The rapid growth of evangelical Protestantism in Latin America has received
a substantial amount of scholarly attention in recent years. The most comm
on explanation for this phenomenon has been a variant of 'social anomie' th
eory that focuses on changes in social demand for religion. Individuals exp
eriencing socio-economic crisis become displaced from their communities and
lose their cultural identities. These individuals are then more susceptibl
e to the appeals of new religious movements. An alternative, supply-side hy
pothesis is advanced. I argue that the degree of government regulation of r
eligious economies can best account for cross-national variations in Protes
tant growth. Less restrictive laws regulating religious organizations lower
the cost of consuming religion, thus leading to an increase in religious d
iversity and participation. Comparative statistical analysis of 20 Latin Am
erican countries supports the latter hypothesis. This analysis suggests tha
t secularization is a function of government policy.