Building National Power Blocs to Drive an Inclusive Green Transition

Rafael Domínguez ()
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Rafael Domínguez: Universidad de Cantabria, Economics

Chapter Chapter 4 in Toward Inclusive Development in Latin America, 2026, pp 91-120 from Palgrave Macmillan

Abstract: Abstract This chapter explores the conditions necessary to build development-oriented coalitions that support an inclusive green transition in Latin American countries, moving away from extractivism by utilizing natural resource wealth. The strategy of leveraging natural resources to diversify the economy impacts state–society relations, requiring an analysis of values, interests, and historical context, across the dividing lines of vertical and horizontal inequalities. Despite structural constraints, there is potential for progressive agency behind dependent development. Factors such as social stratification, rising expectations, demographic structure, and concerns about inequalities suggest potential electoral support for green transformation. However, challenges arise due to political dynamics, changing social preferences, and internal polarization. The chapter argues that transformative political leadership supported by development-oriented coalitions is crucial for overcoming the middle-income trap and achieving the inclusive green transition, with an active role of the state as environmental agency.

Keywords: Soft state; Social movements; Elites; Polarization; Extractivism; Extractive bargains; Informality; Transformative leadership; Green developmental state (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pslchp:978-3-032-08588-7_4

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DOI: 10.1007/978-3-032-08588-7_4

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