In 1939 an earthquake destroyed south-central Chile, especially the city of Chillán. This event was arguably the most catastrophic socio-natural disaster in Chilean history, yet it has been mostly ignored in historical research. This article shows that the earthquake triggered a critical juncture for the Chilean state and was a determining factor in some of the most important institutional developments of the period. Using primary sources, the article describes this juncture, focusing on the destabilizing effect of the earthquake and linking it to the creation of two new state institutions, the Production Development Corporation (CORFO) and the Reconstruction and Assistantship Corporation (CRA), together with other important changes in state capacities. It concludes that the disaster is crucial in understanding the Chilean transition from an exporting economy to an import-substituting one after 1940, and to account for the strength of the Chilean state in the decades to come.
