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The social policy reform causes profound changes in a society. The consequences of the reform extend beyond a process of its implementation and specific outcomes. This article analyzes the impact of the social policy reform on social movements in Latin America with a case study of neoliberal social policy in Chile, especially the neoliberal reforms on education and health. The neoliberal reforms of social policies functioned as a double-edged sword. Traditional social actors suffered a negative impact by the fragmentation of their organizations and sometimes direct repression by the State. But the emphasis on the autonomy of individuals in the process of implementing social policies gave an unexpected consequence, the emergence of new collective identities such as women, elderly, students, parents as well as indigenous people. Based on the analysis of the case of Chile, this study informs us that the neoliberal social policy reforms brought about unexpected consequences: they not only weakened the traditional social actors, but also give birth to the new social actors with new collective identities.