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Why finance is at the heart of Chile’s crisis

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The outsized role of unfettered finance in Chile has only worsened inequality that led to recent uprisings

In September this year, less than a month before frustrated Chileans took to the streets in Santiago, on Chile Day, former finance Minister Felipe Larrain announced new legislation that, it was hoped, would make Chile into a regional financial center. The new bill would contains regulatory changes to facilitate registration of foreign securities in Chile and eliminate tax differences between locals and foreigners that affected the ability of finance to move seamlessly in the domestic economy. These measures were announced to commemorate ChileDay in London, where Conor Burns, minister in the UK government praised Chile’s macro-economic growth and fiscal management under the Sebastian Pinera government.

After years of trying to make the country into a financial regional center, the new bill concretized the government’s intentions. Larrain explained that the initiative meant to relax existing rules of financial regulations through a number of areas, including reduce paperwork for foreign investors, introduce new international practices in the local fixed income market for investors to access liquidity, simplify tax laws and contracts for short-term finance and make mutual funds more flexible. In this way the government sought to enable growth in profits of financial assets, which are primarily held by wealthy investors and high net worth Chileans. Protestors’ move into the affluent Providencia neighbourhood to up the ante a few days ago – known as Chile’s financial district – ironically represent the apogee of this relationship.

After unease spread about the social conditions in Chile after the increase on metro fares, Minister Felipe Larrain, who retained the position from Pinera’s 2010 administration, was sacked. Larrain’s firing is emblematic for several reasons. Much of the recent analysis while rightly focusing on worsening social conditions for the majority of Chileans, few commentators have pinpointed one, if not the most important culprit, of high inequality since Chile became a democracy ended in 1990. Chile’s embrace of financial globalization has been at the forefront of higher levels of inequality in Chile for over the last 2 decades during both left- and right-wing governments.

The planned growth of the financial sector, while good for investors and those with idle assets, it is not positive for the majority of Chileans. The United Nations Economic Commission for Latin America and the Caribbean shows ownership of financial assets are concentrated in the pocket books of the 1 per cent. In 2017, the net worth of households was extremely distorted. While the poorest 50% of households had an average net worth of US$ 5,000, the sum for the wealthiest 10% averaged US$ 760,000, and the richest 1% owned US$ 3 million. To make matters worse, the richest 10% made a whopping 92.2% of investments in shares and mutual funds, other forms of equity holdings and investment portfolios, and 77.4% of deposits in savings accounts and long-term fixed deposits. In comparison, the lower 50 per cent of the population held just 7.7% of total physical assets like motor vehicles and real estate. As a result, many Chileans are swimming in debt, owing a total of US$116 billion (about 44 percent of gross domestic product) – a significant portion due to mortgages and showing increases by 12 per cent since 2010.

In its 2018 economic survey, the OECD laid out the conditions that have led to the current crisis: as many 30 per cent of Chilean workers engage in informal work or on short-term contracts, with high concentrations among women, youth, low-skilled and indigenous groups, while unemployment benefits are virtually nonexistent. Self-employed workers earn 20% less than a formal waged employee with the same skills and experience. Financial sector employees also make more than twice the average worker and even mining sector workers. Over the years, this wage inequality and labour informalisation have been facilitated by deregulating labour markets whereby workers have less bargaining power of labour unions. Labour unions’ calls to increase their stake in the congress therefore offer some hope for workers to gain more of the share of national wealth. Increases in labour income, as ECLAC shows, have a positive effect on macro-economic growth. Pinera’s obstinacy to these initiatives seem to protect his economic standing rather than promote a resolution in workers’ favour. Government resistance would only encourage further polarization.

Chile’s financial sector has expanded at a rate more than any other economic sector, and realized a significant portion of total income and profits in the country. In terms of asset base as a percentage of GDP, the financial sector (including money bank deposits and of other financial institutions) it has growth from 64% in 1984 to 67% in the late 1990s, surpassing the 100% mark in 2010. In 2016, this ratio reached 117%. After Mexico, Chile has the highest capital penetration of foreign banks in Latin America which has counter intuitively reduced the amount of credit available to small local businesses to finance production in new products and sectors. In the meanwhile, foreign investment has however expanded in areas that do not employ great numbers. Large mining businesses which employ fewer numbers of Chileans also have a disproportionate access to international markets for credit. Chile’s pension system is also privatized and seen as source for financial sharks to make a killing, which fluctuates according to traders’ optimism and can lose as it did in late 2018 when investors lose confidence.

