As the 20th century drew to a close, Latin America finally seemed to have escaped its reputation for military dictatorships. The democratic wave that swept the region starting in the late 1970s appeared unstoppable. No Latin American country except Haiti had reverted to authoritarianism. There were a few coups, of course, but they all unraveled, and constitutional order returned. Polls in the region indicated growing support for democracy, and the climate seemed to have become inhospitable for dictators.

Then came Hugo Chávez, elected president of Venezuela in December 1998. The lieutenant colonel had attempted a coup six years earlier. When that failed, he won power at the ballot box and is now approaching a decade in office. In that time, he has concentrated power, harassed opponents, punished reporters, persecuted civic organizations, and increased state control of the economy. Yet, he has also found a way to make authoritarianism fashionable again, if not with the masses, with at least enough voters to win elections. And with his fiery anti-American, anti-neoliberal rhetoric, Chávez has become the poster boy for many leftists worldwide.

Many experts, and certainly Chávez’s supporters, would not concede that Venezuela has become an autocracy. After all, Chávez wins votes, often with the help of the poor. That is the peculiarity of Chávez’s regime. He has virtually eliminated the contradiction between autocracy and political competitiveness.

What’s more, his accomplishment is not simply a product of charisma or unique local circumstances. Chávez has refashioned authoritarianism for a democratic age. With elections this year in several Latin American states—including Mexico and Brazil—his leadership formula may inspire like-minded leaders in the region. And his international celebrity...