Free markets and free governments in Latin America

Latin America has undergone a "third wave" of democratization and free market economic reforms, known as "neoliberalism." Neoliberalism radically altered what had been statist or corporatist economic systems, under austere programs that mandated deregulation, privatization, currency devaluation, and the elimination of protective tariffs and subsidies. Seventeen Latin American nations were examined in the aggregate, comparing levels of economic reform with measures of political and civil rights and freedoms, poverty, inequality, and popular support for democratic institutions and practices. The tests were repeated within two in-depth case studies, Argentina and Mexico. In all three cases, neoliberalism was statistically linked with increased political rights and freedom, but failed to improve levels of poverty and inequality, and was shown to be partially responsible for downturns in popular support for democratic institutions (i.e. Parliament) and practices (i.e. labor unions, legal protests).