Latin American Politics Exam
1. What are the challenges for consolidating or sustaining democracy in Latin America? In your answer, you can discuss some generalizations, but please also include one specific example to support your argument.
The factors that have affected the successful transition into democratic governments in Latin American countries are the existing economic problems, the historic lack of civil liberties and services and the rise of populism. Latin American countries have a trend to move into democracies at the same time as economic adjustments to neoliberal policies. These Neoliberal policies that come in as structural adjustment programs are enacted to limit government spending, increase privatization and create more taxes. As a result of this economic transition more people end up being taxed as the state budget is shrunk, which leads to the elimination of subsidies and of economic social programs. The subsidies and social programs that are being cut are essential to the development of democracy in Latin America because of the high level poverty. The neoliberal policies that come in from external actor are created to help the state with a quick fix to their economic condition, but it is usually not effective in helping the economy in the long run. A case that illustrates how transition to neoliberalism can act as an impairment of the successful development of democracy is Argentina. Argentina transitioned into neoliberalism during an economic crash, with the help of IMF’s structural adjustment programs. There was a quick change in the economy noted in the rise of the GDP, but the lack of government regulation and increase in loans created inflation in the economy. So it is difficult for a state like Argentina to focus its effort to sustain democracy when neoliberalism comes into the picture. Neoliberalism shrinks the power of the government, which is not effective during at time where government action and response is