All about ideology? Reading Piketty´s with Latin American lenses.

This review essay evaluates Capital and Ideology in light of the Latin American experience. Given its history of exploitation and high levels of inequality, the region constitutes an essential case study. By considering the Latin America case, we can also benefit from the many insights coming from within the region and often overlooked by the Anglo-Saxon (dominant) literature. The paper makes two different arguments. First, asymmetries in economic and political power are the main drivers of long-term inequality. Following insights from structuralism, I show how the organization of the global economy has shaped domestic patterns of income distribution in many parts of the world. The dependent character of economic development together with the power of domestic elites explain Latin America's stubborn inequality; ideology has historically been more an instrument than an underlying driver. Second, we cannot understand the evolution of income distribution without considering the role of dictatorships. While Capital and Ideology explains convincingly why liberal democracies are not working, it never properly considers the risk and costs of (conservative) authoritarian regimes. In thinking about policy responses, the essay also highlights the importance of strengthening democracy, fighting dictatorships, and enhancing the influence of social movements.