anyway, beyond my particular fixation, you mentioned repeatedly that there is a dearth of good coverage in English. If you are up to it, I would personally appreciate rough translations if you think they would enlighten us. I can probably give rough translations of short pieces in French, if there is any such you could recommend, but I imagine Spanish-literate posters would be more relevant generally.

Absurd Alhazred
Mar 27, 2010

by Athanatos

wateroverfire posted:

Oh my, yes. Chile is a very bureaucratic place and that expresses itself in some ridiculous ways sometimes. For instance, the following happened to someone I know:

=) I'm applying for my driver's license. Here's my paperwork!
:j: Por supuesto señor, I just need the diploma that shows you graduated 8th grade.
=) My country doesn't give 8th grade diplomas but there's my university degree so now that's settled we
:j: I need the 8th grade diploma.
:( But..
:spergin:
:doh:

A driver's license was not gotten that day.
Thing is, it's hard to fault Allende's administration for something that may not have been around back then. :v:


quote:

I don't know good french sources. When I come across interesting spanish sources I can link them and do some translating or at least paraphrasing. Are there topics you're in particular interested in?

What do you think about Michelle Bachelet? Any good critiques of her current plans?


Baronjutter posted:

drat now I want to read about "cybernetics". I heard references to cybernetics reading about the soviet union but I was always like "they wanted to make cyborg super-soldier bureaucrats to run things????"

It's been a while since I read it, but the ideas went like this: we want a planned economy, so we should use computer science/cybernetics/algorithms to plan it, hey hold on if we use linear optimization we find that we get "prices" like in capitalism, meaning it doesn't have to be centralized after all, then people get spooked, especially after Khrushchev gets deposed, and to it in a centralized manner anyway, but with paperwork and getting nowhere. Did that make sense? Probably better for another thread and for someone more knowledgeable than me, frankly. Anyway, it's the history of those kinds of plans which make me so wary of Marblebux, and other Eripsa software solutions to human problems.

Absurd Alhazred fucked around with this message at 21:37 on Jul 25, 2014

Absurd Alhazred
Mar 27, 2010

by Athanatos

joepinetree posted:

It was Nixon who spoke that line:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB8/nsaebb8i.htm


The idea that intervention came as a response to Allende expropriating American businesses is bullshit, and disproved so conclusively that I cannot really understand how anyone would still say that crap today in good faith.

Let's go step by step:

intervention started in 1962 with a group dedicated to helping ensure that Frei would win the 1964 elections:

https://www.cia.gov/library/reports/general-reports-1/chile/#4

Note that it is from CIA's own website.

Then, in the elections that Allende eventually won, the US spent more money to defeat him on per capita terms than both US candidates combined in the 1968 US elections.

After Allende won, the US ambassador to Chile started plotting ways to block Allende from taking power:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB8/docs/doc18.pdf

The make the economy scream line came from a September 15th, 1970 meeting:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB8/docs/doc26.pdf

Where the US decided how they were going to essentially disrupt the Chilean economy in every way possible. It also shows the US plotting a coup that early.

Then, as early as October 18th, 1970 the US started planning a way to fake a coup attempt by Allende so that their own coup would be justified:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB8/docs/doc27.pdf

And then as early as December 4th, 1970, with Allende in power for a month, the US had a de facto economic blockade against Chile:

http://www2.gwu.edu/~nsarchiv/NSAEBB/NSAEBB8/docs/doc20.pdf


This is, again, not true. Originally the strike was about freight rates and difficulties in obtaining parts. As a result of the strikes the government seized some trucks. As with most other economic phenomenon, it later came out that the trucking strike was financed by the CIA:

http://static.history.state.gov/frus/frus1969-76v21/pdf/frus1969-76v21.pdf
(page 867, for example)


The idea that it "didn't need any help from Nixon" is false. As seen above, with evidence only from declassified US documents.


Once again, not true.
First, the third stage of the nationalization of the copper industry passed congress by a unanimous vote, so it is misleading to say it was Allende who did anything.
Second, Allende's government did pay for some of the copper companies that were nationalized. The reason most were not compensated and others received less compensation than they wanted was because the UP's government decided to deduct stuff like machinery that was turned over defectively, book value of unexplored mineral deposits that was included in the company's valuations, debts to the state, and previous payments by the state to the company:
http://digitalcommons.law.villanova.edu/cgi/viewcontent.cgi?article=1985&context=vlr
(see top of page 34 of pdf)

Not to mention that as controversial as you may feel those nationalizations were, not even Pinochet reversed them or changed anything related to compensation.

Ah, modern bureaucracies. The most despicable things are documented in triplicates. :allears:

quote:

Now, as far as original contributions go, here's one thing that generally doesn't get the attention it should:

La Cuestion del Plebiscito

Even with all the evidence above you will still hear the eventual person defending Pinochet and the coup because "communism!" The part that is not told is about the plebiscite Allende was about to call.

http://books.google.com/books?id=cB...%201973&f=false

Allende had a speech set for September 10th, 1973 where he would have called a plebiscite on whether he should remain president because he saw the risk of a coup and wanted to avoid a bloodbath. He delayed the speech because they were in talks with the PDC to see if they would accept the plebiscite as a solution. Then Allende was extra naive and alerted the military commanders that he would announce the plebiscite on September 11th at noon. So the military commanders pushed up the coup to September 11th, 6 am. In other words, the coup was pushed up because Allende was about to announce that the population would get to vote on whether he would finish his term. And that wasn't even done in the hopes that he would win the plebiscite. But the coup was pushed up because even if Allende had lost, Unidad Popular would still have a significant presence in both houses of parliament (UP actually won seats in the 1973 election in comparison to 1969).

