Page:CREST-Allendes Chile Supply Demand Gap.pdf/11



Output almost certainly would have been considerably lower during the second half of 1972 than a year earlier even without the disruptive October strike in transport and trade. Because little new investment has taken place since the late 1960s, capacity limitations have been cramping output in a growing number of industries. In addition, by mid-year, raw material inventories were severely depleted and new supplies increasingly difficult to obtain because of transport bottlenecks and foreign exchange shortages. Labor discipline has deteriorated badly because workers feel free to defy management, particularly in the remaining private ﬁrms. Equipment breakdowns due to poor maintenance have been on the rise, and — because spare parts inventories were also depleted — prolonged stoppages have become increasingly common.Managerial incompetence. which has crippled mining and agricultural output, has, however, been apparently less pronounced in 