Over the past two years the majority of Latin American countries celebrated their respective bicentennial. We have seen countries proud of their history, with high self-esteem and booming economies. This superficially uniform image requires, however, a more thorough analysis in order to appreciate the differences.

All countries - with the exception of Cuba - rely at least formally on democratic regimes (I stress formally); democracy has conceptually a high acceptance among citizens, but with a growing rejection of its institutions, leaders and concrete ways of implementation.

Institutional and structural deficits of democratic systems, the lack of citizen participation (as a right and duty), and deficient capacity for solving pending social and economic problems have undermined people’s trust in democracy, giving space to populist experiments anything but democratic, and outbreaks of unrest in the streets. Under the guise of "direct democracies", several Latin American governments have weakened the independence and separation of powers to found “One-Man-Powers”, thus eroding the essence of democracy.

At the macroeconomic level, however, there has been an amazing transformation. This chronically indebted and inflationist continent has turned in mostly ordered public accounts, fiscal surpluses, and reasonable margins of inflation (with a few exceptions like Venezuela or, implicitly, Argentina). In the past, the EU suggested that Latin American leaders put their house in order; now the situation is completely reversed. In Europe it may be hard to recognize this new reality.

It is true that this economic boom is (still) mostly based on the export of raw materials and in the long run would represent a structural weakness. But as the Uruguayan President, José Mujica, said during his recent visit to Germany: "If the Chinese have decided to eat more, well then let us make a profit and let’s give them something to eat!"

Energy challenges and environmental issues seem to be a field in which Latin America can (and should) make its presence felt. Considering that the upcoming Rio+20 Earth Summit will be a milestone in Latin America’s history, that the Amazonia contains the highest biodiversity on Earth and there are infinite possibilities of developing renewable energy projects, Latin America emerges as an unavoidable partner in these areas.

There remains, however, the social debt and the rising tide of insecurity; both are the Achilles’ heel of this success story. Inequalities and social exclusion have also not been satisfactorily overcome. They diminish the credibility and acceptance of democracy, and unfortunately Latin America remains a global leader in this regard. The student protests in Chile show how the patience of the citizens and their willingness to wait has come to the breaking point. The question is what follows.

Organized crime has also jeopardized the governance of large areas, challenging the governments of the region in ways not seen before. The breeding ground for more populism (and fewer solutions) is present; our response should be more and above all better democracy!

In all these areas there are political, economic and social priorities, and therefore common interests between the majority of Latin American states and Europe, Germany in particular, that require neither more regional programs nor projects of development aid, but genuine cooperation between partners.

Hans-Hartwig Blomeier is Head of Team Latin America at the Konrad-Adenauer-Stiftung (KAS) in Berlin.