Transformative constitutionalism in Latin America and the global financial architecture

This chapter examines the relationship between Transformative Constitutionalism in Latin America (TCLA) and the Global Financial Architecture (GFA), a fragmented transnational regime centred on systemic-risk prevention. While Latin American constitutions pursue long-term social transformation through collective social and economic rights, the GFA operates through technocratic risk governance prioritising financial stability and market continuity. This divergence generates structural tensions, particularly as the GFA—shaped after the 2007–2009 crisis—exerts significant influence over domestic fiscal and regulatory choices in the Global South. These tensions are further intensified by contemporary geopolitical disruptions that challenge multilateral financial coordination. The chapter argues that convergence between TCLA and the GFA is both necessary and possible, but not through the harmonisation of substantive goals. Rather, it requires a methodological exchange—a structured dialogue of rationalities. On the one hand, the GFA must recognise social vulnerability as a form of systemic financial vulnerability by integrating human rights variables into prudential risk analysis. On the other hand, constitutional courts must adopt forward-looking tools from risk governance, including rights-based stress testing. Through this reciprocal learning process, financial stability and social justice are reframed as mutually reinforcing rather than competing objectives.