Between the Fear of falling and the Struggle to Persist: The Latin American Middle Class and a New Social Contract

Abstract

Since most Latin American countries achieved their independence in the 19th century, they have encountered a double challenge: Internally, to consolidate strong states that provide security and a sense of identity to their citizens and, internationally, to insert themselves effectively into the political and economic system. Within this process, the economic models and adjustment plans established in the region since the end of World War II have had an impact on the middle class, either increasing or decreasing its size. This is how the possibility of entering the middle class – although segmented into traditional and new – continues to be an idealized scenario where citizens can achieve decent living standards and even access certain luxuries. Unfortunately, the COVID-19 pandemic increased the feeling of uncertainty and instability in the region, which resulted in negative macroeconomic indicators in terms of GDP or an increase in external debt. This situation had a substantial impact on the middle class, which was affected by the loss of jobs and income that would allow them to maintain or improve their living conditions. The possibilities of improving these conditions are aligned with the redirection of the social contract in force in the majority of Latin American societies, in which both communities and states must strive for agreements that reduce uncertainty and mutual distrust. This path opens the way to the application of actions that benefit not only the middle class but also the less favored classes.