Political Risk Is Revived in Latin America as Protests Spread

Protesters from Chile to Ecuador derail austerity measures
Wealth gap, slower growth and rising debt making a potent mix

Riot police fire tear gas during a protest in the Historic Center neighborhood of Quito, Ecuador, on Wednesday, Oct. 9, 2019. As Ecuadorian protesters infuriated by rising fuel prices invaded government offices and oil fields, the president and his administration fled the capital, warning of a coup.Photographer: David Diaz Arcos/Bloomberg

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By Juan Pablo Spinetto

October 20, 2019 at 7:46 PM UTC

Updated on

October 21, 2019 at 6:25 PM UTC

This article is for subscribers only.

Latin America, the traditional poster child for political risk in financial markets, is back as a source of concern for investors.

Chilean President Sebastian Pinera on Saturday became the second leader this month to declare a state of emergency, his hand forced by violent protests in South America’s wealthiest country after an increase in transportation costs. In Ecuador, unrest blew up after President Lenin Moreno ended fuel subsidies.