Weak parties and the inequality trap in Latin America

Abstract

Latin America is widely acknowledged as one of the most unequal regions of the world, yet it is also one of the most democratic. And in every country in the region, majorities support government redistribution. Why, then, are democratic governments not responding to voter demands to reduce inequality? I argue that one important reason is that strong political parties are necessary to achieve broad-based redistributive programs. Research on the political economy of inequality in the region and the institutionalization of political parties emphasizes this factor, spotlighting the weakness of the region’s party systems. At the same time, the literature shows that structurally high inequality is one important reason that parties in Latin America are so weak, suggesting that the region is in an inequality trap and that the political underpinnings of the region’s persistently high inequality are self-reinforcing.