Understanding Latin America’s New Political Paradigm

In Latin America along with Europe and the United States, political parties that lean right are strengthening. Since the 1970s, social and political change is shown to be derived from cycles of “economic malaise,” writes Ernesto Talvi for the Brookings Institution. Corruption scandals combined with economic doldrums, as in the case of Brazil, have reduced popularity of left-leaning governments. He argues this unpopularity is part of ongoing oscillation between left and right influenced by the vagaries of the global economy: “Latin America’s 40-year history of political swings between center-right and center-left governments is evolutionary: each new stage builds upon the previous one. Much like creative destruction, evolution preserves what works, discards what does not, and sometimes adds new, disruptive features.” Oil and commodity prices contribute to the condition of Latin American state coffers. Talvi predicts that right-wing governments in the Americas will privatize and deregulate industry, adding they must implement “intelligent austerity” to leave a positive legacy. – YaleGlobal