The Chilean Civil War in 1891 brought about a redistribution of power between the President and Congress, and Chile established a parliamentary style democracy. However, the Civil War had also been a contest between those who favored the development of local industries and powerful Chilean banking interests, particularly the House of Edwards who had strong ties to foreign investors.
The Chilean economy partially degenerated into a system protecting the interests of a ruling oligarchy. By the 1920s, the emerging middle and working classes were powerful enough to elect a reformist president, Arturo Alessandri, whose program was frustrated by a conservative congress. In the 1920s, Marxist groups with strong popular support arose.
A military coup led by General Luis Altamirano in 1924 set off a period of political instability that lasted until 1932. Of the ten governments that held power in that period, the longest lasting was that of General Carlos Ibáñez del Campo, who briefly held power in 1925 and then again between 1927 and 1931 in what was a de facto dictatorship (although not really comparable in harshness or corruption to the type of military dictatorship that has often bedeviled the rest of Latin America). By relinquishing power to a democratically elected successor, Ibáñez del Campo retained the respect of a large enough segment of the population to remain a viable politician for more than thirty years, in spite of the vague and shifting nature of his ideology. When constitutional rule was restored in 1932, a strong middle-class party, the Radicals, emerged. It became the key force in coalition governments for the next 20 years. During the period of Radical Party dominance (1932–52), the state increased its role in the economy. In 1952, voters returned Ibáñez del Campo to office for another six years. Jorge Alessandri succeeded Ibáñez del Campo in 1958, bringing Chilean conservatism back into