The Economic Cost of Emotions in Latin America

The last months were convulsive in Latin America. There were issues in Chile with mass protests because of the rise in the prices of transportation. In Bolivia, the President was expelled from the country and the opposition took the power. Furthermore, some protests happened in Colombia because of the so-called Neoliberal reforms of the current President Iván Duque Márquez. One can look at Latin America and question to themselves: Why? How much of these issues can be attributed to the rational understanding of economics? is there a more emotional and visceral explanation? 

Chile is the country in Latin America that has always been commended because of its development. Bolivia has been doing increasingly better in the last years, and Colombia was becoming a more stable country in terms of how their politics are being managed. However, these three countries are now facing situations where people are not happy with the regime and reforms. Additionally, people within the country have been mobilizing to create change.

In the case of Chile. The most recent protests were motivated by the increase of 30 pesos in the transportation system. For many who live in the developed countries of the world, they think 30 pesos which equal about 3 cents of a dollar don’t seem as much of a radical price charge, but for the Chilean people it is not all about the price, but what that price means for them.

In case you are not familiar with Chilean modern history. In the 1990s, there was a dictator in power named Augusto Pinochet. Even though after this there was a transition to the democratic government the stitches from that dictatorial regime haven’t healed yet. As a protester said to the New York Times is not 30 pesos its 30 years of lack of interest by the elites. They don’t understand the struggle of the people from the economic bottom in the country (NY times).  

One article in the Washington Post is explained that the reason for the protest is because of the intention of the Government on cutting benefits for retirees and employees (Washington Post). The argument of the right is that these changes will benefit the overall economy. But coming from a country where the minimum income is $298.92 just to contemplate cuts in benefits feel, for most of the people, as a lack of understanding of how the majority lives in the country.

In Bolivia, President Morales had to flee the country fearing for his own safety because he shouldn’t have run again for elections. The reason being he didn’t win the referendum for the indefinite presidential election (Guardian). President Morales was already two terms in power and the third term was not arguably ethically.  The accumulation of frustration by the other spectrum of Bolivian society -the most privilege one- exploit when they witnessed Morales trying to get elected again. The people now in power are displaying a far-right racist discourse that will not benefit that already fragmented Bolivian society.

In this regard, the causes of these manifestations came from the feeling of dysphoria between a Government that ideally should be looking to protect their people, but with their actions just make the people feel that they don’t care at all. Again, the feelings of inequality are stronger than any economic chart. For Chile even though they been experiencing economic growth the perception of inequality seems to be bigger. For Colombia, further cuts in their benefits feel like real threats to the mere survival of life. Furthermore, Bolivia experienced growth under the leadership of Morales but his intentions to keep himself in power weakened his legitimacy. The opposition party leveraged up on that issue to seize power but failed on creating unity. 

The power of emotions and inequality has a price in economics. Reforms have to take into consideration the transgenerational trauma of people in Latin American countries. Because people are not only those rational individuals that mainstream economics love to praise. The perception of inequality and then the feeling of another fraction of society doing extremely well while yours is barely in existence just foster the boundary between both sides. In the case of Bolivia, the history of the entitlement of the elites may be the reason for their racist discourse. In order to achieve stability is important to respect the cultural expressions of the people in these countries and their right to be included in the project of their nation. Otherwise, Latin America will be cursed by their unsolved trauma and inequality enhancing more conflicts.

Work cited:

'Chile Woke Up': Dictatorship's Legacy of Inequality Triggers Mass Protests. (2019, November 4). Retrieved from https://www.nytimes.com/2019/11/03/world/americas/chile-protests.html

Kovarik, J. (2019, November 21). Bolivia's Anti-Indigenous Backlash Is Growing. Retrieved from https://www.thenation.com/article/archive/bolivia-morales-whipala/

Kurmanaev, A., & Krauss, C. (2019, November 15). Ethnic Rifts in Bolivia Burst Into View With Fall of Evo Morales. Retrieved from https://www.nytimes.com/2019/11/15/world/americas/morales-bolivia-Indigenous-racism.html

Londoño, E. (2019, November 10). Bolivian Leader Evo Morales Steps Down. Retrieved from https://www.nytimes.com/2019/11/10/world/americas/evo-morales-bolivia.html?login=smartlo

Sandra Botero, S. O. B. (2019, December 5). Analysis | Colombia is having its largest wave of protests in recent decades. Why? Retrieved from https://www.washingtonpost.com/politics/2019/12/05/colombia-is-having-its-largest-wave-protests-recent-decades-why/