A New Vintage of Populism in Latin America? The Perils of the New Paradigm

As the politics of polarization gain traction and electoral support, a new vintage of populism is emerging in Latin America. This new version shares some aspects with the type of cultural populism now common in advanced economies that divides societies into antagonistic camps. But there are also important differences. The new paradigm in Latin America undermines the system of checks and balances, including an active use of street power and social mobilization as well as changes to electoral rules, to enhance presidentialism. In the case of left-leaning leaders, the new Latin American paradigm is giving the state an increasingly relevant role in the economy. However, it explicitly preserves sound macroeconomic management, in contrast to previous versions of populism. The crucial question is whether macroeconomic stability will prevail under this hybrid model, with a larger role for the state and greater economic intervention, in the context of more divided societies facing low expected economic growth.