Latin America’s ample natural resources have been both a blessing and a curse. They have invigorated commodities exporters during the good times, but had a torpid effect on many governments’ reform agendas. And, over the past decade, the commodities-fuelled economic boom experienced in the region has helped bring about a new era of populist rhetoric that has failed to permanently tackle the regime’s social inequality.
Now that oil prices have dived and global demand for raw material is languishing, governments’ balance sheets are struggling to attract the international capital they need. Discontent with political leaders is also palpable. From the result of Argentina’s presidential election and its new pro-market agenda, to Venezuela’s angry turn against the ‘Chavista’ government whose policies led to a 720% inflation rate, to Brazilians’ indignation at the widespread corruption scandal that has brought the country to a standstill, Latin America appears to be at a turning point, with its most troubled economies attempting to build a sustainable way out of this crisis.