A region where traditional law is on increasing

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Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

The writer is President of Rockefeller International. His latest book is “What Bead Wish Capitalism”

As mania for “American exceptionalism” fades, Europe and even China have appeared as new destinations for capital. But the world with the best performance in the world this year is Latin America and the lack of global conversation. Their stocks have increased by 21 percent in terms of dollar, far ahead of Europe in second place and the average return of 6 percent in emerging markets.

After promoting the meteorological increase in the US market in recent years, world investors seeking to reassign capital in the shakes markets, including Latin America. Most of the region is low on the list of Rates of President Donald Trump, which makes it a shelter for commercial wars. But perhaps the less appreciated reason that their markets are doing well is changing politics.

The former President of Chile, Sebastián Piñera, told me that Latin America became “on the left in good times, in bad times”. After the 2000’s, a “Pink Tide” brought power to many populists leaning on the left, who have led the region back in the last decade. The growth of productivity became deeply negative: the worst in any region. On the court, the political tide turns again.

The powerful leaders on the left are slowing their left -wing instincts, under the pressure of the market. Last year, Luiz Inácio Lula da Silva del Brazil was promising a gift a day; It now shows some signs of tax discipline. Claudia Sheinbaum, from Mexico, offers “republican austerity” along with a generally more pro-gun position than its predecessor, Andrés Manuel López Obrador.

Other nations are directed to the traditional law of limited government and free market reform. Although he is often launched as a Latin copy of Trump, Javier Milei de Argentina is pressing trade agreements, he does not increase, reducing the government constantly instead of errors. The result: a dramatic change in the country’s economy and financial markets.

The share of voters who say that a “market economy” is the best path that has advanced has increased by up to 66 percent unusual. This change of mood on the right comes at a critical moment. This year, and then an extremely occupied election calendar is developed in Latin America, where the nations representing 85 percent of the GDP in the region go to the polls.

Last month at Ecuador, the right headline Daniel Noboa won an unexpectedly large victory, about an opponent who may have been tarnished by close links with former President Rafael Correa, a progressive legend that he now lives in exile after being convicted of corruption. Argentina then, where expectations are high for Milyi to lead his party to victory in the October legislative elections.

Throughout the region, social media is taking a look at the “Milaei model”. In Chile, the right -wing challenges dominate the pre -election surveys. The striker Evelyn Matthei is a fiscal conservative who was improvised, and his closest rival, Johannes Kaiser, is even more puzzled: one of his advisers maintains a small statue of Milei who carried a chainsaw: a symbol of his deep cuts of expenses.

The front runners for the election are to the right. Colombia has its first left leader since independence in 1810, Gustavo Petro, flat for the scandal, and his movements to increase state control over the health health sectors have exploded the fiscal deficit and helped convert the rich nation into a gas importer. Petro’s successor chosen is responding behind two candidates to the right, a former mayor of Bogota widely praised for responsible public spending.

Peru is a similar scene: a deep field directed by right -wing challenges and Dina Boluarte’s headline under an even harder attack. He is accused of corruption and indifference, as many Peruvians struggle to buy food, with a 3 percent approval rating, possibly the worst recorded in the world. The three main contestants are ranked in “center center”.

In Brazil, Lula’s approval rating recently reached its minimum. The economy is growing, but voters are angry at the rise in prices and crimes. In the local election last October, the voters turned against the left and more abruptly to the moderate right than the far right. Lula, 79, has had health problems and seems to be probably replaced by a leader to his right at next year’s vote.

With the ascendant to the far right to most of the West, it is noteworthy that Latin America does not become the same way, towards a closed economy Trumpian. It is favoring leaders with more traditional agendas, based on free markets and open economies. In this way, it increases the possibilities of the region to escape its damage of growth and attract capital in this world of post-American exceptionalism.