Economically, the Pinochet government, with its austere controls, slashed inflation and stimulated production between 1977 and 1981. Starting in 1982, however, the worldwide recession and declining copper prices led to a downturn in the Chilean economy. There were large-scale protests against the government in 1983, followed by a wave of bombings in major cities. Rising popular unrest and continued economic deterioration led Pinochet to reimpose a state of siege in November 1984. ... After an unsuccessful attempt on Pinochet's life in September 1986, he launched new repressive measures. ... The state of emergency was finally lifted in August 1988, and in October Chileans were permitted to hold a plebiscite on whether Pinochet's term, due to expire in March 1989, should be extended to 1997. When nearly 55 percent of the electorate voted NO, Pinochet's term was automatically extended to March 1990, pending free presidental and legislative elections. In December 1989, in Chile's first presidential election in 19 years, voters chose the Christian Democratic candidate, Patricio Aylwin. Aylwin initiated modest economic reforms and appointed a commission to investigate human rights violations by the Pinochet regime. Pinochet remained Commander in Chief of the Armed Forces until March 12, 1998 (which was his condition for allowing to hold the plebiscite), and became senator for life, a right that Pinochet had given himself when he changed the Constitution in 1980. In August of 2000, Pinochet was stripped of his parliamentary immunity, which allowed processing him as the main responsible for the crimes committed during his mandate.

From Microsoft Encarta 97 "Chile/History/"