The quest for freedom from hunger and repression has triggered in recent years a dramatic, worldwide reform of political and economic systems. Never have so many people enjoyed, or at least experimented with democratic institutions. However, many strategies for economic development in Eastern Europe and Latin America have failed with the result that entire economic systems on both continents are being transformed. This major book analyzes recent transitions to democracy and market-oriented economic reforms in Eastern Europe and Latin America. Drawing in a quite distinctive way on models derived from political philosophy, economics, and game theory, Professor Przeworski also considers specific data on individual countries. Among the questions raised by the book are: What should we expect from these experiments in democracy and market economy? What new economic systems will emerge? Will these transitions result in new democracies or old dictatorships?
The emergence of new democracies in Eastern Europe has raised anew the question of the relationship between economic reform and political liberalization. This work brings together a group of authorities to examine this question as it relates to Latin America, Europe, Asia, and Africa.
Political & social guidelines for the governments of Europe's new democracies which now realize the human costs of economic reforms undertaken since 1989.
Empirical evidence on the relationship between democracy and economic reforms is limited to few reforms, countries, and years. This paper studies the impact of democracy on the adoption of economic reforms using a new dataset on reforms in the financial, capital and banking sectors, product markets, agriculture, and trade for 150 countries over the period 1960 - 2004. Democracy has a positive and significant impact on the adoption of economic reforms but there is no evidence that economic reforms foster democracy. Our results are robust to the inclusion of a large variety of controls and estimation strategies.
This book provides an in-depth analysis of neo-liberal and progressive economic reforms and policies implemented in Chile since the Pinochet dictatorship. The core thesis of the book is that there is not just 'one Chilean economic model', but that several have been in force since the coup of 1973.
This book takes a powerful new approach to a question central to comparative politics and economics: Why do some leaders of fragile democracies attain political success--culminating in reelection victories--when pursuing drastic, painful economic reforms while others see their political careers implode? Kurt Weyland examines, in particular, the surprising willingness of presidents in four Latin American countries to enact daring reforms and the unexpected resultant popular support. He argues that only with the robust cognitive-psychological insights of prospect theory can one fully account for the twists and turns of politics and economic policy in Argentina, Brazil, Peru, and Venezuela during the 1980s and 1990s. Assessing conventional approaches such as rational choice, Weyland concludes that prospect theory is vital to any systematic attempt to understand the politics of market reform. Under this theory, if actors perceive themselves to be in a losing situation they are inclined toward risks; if they see a winning situation around them, they prefer caution. In Latin America, Weyland finds, where the public faced an open crisis it backed draconian reforms. And where such reforms yielded an apparent economic recovery, many citizens and their leaders perceived prospects of gains. Successful leaders thus won reelection and the new market model achieved political sustainability. Weyland concludes this accessible book by considering when his novel approach can be used to study crises generally and how it might be applied to a wider range of cases from Latin America, Africa, and Eastern Europe.
This volume focuses on the relationship between the tasks of institutional design and the outcomes of the process of economic and political liberalization in Latin America and in Central and Eastern Europe. The contributors emphasize the design of institutions to serve a market economy, the design of electoral laws, and the design of executive-legislative relations. Within this framework each chapter discusses the legacy of the pre-existing authoritarian regime; the range of preferences among various strategic actors with regard to the pace and mix of reforms; and the consequences of final choices for the institutionalization of effective economies and the process of democratization. Countries throughout Latin America and Central and Eastern Europe are moving from semi-closed to open economies and from authoritarian to democratic political systems. Despite important differences between the regions, these transitions involve similar tasks: the establishment of governmental institutions and electoral systems conducive to legitimation of the new and fragile democracies and expansion of the institutional infrastructure of a market economy. This volume looks at both regions, focusing on the relationship between the tasks of institutional design and the outcomes of the process of economic and political liberalization. In particular, the contributors emphasize the design of institutions to serve a market economy, the design of electoral laws, and the design of executive-legislative relations. Each chapter discusses the legacy of the pre-existing authoritarian regime; the range of preferences among various strategic actors (the government, state bureaucracies, opposition parties, and interest groups) with regard to the pace and mix of reforms; and the consequences of final choices for the institutionalization of effective economies and the process of democratization.