The Politics of Market Discipline in Latin America: Globalization and Democracy

Abstract

Two phenomena have been especially prevalent in Latin America during the decades of the 1980s and 1990s: re-democratization and economic liberalization. In this context, it is legitimate to wonder if it is possible for democracy itself to become a hostage to investors. A vast literature argues that in emerging economies such as those of Latin America, the market has greater capacity to influence political outcomes and also has preference for candidates based on their position on the party-political spectrum. That is, it rejects left-wing agendas, which in turn promotes a convergence toward orthodox politics. However, how do we then explain the emergence of the left in Latin America over the last decade? Do these governments really find their political agenda constrained? Did the market treat all of these governments similarly and was it capable of constraining them with the same efficiency? These are questions that The Politics of Market Discipline in Latin America