One region in which the traditional right increases

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The writer is the head of Rockefeller International. His last book is “What happened in capitalism”

As the obsession with “American exceptional” faded, Europe and even China emerged as new capital. But the best performance in the world this year is Latin America, and it is missing from global conversation. Its shares increased by 21 percent in dollars, before Europe in the second place and the average return of 6 percent across the emerging markets.

After fueling the height of the meteorite in the American market in recent years, global investors are looking to redress the capital for the growing markets-including Latin America. Most of the region is low on President Donald Trump’s goal, making it a haven of commercial wars. But perhaps the least reason is that its markets are working well is the changing policy.

Former Chilean president Sebastian Penira once told me that Latin America has turned “to the left in good times, in bad times.” After the first decade of the twentieth century, the “tide and pink” brought many populists with left -wing tendencies, who have led the region back in the past decade. Productivity growth is very negative – the worst in any region. In a braid, the political tide is turned again.

Strong leaders on the left sail their left instincts, under the pressure of the market. Last year, Brazilian Luise Lula da Silva was a gift per day; Now it displays some signs of financial discipline. Claudia Shinbom’s progressive in Mexico offers “Republican austerity” along with a more supportive position to marry her predecessor, Andres Manuel Lopez Obrador.

Other countries decisively turn into the traditional right to reform free government and free markets. Although often, it is thrown as a Latin version of Trump, Argentina, Javier Millie, pays commercial deals, not increasing customs tariffs, which is constantly reduced by the government and not wrongly. The result: a dramatic transformation in the country’s economy and financial markets.

The share of voters who say that the “market economy” is the best path forward has risen to an unusual rise – 66 percent. This mood to the right comes in a critical moment. This year and after that, the highly crowded election schedule in Latin America is revealed, where countries that represent 85 percent of GDP in the region will go to the polls.

Last month in Ecuador, Daniel Noboa scored in the right running an unexpected victory, for a discount that may have distorted close relations with former President Rafael Correa, a progressive legend who now lives in exile after being convicted of corruption. After that, Argentina, where expectations are high for Melly to lead his party to victory in the legislative elections in October.

At the level of the region, social media is roaming in the “Milei Model”. In Chile, right -wing competitors dominate pre -election polls. Evelyn Matler, the financial governor who avoids improvisation, and the nearest competitor, Johannes Kaiser, is more honest: one of his advisers keeps a small statue of Milli who practices a waterfall – a symbol of his deep spending discounts.

The center in all elections is on the right. Colombia has its first left -wing leader since independence in 1810, Gustavo Petro, and his movements to increase state control over the sectors of health to energy, the financial deficit exploded and helped convert the rich nation oil into a gas importer. Khalifa Petro Al -Mukhtar is voting behind two right -wing candidates, one of whom is a former mayor in Bogota, who praised him on a large scale of responsible public spending.

Peru is a similar scene: a deep field led by competitors on the right and Dina Polants in the shadow of a harder attack. It is accused of corruption and indifference, as many Peruvian people struggle to buy food, with the classification of approval by 3 percent – perhaps the worst in the world ever. All the first three competitors are classified as “the right of the center”.

In Brazil, Lula’s Approval Classification has recently reached its lowest level ever. The economy grows, but voters are angry due to high prices and crime. In the local elections last October, voters turned against the left, and more severe to the mild right than the far right. Lula, 79, suffers from health problems and seems likely to be replaced by a good leader for his right to polling next year.

As the extreme right ascends in most of the West, it is worth noting that Latin America does not turn into the same way, into a closed economy Trump. It prefers leaders who have more traditional agendas, based on free markets and open economies. This increases the region’s chances of escaping its destructive growth and attracting capital in the exceptional world after America.