Rafael Correa in the context of PAIS Alliance

Bilateral relations between the various countries of Latin America and the United States of America have been multifaceted and complex, at times defined by strong regional cooperation and at others filled with economic and political tension and rivalry. Although relations between the U.S. government and most of Latin America were limited prior to the late 1800s, for most of the past century, the United States has unofficially regarded parts of Latin America as within its sphere of influence, and for much of the Cold War (1947–1991), vied with the Soviet Union.

The political context evolved again in the 2000s, with the election in several South American countries of socialist governments. This "pink tide" thus saw the successive elections of Hugo Chávez in Venezuela (1998), Lula in Brazil (2002), Néstor Kirchner in Argentina (2003), Tabaré Vázquez in Uruguay (2004), Evo Morales in Bolivia (2005), Michelle Bachelet in Chile (2006), Daniel Ortega in Nicaragua (2006), Rafael Correa in Ecuador (2006), Fernando Lugo in Paraguay (2008), José Mujica in Uruguay (2009), Ollanta Humala in Peru (2011), Luis Guillermo Solís in Costa Rica (2014), Salvador Sánchez Cerén in El Salvador (2014), and Andrés Manuel López Obrador in Mexico (2018). Although these leaders vary in their policies and attitude towards both Washington, D.C. and neoliberalism, while the states they govern also have different agendas and long-term historic tendencies, which can lead to rivalry and open contempt between themselves, they seem to have agreed on refusing the ALCA and on following a regional integration without the United States' overseeing the process. In particular, Chávez and Morales seem more disposed to ally together, while Kirchner and Lula, who has been criticized by the left-wing in Brazil, including by the Movimento dos Sem Terra (MST) landless peasants movement (who, however, did call to vote for him on his second term), are seen as more centered. The state of Bolivia also has seen some friction with Brazil, as well as Chile. Nouriel Roubini, professor of economics at New York University, said in a May 2006 interview: "On one side, you have a number of administrations that are committed to moderate economic reform. On the other, you've had something of a backlash against the Washington Consensus [a set of liberal economic policies that Washington-based institutions urged Latin American countries to follow, including privatization, trade liberalization and fiscal discipline] and some emergence of populist leaders." In the same way, although a leader such as Chávez verbally attacked the George W. Bush administration as much as the latter attacked him, and claimed to be following a democratic socialist Bolivarian Revolution, the geo-political context has changed a lot since the 1970s. Larry Birns, director of the Council on Hemispheric Affairs, thus stated: for influence in the Western Hemisphere.

General elections were held in Ecuador on 15 October 2006 to elect a new President and National Congress.

As no presidential candidate received a majority of the vote in the first round, a run-off was held on 26 November, which was won by Rafael Correa of the PAIS Alliance.

Socialism of the 21st century is an interpretation of socialist principles first advocated by German sociologist and political analyst Heinz Dieterich and taken up by a number of Latin American leaders. Dieterich argued in 1996 that both free-market industrial capitalism and 20th-century socialism have failed to solve urgent problems of humanity such as poverty, hunger, exploitation of labour, economic oppression, sexism, racism, the destruction of natural resources and the absence of true democracy. Socialism of the 21st century has democratic socialist elements, but it also resembles Marxist revisionism.

Leaders who have advocated for this form of socialism include Hugo Chávez of Venezuela, Rafael Correa of Ecuador, Evo Morales of Bolivia, Néstor Kirchner and Cristina Fernández de Kirchner of Argentina, Luiz Inácio Lula da Silva of Brazil and Michelle Bachelet of Chile. Because of the local unique historical conditions, socialism of the 21st century is often contrasted with previous applications of socialism in other countries, with a major difference being the effort towards a more effective economic planning process. Outside Latin America, socialism of the 21st century has been promoted by left-wing leaders such as Mark Drakeford and Jeremy Corbyn in the United Kingdom and Lothar Bisky, Egon Krenz and Oskar Lafontaine in Germany, and also by parties such as the Communist Party of Spain and United Left in Spain and the Communist Party of the Russian Federation and Just Russia.