AP correspondents from New Delhi to Lima report that young demonstrators, often organized through social media and informal networks, are converging on capitals and regional centers to demand accountability and better economic opportunity. “We’re fighting the same battle — against corrupt officials who, in our case, are also killers,” a demonstrator said in Peru, where more than 500 protests since December 2022 have coincided with roughly 50 civilian deaths as the government of President Dina Boluarte has struggled to retain control.

The protests are not isolated eruptions. Analysts point to a confluence of economic stressors: persistent youth unemployment, rising living costs, and a perception that political systems favor entrenched elites. Young people worldwide — who make up roughly a sixth of the global population — face job markets dominated by precarious work, with youth unemployment frequently running two to three times higher than adult rates in many countries. That economic squeeze dovetails with grievances over corruption, environmental policy and police violence, creating a volatile mix.

Markets have reacted to episodes of unrest in predictable ways, particularly in emerging markets where investor risk perception is acute. Equity indices and local currencies often fall and sovereign bond spreads widen during intense protest cycles, reflecting higher risk premia and the prospect of policy paralysis. Chile’s 2019 unrest, for example, prompted a sustained reevaluation of fiscal and pension policy and produced short-term market stress; similar patterns have been observed in countries whose political turmoil disrupts commodity production or tourist flows.

Governments are responding variably. Some are deploying security forces and emergency measures; others are accelerating reform packages on education, labor rights and social transfers. The policy dilemma is stark: heavy-handed repression can stabilize markets in the short run but deepen long-term political instability and deter investment, while genuine reforms require fiscal room that many governments lack amid high public debt and constrained revenues.

International financial institutions and credit-rating agencies are watching closely. Sustained unrest can raise the cost of borrowing and push capital toward safer assets, compounding pressures on countries with already stressed balance sheets. For investors, the flashpoint is whether protests trigger structural policy changes that improve long-term governance, or whether they presage prolonged instability and policy backsliding.

Beyond immediate market mechanics, the protests mark a generational shift in political engagement. Young activists are translating environmental and social anxieties into on-the-ground mobilization, leveraging digital communications to organize rapidly and to nationalize local grievances. Demographers and political scientists warn that unless governments address the underlying economic opportunities and institutional deficits, episodic protests could harden into enduring instability that reshapes party systems and public policy for years.

For policymakers, the takeaway is pragmatic: restoring confidence requires both security guarantees and credible economic pathways for young people — from job creation and education reform to anti-corruption measures — or risk a recurring cycle of unrest that will continue to ripple through economies and markets worldwide.