Latin America at a Crossroads

Latin America has recently entered a phase of changes and transformations, which are affecting the region at different rhythms and in different ways from country to country. On the political front the “pink tide”, as many experts defined it, is in obvious decline. The populist phenomena (such as Chavism or Peronism) which, at the beginning of the century, experienced a great deal of popularity, are now losing vigor and, in many cases, their ability to attract people. At the same time, it would be wrong to take for granted the success of more democratic systems, of more transparent and representative political institutions, of a more effective rule of law. Latin America faces a delicate transition at political level. From an international perspective, the scenario that prevailed for over a decade, replicating the opposition of a coalition linked to Pan-Latin ideals and a group of countries loyal to Pan-Americanism, seems to lose importance today. After rising dramatically for almost a decade, the prices of many commodities, especially those of energy and metals, have dropped sharply since 2014, and output growth has slowed considerably in the Latin American countries which are net exporters of commodities. Latin America faces the challenge of resuming growth and diversifying production, while at the same time protecting the achievements of the last decade in terms of poverty reduction, improved income distribution and social inclusion.