Peru, Chile, Bolivia, Argentina- in the last year, several countries in Latin America have seen the election of left-wing leaders. Given that the region has traditionally been dominated by center-right and conservative governments, this has been an exciting and surprising time for the region. The election of left-wing leaders marks a some would say, much needed shift in the political landscape of the region.
One of the most significant elections in the region was in Peru, where Pedro Castillo, a left-wing teacher and union leader, was elected president in July 2021. Castillo ran on a platform of reducing inequality and addressing corruption, which resonated with many Peruvians who are frustrated with the country’s economic and political elites. Castillo’s victory was surprising, as he was a relatively unknown candidate who did not have the support of the country’s mainstream political parties.
Another notable election was in Chile, where Gabriel Boric, a left-wing student activist, was elected president in December 2021. Boric’s victory was seen as a rejection of the country’s neoliberal economic policies, which have led to high levels of inequality and social unrest in recent years. Boric has promised to address the country’s social and economic challenges by implementing policies that prioritize the needs of the working class and marginalized communities.
In Bolivia, Luis Arce, a left-wing economist and former finance minister, was elected president in October 2020. Arce’s victory marked a return to power for the Movement for Socialism (MAS) party, which had been ousted in a coup the year before. Arce’s platform focused on promoting economic growth and reducing poverty through government investment in infrastructure and social programs.
Similarly, in Argentina, President Alberto Fernández was elected in October 2019, marking a return to power for the Peronist movement. Fernández’s government has implemented policies aimed at reducing poverty and inequality, including increasing social spending, implementing price controls on basic goods, and restructuring the country’s debt.
The election of left-wing leaders in Latin America reflects the growing dissatisfaction with the current economic and social conditions in many countries. Despite years of economic growth, many people in the region continue to live in poverty and face significant social and economic challenges. The COVID-19 pandemic has further exacerbated these challenges, with many people losing their jobs and struggling to make ends meet.
The rise of left-wing leaders in the region can also be attributed to a growing distrust of mainstream political parties and politicians. Many people in the region feel that traditional political parties have failed to address their needs and have become increasingly disconnected from the realities of everyday life. Left-wing leaders, who often come from outside of the political establishment, are seen as a refreshing change and a way to address the challenges facing the region.
However, the election of left-wing leaders also poses challenges for the region. Left-wing governments have traditionally been associated with policies that are seen as anti-business and anti-free market. This has led to concerns among some investors and business leaders that the election of left-wing leaders could lead to a decline in economic growth and investment in the region, especially amongst rising inflation rates in the region.
In addition, left-wing leaders often face significant opposition from political and economic elites who fear that their interests will be threatened by left-wing policies. This opposition can lead to political instability and even attempts to undermine left-wing governments.
Despite these challenges, the election of left-wing leaders in Latin America represents an opportunity to address the region’s social and economic challenges. Left-wing governments can implement policies aimed at reducing poverty and inequality, promoting economic growth, and addressing corruption. These policies can help to build more inclusive and equitable societies.
It will be interesting to see how these fresh governments will tackle challenges such as food insecurity, rising inflation, poverty, and increasing social tensions, and mark new eras in the history of Latin America in the years to come.
This article was written by Alyssa Nagrath, currently a student at the London School of Economics and Political Science, pursuing BSc Finance.
LSESU Developing Markets Society 