Why prospect of economic recovery won't deflate populist fervour

Santiago

MARKETS, like the pundits meeting in Davos last week, are hopeful - the world economy is well on its way towards a balanced and perhaps sustained recovery. With the economy on the mend, will politics follow suit?

For people who view the surge in populism around the world as an aftershock of the global financial crisis, the answer is yes. As unemployment falls and middle-class incomes begin growing, the populist temptation will wither, or so they hope. If only it were that simple.