Latin America political inequality is set to increase

Subject

Elites and political influence.

Significance

Economic elites have historically exerted significant political influence across Latin America. Control over key economic resources such as land, together with weak state institutions, gave them opportunities to shape most economic policies. Their excessive power has had negative consequences on education, innovation and economic management.

Impacts

• Business groups will continue to shift their political strategies to adapt to new conditions.
• The business focus on traditional economic sectors will militate against innovation.
• Business demands for tax reductions may complicate fiscal retrenchment by more rightist administrations.