The new hybrid forms of democracy, in which former military officers or civilians backed by the military and their intelligence services are elected to office, rely on direct mandates from the people, ignoring representative institutions and constitutional niceties. The old style of direct military rule is unlikely to return to Latin America, but the new hybrid democracies heralded by Peru, Venezuela and Guatemala may become a new trend. Persistent inequality dating back to colonial styles of property rights creates social and political exclusion, even beyond economic exclusion. Extreme patterns of income inequality helps to explain the puzzling phenomenon of economic growth leading to increased poverty in many countries. The gap between the rich and poor in Latin America has actually grown during the past two decades of economic reform, leaving more people under the poverty line even as per capita income rises.
Extreme inequality is also dangerous to democracy.
Weak democratic institutions are susceptible to the influence of the economically powerful who resist reforms. The failure of democracies to deliver services and protection to their citizens erodes their legitimacy and makes alternative governance forms more attractive to desperate peoples. One of the keys to overcoming both inequality and poverty is education, as highlighted in the 1998 Summit of the Americas. The U.S. should recognize that the Western hemisphere provides natural allies in a global economy of blocs and spheres of influence. Latin Americans are ready, even eager, to be our partners as long as the basis is one of mutual respect.