Key Takeaways
- The crisis of democracy in Latin America is intensifying as populist and anti-globalist leaders gain traction, threatening multilateralism and regional stability.
- Economic inequality and distrust in institutions fuel democratic backsliding, with leaders like Brazil’s Lula advocating for global cooperation to address these issues.
- Right-wing populists, such as Argentina’s Milei and El Salvador’s Bukele, align with U.S. interests, while leftist leaders face pressure to conform or face economic consequences.
- Environmental challenges, like Amazon deforestation, highlight the limits of multilateralism, with Brazil’s Lula pushing for global governance despite funding shortfalls.
- Latin American leaders must navigate U.S. influence, particularly under interventionist policies, to maintain sovereignty and democratic integrity.
Introduction: A Region at a Crossroads
Luiz Inácio Lula da Silva, the president of Brazil, told a disturbing dream in a calm Brasília office. He’d seen José Sarney, Brazil’s first post-dictatorship president, sleeping on his floor—a symbol of democracy’s fragility. At 79, fresh from emergency brain surgery, Lula’s reflective mood mirrored a broader unease: the crisis of democracy in Latin America is no longer a distant threat but a present reality. From populist surges to economic discontent, the region stands at a pivotal moment.
Why is democracy faltering? Across Latin America, trust in institutions is crumbling, fueled by inequality, misinformation, and external pressures. Leaders like Lula are grappling with how to defend democratic values in an era of rising authoritarianism and U.S. interventionism. This article dives into the crisis of democracy in Latin America, exploring its causes, key players, and potential paths forward—all while uncovering what’s at stake for the region and the world.
Understanding the Crisis of Democracy in Latin America
What’s Driving Democratic Decline?
The crisis of democracy in Latin America stems from a toxic mix of economic stagnation, social distrust, and political polarization. Since the 1980s, neoliberal policies have concentrated wealth, leaving working-class communities feeling abandoned. Lula himself noted, “Democracy starts to fall when it no longer meets the people’s interests.” In Brazil, the top 1% hold nearly 50% of the nation’s wealth, a disparity echoed across the region.
Misinformation compounds the issue. Social media platforms amplify absurd falsehoods, eroding trust in traditional media and institutions. Lula lamented, “There are people who believe things that everyone should understand are lies.” In countries like Argentina and El Salvador, populist leaders capitalize on this distrust, promising radical change while dismantling checks and balances.
The Global Context: A Fading Post-War Order
Latin America’s struggles reflect a broader global unraveling. The post-World War II order—built on multilateralism, sovereignty, and democratic norms—is fraying. Lula warned, “The democracy we learned to live with after World War Two is now fading.” Right-wing populists, from Europe to the Americas, reject global cooperation, favoring nationalism and unilateral action.
In Latin America, this shift is stark. Progressive leaders like Lula, Colombia’s Gustavo Petro, and Chile’s Gabriel Boric are increasingly isolated. At a recent UN General Assembly, Lula struggled to rally progressive allies, eventually broadening his summit to include “democrats” like Biden and Macron. The result? A fragile coalition struggling to articulate democracy’s value.
Key Players in Latin America’s Democratic Struggle
The Left: Defending Democracy Under Pressure
Latin America’s leftist leaders are on the defensive. Lula, a lifelong advocate of social justice, sees democracy as “the best thing ever created for humanity’s coexistence.” Yet, his coalition is thin. In Brazil, he faces a polarized electorate and a resurgent far-right. His recent health scare only heightened his urgency to rebuild trust in institutions.
Colombia’s Petro took a bolder stance, rejecting U.S. deportation flights and likening himself to a literary hero resisting oppression. But Trump’s swift tariffs forced a humiliating retreat, underscoring the region’s vulnerability to U.S. pressure. In order to prevent violence, Claudia Sheinbaum of Mexico has chosen pragmatism by strengthening border security and collaborating on drug enforcement.
Boric of Chile is notable for his candid criticism. He referred to U.S. tariffs as “irrational” during a state visit to India and cautioned about the effects they will have on consumers. His pursuit of new trade agreements with Asia is a hint of a larger plan to diversify alliances and lessen dependency on Washington.