Increased privatization of the state, and narrow industrial policies promoted by agencies like the Inter-American Development Bank bolster the role of finance using a number of instruments and incentives. Compared to years prior to the dictatorship, and for a short period during Pinochet reign after the banking crisis of the 1980s, finance was largely well regulated and credit expanded to sectors that generated a large number of jobs. Now, rather than expanding employment and increasing high-value industrial exports, Chile has since the 2000s suffered becoming more and more specialized in mining. Even as private investment flows increased in copper mining during the 2000s, this has not had a broad effect on re-industrializing the Chilean economy. The opposite is true. In fact, the majority of the country’s lithium is manufactured outside of the country.  

While some economists have suggested that that higher inequality was due to the end of the high-price commodity boom in Chile in 2014, the historical record shows that inequality was rampant during Pinochet’s dictatorship and only slightly decreased from the 1990s onwards. Inequality was practically baked into the tax system, as well as the housing and transport policies of successive governments, as Chileans found it hard to seek work opportunities in its capital city Santiago. This has earned Chile the infamy of the most unequal country in Latin America and the OECD as a whole according to certain analyses. 

As the world awakens to the reality that the expanding finance do not lift all boats or ‘trickle down’, if there is to be a successful resolution to the current calamity that dates back to the reforms of Pinochet, democratizing finance is critical to return power to the hands of Chileans.

Keston K. Perry, PhD is a political economist with expertise in global finance, climate policy and economic development with specific reference to resource wealthy economies in Latin America and the Caribbean. Previously, he served as an external adviser to the United Nations Development Program Latin America and Caribbean Bureau.

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Presidential Evil And American Good: Can They Coexist?

Prof. Louis René Beres

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Niccolò Machiavelli

If men or nations do evil in a good cause; if they cover themselves with guilt in order to fulfill some high responsibility; or if they sacrifice some high value for the sake of a higher or equal one they make a tragic choice.-Reinhold Niebuhr, The Irony of American History

When Protestant theologian Reinhold Niebuhr posited the tragic choice of evil for the sake of good – a choice inherent in both the “human condition” and the anarchic state of nations – he was not focused on differences within a specific national government. Today, however, in the dissembling United States, a similarly tragic choice confronts America’s citizens in particular. Here the apparent choice is bold and straightforward:

               Shall Americans support an evil president in the greater interest of some wider political good?

               Though plausible in principle, no such dilemma actually exists. In  current US political circumstances, there is no supportable argument that Donald Trump’s disjointed and seat-of-the-pants policies, either foreign or domestic, can bestow any verifiable net benefits. To the main point, by allowing a willfully corrosive president to act in its name, the United States has defiled American national interests and  global human interests simultaneously.

               Apropos of proper logic, one presumptive conclusion is unambiguous: There is notragic” choice involved here (the choice identified above by Realpolitiker[1] Reinhold Niebuhr),  just an obvious and overriding imperative to rid both nation and planet of Trump-era toxicity. Prima facie, in this case at least, presidential evil and American good are mutually exclusive.

               There is more. With each passing day, weary Americans must face several stark and ironic contradictions. At an historical  moment when uplifting numbers of good people are making great personal sacrifices to help others (e.g., medical communities working against Covid19;  firefighters in the west; hurricane search-and-rescue personnel in the south, etc.), a US president acts wittingly to undermine his own country’s safety and security. This behavior includes a continuously incomprehensible stance of support for Vladimir Putin, the Russian president who it would appear can wish no harms upon the United States.[2]

               While according to any reasonable criteria of intellectual assessment these cumulative Trump behaviors are injurious and inexcusable,[3] millions of US citizens still maintain that his plainly deranged presidency represents a calculable “net positive.”

               What does this really mean? By definition, even now, these Trump-supporting Americans believe that manifest presidential evil can be compatible with national welfare and national progress. Somehow, in this case, they believe that such once-unimaginable evil can also be good. Credo quia absurdum, said the ancient philosophers, “I believe because it is absurd.”

               How can all this be helpfullyexplained? Conceptually, it would be best to begin at the beginning. The contradiction we are so painfully witnessing with this stumbling White House administration is not uniquely American. Already, back in the sixteenth-century, philosopher Niccolo Machiavelli observed famously,  “A man who wishes to  make a profession of goodness in everything must necessarily come to grief among so many who are not good.”

