Turning Latin America Towards Capitalism Turning Latin America Towards Capitalism Throughout Latin America, political leaders are finally listening to their free market advisers, who are often U.S.-educated economists. They are acknowledging that there aren't any viable alternatives to market reform. And their economies are beginning to grow again after the Mexican peso devaluation in 1994 sent foreign capital scurrying.
Inflation is at historic lows.
Except for Brazil, government spending in the larger countries is beginning to come under control. After decades of failed experiments in government intervention, many leaders recognize the only things that will bring a better life for their citizens are fiscal discipline, low inflation, stable currencies, rising foreign investment and freer trade. Mexico has opened up its fiercely protected banking sector. Brazil has begun to privatize its energy sector and to lift bars to private sector investments in communications and other areas. Venezuela is reportedly adopting a reform scheme to bring the country back from the brink of economic chaos.