The Right: Populism and U.S. Alignment
Leaders on the right, such as Javier Milei of Argentina and Nayib Bukele of El Salvador, advocate populism and American assistance. Milei, a self-described libertarian, gave Elon Musk a symbolic chainsaw and cut government agencies. Trump’s praise and U.S. support for a $20 billion IMF loan were his rewards. In the meantime, Bukele strengthened his ties with Washington by offering to imprison U.S. deportees in harsh jails.
There is a price for these alignments. In Panama, old Canal Zone outposts were taken over by American military after President José Raúl Mulino gave in to American interests. Locals were incensed by the action, and Mulino was accused by some of compromising sovereignty for political reasons.
The U.S. Factor: Interventionism Returns
The influence of the US is significant. The dynamics of the region have changed as a result of Trump’s promise to “retake” the Panama Canal and impose tariffs. His administration’s deportation policies and security demands have forced leaders to choose between defiance and compliance. Even Venezuela’s Nicolás Maduro, a longtime U.S. critic, softened his tone, releasing American prisoners to curry favor.
This interventionism isn’t new. The U.S. has long shaped Latin America’s political landscape, from Cold War coups to modern trade agreements. But today’s approach—blunt and transactional—leaves little room for negotiation. As Lula put it, “The U.S. was the mirror of democracy… yet now there is Trump.”
Economic and Environmental Challenges
Inequality: The Root of Discontent
Latin America’s democratic problem is exacerbated by economic disparity. Income concentration has increased and welfare states have deteriorated since the 1980s. While corporate profits have increased, actual salaries for the poorest 50% of Brazilians have remained stagnant. Because of the resentment this mismatch creates, populist promises of disruption become more alluring.
Lula sees economic reform as central to democratic renewal. “What response can we give to Brazilian society?” he asked. His administration has boosted social programs, but structural challenges—corruption, bureaucracy, and global trade pressures—limit progress. Across the region, leaders face similar dilemmas: how to deliver prosperity without alienating powerful elites.
The Environment: A Global Test Case
Environmental crises, particularly Amazon deforestation, test the limits of multilateralism. Brazil’s hosting of COP30 in Belém aims to spotlight the issue, but Lula is skeptical of Western aid. “They promised a hundred billion dollars in 2009, and they have not yet delivered,” he said. With Europe diverting funds to defense, the burden falls on developing nations.
Under Lula, Brazil’s deforestation rates have decreased, but illicit logging is still going strong. The Amazon’s fate affects global climate patterns, making it a shared responsibility. Yet, as Lula noted, “If the sea rises, everyone will be a victim.” Without global cooperation, local efforts may fall short.
Pathways to Renewal: Can Democracy Be Saved?
Rebuilding Trust Through Narrative
Lula believes democracy’s survival hinges on a compelling narrative. “We need to create a narrative to justify the importance of the democratic system,” he said. This means countering misinformation with transparent communication and tangible results. In Brazil, his administration has launched media literacy campaigns, but changing hearts and minds takes time.
Across the region, leaders are experimenting. Petro’s social media presence aims to engage younger voters, while Boric’s trade diversification signals economic resilience. These efforts, though, must overcome deep-seated cynicism.
Strengthening Multilateralism
Lula’s plea for multilateralism resonates beyond Latin America. “We have to convince the world that it’s not possible to end multilateralism,” he said. Regional blocs like Mercosur and global forums like the UN offer platforms for cooperation. But with major powers prioritizing rivalry over unity, progress is slow.
Brazil’s G20 presidency in 2025 provides an opportunity. Lula plans to push for global governance on issues like climate change and hunger. Success could bolster democracy by demonstrating multilateralism’s value.
Balancing Sovereignty and Cooperation
Navigating U.S. influence requires finesse. Leaders like Sheinbaum show that pragmatic cooperation can preserve autonomy, but defiance, as Petro learned, carries risks. Lula advocates a balanced approach: maintaining trade ties with China and others while engaging the West. “The more similar countries are, the more they must talk,” he said.
Conclusion: A Call to Action
The crisis of democracy in Latin America is a warning for the world. As trust erodes and populism rises, leaders like Lula remind us that democracy isn’t a given—it’s a choice. By addressing inequality, countering misinformation, and embracing multilateralism, the region can chart a path forward. The stakes are high, but so is the potential for renewal. Will Latin America rise to the challenge, or will it succumb to division? The answer lies in the courage to act—together.
