Socialism of the 21st century ( es, Socialismo del siglo XXI; pt, Socialismo do século XXI; german: Sozialismus des 21. Jahrhunderts) is an interpretation of

socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the ...

principles first advocated by German sociologist and political analyst Heinz Dieterich and taken up by a number of Latin American leaders. Dieterich argued in 1996 that both

free-market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...

industrial capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...

and 20th-century socialism have failed to solve urgent problems of humanity such as poverty, hunger, exploitation of labour, economic oppression, sexism, racism, the destruction of natural resources and the absence of true democracy.Heinz Dieterich: ''Der Sozialismus des 21. Jahrhunderts – Wirtschaft, Gesellschaft und Demokratie nach dem globalen Kapitalismus'', Einleitung
Socialism of the 21st Century – Economy, Society, and Democracy in the era of global Capitalism, Introduction. Socialism of the 21st century has

democratic socialist Democratic socialism is a left-wing political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and workers' self-management within ...

elements, but it also resembles

Marxist revisionism Within the Marxist movement, revisionism represents various ideas, principles and theories that are based on a significant revision of fundamental Marxist premises that usually involve making an alliance with the bourgeois class. The term ''r ...

. Leaders who have advocated for this form of socialism include Hugo Chávez of Venezuela,

Rafael Correa Rafael Vicente Correa Delgado (; born 6 April 1963), known as Rafael Correa, is an Ecuadorian politician and economist who served as President of Ecuador from 2007 to 2017. The leader of the PAIS Alliance political movement from its foundation ...

of Ecuador,

Evo Morales Juan Evo Morales Ayma (; born 26 October 1959) is a Bolivian politician, trade union organizer, and former cocalero activist who served as the 65th president of Bolivia from 2006 to 2019. Widely regarded as the country's first president to c ...

of Bolivia,

Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva (; born Luiz Inácio da Silva; 27 October 1945), known mononymously as Lula, is a Brazilian politician, trade unionist, and former metalworker who is the president-elect of Brazil. A member of the Workers' Party ...

of Brazil and

Michelle Bachelet Verónica Michelle Bachelet Jeria (; born 29 September 1951) is a Chilean politician who served as United Nations High Commissioner for Human Rights from 2018 to 2022. She previously served as President of Chile from 2006 to 2010 and 2014 to 201 ...

of Chile. Because of the local unique historical conditions, socialism of the 21st century is often contrasted with previous applications of socialism in other countries, with a major difference being the effort towards a more effective

economic An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...

planning process.

Historical foundations

After a series of structural adjustment loans and debt restructuring led by the

International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...

in the late 20th century, Latin America experienced a significant increase in inequality. Between 1990 and 1999, the Gini coefficient, a measure of inequality in the income or wealth distribution, rose in almost every Latin American country. Volatile prices and inflation led to dissatisfaction. In 2000, only 37% of Latin Americans were satisfied with their democracies (20 points less than Europeans and 10 points less than sub-Saharan Africans). In this context, a wave of left-leaning socio-political movements, called the Pink tide, on behalf of indigenous rights, ''

cocalero Cocaleros are the coca leaf growers of Peru and Bolivia. In response to U.S.-funded attempts to eradicate and fumigate coca crops in the Chapare region of Bolivia, cocaleros joined with other grassroots indigenous organizations in the country, su ...

s'', labor rights, women's rights, land rights and educational reform emerged to eventually provide momentum for the election of socialist leaders. Socialism of the 21st century draws on indigenous traditions of communal governance and previous Latin America socialist and communist movements, including those of

Salvador Allende Salvador Guillermo Allende Gossens (, , ; 26 June 1908 – 11 September 1973) was a Chilean physician and socialist politician who served as the 28th president of Chile from 3 November 1970 until his death on 11 September 1973. He was the fir ...

