Latin American Populism

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nism (Pieper) and neoliberal capitalism (Thornton). In an effort to curb the spread the spread of communism in Latin America, the US supported brutal dictatorships that opposed socialist and communist values. The US was afraid of a Latin American communist state emerging so close to US borders (McConnell). Fidel Castro’s regime in Cuba is the quintessential example of US’s fears on Latin American communism. After Fulgencio Batista’s pro-American dictatorship was disposed by Castro, Cuba was declared a communist state upon strengthening economic relations with the USSR when the US imposed an embargo on Cuban trade (McConnell; Pieper). Due to Cuba’s precedent, the US justified its intervention in Latin America and sent covert military aid through …show more content…
Left-leaning populism began to gain popularity due to anti-American sentiments and economically-unproductive neoliberal trade policies (Cardoso). But populism is a threat to democracy in Latin America. According to Cardoso, populist leaders are authoritarian and often create a cult of personality where their power is above constitutional law and political institutions. Moreover, many of these populist leaders use propaganda and “empty rhetoric” to manipulate the poor and uneducated public (Cardoso). Also, the economic reforms proposed by these populist parties do not resolve the economic issues of Latin America. According to Vernengo, the use of fiscal austerity, which is to reduce government spending in order to resolve debt accumulation, resulted in budget cuts in social welfare programs and in the stagnation of economic growth. Furthermore, most of the budget surpluses that fiscal austerity generated were distributed to wealthy industry owners and government bond-holders because they are whom the government is indebted to (Vernengo). Thus, taxes received from the poor go into the pockets of the rich. Fiscal austerity is a continuation of corrupt neoliberal practices. In Brazil of 2004, populist leader Lula agreed to fiscal austerity as part of an agreement with the International Monetary Fund, which he thought would gain Brazil’s recognition in the global economy (Vernengo). In another instance, Vernengo describes how Kirchner agreed to continuing fiscal austerity in order to get more money from the International Monetary Fund. Due to international economic pressures and internal economic issues, populist Latin American countries have remained economically

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