In the late 1970s following a military coup, Chile, with its population brutally suppressed, became the first testing ground for the changes that now define neo-liberal recommendations by international funding agencies such as the IMF and World Bank. The changes were dramatic and extensive. The population could not negotiate the terms of change. Once the basic neo-liberal economic framework was laid, the model was applied to all sectors of society--health, housing, social security, fisheries, agriculture, transportation and of course--education. This article presents a case study of the Chilean experience. Though the historical context of Chile is unique, Chile is the country where neo-liberal reform--in all of its instantiations--was first brought to fruition. Detailed examination of this legacy presents a unique opportunity for all scholars who continue to question and debate the plausibility and possibilities offered by neo-liberal policy in education. Here, the author provides a historical overview of Chile's educational legacy and discusses the characteristics of neo-liberal reforms from 1980 to 1989 as well as the legacy of neo-liberal reforms in Chile. (Contains 15 notes.)