In recent decades, neoliberal reforms have spread across Latin America. Despite different accounts showing the adverse social impact of these reforms, what seems lacking are historical analyses of why and how neoliberal policies occurred in this region. For instance, there are only rare accounts of how dictatorships in the 1970s prepared the terrain for neoliberal reforms. A key instance of this regional process is presented in the dictatorship that ruled Chile from 1973-1990. Theoretically based on political ideas of human dignity and individual freedom, the pragmatics of Chilean neoliberalism were very repressive. This paper will address this tension and the impact of market-driven policies on the public arena, particularly in higher education. (Contains 4 figures and 5 tables.)