This page deals with economics and business issues,concerning Latin America, and the global economy.-
Monday, April 30, 2018
Is Latin America turning to the right?
It has been the case that the latest Presidential election in Latin America, has concluded with new elected Governments which had a political platform based upon ideas like free market, freedom of enterprise, better state to cope with social disequilibriums,specially those related to inequality, poverty and discrimination.-
The underlying foundation of these outcomes, deal with the fact that there is strong disapointment with the Government failure to provide what the new middle class expect,(good quality jobs, services, education and health ),and skepticism about its ability to make a turn around such as to be a partner for the expectations of the majority of citizens.Instead , the politcal spectrum has been involved in scandals of a variety of situations, the most devastating of them all, have been the corruption charges against those who had become leaders, to consolidate the social achievements.-
What are the implications of this movement to the right ,and may it last?
a.- First of all, it is important to make clear that the citizens are looking for different solutions to new problems.This means , there is no way that old solutions will work .So it is the time of change and transformation. Change because of shifting roles from Government to both firms , and the civil society empowered by social networks.Transformation because economic growth has some limitations to deal with.Strong institutions are the key to make economic development an achievable goal.Both better instituions and the proper incentives to economic growth, are the golden mix to follow through.-
b.- The private firms has made a contribution throughout the Latin America economies, to validate the role of markets to provide jobs, commercial credit to make afordable more durable goods, and by extension better standard of leaving.Besides, the initiatives of integration has made clear the relevance of private investment when it comes to give opportunities of new jobs, and take advantage of markets expansion.There is not doubt that the consolidation of private firms as the real partner of progress and well being of latin american citizens, is also a key explanation of voters to prefer market solutions.-
c.- Trust is an asset hard to get, but easy to lose. Unfortunately , there is not many institution to trust in Latin America , with the exeption of those linked to citizens´ s own interest ,such as some NGO, and Networks with the skills to be the echo of those issues the society care the most. It is a surpiring fact that the state and society has moved away from each other, because those whose role is to be the intermediaries (political organizations), also failured to be up to the job. In the last fifteen years or so,political organizations turned out to be on the state side,to protect its failures, instead of focusing on how to solve society expetations .They were part of a machine not to serve the citizens ´s interest, but to serve their owns. For this purpose, the state was captured by small groups strong enough to change the course from where it should belong and stay.-
d.- From the above it follows that freedom it is not a slogan, but a real chance of living up to its possibilities and opportunities.It is a better chance than Government promises which make fool of those who believe them.The new middle class is keen to realize that to improving steadily its living standard , falses promises are not what they expect and deserve. More so, freedom has become a more realiable alternative than government to provide justice and social equilibriums.Those countries in Latin America based upon the value of freedom are better off than those which still believe in Government.-
Finally. is it possible that this change will it last?.After all, there are still political elections under way on the landscape, which may be a set back for all theses arguments.There is no easy answer.Each political process has its own profile which make it hard to extrapolate mechanically to any political event, and even to all up coming elections. What matter the most, is the trend and its underlying forces, it may take more or less time for the majority of countries in Latin America to be on the line of shared prosperity,integrated to the global economy as a reliable partner, but the seed is already in place.From now on,It is more the responsibility of those leaders from the right to follow the best path to achieve those goal .-
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