               Machiavelli need not always be clarifying or relevant. There is nothing here to suggest that this classic argument from The Prince would in any way support Donald J. Trump’s foreign and/or domestic policies. This president’s particular descents into wrongdoing and dereliction are not an expression of any gainful policy “realism.” Rather, they are singularly lamentable expressions of wantonly gratuitous harms.

               In an unsteady age when the risks of a nuclear war[4] could coincide with expanding biological destructions – that is, with the devastating microbial assaults of a Corona-Virus “plague”[5] – such harms can have no conceivable justifications.

               None at all.

               There is more. Context is important. All humans, wherever they may live, must bear persistent witness to the distressingly thin veneers of  “civilization.” Recalling William Golding’s marooned boys in Lord of the Flies, we must repeatedly discover, beneath any delicate varnish of supposed coexistence, a lascivious human inclination to brutalize  certain “others.”

               However informally it may be calculated, this primal inclination is “normally” judged agreeable and cost-effective.

                Science and technology notwithstanding, empathy and compassion remain in calculably short supply on planet earth. Accordingly, substantial fractions of humankind remain slouched in a perpetually bruising darkness, hoping not to create promising new forms of human civilization, but to “better” inflict myriad varieties of unspeakable slaughter. During the debilitating “Trump Years,” years of steadily-expanding presidential evil, the United States has made an egregious choice.

               Knowingly, it has placed itself directly within such nefariously cascading “darkness.”

               As “analysts,” Americans should now be more policy-specific. In Donald Trump’s United States, there is always some blatantly self-serving presidential explanation for human rights abuse. To wit, we are instructed, the latest victims are despicable, “illegal” or, in some ways at least, not fully human. Always, they are “others,”  mere others. And as we are repeatedly informed by the president’s reliably obsequious minions, this particular victim population is not at all like us. It is deserving of necessary “punishment.”

               Credo quia absurdum.  “I believe because it is absurd.” It is a very old story. The struggle between “Us and Them” is very plainly generic, not US-specific. If we are “good,” they are not. Period. Such grimly bifurcated reasoning is especially perverse and ironic today, during a pandemic crisis when the common biological “oneness” of the human species couldn’t possibly be more obvious

               In high tragedy, as originally performed back in fifth-century BC Athens, humans were routinely presented as inherently flawed guests in a divinely-created universe. This ancient presentation, though presently “modified” with assorted  regional and religious nuances, remains difficult to dispute. After all, following even a “small” nuclear war –  a plausible event, at least in the currently downward trajectory of world affairs – cemeteries the size of whole cities could be needed to bury the uncountable dead.

               Then, recalling the pre-nuclear imagery of poet T S Eliot, there could be no “lilacs breeding out of the dead land.” Then, there would be no discernible “good,” only variously decaying bearers of “evil.”

               Promptly, in far-flung parts of the world, both within and between individual nation-states, a “waste land” could become the new normal. Such “normalcy,” one substantially worse than even the new-normal of Covid19 life on earth, ought never become an intentionally sought-after expectation. For rational thinkers, this point hardly requires any present-moment clarifications.

               No sane person can be in favor of necropolis.

               “Art is a lie,” noted Pablo Picasso, “that lets us see the truth.” In this paradoxical description, theatrical tragedy can remind us that earthly spheres of order, justice and good remain severely compromised  by evil, and that  no amount of technology or science can ever compensate for our species’ multiple leadership transgressions. If, as in high tragedy, we humans should sometimes be punished in apparent excess of our specifically personal wrongdoings –  “Whom God wishes to destroy,”  warned the Greek tragedian, Euripides, “He first makes mad.” –  even this “unfair” fate could not declare us to be “innocent.”

               Not reasonably.

               There is more. Always, it is the gripping silence and self-inflicted fears of ordinary people that sustain the human world’s abundant madness. Often, these primal fears center on certain irrepressible expectations of personal death. But sometimes they can also rest on various corollary anxieties about personal exclusion. More than anything else, and for several markedly different yet intersecting reasons, we humans continue to seek the comfortingly calming warmth of  “mass.”

               It is the “mass man.” an elucidating and derivative construct of Spanish existentialist philosopher Jose Ortega y’Gasset (The Revolt of the Masses,1930) who created US President Donald J. Trump. Stated differently, this American president, who promises to “Make America Great Again” is the openly evil product of American “mass.”[6] By itself, this collective does not intend to create evil, but intent is not at all determinative.

