After 1980s, known as “lost decade”, the neo-liberal economic policies, or “Washington Concensus”, supported by International Monetary Fund and other western international organizations, took place of traditional import-substituting industrialization policies in Latin American countries in 1990s. However, since 1994, series of economic crisis occurred in majority of Latin American countries, as Mexico in 1994, Brazil in 1998, and Argentina in 2001. As a result, those countries began to criticize neo-liberalism and rethink its applicability.
Latin American’s Left had passed through a silver age during 1950s to 1980s. In that period, not only Cuba became the first socialist country in western hemisphere, but also created a meaningful revolutionary political regime in Nicaragua, and established leftist governments in several Latin American countries, which had a great effect upon the anti-dictatorship and democratic movement. It also reduced the U.S. influence in Latin America. The situation changed since the disintegration of Soviet Union. The International Socialist and Latin American Leftist Movement had faced obstacle after the Cold War.
Nevertheless, after Hugo Chávez was elected president of Venezuela in 1998, the left was expanding in many Latin American countries. In fact, as the history of Latin America, the ideology in that continent is like a cycle. During the cold war, the left appeared after the collapse of dictatorship in 1980s, but it faced the frustration in the end of same decade. In 1990s, although neo-liberal economic policies were realized in most countries of Latin America, the old problems, such as corruption, unemployment, bad distribution of wealth, could not be resolved, they were even getting worse, therefore, the left obtain another opportunity to govern this continent.