On the 11th Dec, the International Policy Network held a meeting, ‘Elections in Latin America – the way forward’, featuring Paulo Uebel, President of the Instituto de Estudos Empresariais, Brazil. The meeting gave an insight into the current unease felt by proponents of neoliberalism in Latin America and elsewhere, following a year in which left-wing governments have swept to power in a number of Latin American countries. Such discomfort is perhaps not unfounded given that many of these leaders were elected on the basis of their anti-neoliberal rhetoric and promises to implement radical economic and social reform. How investors and corporate interests should respond to this threat and find ‘the way forward’ was the central theme of the discussion.

 Unsurprisingly, Paulo Uebel’s analysis of the current political climate in Latin America was informed by this agenda. His classification of current left-leaning governments as ‘light’, ‘moderate’ or ‘radical’ was based solely on the degree to which they adhere to or challenge the implementation of free-market reforms enshrined in the Washington Consensus. While slightly more nuanced than lumping all these ‘leftist’ governments together, this categorization obscures important political and ideological differences between them, as well as the varying circumstances that shape each country’s policy options. Similarly, the ‘threats to Latin America’ Uebel identified were not factors that threaten democracy, stability or Latin American citizens, but threats to the advancement of free trade in the region.

 Yet, despite voicing the unease felt by those promoting a market-led policy agenda in Latin America, the discussion failed to provide convincing answers as to how neoliberals may seek to respond to this ‘swing to the left’. Uebel’s proposed solution, that the poor could be won over to liberal values through more populist political campaigns and public education seems a little far-fetched. Aside from mirroring the populism of some leftist governments (which Uebel rightly criticized), it will not be an easy task to convince the landless poor of the value of property rights, or those served by state welfare programmes to put their trust in the invisible hand of the market.    

 However, the discussion did reveal that, perhaps for the first time, advocates of free trade in Latin America are having to think seriously about how to sell a market-led reform agenda to the masses. Although the proposed means of doing so does not inspire confidence, nothing illustrates more boldly that Latin America’s future will not be decided by the World Bank or by a political or economic elite, but lies in the hands of a restless and empowered civil society.

Click here to view a full summary of the meeting.