In 1971, an innovative system of cybernetic information management and transfer began developing in Chile during the government of President Salvador Allende; the CYBERSYN project, cybernetic synergy or SYNCO, information and control system.
In Chilean State owned companies a system for capturing, processing and presenting economic information to be managed in “quasi” real time, becoming an absolute pioneer in the application of a cybernetic model in mass socio-economic contexts, and based on a convergence of science, technology, politics and cybernetics. The economic system of the Allende Government, after annexing and nationalising diverse State companies, was faced with the necessity to coordinate information regarding state companies and those that had been recently nationalised, so it required the creation of a dynamic and flexible system for a proper management of the companies.
In 1970 Fernando Flores was appointed Technical Director General of CORFO (Production Development Corporation of Chile), and was responsible for the management and coordination between nationalised companies and the State. He had known the theories and solutions proposed by Britain’s Stafford Beer since he was an engineering student, and subsequently in the course of his professional relationship with SIGMA, the Beer consultancy firm. He and Raúl Espejo, who also worked at CORFO, wrote to Stafford Beer inviting him to implement VSM (the Viable System Model) in Chile, which had been developed in Beer’s “THE BRAIN OF THE FIRM” (1967 – PP). Beer accepted immediately, and the project entered its development stage in 1971.