Chile was a pioneer of liberalising reforms. The reforms introduced by the military government were swift and dramatic, and broke down rigidities associated with decades of import substitution policies. Resources shifted into more competitive sectors, and, with time, consistently stronger growth rates were achieved. However, the implementation of reforms was uneven, the process of adjustment was far from smooth and there were concerns about the social costs of liberalisation. Since the restoration of democracy in 1990, successive governments have adhered to orthodox macroeconomic policies, but attempted to balance this with a more pro-active social agenda. Over the last 20 years, Chile has recorded impressive income growth and the incidence of poverty has fallen dramatically. However, low incomes remain a concern, and – despite some recent improvement – the country’s distribution of income remains among the most unequal in Latin America and indeed the world. Agriculture as a whole has clearly benefited from improved macroeconomic stability and from the liberalised policy environment, but remains vulnerable to outside shocks, especially exchange rate fluctuations. The sector also remains a significant locus of poverty and underdevelopment.