This chapter explores Tunisia's history as an authoritarian country that struggled with economic developing, ultimately resulting in a parasitic crony capitalist class closely allied with the regime. While the Arab Uprisings ushered in democracy, they failed to replace these crony networks as business engaged with parties in the new democracy. Unlike Egypt, Tunisia remained a democracy, but the presence of crony capitalists as party funders undermined reform efforts and the ultimate success of the democratic project.

This chapter explains how Egypt became a state with a high level of crony capitalism, and also why the Arab Uprisings failed to change the status quo despite throwing out the prior regime. The rise of the Egyptian military, and in particular its economic holdings, consolidated business support behind a military coup that overthrew democracy and pushed Egypt back toward corrupt dictatorship. Business had relatively little choice, but nonetheless played an important role building a new authoritarian regime.

Mexico’s 1982 announcement that it would be unable to make its debt payment set off Latin America’s “Lost Decade.” All over the region, economies stagnated and millions of people suffered. The international response, spearheaded by the United States, International Monetary Fund, and World Bank, initiated market reforms that would cut state spending, privatize state-run industries, dismantle tariffs, and construct free trade agreements. The neoliberal era had been launched. The reforms and trade agreements that accompanied this new era reflected continued U.S. hegemony but also the ways in which economic power was supplanting military power. Latin America initially found few alternatives to the neoliberal model. At the end of the twentieth century Latin American economies were growing once again, but in many cases they were only returning to where they had been before the crash. With millions feeling economic pain, neopopulist leaders gained momentum. Commitment to free trade agreements also waned as leaders like Donald Trump questioned their benefits. This chapter explores the region’s political economy of the last 50 years.