Alberto Peralta
At a Glance: Understanding the Effects of Neoliberalism in Latin America
Latin American politics are difficult to dissect and thoroughly understand due to their complex nature. To understand what Latin America is today, it is important to understand a brief history of Latin America. Latin American politics are so difficult to understand because all of Latin America developed under varying colonial models. Secondly, the racial make-up of all Latin American countries varies drastically. For example, countries such as the Plurinational State of Bolivia contain a significantly larger indigenous population to that of Argentina.Lastly,the post-colonial economic and political development of Latin American countries also has varied greatly, especially during the Cold War. More recently, Latin Amer- ican politics have garnered an unprec- edented amount of attention, due to the unfortunate — but not atypical — conflicts among the government and the people.
Chile and Ecuador are currently facing a similar struggle, as millions of citizens have mobilized to protest their grievances. In the month of October, protests that originated as a takeover of the subway systems in Santiago, Chile as a result of the increase in fares morphed into some of the most significant demonstra- tions against the increasingly un- favorable incumbent President (Al Jazeera 2019). A report by BNAmericasnotes that the subway systems had been damaged, and this direct action prompted President Sebastián Piñera to declare a state of emergency in the Metropolitan Region of Santiago and deploy the National Army in an at- tempt to contain the civil unrest. The deployment of the National Army and implementation of a curfew only resulted in greater chaos, with protestors choosing to fight back as the pro- testscontinuedthroughoutthemonth of October and early November. Ac- cording to a Time article published on Nov. 15, 24 civilians have died, over 2,000 people have suffered seri- ous injuries and over 7,000 have been arrested (Time 2019). The last time Chile had seen this level of govern- ment force used on civilians was during the U.S. backed Agusto Pinochet’s military dictatorship.
In Ecuador, similar to Chile’s subway fare protests, the people began by specifically protesting the abolition of fuel subsidies, and later the protests ultimately morphed into something much greater. Presi- dent Lenín Moreno explained that the reason for reduced subsidies on gasoline and diesel was due to austerity measures taken by the Ecuadorian government to obtain a multi-million dollar credit from the International Monetary Fund (The Guardian 2019). Within days of this announcement,the National Confederation of Indigenous People of Ecuador (Confederación de Nacionalidades Indígenas del Ec- uador), the United Workers Front and the Federation of University Students of Ecuador began to organize national protests to denounce such austerity measures (24Ecuador2019). The protests partially shut- down the transportation network in Ecuador, as protestors blocked offmajor roads and highways by burning stacks of tires to obstruct passage. This caused President Moreno to temporarily move the government from the capital of Quito to Guayaquil (The Guardian 2019). Similar to Chile, President Moreno deployed the National Army to try and contain the civil unrest. Since the deployment of the National Army on Oct. 7, eight protestors have died, 1,370 civilians sustained injury and over 1,100 people were detained(DefensoríadelPueblo2019).
Where does the intensity of these protests stem from?
A common theme surrounding the protests on both sides is the fact that the people are not just upset by a sudden price increase on goods such as gasoline and subway fares; it goes beyond a subway ride home or a full tank of gasoline. They are protesting the life they are living. They are pro- testing the inequality. They are protesting for their right to live a dignified life. During the Cold War, these countries were forced by the United States to adopt neoliberal models that would repel the expansion of communism (Economic and Political Weekly 2003). This model of intensified liberalization of Latin American economies and privatization of major industries has had profound effects that we are beginning to finally see.
While these neoliberal policies have generated trillions of dollars in revenue in Latin America, Latin American people have yet to see any of that profit, and the inequitable wealth distribution of all that profit has only created a social imbalance. The average wages in Latin America already do not fulfill the basic needs of many people, so they certainly cannot support an increase in the cost of basic goods. Neoliberal politics in Latin America will only continue to divide countries, granting profitable opportunities to wealthy investors while repressing the people who fight back. As Latin America boasts some of the highest levels of inequality, the people have begun to fight back (World Economic Forum 2016).