Peru’s Path Forward: Navigating Political, Economic, and Global Dynamics

Democracy in Latin America

Democracy in Latin America has developed dramatically in recent decades. Parties from both the democratic right and left have won elections, the region has made significant strides in decreasing poverty and inequality, and party systems are generally improving. However, the region still faces significant challenges to democratic governance, in some nations more than others.

At a forum hosted by the Inter-American Dialogue, Jorge Domínguez of Harvard University and Francis Fukuyama of Stanford University discussed the current state of democracy in Latin America to launch the fourth edition of Constructing Democratic Governance in Latin America (download preview below).

Domínguez explained that the successful transition from authoritarian to democratic governments, especially in a region long bedeviled by military coups, is a primary indicator of these positive developments. He added that nations have also taken positive steps towards transparency and accountability, pointing to Brazil as a prime example. Fukuyama countered that protecting the liberal rule of law still poses a serious challenge to the region, which is rife with crime, violence, corruption, and an overall lack of respect for constitutional procedures. Domínguez believes this is due to a pervasive fear of victimization in Latin America, when in reality, ‘‘fear is the crime itself.’’ The panelists used the example of Venezuela, with its history of deliberate threats to political candidates, manipulation of the Supreme Court and electoral institutions by the executive branch, and the overall misuse of state resources by the president, as an example of this cyclical process of instilling fear into a population that threatens democratic governance.

Both speakers praised Latin America for developments in party stability, noting the change from the 1990s when presidential candidates and politicians were known for broken campaign promises. Domínguez said that parties should be reliable and responsible. He added, however, that he values politicians who have examined their course and decided to change in the interest of their constituents. The key to democracy is transparency and flexibility. Brazil has been the most successful in this regard, though the region generally has also undergone a shift. Domínguez and Fukayama both commented that one problem in this new landscape is political polarization, but that overall it is noteworthy that party system collapse is no longer the norm. The notable exception to this norm is that of Peru.

Fukuyama also cited the region’s successful weathering of the 2008 financial crisis, thanks in a large part to an unprecedented commodity boom, and that countries like Colombia have effectively improved state capacity. However, both speakers shared concern for the future economic climate in Latin America and the effects a slow-down could have. Fukuyama worried that funding for social programs may decrease, causing a widening of the inequality gap. But he cautioned that a real challenge for Latin America lies in protecting the liberal rule of law against the demands of populism.

Latin American governments need to be transparent and accountable if they are going to successfully govern at a time when inequality remains a pressing issue, security threats are rising, and institutions need strengthening. As Fukuyama concluded, though democracy has finally come to Latin America, there is an underlying need for the state to deliver.

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