I don't think I knew about this at all! In case someone takes issue with Haslam, I found another source for this:
The Overthrow of Allende and the Politics of Chile, 1964-1976, by Paul E. Sigmund. It seems that this was a point of contention within UP, but that Allende's pro-plebiscite opinion prevailed shortly before the coup. Is this commonly known, at least in Chile?

Absurd Alhazred
Mar 27, 2010

by Athanatos

joepinetree posted:

I used Haslam because it was the easiest English source you can find. But the note he quotes there, for example, comes from Jose Toribio Merino Castro's own memoir. Merino was one of the leaders of the coup, for the record.

Oh, that is damning.

Absurd Alhazred
Mar 27, 2010

by Athanatos

wateroverfire posted:

Working on this. Don't have a ton of time.
No rush, Chile will still be around next week!

quote:

[Bachelet] is committed to education reforms that, partly because of the tax compromise and partly because the original tax proposal was total fantasy anyway, there is no way to pay for. Free higher education for all Chilean students would cost approximately 9 billion dollars, or about 3% of Chilean GDP. Her education minister had talked about buying all the hybrid public-private institutions and making them fully public. Depending on whose estimates you take on the value of those concerns the cost could be 5 billion or 17 billion. Either way the money isn't there. Education is a big sexy issue competing right now with issues like public health spending (very underfunded) and Chile's growing energy needs.

When you get to the bigger piece, I would be interested in what competing proposals there are for education reform; and, well, to start with, what is perceived as being deficient in the status quo.

Absurd Alhazred
Mar 27, 2010

by Athanatos

wateroverfire posted:

On the topic of the "economic blockade", Paul Sigmund wrote an essay for the January edition of Foreign Affairs that investigates the question of Washington's roll in the disappearance of credit toward Chile by looking at the timing of credit decisions, notes from the senate hearings after the coup, corporate memos from ITT (AT&T) and interviews with sources at various foreign institutions. Whole article reproduced below because it's worth reading in full and because at FA you have to register (though it's free).

tldr - poo poo was kind of complicated. When you look at the timing and statements by the principals, it's apparent that international loan and bank credit reductions were made in response to worsening economic conditions and a political environment that implied increased repayment risk. It's also clear that Washington applied pressure to block some financing - sometimes successfully and sometimes not - to force Chile to the bargaining table after the copper expropriations, and that the rhetoric surrounding the 1970 election had a lot of people nervous about the ideology of Allende. Chile obtained a lot of funding from non-US sources despite Washington's eventual opposition.

This article did, indeed, come out in January; but this is January of 1974. Keep in mind that this is before the Church Committee, before a lot of the documents we've seen here were declassified, etc. It is much easier now to ascribe motive to certain actors, and it was, indeed, malicious. For example, the statement "make the economy scream" seems pretty indicative of motive of a very important actor.

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Absurd Alhazred
Mar 27, 2010

by Athanatos

wateroverfire posted:

I mean, let me ask the question in another way. There's a record of how economic and political crisis were going down in Chile, of how businesses were being expropriated, of how Chile burned through its forex and racked up debts that it then walked away from. There's a record of what financing decisions were on the table and when they were made, their magnitudes, and ostensibly their motivations. How much of that should we discount based on later documents, and which documents and why?

This article includes a lot of arguments that hinge on testimony from members of the Nixon Administration. At the time the level of mendacity of that administration was not widely known. I would be a lot more interested in seeing something that came out after the Nixon Tapes had been published. For example, from a collection about Chile:
---
022-006 3/23/72 P, RLZ clip1 (1.1m; 1:07)

The Administration was forced into damage-control mode following revelations of collusion between the CIA and International Telephone & Telegraph (IT&T) Company to prevent the election of Allende in 1970.[xiii] Over the course of brief telephone conversation with Press Secretary Ronald Ziegler, Nixon confirmed that Ambassador Korry “had received instructions to do anything short of a Dominican-type [intervention].”[xiv] Korry’s great sin, in Nixon’s mind, was that, “he just failed, the son-of-a-bitch. That’s his main problem; he should have kept Allende from getting in.”

---

So, for example the section where this FA articles says:

'When questioned by the Senators, Charles Meyer, Assistant Secretary of State for Inter-American Affairs at the time, insisted that U.S. policy had been strict nonintervention and described the Broe conversations as merely an exploration of "the possibility or a series of possibilities which might have been inputs to changed policy but were not." The only contrary evidence in the papers and hearings is a report on October 15 to the ITT Washington office by its Chilean representative that the American ambassador, Edward Korry, had indicated that he was reducing the amount of U.S. aid "already in the pipeline" as much as he could. The report added: "The ambassador said that he had difficulty in convincing Washington of the need to cut off every possible assistance to Chile."'

is an example of lies by the Nixon administration and at least one company closely involved with it, which would not be easy to ascertain at the time. They paint a false picture of Amb. Korry as a maverick working his own agenda, and ITT acting on their interests and getting rebuffed by a responsible Executive. This is why the tapes are essential. There is no reason to ignore the fact that we have so much more relevant information than anyone outside the government would in 1974.

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