               It is quite enough that the mass prefers baseless opinion to documented fact and a willful anti-Reason to proper learning or tangible science.

               There is more. As a species, not just as Americans, there exists no compelling or defensible reason for us to fawn upon myriad past mistakes. Now, instead, with a view to achieving some still-plausible and verifiable progress, Americans must look back courageously. “How much treasure,” they must finally inquire, “how much science, how much labor and planning, how many vast oceans of sacred poetry, have we already ransacked, just to render our disparate human civilizations even more miserable and more imperiled?”

               I don’t know each pertinent answer. I do know, however, that our shallow and corrupted civilizational institutions, including America’s humiliating presidential elections, can never save us. This nation’s most revered universities,  perched deliberately above the distressingly mundane clamor of work, politics and family, remain unmindful of the world’s most urgently important intellectual questions.

               Thoroughly unmindful.

               Unassailably, though painfully indelicate to acknowledge, higher education in the  expansively deranged Trump-Era proceeds hand in hand with a ubiquitously crude and predatory commerce. In partial consequence, our colleges and universities shamelessly crush most residual reflexes of lingering student intellect or individuality. This crushing is not undertaken with any insidious intent – and the challenges to academic success during a pandemic are anything but minor –  but the US posture of anti-Reason is nonetheless destructive. Sorely destructive.

               In today’s Trump-defiled United States, American Transcendentalist philosopher Ralph Waldo Emerson’s once venerable goal of a people that is “plain living and high thinking” is more than just forgotten. This once-lofty objective presently now lies very far beyond any identifiable popular interest or hint of public imagination. Why not? Living together with unhidden presidential evil, what else should we expect?

                The American university, a dutifully obliging adjunct of the wider corporate/political universe, now lies distant not only from human learning, but also from human survival. French philosophers of the eighteenth-century Age of  Reason had preferred to speak optimistically of a siècle des lumieres, a “century of light,” but today, the ivy-covered walls are inestimably fouled by a congealing darkness, by a suffocating pall of excruciating conformance, vulgar self-interest and even a peculiarly-fashionable loathing of anything detached from money.

               There is a professionally favored euphemism here. It’s called “wealth maximization.” The language provides cover for a nation’s abject indifference to serious learning.

               None of this devaluation was initially created by the Trump “ascendancy,”[7] but it has been strongly reaffirmed in absolutely every respect by a starkly unworthy American president.[8]

               As an easily verifiable matter of human history, resisting evil has had little to do with human intelligence. More often than we may care to admit, such intelligence is conveniently manipulated to justify or enlarge certain “others'” most excruciating forms of  human suffering. Indeed, looking over the still-mounting wreckage of Donald Trump’s presidency in the United States, we see the palpably grim results of such manipulation,  both domestically and in various other countries harmed by the dissembling American foreign policies.

               In some cases, these are harms of US omission or inaction, rather than of commission. A specific case in point would by Syria, where Trump’s immutable unwillingness to get on the wrong side of Vladimir Putin has already created societal disintegration and unspeakable torment.[9]

               The main theme or question before us allows only a single coherent response. There is no way that a “good” American society can be created or sustained by an “evil” American president. Period. Before the United States allows itself to become even more thoroughly lost to any still credible hopes for human improvement  and national survival, American citizens will have to build more purposefully upon this rudimentary wisdom. To be sure, we remain disturbingly far from understanding (let alone electing) Plato’s “Philosopher King,”[10] but now we are at least better advised to reject American presidential evil at absolutely all costs.

               Donald J. Trump does no evil for the sake of good. There is nothing “tragic” about his persistent across-the-board choice of evil              postures and policies. In essence, he makes these barbarous choices because he is authentically committed to evil for evil’s own sake.

               Left uncorrected, Trump will continue to bring to these deeply unhappy United States a self-inflicted future of national humiliation and determined anti-reason.

               No such future could ever “make America great again.”


[1] On Realpolitik or power politics, see, by this author, Louis René Beres, Reason and Realpoliitk: US Foreign Policy and World Order (Lexington Books, 1984). See also his later book: Louis René Beres, America Outside the World: The Collapse of US Foreign Policy (Lexington Books, 1987).

[2] Incontestably, of course, Russia remains a significant nuclear threat to the United States. See, for example, by this author, Louis René Beres, at The War Room (US Department of Defense: Pentagon): https://warroom.armywarcollege.edu/articles/nuclear-decision-making/

[3] Journalist Bob Woodward called Trump’s efforts to conceal his knowledge of the virus from the public “one of the most tragic, outrageous acts by a sitting president in, maybe in history.”

