Latin America’s left-wing experiment is a warning to the world
Economist
23-05-18 12:47
Left-wing presidents have come to power across Latin America, but while they all promise change, they face major hurdles. Inequality levels remain high, and growth has stagnated, with the annual GDP growth averaging 3.4% between 2011 and 2013 and just 0.9% from 2013 to 2019. Twelve of 19 Latin American countries are run by left-wing governments, but despite this, inequality remains a problem, with what Chile’s interior minister called levels of inequality that would never have been possible in Europe. According to a recent Ipsos Mori survey, many in the region remained fond of globalisation as countries in the area shift their attitudes to democracy.
The social and economic situation in Latin America is spurring a shift to the right. Brazil’s recent left-wing turn has been reversed by Jair Bolsonaro, El Salvador’s right-wing leader Nayib Bukele is popular, and a recent election for a body to rewrite the constitution in Chile was dominated by a far-right party. Nonetheless, the new glimmer of hope brought forth by newly elected left-wing presidents from Mexico to Brazil has an enviable environmental stance and wants bigger government. They have promised to reduce inequality through higher taxes on the rich, bigger welfare systems, and more state-funded healthcare.
These left-wing governments are becoming more protectionist and more determined to stop foreign exploitation of green resources, such as lithium. However, there are many differences between the left-wing governments, with some officials displaying concerns over climate change. The region needs higher growth, investment flows are tepid, and inconsistent policies have been driving off investors. There are major concerns about the region’s ability to fulfil the promises it makes.