Latin America is a region of immense cultural wealth, abundant natural resources, and significant economic potential. Yet, it is one of the most unequal in the world, alongside the Middle East and Sub-Saharan Africa, as it is continuously overwhelmed by political upheaval, economic crisis, and social disruption. Each country of the region has, of course, different challenges that has to overcome at the national level, nonetheless, it is generally true that Latin American countries are still considered developing countries that try to step outside their colonial histories.
Colonialism has indeed laid the ground for extreme social and economic inequalities, causing civil wars, revolutions, and populist movements: on top of that, governments have proved to be weak, plagued by corruption and inefficiency. There has been more than 20 elected Presidents across Latin America that did not finish their terms since the 1980s, reflecting the complex general situation. Another major issue is that government after government there was always a major swing between leftist and right-wing, which instead of continuing the work of their predecessors, they often decided to start over, preventing long-term development and discouraging foreign investments. The lack of serious political actions to shift the situation has only eroded public trust in democracy and raised the idea that any organized group, such as vigilante groups, would be better than current politicians.
But the partial recognition and legitimation of vigilantes and organized criminal groups, alongside weak law enforcement, judicial corruption, and poverty, contribute to high crime rates, making it difficult for governments to maintain order and protect citizens. Not to consider the damages derived from the failure of the War on Drugs, which only fuelled violence, corruption, economic instability, and mass displacement, while failing to curb drug trafficking.
Economic inequalities are also another shared reality among all countries in the region. Academics argue about a still rooted “colonial economy”, which refers to an unfair economic system designed to benefit the colonizers at the expense of the local population. More specifically, Spanish and Portuguese colonizers concentrated land and wealth in the hands of a few privileged, while indigenous and African slave laborers worked either in plantations, or in mining. This system created deep inequalities that persist in Latin America today: even after gaining independence in the 19th century, many countries failed to redistribute wealth equitably, leading to deep-seated disparities, and the exclusion and isolation of indigenous communities, that fuel ongoing political and social tensions. Till today, Latin America is still highly dependent on exporting commodities such as oil, minerals, and agricultural products. This reliance makes them particularly vulnerable to fluctuations in global markets, for example if commodity prices fall, countries will have an economic backlash of inflation and increased poverty.
Addressing corruption, reducing economic dependence on commodities, strengthening democratic institutions, in particular the jurisdictional and justice sector, and promoting social equity are crucial steps in breaking the cycle of instability. To address inequality, for example, land redistribution is necessary, along with economic reforms that invest in technology, and manufacturing to reduce the reliance on natural resources exploitation, while increasing employment rate. However, until there will be a political swift, socially and economically just policies will hardly be implemented.
By The European Institute for International Relations