[4] For early and informed assessments of nuclear war risks and consequences by this author, see: Louis René Beres, Surviving Amid Chaos: Israel’s Nuclear Strategy (Rowman & Littlefield, 2016; 2nd. ed., 2018);   Louis René Beres,  Apocalypse: Nuclear Catastrophe in World Politics (Chicago: University of Chicago Press, 1980); Louis René Beres, Mimicking Sisyphus: America’s Countervailing Nuclear Strategy (Lexington MA:  Lexington Books, 1983);  Louis René Beres, Reason and Realpolitik: US Foreign Policy and World Order (Lexington MA;  Lexington Books, 1984); and Louis René Beres, ed.,  Security or Armageddon: Israel’s Nuclear Strategy (Lexington MA:  Lexington Books, 1986). See also, by Professor Beres, at The Bulletin of the Atomic Scientists: https://thebulletin.org/2016/08/what-if-you-dont-trust-the-judgment-of-the-president-whose-finger-is-over-the-nuclear-button/

[5] Such biological assaults have thus far been considered only as natural occurrences. Going forward, however, it is possible that pertinent pathogens could be weaponized, and that future instances of “plague” could emerge as a deliberate form of warfare and/or terrorism.

[6]Like Jose Ortega y’Gasset, the Swiss psychologist Carl G. Jung spoke usefully of  “mass.” Earlier, Friedrich Nietzsche, had referenced this demeaning phenomenon as the “herd;” Sigmund Freud, as the “horde;” and Soren Kierkegaard, as the “crowd.”

[7] See,  by this author, at The Daily Princetonian, Louis René Beres: https://www.dailyprincetonian.com/article/2018/06/a-core-challenge-of-higher-education

[8] See, by this author, at Yale Global Online, Louis René Beres: https://yaleglobal.yale.edu/content/trump-and-destruction-american-mind

[9] These are not just matters of moral responsibility. The United States is obligated by the international law of human rights to intervene on behalf of such cruelly victimized populations. These international legal obligations are also incorporated in the national law of the United States, per Article 6 of the US Constitution (the “Supremacy Clause”) and several major US Supreme Court decisions. In the precise words of Mr. Justice Gray, delivering judgment of the US Supreme Court in Paquete Habana (1900): “International law is part of our law, and must be ascertained and administered by the courts of justice of appropriate jurisdiction….” (175 U.S. 677(1900)) See also Opinion in Tel-Oren vs. Libyan Arab Republic (726 F. 2d 774 (1984)).

[10] See, by this author, at Oxford University Press, Louis René Beres: https://blog.oup.com/2011/08/philosopher-king/

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In Praise of the Lioness of Law: Ruth Bader Ginsburg and her Jurisprudence

Punsara Amarasinghe

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image credit: Wikipedia

The death of the US Supreme Court Judge Ruth Bader Ginsburg has created an abyss in the court for the liberal voice where justice Ginsburg was seen as the linchpin of the liberal block of the Supreme Court at a time when that block was shrinking. Especially late judge had vociferously advocated for women ‘rights, environmental issues and often came up with unique dissents in delivering her judgements which were propelled by her jurisprudence which embodied the solemn ideal in American legal system “Equal Protection under the Law “. She was on a quest to defend the delicate balance between honoring the timelessness of American Constitution and recognizing the depth of its enduring principles in new centuries and under new circumstances.

She grew up in an era where men held the helm in every aspect of social life and especially the legal profession was utterly dominated by men. Recalling her legal studies at Harvard law school in the 50’s judge Ginsburg had stated later how she was once asked by the Dean of Harvard law school to justify her position as a law student that otherwise would have gone to a man. Yet she had the spunk to overcome all the obstacles stood on her way and excelled as a scholar becoming the first female member of the Harvard Law Review.

In tracing her legal career that it becomes a salient fact, Judge Ginsburg marked her name in American legal history even decades before she joined the bench. While at the American Civil Liberties Union in the early seventies she made an upheaval in American in legal system in famous Supreme Court Case Reed Vs Reed. In Reed Vs Reed the brief drafted by Ginsburg provided an astute analysis on the 14th Amendment to the US Constitution, the Equal Protection Clause. Ginsburg’s brief changed the aged long practice existed in the State of Idaho on favoring men over women in estate battles by paving the path for a discourse on gender equality rights in the USA.

