"Magical realism" has become a debased term. When it first came into use to describe the work of certain Latin American writers, and then a small number of writers from many places in the world, it had a specific meaning that made it useful for critics. If someone made a list of recent magical realist works, there were certain characteristics that works on the list would share. The term also pointed to a particular array of techniques that writers could put to specialized use. Now the words have been applied so haphazardly that to call a work "magical realism" doesn't convey a very clear sense of what the work will be like.
If a magazine editor these days asks for contributions that are magical realism, what she's really saying is that she wants contemporary fantasy written to a high literary standard---fantasy that readers who "don't read escapist literature" will happily read. It's a marketing label and an attempt to carve out a part of the prestige readership for speculative works.
I don't object to using labels to make readers more comfortable, to draw them to work that they might otherwise unfairly dismiss. But by over-using the term, we've obscured a distinctive branch of literature. More importantly from my perspective, we've made it harder for new writers to discover the tools of magical realism as a distinct set allowing them to create work that portrays particular ways of looking at the world. If writers read a hundred works labeled "magical realism," they will encounter such a hodgepodge that they may not recognize the minority of such works that are doing something different, something those writers may want to try themselves.
So what is magical realism?
It is, first of all, a branch of serious fiction, which is to say, it is not escapist. Let me be clear: I like escapist fiction, and some of what I write is escapism. I'm with C.S. Lewis when he observes that the only person who opposes