Kurt Weyland, The Rise of Latin America's Two Lefts: Insights from Rentier State Theory

As Latin America has moved leftward, why have the governments of Brazil, Chile, and Uruguay pursued moderate, gradual change, whereas their counterparts in Venezuela, Bolivia, and Ecuador have proceeded with considerable economic and political radicalism? Comparative analysis and case studies of Brazil and Bolivia indicate that backlash against market reform and the differential strength of party institutions do not satisfactorily explain this striking difference. Instead, natural resource rents and commodity booms and busts play a crucial role. The unearned windfalls produced by bonanzas inspire risk-acceptance among political leaders and common citizens, which can prompt ideological radicalism and political confrontation. This argument, based on a novel, cognitive-psychological microfoundation, contributes to theories of the rentier state and the "resource curse."