The 1990s saw a series of erratic changes in economic policy that resulted in a 1997 recession. Frustrated with an unstable economy and economic inequality, voters opted for Chávez in the 1998 Presidential election.

Wesleyan University

Economic instability has continually rocked countries in Latin America like Venezuela and Brazil. European countries in particular, like Hungary, struggled with the Great Recession.

The Persistence of Economic Instability in Democracies

Weyland, K. (2003). Economic voting reconsidered: Crisis and charisma in the election of Hugo Chávez. Comparative Political Studies, 36(7), 822-848. https://doi.org/10.1177/0010414003255106 

Weyland (2003)

Economic Instability in Venezuela

Hungary was hard-hit by the 2008 recession, which left people disenchanted with democracy. When left-wing parties were caught up in corruption scandals, the far-right Fidesz seized on the opportunity to rise to power. Promising economic change, Fidesz won an overwhelming victory in 2010.

Economic Instability in Hungary

Brazil has long been one of the most unequal countries in the world. When a brutal recession hit in 2014, it contributed to the dwindling popularity of Brazil’s traditional parties and eventually propelled far-right illiberal populist Bolsonaro to power.

Economic Instability in Brazil

Argentina, once among the world's wealthiest nations in the 1920s, has since experienced decades of severe economic instability, marked by high inflation and repeated hyperinflationary periods. A pivotal event in this history was the 2001 economic crisis, which involved bank collapses and restrictions on cash withdrawals, causing many citizens to lose their life savings. This long-term turmoil, including specific crises, has fostered deep-seated public distrust in the financial system and provides essential context for the nation's ongoing economic and political challenges.

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