THINKING

REGIONAL REPORT

Latin America is still involved in the struggle to survive Covid-19 and its health, economic and social consequences. All countries to some degree have been hit by this pandemic, and their political and corporate structures are cracking.

Worldwide, political leaders stepped forward in the face of the crisis, with their political payoffs for public opinion. But they are now going through the most critical stage concerning citizens because of their health management and the impact on jobs. The global economic outlook is not good at all, but for Latin America, it is even worse. As the latest IDB report on the region indicates, Argentina and Mexico are two of the most economically affected countries due to their long quarantines, with drop rates of their product above 10% by 2020. The remaining countries in the region also face significant downturns in their economies.

Even though we might still be far from the vaccine that would stabilize the health situation, we can foresee certain trends in our region:

  1. State’s advance over the economies.
  2. A greater regulatory volume, with an impact on companies.
  3. Governments that concentrate large amounts of power, where institutions such as the legislative and judicial branches work in a virtual or discontinued manner.
  4. Society demands a greater social commitment from companies and businessmen in order to reduce the economic impact generated by the Covid-19.
  5. Mistrust has become a prevailing feature of this period climate, both towards the public and the private.
  6. The nature of the current capitalist system, prevailing in the region with its exceptions, will continue to be discussed.
  7. Social claims prior to the coronavirus are strengthened, such as the environmental ones, human rights claims, and claims related to socio-economic inequality in the region.
  8. Governments are suering from the wear and tear of the social and economic impact and will have little space and resources to deal with the social crises in our countries.

Download the complete report here.