Is South America’s ‘Progressive Cycle’ At An End?
By Claudio Katz for Venezuelanalysis. The progressive cycle arose in popular rebellions that brought down neoliberal governments (Venezuela, Bolivia, Ecuador, Argentina) or eroded their continuity (Brazil, Uruguay). These uprisings modified the power relations but did not alter South America's economic insertion in the international division of labour. On the contrary, in a decade of rising prices for raw materials all countries reinforced their status as exporters of primary products.
The right-wing governments (Sebastián Piñera in Chile, Álvaro Uribe-Juan Manuel Santos in Colombia, Vicente Fox-Enrique Peña Nieto in Mexico) used the foreign exchange bonanza to consolidate the model based on openness to free trade and privatizations. The centre-left administrations (Néstor and Cristina Kirchner in Argentina, Inácio Lula da Silva-Dilma Rousseff in Brazil, Tabaré Vázquez-José “Pepe” Mujica in Uruguay, Rafael Correa in Ecuador) promoted increased internal consumption, subsidies to local business owners and social welfare programs.