In 2010, countries were relatively clustered around similar levels of development and democracy, suggesting a somewhat uniform relationship between the two variables across the region, By 2022 the correlation shows greater dispersion, indicating that some countries have advanced significantly in one area (human development or democracy) without seeing proportional gains in the other. This suggests that democratization and human development in LAC have reached a critical juncture, where their evolution may be path-dependent but also more influenced by specific national contexts. Each country navigates this relationship is context-specific, leading to varying outcomes across the region.

The steeper slope of the 2022 trend line compared to 2010 signals that the relationship between human development and democracy has strengthened. In 2022, countries with higher Inequality-adjusted Human Development Index (I-HDI) scores are more likely to show greater gains in their Democracy Index than they did in 2010. This suggests that human development has had a more pronounced impact on democratic governance in recent years. Conversely, countries that have lagged in human development have also struggled to improve their democratic systems.

In 2010, countries with higher I-HDI still enjoyed higher Democracy Index scores, but the slope was less steep, meaning that the increase in democracy per unit of human development was smaller. In simpler terms, human development has had a stronger, more direct impact on democracy in 2022 than it did in 2010.

Three Attributes of Democracy:

Further, democracy is not just a theoretical construct. It has three attributes that are practical necessities for fostering human development:

FORMAL/ELECTORAL: Citizens thrive and expand their development opportunities where there are open and participatory environments with political opportunities. It allows citizens to engage actively in political processes, including voting, advocacy, and civic participation. High levels of political participation are associated with better governance and accountability. Evidence shows that countries with higher voter turnout and active civil societies tend to have more responsive governments. For instance, countries that exhibit elevated levels of civic engagement, also report higher satisfaction with democracy among their citizens. This engagement fosters a sense of ownership and responsibility among citizens, leading to policies that reflect the needs and aspirations of the populace.

For example, in 2024 and 2025, 21 electoral processes will be held in 19 countries and territories across Latin America and the Caribbean. This means more than 400 million people will be eligible voters over a span of 48 months. But also, LAC is the region in which polarization has increased the most in the last 20 years. LAC is amongst the most polarized regions in the world, second to only Eastern Europe and Central Asia (source: Human Development Report)

PROCEDURAL / INSTITUTIONAL: A sound rule of law is characterized by strong institutions that facilitate effective governance, access to justice, and accountability. This attribute is crucial for ensuring that democracy functions effectively and that the rights of citizens are protected. Countries with robust rule of law, tend to experience better development outcomes, including higher GDP per capita and improved social indicators. Strong institutions help mitigate corruption, enhance public service delivery, and create an environment conducive to economic growth.

Yet, trust in public institutions has declined significantly, reaching levels close to 20%. That is, only 1 in 5 people expressed trust in their governments. Latinobarómetro (2023) data showcases a 12-percentage point decrease in citizens’ trust in democracy in the last 20 years. And importantly, while women’s participation in public decision-making processes stands at around 30% in the region, only 15% of mayors in Latin America and the Caribbean are women (source: ECLAC).

SUBSTANTIVE / LIBERAL: A free and open living environment ensures that citizens enjoy their political rights and civil liberties. This includes freedom of speech, assembly, and the press, which are essential for fostering an informed and engaged citizenry. Countries that protect civil liberties tend to have better human development outcomes. That is, countries that rank high in civil liberties, also show considerable progress in health and education indices. The Human Development Index (HDI) illustrates this correlation, as countries with higher HDI scores often have strong democratic institutions that protect individual freedoms.

Unfortunately, LAC has long endured the world's highest rates of violent crime, such as homicides and gender-based crime: With only 9% of the global population, the region accounts for 33% of the world's homicides, and 17 of the 20 countries with the highest homicide rates are in Latin America.

Three Insights on Democratization

Investing in democratic institutions and promoting civic engagement are essential steps toward achieving human development. By reinforcing these democratic attributes, LAC countries can create a more equitable, prosperous, and resilient future for citizens. The path forward lies in recognizing that democracy is not just a political system but a vital foundation for human development and societal progress.

• Democracy provides an open and participatory environment: By fostering an open and participatory political environment, democracy enables citizens to engage actively in shaping policies and institutions that address their needs and aspirations. This participation is crucial for advancing human development outcomes.
• Democracy strengthens the rule of law: A vigorous political environment with strong functioning institutions is essential for translating democratic ideals into tangible improvements in human development. Efficient institutions promote accountability, and responsiveness to citizens' needs, and provide solutions in effective manners.
• Democracy protects civil liberties: The protection of political rights and civil liberties in a free and open living environment is fundamental for individuals to exercise their agency and participate fully in the development process. When citizens feel secure in their freedoms, they are more likely to contribute actively to societal progress.

Three Lessons from Successful Democratic Policymakers

Meeting the new challenges of democratic governance cannot be accomplished with the same thinking used when democracies were established in Latin America and the Caribbean. But while it is true that problems of democracy are better addressed with more democracy, it can be said also that the way the problems of human development are addressed enhances or weakens democracies.

In navigating the complexities of governance, successful democratic policymakers from LAC have consistently demonstrated three vital characteristics:

• Focus on solutions to development deficits rather than blaming others.
• Set limits on the exercise of political power and mandate terms to ensure checks and balances and alternation.
• When a policy choice was necessary, the protection and promotion of democracy was prioritized over economic growth.