FAILURE OF NEOLIBERALIZATIONKeywords: Tequila Effect, Caipirnha Effect, Tango Effect. Neoliberal policies have been applied for almost 30 years in Latin America, in most of the cases due to IMF measures and regulations in order to renegotiate debt. During the 90s Latin American countries opened their borders to foreign investment and facilitated the transfer of public goods from state administration to private and transnational control in an attempt to deliver again the dream of belonging to the first world. The results: fragile democracies, continuous collapse of economies, social unrest and the perpetuation of inequality: a small elite continues to enjoy enormous wealth while 40% of the population in Latin America lives below the poverty line, and of these 15% live in extreme poverty.