On the 11th Dec, the International Policy Network (IPN) held a lunchtime meeting on ‘Elections in Latin America – the way forward’. IPN (www.policynetwork.net) is a London-based charity and think tank which aims 'to encourage better public understanding of the role of the institutions of the free society in social and economic development'. The meeting featured Paulo Uebel, President of the Instituto de Estudos Empresariais, Brazil.

Participants at the meeting were: Dan Lewis (Economic Research Council), Maria Alemendra Mc Bride Perez, Diana Geddes  (The Economist), Penelope Anthias (ODI), Carl Mortished (The Times), Alec van Gelder, Ellen Bisnathm and Mark Baillie (International Policy Network) Graeme Levin, Natalia Franco and Emma Gibbs.

Paulo Uebel began his presentation referring to Simon Bolivar, who current left-wing governments in Latin America (most notably Hugo Chavez) have used as a revolutionary icon and claimed to be an inspiration for their radical politics. This is misleading, he argued, when in fact Bolivar was an admirer of the American Revolution and an advocate of the free market, limited government, the rule of law and property rights.

He then gave an overview of current left-wing governments in Latin America, which he classified into the following 3 groups.

‘Light’ governments were those that showed respect for liberal values and institutions such as property rights, the rule of law and freedom of the press. The only governments in this category were Alan Garcia (Peru) and Michelle Bachelet (Chile)

‘Moderate’ left-wing governments were those that only in some cases showed respect for these liberal values and institutions. Governments in this group were Lula (Brazil), Nicanor Duarte Frutos (Paraguay), Rafael Correa (Ecuador), Daniel Ortega (Nicaragua), Nestor Kirchner (Argentina) and Tabare Vazquez (Uruguay).

‘Radical’ governments were those that did not respect any of the above. In this category were Evo Morales (Bolivia), Hugo Chavez (Venezuela) and Fidel Castro (Cuba)

In total, he noted that 300 million of a total 365 million inhabitants of Latin America now live under left-wing governments. The only governments that could be described as right-wing, he said, were Alvaro Uribe (Colombia), Filipe Calderon (Mexico) and Oscar Arias (Costa Rica).

Uebel listed a number of factors that he considered threats to Latin America.

These were:

- Populism

- Socialism, i.e. policies which represented a move towards socialism within a democratic framework.

- Protectionism and the tendency to view free trade as inherently bad, instead advocating the creation of a new regional blocs.

- Militarisation and weaponisation, justified as a defense against US intervention (Chavez)

- Weak institutions

- High transaction costs, leading to economic slowdown

He then outlined what he considered to be the major challenges for Latin America, which were:

- Respect for the rule of law

- Respect for property rights, including intellectual property

- Respect for contracts with multinationals (ignored or renegotiated by some left-wing governments)

- Reducing political corruption

- Reducing the tax burden

- Reducing regulation, e.g. the amount of time required to open a new business

- Sustainable development

He identified a number of ways in which he thought these challenges should be addressed. Firstly, he said, more education was required in order to convince poor people of the value of the free market. He thought a simplification of the message and more rhetoric was needed in order to communicate effectively with the masses. He referred to how left-wing politicians appealed to the poor through rhetoric which created hope of a better future and said that similar strategies could win people over to the ideals of the free market. He also suggested liberals should reclaim Simon Bolivar as a symbol of the values they advocated.

There then followed questions and a general discussion, which included the following issues:

 Whether the use of rhetoric by the right wing would fuel the problem of populism

The conflicts of interest between the interest between the poorest groups in society and big business

The issue of indigenous rights versus property rights

The prospects for Brazil making future free trade agreements with the US or Europe

The prospects for greater regional integration

Whether the landless poor could be convinced of the value of property rights and  a free market economy

How poverty and inequality can be addressed within a market-led development model

 To read a comment on the meeting by Penelope Anthias, click here