Economic policies in Latin American democracies often contributed to instability due to a combination of protectionist trade policies, nationalisation of industries, and inadequate land reforms. These policies sometimes led to economic isolation, inefficiency, and exacerbated inequality. Moreover, rapid industrialisation efforts led to social dislocation and urban poverty, while land reforms often failed to redistribute wealth effectively. Such economic strife provided fertile ground for political unrest, fuelling support for both populist and military interventions. This economic turmoil, combined with the aforementioned influence of external powers, created a cycle of instability that plagued democratic governance.

The United States' staunch anti-communism policy during the Cold War had a significant influence on political parties in Latin America. US support was often given to political parties that opposed left-wing ideologies, which bolstered right-wing or centrist parties and led to the marginalisation or suppression of socialist and communist parties. This interference not only skewed the political spectrum but also disrupted organic political evolution. The suppression of leftist parties reduced political diversity and competition, undermining the quality of democracy and often leading to the formation of authoritarian regimes that positioned themselves as bulwarks against communism with US backing.

Operation Condor was a covert intelligence and operations system established in the 1970s, which enabled dictatorships in South America, notably in Chile, Argentina, and Brazil, to coordinate in suppressing opposition, including left-wing threats and political dissidents. The operation severely undermined democracy by eliminating potential democratic leaders, suppressing political plurality, and instilling fear in the populace, thus stifling public debate and free expression. Human rights violations committed under Operation Condor further entrenched military rule and hindered democratic transitions, leaving a legacy that has lasted long beyond the dictatorships themselves, affecting trust in political systems and institutions.

Civil-military relations in Latin America were pivotal in shaping the limitations of democracy. The military in many countries acted as the ultimate arbiter of political power, often justifying coups as a means to preserve national stability or to prevent communist infiltration. These interventions disrupted democratic governance, leading to periods of military rule characterised by authoritarianism and human rights abuses. In countries such as Brazil and Argentina, the military became a political actor in its own right, which undermined civilian control over the military and weakened democratic institutions. This power imbalance strained civil-military relations and made transitions to democracy challenging, with lingering military influence often remaining a constraint on democratic consolidation.

The rise of populist leaders had a profound impact on Latin American democracies. Populists like Juan Domingo Perón in Argentina harnessed widespread discontent among the working classes and utilised charismatic authority to garner support. While they often introduced social reforms that benefitted the lower echelons of society, they also tended to concentrate power in the executive, thereby weakening legislative and judicial branches. This centralisation of power frequently led to the erosion of checks and balances that are fundamental to democratic governance, shifting these nations towards more authoritarian styles of rule, and often resulting in political instability when these leaders were ousted or challenged.