The crisis of liberal democracies we are witnessing in Europe is unfolding with equal intensity, though with distinct characteristics, across Latin America. The continent completed its transition from military dictatorships to democratic systems during the 1980s and 1990s. However, each country has advanced along the democratic path with varying degrees of success. Widespread distrust in institutions and a gradual erosion of democratic norms are giving way to populist models with authoritarian leanings–this, even beyond the outright dictatorships that persist in some nations. Democratically elected governments turning into authoritarian regimes has become a hallmark of our times, either by unfortunate coincidence or, more likely, as a consequence of a shifting political landscape. Increasingly, citizens are choosing security over freedom, willing to give up rights in exchange for stability. Latin America is a world unto itself: a diverse continent with unique dynamics that defy blanket statements. Still, the authoritarian drift is evident in many parts of the region.

When democracy promises rights but fails to deliver, it becomes mere rhetoric. If citizens watch corruption erode public institutions while they continue to lack access to decent jobs and housing, if infrastructure and public transportation fail to improve, and fragile healthcare systems worsen, then the democratic dream begins to fade. And the chronic issue of insecurity and drug trafficking only grows more severe, feeding the public perception that governments either cannot control the situation, or worse, are complicit in it.

In this context, with a population of 160 million people between the ages of 10 and 24 (representing 25% of the total) and with projections estimating 780 million inhabitants by 2050, along with a life expectancy of 80 years, the region faces enormous challenges. These demographic trends position Latin America as a potential powerhouse. Yet today, many young people are deeply disillusioned with their governments. Their education and aspirations are met with silence or inadequate responses, creating fertile ground for authoritarian populism.

Consider the example of El Salvador under Bukele, a paradigmatic case. The government’s strategy to combat violence involves a deliberate disregard for democratic principles, including violations of due process and the rights of detainees. Simultaneously, it is building a highly trained and technologically equipped military, celebrated as national heroes. This may set the stage for a resurgence of military interventions in the region, something we once believed had been consigned to history.

The quality of democracy across the region is generally poor. Checks and balances are often ineffective when they are not outright dismantled by leaders seeking to govern unrestrained, free from institutional or judicial oversight.

Economically, the outlook is no better. Foreign direct investment in Latin America fell by 12% in 2024 due to trade wars and global uncertainty. While regional growth in 2025 might surpass 2%, fueled by domestic consumption and high levels of public debt, the latter represents a clear risk to long-term stability. Unresolved challenges like low productivity and fiscal consolidation continue to place serious obstacles in the region’s path.

As always, Latin America remains a region of great opportunity, despite its structural difficulties, particularly in the green and digital economies. It is a continent perpetually at a crossroads: complex, indispensable, and worthy of our best efforts and engagement.

Author: Antonio Hernández-Rodicio, Partner in Strategic Communications, Political Consulting, and Public Affairs at Thinking Heads.