Latin America currently faces a multifaceted crisis including the COVID-19 pandemic, severe economic downturn, and high political polarization. The region's response to COVID-19 has been particularly challenging due to pre-existing economic vulnerabilities and limitations in public health infrastructure.
Economic Impact: In 2020, Latin America experienced a significant economic contraction, with 53 million people falling below the poverty line, marking the highest percentage of poverty since 2006. This crisis is exacerbated by the worst economic decline in 120 years, with a 9.1% decrease in GDP.
Healthcare Capacity: Chronic underinvestment in public health before the pandemic and limited fiscal resources during it led to challenges in treating COVID-19 patients, especially during peak times.
Political Instability: Social unrest and political volatility have been high, with protests in various countries due to dissatisfaction with public services, socioeconomic inequality, and political elites.
Migration Crisis: More than 5 million Venezuelans have migrated out of the country, marking one of the region's most acute migration crises.
Despite these challenges, effective regional governance remains crucial for addressing domestic and transnational issues such as organized crime, environmental degradation, migration, and economic growth. Existing cooperation, though often overlooked, has persisted in technical areas and through committed government officials' efforts, demonstrating resilience amidst the pandemic.
Latin America's role in a rapidly changing global order, shaped by technological advancements and global challenges like climate change, migratory pressures, and security threats, necessitates rethinking regional governance mechanisms. As great power competition influences global dynamics, Latin America, despite being perceived as peripheral, is deeply affected by these currents. Effective regional governance can facilitate cooperation and address the region's daunting challenges, even in the face of ideological differences.