The grievances of a failed reform: Chilean land reform and conflict with indigenous communities
2026-03-06
Land reforms are among the most significant institutional changes in developing countries, yet they often fail due to interruptions or reversals. This paper examines the long-term effects of the Chilean land reform (1962-1973) on indigenous self-determination conflict. A major redistribution was fully reversed in the study area after the 1973 military coup. Using a novel plot-level database, we show that expropriated plots are over four times more likely to experience invasions and attacks between 1990 and 2021. Instrumental variable estimates, based on rainfall shocks affecting reform participation, confirm these findings. The failed reform produced grievances both within and beyond indigenous reservations, subsequently reactivated by the counter-reform’s production structure and by recent restitution policies.