Judge Ginsburg’s appointment to the Supreme Court in 1994 during Clinton administration marked the dawn of new jurisprudential chapter in the US Supreme Court. Two terms later, in the United States v. Virginia (VMI), Justice Ginsburg applied her lucid perspective to a sharply disputed constitutional claim. The United States challenged Virginia’s practice of admitting only men to its prestigious military college, the Virginia Military Institute. Writing for six Justices, Ginsburg held this policy unconstitutional under the Equal Protection Clause. In reaching this result, Ginsburg adroitly cut away potentially confounding issues about women’s participation in the military or the advantages of single-sex education.

Her robust activism in securing gender equality often attracted the admirations of the feminist scholars and activists, but it should be noted that her contribution was not only confined to the protection of gender equality. She was a robust critique of racial dissemination which still pervades in American society and she frequently pointed out how racial discrimination has marred the constitutional protections guaranteed to every citizen. Especially in the case of Gratz Vs Bollitnger, she stressed on the commitment that the state ought to fulfil by eliminating the racial biases existing employment and education. Moreover, disabled citizens. In Olmstead v. Zimring, she held that “unjustified institutional isolation of persons with disabilities is a form of discrimination” violating the Americans with Disabilities Act.45 She elaborated a two-fold concept of discrimination, noting that unneeded institutionalization both “perpetuates unwarranted assumptions that persons so isolated are incapable or unworthy of participating in community life”.

In remembering the mortal departure of this prudent judge that one cannot forget her keenness in incorporating international law into her judgements regardless of the disinclination shown by conservative judges like Antony Scalia. Going beyond the mere textualism approach to the law, Ginsburg’s jurisprudence was much more akin to using international law to make substantive decisions. For instance, in her concurring verdict in Grutter Vs Bollinger, Justice Ginsburg relied upon international human rights law, and in particular upon two United Nations conventions, to support her conclusions.

Indeed, the demise of Ruth Ginsburg is a major blow for the liberalists in the USA, especially in an era where liberalist values are at stake under the fervent rise of populist waves propounded by Donald Trump. Especially late judge had been one of the harsh critics of Trump even before ascendency to the Oval office. The void created by the demise of judge Ginsburg might change the role the US Supreme Court if the successor to her position would take a more conservative approach and it will fortify the conservative bloc in the US Supreme Court. Trump has already placed Justices Neil Gorsuch and Brett Kavanaugh and the third pick would more deeply entrench the conservative views in the US Supreme Court, which would inevitably undermine the progressive policies taken during Obama’s administration towards issues such as the environment. The political storm appeared after the death of the late judge has already created a tense situation in US politics as president Trump is determined to appoint a judge to fill before the presidential election in November.

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The Politics of (In)security in Mexico: Between Narcissism and Political Failure

Lisdey Espinoza Pedraza

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Security cannot be that easily separated from the political realm. The need for security is the prime reason why people come together to collectively form a state. Providing security is, therefore, one of the most basic functions of the state as a political and collective entity.

Last Friday, the Mexican president, Andrés Manuel López Obrador (AMLO) laughed during his daily morning press briefings over a national newspaper headline about 45 massacres during his presidency. This attitude summarises in a macabre way his approach to insecurity: it is not his top priority. This is not the first time that AMLO has showed some serious and deeply disturbing lack of empathy for victims of crimes. Before taking office, he knew that insecurity was one of Mexico’s biggest challenges, and he has come to realise that curbing it down will not be as simple as he predicted during his presidential campaign.

Since the start of the War on Drugs in 2006, Mexico has sunk into a deep and ever-growing spiral of violence and vigilantism as a result of the erosion of the capacity of the state to provide safety to citizens. Vigilantism is when citizens decide to take the law into their own hands in order to fill the vacuum left by the state, or to pursue their own very particular interests. Guerrero, Michoacán, Morelos, Tabasco, Tamaulipas and Veracruz have over 50 vigilante organisations that pose substantial danger to the power of the state.

Vigilantism is not the only factor exacerbating the security crisis in Mexico: since 2006, young people have also started to join drug cartels and other criminal organisations. There are important sectors of the population who feel that the state has failed to represent them. They also feel betrayed because the state has not been able to provide them with the necessary means to better themselves. These frustrations make them vulnerable to the indoctrination of organised crime gangs who promise to give them some sort of ideological direction and solution to their problems.

