After more than ten years of domination by the left-wing politics (populist and Social Democratic) in South America, the political compass has turned to the Centre-right. The newly elected government in Argentina, Brazil, and Peru have promised to open their domestic markets and implement social and political reforms. It is the beginning of a new era for Latin America’s, however, it does not mean that Latin America will not return to populist promises in the near future.
To avoid the return of populism, the governments in the region need to improve considerably the conditions of their population, especially the poor (but without overlooking the Middle Working class). Improving levels of developments will give people a chance to progress and …show more content…
No matter if the current demand is for middle-class home ownership programs, or subsidies for the poor sectors of society, or increases in salaries and pensions, the pressure for these countries will be to always devote and re-invest all the natural resources now and not in the future. Bigger projects like investment in infrastructure, public education reforms, research, and development will have to wait until all the current needs are satisfied. The new leaders in the region will have to convince the population that fiscal responsibility, open markets, and competition are the basis of long-term sustainable economies and democratic governance and not the of the …show more content…
To accomplish this task, he will have to implement three important reforms. First, he will have to eliminate economic distortions and instead of turning to institutions like the World Bank or the IMF for aid, the new government will look for a domestic solution and alternative sources of foreign funds. Second, obtaining funds from other sources overseas would also give the government extra time to deal with the fiscal deficit and balance the fiscal accounts by cutting energy, transport other subsidies that benefit the rich and poor in the country. Finally, the country has to restore normal financial relations with the outside world and foreign investors. Macri knows that restoring confidence by leading in a responsible manner, investment will return to the
To avoid the return of populism, the governments in the region need to improve considerably the conditions of their population, especially the poor (but without overlooking the Middle Working class). Improving levels of developments will give people a chance to progress and …show more content…
No matter if the current demand is for middle-class home ownership programs, or subsidies for the poor sectors of society, or increases in salaries and pensions, the pressure for these countries will be to always devote and re-invest all the natural resources now and not in the future. Bigger projects like investment in infrastructure, public education reforms, research, and development will have to wait until all the current needs are satisfied. The new leaders in the region will have to convince the population that fiscal responsibility, open markets, and competition are the basis of long-term sustainable economies and democratic governance and not the of the …show more content…
To accomplish this task, he will have to implement three important reforms. First, he will have to eliminate economic distortions and instead of turning to institutions like the World Bank or the IMF for aid, the new government will look for a domestic solution and alternative sources of foreign funds. Second, obtaining funds from other sources overseas would also give the government extra time to deal with the fiscal deficit and balance the fiscal accounts by cutting energy, transport other subsidies that benefit the rich and poor in the country. Finally, the country has to restore normal financial relations with the outside world and foreign investors. Macri knows that restoring confidence by leading in a responsible manner, investment will return to the