Latin America and the Caribbean

Despite mounting challenges, the region’s democracies have shown a considerable degree of institutional stability. Recent elections were for the most part free and fair and were largely accepted by the losing side. Persistent challenges include corruption and weak party systems, which foster clientelist practices and personalistic leadership. By contrast, Chile and Uruguay stand out for their consistent prosecution of corruption cases, while the Dominican Republic has achieved significant gains in strengthening rule of law.

A growing threat stems from transnational organized crime, which many governments counter with states of emergency, often at the cost of civil liberties. In El Salvador, media freedom, association, assembly and other fundamental rights have eroded most severely.

After the recession triggered by the pandemic, the region shows tentative signs of stabilization yet remains hampered by sluggish growth and widespread labor informality. Poverty and inequality remain pervasive, while social protection systems are too weak to offset these disparities – particularly for marginalized groups such as ethnic minorities. Because many economies are highly open and externally dependent, global volatility and China’s expanding role amplify existing vulnerabilities.

Governance across the region varies considerably. On the one hand, the governments in Argentina, Brazil, and Guatemala were able to tackle or implement major political projects. On the other hand, however, reformers in many countries are encountering resistance from influential interest groups seeking to preserve the status quo. Rising societal polarization, exploited by autocrats and populists, together with declining international support and mounting migration pressures, further add to the strain.