As a result, it is not enough to carry out a kingpin arrest strategy and to preach on the moral duties we have as citizens as well as on human dignity. People need to be given enough means to find alternative livelihoods that are attractive enough to take them out of organised crime, Mexico can draw some important lessons from Sierra Leone who successfully demobilised and resettled ex-combatants after the armed conflict. Vigilantism, recruitment by organised crime, and insecurity have also flourished because of a lack of deterrence. The judicial system is weak and highly ineffective. A large proportion of the population does not trust the police, or the institutions in charge of the rule of law.

A long-term strategy requires linking security with politics. It needs to address not only the consequences but also the roots of unemployment and deep inequality. However, doing so requires decisive actions to root out widespread and vicious corruption. Corruption allows concentration of wealth and also prevents people from being held accountable. This perpetuates the circle of insecurity. Mexico has been slowly moving towards a borderline failed state. The current government is starting to lose legitimacy and the fragility of the state is further perpetuated by the undemocratic, and predatory governance of the current administration.

Creating a safer Mexico requires a strong, coherent, and stable leadership, AMLO’s administration is far from it. His popularity has consistently fallen as a result of his ineffective policies to tackle the pandemic, worsening insecurity, and the economic crisis. Mexico has reached over 72,000 Covid-19 deaths; during his initial 20 months as incumbent president, there has been 53,628 murders, among them 1800 children or teenagers, and 5888 women (11 women killed per day) This criminality rate is double than what it was during the same period in the presidency of Felipe Calderón (2006-2012); and 55% higher than with the last president, Enrique Peña Nieto (2012-2018). Mexico is also experiencing its worst economic recession in 90 years.

Insecurity remains as the issue of most concern among Mexicans, seeing the president laughing about it, can only fill citizens with yet more despair and lack of trusts in the government and its institutions. AMLO’s catastrophic performance is not surprising, though. Much of his failures and shortcomings can be explained by both ideology and a narcissistic personality. Having someone with both of those traits ruling a country under normal, peaceful times is already dangerous enough, add an economic crisis and a pandemic to the mix and the result is utter chaos.

AMLO embodies the prototypical narcissist: he has a grandiose self-image; an inflated ego; a constant need for admiration; and intolerance to criticism. He, like many other narcissists, thinks about himself too much and too often, making him incapable of considering the wellbeing of other and unable to pursue the public interest. He has a scapegoat ready to blame for his failures and mistakes: previous administrations, conservatives, neoliberalism, academics, writers, intellectuals, reporters, scientists, you name it, the list is long and keeps getting longer.

AMLO keeps contradicting himself and he does not realise it. He has been claiming for months that the pandemic is under control: it is not. He declares Mexico is ready to face the pandemic and we have enough tests and medical equipment: we do not. He says Mexico is on its way to economic recovery: it is not. He states corruption is a thing of the past: it is not. He says Mexico is now safer than ever before: it is not. When told the opposite he shrugs criticism off and laughs, the behaviour of a typical narcissist.

AMLO, alike narcissists, due to his inability to face criticism, has never cared about surrounding himself by the best and brightest. He chose a bunch of flunkies as members of his cabinet who try to please and not humiliate their leader. A further trait of narcissistic personalities is that they love conflict and division as this keeps them under control. The more destabilisation and antagonism, the better. AMLO since the start of his presidency has been setting states against states for resources and for pandemic responses, instead of coordinating a national response. He is also vindictive: playing favourites with those governors who follow him and punishing those that oppose him.

Deep down, narcissistic leaders are weak. AMLO is genuinely afraid to lead. He simply cannot bring himself to make decisions that are solely his. This is why he has relied on public referendums and consultations to cancel projects or advance legislation. He will not take any responsibility if something goes wrong: It was not him who decided, it was the people, blame them. He inherited a broken system that cannot be fixed during his term, blame the previous administrations, not him.

AMLO is a prime example of a textbook narcissist, unfortunately he is not the only one: Donald Trump, Boris Johnson, Recep Erdogan, Rodrigo Duterte are only a few more examples of what seems to be a normalised behaviour in contemporary politics. Every aspect of AMLO’s and other leaders presidencies have been heavily marked by their psychopathology. Narcissism, however, does not allow proper and realistic self-assessment, self-criticism, and self-appreciation therefore such leaders will simply ignore the red flags in their administration and have no clue how despicably and disgracefully they will be remembered.

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