The surprisingly easy consolidation of free market democracy in important parts of Latin America has confounded critics of neoliberal reforms. Indeed, the political explosions anticipated by many in the wake of economic austerity, privatization, trade opening, and attendant deindustrialization and mass unemployment have either simply not lived up to expectations (e.g., Chile, Mexico, Brazil) or have taken place in those political economies that were least liberalized (e.g., Venezuela, Ecuador). Nevertheless, it is also true that economic liberalization has generally not improved living standards, reduced inequality, expanded the middle classes, or in many cases even produced a consistent return to growth that many of its proponents had contended was its chief virtue. Often, the opposite was the case. Thus, the comparative facility with which markets and democracy have been reconciled in Latin America remains as perplexing as ever on a continent with a long and troubled historical relationship with both.

One potential answer, favored by more radical critics, is that free market democracy is simply a façade masking a transformation of authoritarianism and continued class dominance. This is contradicted, however, by a reality of free and fair elections that resulted in both Mexico and Chile in opposition victories in presidential contests, producing governments of the reformist center-right and socialist center-left, respectively. Moreover in each case politicians committed to free market policies have been able to command, if not majorities, veto-level minorities in free electoral contests.