Does this revival highlight the consolidation of democracy or is it a potentially dangerous trend that could return Latin America to its darker decades of hyper-inflation, suffocating debt and political extremes?
Worryingly, only half of Latin Americans say democracy is preferable to other forms of government. But the region now benefits from relative macroeconomic stability, well-functioning economies, lower debt levels and falling inflation.
Companies should still be wary of opportunities that might make themselves political targets, though. Sometimes it can be wiser not to take advantage of limited regulation or special tax concessions.
Source: The populist left in Latin America: threat or opportunity?
Knowledge@Wharton, 3 March 2006
Review by Steve Lodge