Latin America has grappled with a history marked by economic crises, posing ongoing challenges for the region’s inclusive development. Focusing on the three largest economies in the region, the analysis sheds light on the intricacies of their responses to crises, particularly in the context of external shocks like the COVID-19 pandemic or the effects of Russia’s invasion to Ukraine. Despite governmental interventions, these economies faced pronounced impacts on inequality and poverty, highlighting the pressing need for nuanced economic strategies in the face of political turbulence. This chapter delves into the dynamic relationship between economic policies and political transformations during the last 15 years, emphasizing the deleterious effects of political instability on economic performance.