Page:CREST-Allendes Chile Supply Demand Gap.pdf/12

  manufacturing The state already owned plants encompassing about one-fourth of manufacturing output before Allende took office. and the transition to state ownership in many plants taken over by Allende was eased by retaining key middle-level personnel. Perhaps most important, Allende considerably slowed the expropriation pace after his first year in power — probably in tacit recognition of the managerial problems involved. Much of Chile's manufacturing still occurs in small shops, not tagged for state takeover.

In Domestic Trade and Transport

 The distribution system — never very efficient — has been severely strained by sharply rising demand and shifting supply sources. Bottlenecks created by inadequate transport and storage facilities had become chronic even before the October strike idled most trucks for four weeks. Record imports of foodstuffs and other bulk cargo caused severe port congestion, long ship delays, and demurrage charges at Valparaiso, San Antonio, and Concepcion. Inadequate rolling stock and railworkers' strikes exacerbated the port problem, further delaying deiiveries of needed inputs to farms and industries. Still mostly in the hands of small entrepreneurs, trucking has suffered from shortages of spare parts — especially tires and batteries.The government has increased its control over distribution but nevertheless failed to prevent confusion and growing shortages. Government control is in fact widely blamed for the scanty supplies of perishable foods at the peak of the harvest season. As one Chilean put it, "How many government workers do you know who are going to unload vegetables at two in the morning or on Sundays to keep them from spoiling?" Most wholesale distribution facilities are now run by government enterprises or agencies. They handle almost all imports as well as most agricultural output that does not go into the black market. Retail distribution remains largely in private hands, but the government is rapidly expanding its control overfood marketing, particularly in low-income neighborhoods. In these areas. "Neighborhood Supply Committees" have been set up to oversee small private merchants and distribute foodstuffs supplied by government wholesale entities.Supply and distribution problems have been compounded by widespread hoarding as the people reacted to intermittent shortages. Consumers increasingly have been hoarding foodstuffs and other household goods. while business managers have tried to stockpile raw materials and spare parts. Within hours of reopening their doors after the October strike, retailers found their shelves bared by consumers  