, Fidel Castro,

Che Guevara Ernesto Che Guevara (; 14 June 1928The date of birth recorded on /upload.wikimedia.org/wikipedia/commons/7/78/Ernesto_Guevara_Acta_de_Nacimiento.jpg his birth certificatewas 14 June 1928, although one tertiary source, (Julia Constenla, quot ...

and the

Sandinista National Liberation Front The Sandinista National Liberation Front ( es, Frente Sandinista de Liberación Nacional, FSLN) is a socialist political party in Nicaragua. Its members are called Sandinistas () in both English and Spanish. The party is named after Augusto Cé ...

Theoretical tenets

According to Dieterich, this form of socialism is revolutionary in that the existing society is altered to be qualitatively different, but the process itself should be gradual and non-violent, instead utilising democracy to secure power, education, scientific knowledge about society and international cooperation. Dieterich suggests the construction of four basic institutions within the new reality of post-capitalist civilisation: # Equivalent economy based on the Marxian economic

labor theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The LTV is usually associated with Marxian ...

and democratically determined by those who directly create value instead of principles of

market economies A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand, where all suppliers and consumers are ...

. # Majority democracy which makes use of

referendum A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...

s to decide upon important societal questions. # Basic state democracy with a suitable protection of minority rights. # Citizens who are responsible, rational and self-determined.

Latin American application

Regional integration

The model of socialism of the 21st century encourages economic and political integration among nations in Latin America and the Caribbean. This is often accompanied with opposition to North American influence. Regional organizations like

ALBA ''Alba'' ( , ) is the Scottish Gaelic name for Scotland. It is also, in English language historiography, used to refer to the polity of Picts and Scots united in the ninth century as the Kingdom of Alba, until it developed into the Kingdom ...

and CELAC promote cooperation with Latin America and exclude North American countries. ALBA is most explicitly related to socialism of the 21st century while other organizations focus on economic integration, ALBA promotes social, political and economic integration among countries that subscribe to democratic socialism. Its creation was announced in direct opposition to George W. Bush's attempts to establish a

Free Trade Area of the Americas The Free Trade Area of the Americas (FTAA) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas, excluding Cuba. Negotiations to establish the FTAA ended in failure, however, with all parties unab ...

that included the United States. In 2008, ALBA introduced a monetary union using the SUCRE as its regional currency.

Bolivarian process

Former Venezuelan President Hugo Chávez initiated a process of social reforms in Venezuela known as the Bolivarian Revolution. This approach was more heavily influenced by the theories of István Mészáros, Michael Lebowitz and

Marta Harnecker Marta Harnecker (1937 - 14 June 2019) was a Chilean journalist, author, psychologist, sociologist, and Marxist intellectual. She studied the analysis of labor movements and acted as an advisor to the government of Cuba, as well as a collaborat ...

(who was Chávez's adviser between 2004 and 2011) than by those of Heinz Dieterich. The process draws its name from Latin American liberator Simón Bolívar and is a contemporary example of Bolivarianism.

''Buen vivir''

Often translated to good living or living well, the concept of ''buen vivir'' is related to the movement for indigenous rights and rights of nature. It focuses on the living sustainably as the member of a community that includes both human beings and Nature. ''Buen vivir'' is enshrined in

2008 Constitution of Ecuador The Constitution of Ecuador is the supreme law of Ecuador. The current constitution has been in place since 2008. It is the country's 20th constitution. History Ecuador has had new constitutions promulgated in 1830, 1835, 1843, 1845, 1851, 1852, ...

as an alternative to neoliberal development. The constitution outlines a set of rights, one of which is the rights of nature.Gudynas, Eduardo. 2011. Buen Vivir: Today's Tomorrow Development 54(4):441-447. In line with the assertion of these rights, ''buen vivir'' seeks to change the relationship between nature and humans to a more bio-pluralistic view, eliminating the separation between nature and society.SENPLADES
2009 National Plan for Good Living
Electronic document. Retrieved May 2012. This approach has been applied to the

Yasuní-ITT Initiative The Yasuní-ITT Initiative was a project that attempted to keep over a billion barrels of oil in the ground under the Yasuni National Park, a biosphere reserve in the Ecuadorian Amazon. The initiative was launched in 2007 by president Rafael Corre ...

