Magic Realism

Magic realism is a genre of literature, film and art in which magical elements blend to create a realistic atmosphere that accesses a deeper understanding of reality.
It is a Latin-American narrative strategy that is characterized by the matter-of-fact inclusion of fantasy or mythical elements into seemingly realistic fiction. Magic realism combines transcendent beauty and harsh reality as a means to critique socio-political issues and highlight cultural differences in many postcolonial countries around the world.
Many would say that Pan's Labyrinth isn't a fairy-tale film and instead fits into the genre of magic realism. As the fantasy world and the harsh reality of fascist Spain intertwine. For instance, the main character Ofelia is the only one who has access to the fantasy world and del Toro uses Ofelia's adventures and perspectives to make comments on and to criticise fascist Spain - however the themes themselves are universal.
Fairy tale is a genre directed more towards children whereas the dark fantasy Pan's Labyrinth contains violence, gore and doesn't necessarily have a happy ending since it depends on your interpretation therefore the film is more of a fairy tale for adults.
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