A New Vintage of Populism in Latin America

Interestingly, the episodes “rightwing” populism in advanced economies, most notably around the rise of the far and “alt” right in the United States, or the nationalistic movements growing in strength across European countries, have not sought to structurally alter the economic institutions that shape the high-level relationship between markets and the state (with the important exception of Brexit. [...] The two guiding principles are the limits the scope of the State intervention A NE W VINTAGE OF POPULISM IN L ATIN A MERIC A? THE PERILS 9 OF THE NE W PAR ADIGM and engagement in the economy, and the emphasis on macroeconomic stability. [...] The new paradigm is not a complete departure from what is labeled as the “neoliberal” agenda, with the important difference that the State is brought back in with a focus on regulation and the rejection A NE W VINTAGE OF POPULISM IN L ATIN A MERIC A? THE PERILS 10 OF THE NE W PAR ADIGM of privatization. [...] In addition to the expansion of these programs, the new paradigm has reduced the role of conditionality and, in many cases, changed targeting mechanisms and moving in the direction of universal subsidies, as in the case of non-contributory pensions in Mexico. [...] The nature of the problem provides an excellent justification for the need to strengthen the role of the State, through industrial policies, regulation, development banks and the redefined role of SOEs.