Why South American powers could afford dreadnoughts

Were dreadnoughts an unaffordable prestige mistake for South American naval powers?

No; Chile and its neighbors sustained the ships for decades because they served security, independence, and regional competition, even though buying them diverted money from other capabilities.

These states had recently secured independence, depended on maritime trade, and fought one another often enough that capital ships carried real deterrent and symbolic value. Their programs illustrate how medium powers choose a tailored subset of expensive capabilities rather than maintaining every element of a great-power force.