Social Exclusion in Latin America under Neoliberalism, and a Possible Solution of Porto Alegre
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This paper discusses how Latin America’s social exclusion, along with inequality, accelerated in the context of neoliberalism, and investigates how participatory budgeting in Porto Alegre in the late 20th century proved a possible solution to the long-term social exclusion in Latin America. Latin America is characterized by widespread high inequality, and the inequality is not limited to the dimension of material resources but also includes a form of social exclusion. This social pathology became apparent in the rapid urbanization prevalent in Latin America. At the same time, neoliberalism integrated free market logic with democracy and thereby it justified neglect of the poor and also had influence on people’s depoliticization. Within this context, there was an experiment which took a different direction and substantially alleviated social exclusion of the poor: participatory budgeting in Porto Alegre, Brazil. This unique program, under the initial effort and the iconoclastic volition of the municipal government, encouraged the poor to participate in deciding policy, and provided real social welfare to the poor beneficiaries. In the process of democratization and alleviating social exclusion, it bypassed neoliberal marketizing practices and empowered the poor.
Abstract
This paper discusses how Latin America’s social exclusion, along with inequality, accelerated in the context of neoliberalism, and investigates how participatory budgeting in Porto Alegre in the late 20th century proved a possible solution to the long-term social exclusion in Latin America. Latin America is characterized by widespread high inequality, and the inequality is not limited to the dimension of material resources but also includes a form of social exclusion. This social pathology became apparent in the rapid urbanization prevalent in Latin America. At the same time, neoliberalism integrated free market logic with democracy and thereby it justified neglect of the poor and also had influence on people’s depoliticization. Within this context, there was an experiment which took a different direction and substantially alleviated social exclusion of the poor: participatory budgeting in Porto Alegre, Brazil. This unique program, under the initial effort and the iconoclastic volition of the municipal government, encouraged the poor to participate in deciding policy, and provided real social welfare to the poor beneficiaries. In the process of democratization and alleviating social exclusion, it bypassed neoliberal marketizing practices and empowered the poor.
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