1. Economic Crisis and Elections: A Recipe for Turbulence in Latin America
- Author:
- Jimena Blanco
- Publication Date:
- 12-2021
- Content Type:
- Journal Article
- Journal:
- Fletcher Security Review
- Institution:
- The Fletcher School, Tufts University
- Abstract:
- Latin America experienced the second biggest pandemicinduced economic contraction of any region in 2020, just behind the Euro-zone, and Verisk Maplecroft’s Recovery Capacity Index—which measures more than a dozen factors that determine a region’s ability to recover from the crisis—puts Latin America below all but Africa in recovery capability. The resulting social and economic distress has worsened longstanding inequalities and acted as a catalyst for civil unrest. Despite restrictive lockdowns, the pandemic crisis and economic shock sparked demonstrations across the region throughout 2020 as governments proved unable to meet even the most basic needs of their populations. A string of general elections scheduled for 2021 will take place against a backdrop of a surge in poverty and unemployment, setting the stage for another unstable year. With forecasts from the International Monetary Fund projecting the regional economy unlikely to recover to pre-pandemic levels until 2023, and household incomes not until 2025, this situation will continue. Falling tax receipts will cripple governments’ ability to address spiralling demands from already impoverished workers likely to be pushed into even lower-paid, unstable, and informal jobs. Young people and informal workers who average 60 percent of the regional labour force, on data from the Organization for Economic Cooperation and Development, will continue to be disproportionately affected. Dissatisfied and often disenfranchised, these sections of society can be particularly restive, able to mobilise fast in political or anti-establishment protests.
- Topic:
- Elections, COVID-19, Civil Unrest, and Economic Crisis
- Political Geography:
- Latin America