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Trapped: What If Chile Ends Up Like Argentina?

By Eduardo Levy Yeyati

It wouldn’t be the first country to get stuck in the classic “middle-income trap”.

In August 2013, a demonstration in Natal called – successfully – for a reduction of the bus fare and triggered similar protests throughout the country in what some would later call the “Brazilian Spring”. The protests were about more than just the price of transportation. While the price was high, the quality was also poor. Moreover, it was difficult and expensive to get to the university, the public health system was substandard, and cities were unsafe.

These protests were somewhat anti-climactic, as they arose just as the rise of Latin American middle class was being greeted by...

Read this article on the Americas Quarterly website. | Subscribe to AQ.

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