In the aftermath of Ecuador’s presidential run-off on Sunday, it has become clear that Rafael Correa, former Minister of Finance and an American-educated economist, has won a significant majority of the vote and that the Banana Baron, populist, and richest man in Ecuador, Alvaro Noboa has lost. Correa won the presidency mainly on his positions to increase aid to the poor. Many Latin Americanists have closely watched this election to determine whether or not South America is indeed turning its back on the Washington Consensus of the 1990s which espoused neoliberal economics and free trade.
While some see the recent elections of Lula in Brazil, Bachelet in Chile, Morales in Bolivia, Ortega in Nicaragua, and Garcia in Peru as a sign of support for Chaves and his anti-imperialist stand, in fact, these elections merely represent the fact the people do not believe past policies have worked. Indeed, poverty has increased in Latin America, one of the only places in the world! While support for Chavez and Castro is high, this support is more of due to the fact that they fiercely proclaim complete independence from foreign intervention. This feeling of self-determination is what drives Latin Americans to turn to fresh leaders with new, reinvigorated different ideas. While Chavez is the poster boy for today’s Bolivarian Revolution, his power is more perception than reality.
New leaders will lead to new policies, many of which will be pro-business. While Latin Americans have favored left of center politicians of late, they are merely asking for change and a new direction. The policies of the past have seemed ineffective or will take to long to make real change in the daily lives of people. As Keynes keenly said, “We’re all dead in the long run.”
Published Date: November 27, 2006