. ''Buen vivir'' is sometimes conceptualised as

collaborative consumption Collaborative consumption is the set of those resource circulation systems in which consumers both "obtain" and "provide", temporarily or permanently, valuable resources or services through direct interaction with other consumers or through a m ...

in a sharing economy and the term is used to look at the world in way sharply differentiated from

natural Nature, in the broadest sense, is the physical world or universe. "Nature" can refer to the phenomena of the physical world, and also to life in general. The study of nature is a large, if not the only, part of science. Although humans are ...

social Social organisms, including human(s), live collectively in interacting populations. This interaction is considered social whether they are aware of it or not, and whether the exchange is voluntary or not. Etymology The word "social" derives from ...

or human capital.

Criticism

Authoritarianism

Critics claim that socialism of the 21st century in Latin America acts as a façade for

authoritarianism Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in the rule of law, separation of powers, and democratic voti ...

. The charisma of figures like Hugo Chávez and mottoes like "Country, Socialism, or Death!" have drawn comparisons to the Latin American dictators and ''

caudillo A ''caudillo'' ( , ; osp, cabdillo, from Latin , diminutive of ''caput'' "head") is a type of personalist leader wielding military and political power. There is no precise definition of ''caudillo'', which is often used interchangeably with " ...

s'' of the past. According to Steven Levitsky of

Harvard University Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of high ...

: "Only under the dictatorships of the past ..were presidents reelected for life", with Levitsky further stating that while Latin America experienced democracy, citizens opposed "indefinite reelection, because of the dictatorships of the past". Levitsky then noted: "In Nicaragua, Venezuela and Ecuador, reelection is associated with the same problems of 100 years ago". ''

The Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...

'' also stated in 2014 that "Bolivia's

, Daniel Ortega of Nicaragua and the late Venezuelan president Hugo Chávez ..used the ballot box to weaken or eliminate term limits". In 2015, ''

The Economist ''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Eco ...

'' stated that the

Bolivarian Revolution The Bolivarian Revolution is a political process in Venezuela that was led by Venezuelan President Hugo Chávez, the founder of the Fifth Republic Movement and later the United Socialist Party of Venezuela (PSUV). The Bolivarian Revolution is ...

in Venezuela—now under Nicolás Maduro after Chávez's death in 2013—was devolving from authoritarianism to dictatorship as opposition politicians were jailed for plotting to undermine the government, violence was widespread and opposition media shut down. Western media coverage of Chávez and other Latin American leaders from the 21st-century socialist movement has been criticised as unfair by their supporters and leftist media critics.

Economics

The sustainability and stability of economic reforms associated with governments adhering to socialism of the 21st century have been questioned. Latin American countries have primarily financed their

social programs Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...

with extractive exports like petroleum, natural gas and minerals, creating a dependency that some economists claim has caused inflation and slowed growth. For the Bolivarian government of Venezuela, their economic policies led to

shortages in Venezuela Shortages in Venezuela of regulated food staples and basic necessities have been widespread following the enactment of price controls and other policies under the government of Hugo Chávez and exacerbated by the policy of withholding United ...

, a high inflation rate and a dysfunctional economy. However, the economic policy of the Hugo Chávez administration and Maduro governments have attributed Venezuela's economic problems to the decline in oil prices, sanctions imposed by the United States and economic sabotage by the opposition. In 2015, Venezuela's economy was performing poorly—the currency had collapsed, it had the world's highest

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...

rate and its

gross domestic product Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is oft ...

shrank into an economic collapse in 2016. A 2017 NACLA analysis stated that "reductions in poverty and inequality during the Chávez years were real, but somewhat superficial. .. ructural poverty and inequality, such as the quality of housing, neighborhoods, education, and employment, remained largely unchanged"..

Populism

Although democratic socialist intellectuals have welcomed a socialism of the 21st century, they have been skeptical of Latin America's examples. While citing their progressive role, they argue that the appropriate label for these governments is populist rather than socialist. Similarly, some of the left-wing pink tide governments were criticised for turning from socialism to authoritarianism and populism.