As in the rest of the world, the movement toward market economies swept through Latin America, and with it came substantial political and social problems. The shift toward market economies created competitive pressures on state entities and private companies controlled by oligarchs. It increased efficiency, but also increased unwelcome pressure on entities that were not used to challenges. On the other side, the application of market forces to previously managed environments has created substantial social dislocation in order to restructure the economy more efficiently. This includes geographical dislocation of populations, increased inequality as the capital formation process gets underway, the collapse of traditional businesses and the massive disruption of stable social relations.
Market economies tend to create two types of opposition.
The first comes from the elite who see competition as threatening to their social position and economic advantage. The second is from the lower classes, who see their lives disrupted as the market re-engineers society. In Latin America we are seeing the beginning of the inevitable backlash against the free market. The attack is coming from three directions. The first is from those sectors of the elite that see themselves as losing out relative to other sectors.