Reform fatigue: symptoms, reasons, and implications
AbstractFollowing a period of ambitious promarket reforms, Latin American policymakers and the public at large have entered a period of “reform fatigue.” Initial enthusiasm for policies such as liberalized markets and a level field for investors has given way more recently to the view that ambitious promarket reforms are to blame for the region’s economic crises. The process of reform has stalled in some countries, and a few have suffered serious setbacks. ; To help explore the future of reform, this article aims to document and explain the symptoms of fatigue among the public, policymakers, and opinion leaders. The authors explore the economic, social, political, and psychological reasons for the fatigue. They review numerous studies that have identified various explanatory factors, including reforms’ modest economic outcomes, the failure of reforms to improve social conditions, a leftward shift of public opinion and political coalitions, and perception biases among citizens. ; The authors find that economic reasons are the primary explanation for the increasing rejection of reforms. Disillusionment with reforms, despite reforms’ overall benefits, seems to stem from people’s inability to isolate short-term macroeconomic situations from reforms’ permanent effects. ; While political reasons cannot account for reform fatigue, the authors believe that politics will play a decisive role in the future of reform. They conclude that, especially in countries where promarket reforms are well advanced, eventual economic recoveries will result in further institutional and social policy reforms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Atlanta in its journal Economic Review.
Volume (Year): (2004)
Issue (Month): Q 2 ()
Pages: 1 - 28
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Isidro Hernández, 2003. "Las privatizaciones en Colombia," REVISTA APUNTES DEL CENES, UNIVERSIDAD PEDAGOGICA Y TECNOLOGICA DE COLOMBIA.
- Pablo Egaña & Alejandro Micco, 2011. "Labor Market in Latin America and the Caribbean: The Missing Reform," Working Papers wp345, University of Chile, Department of Economics.
- Nauro Campos & Yuko Kinoshita, 2008.
"Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America,"
William Davidson Institute Working Papers Series
wp906, William Davidson Institute at the University of Michigan.
- Campos, Nauro F & Kinoshita, Yuko, 2008. "Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America," CEPR Discussion Papers 6690, C.E.P.R. Discussion Papers.
- Yuko Kinoshita & Nauro F. Campos, 2008. "Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America," IMF Working Papers 08/26, International Monetary Fund.
- Campos, Nauro F & Kinoshita, Yuko, 2008. "Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America," IZA Discussion Papers 3332, Institute for the Study of Labor (IZA).
- Haaparanta, Pertti & Pirttilä, Jukka, 2005.
"Reforms and Confidence,"
BOFIT Discussion Papers
1/2005, Bank of Finland, Institute for Economies in Transition.
- Eduardo Lora & Mauricio Olivera, 2005.
"The Electoral Consequences of the Washington Consensus,"
6691, Inter-American Development Bank.
- Eduardo Lora & Mauricio Olivera, 2005. "The Electoral Consequences of the Washington Consensus," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Eduardo Lora & Mauricio Olivera, 2005. "The Electoral Consequences of the Washington Consensus," Research Department Publications 4405, Inter-American Development Bank, Research Department.
- Eduardo Lora & Mauricio Olivera, 2005. "Repercusiones electorales del Consenso de Washington," Research Department Publications 4406, Inter-American Development Bank, Research Department.
- Ahmed, Syed & Horner, James & Rafiq, Rafiqul Bhuyan, 2008. "Financial Development and Economic Growth: Experiences of Selected Developing Economies," Review of Applied Economics, Review of Applied Economics, vol. 4(1-2).
- Alvaro CUERVO-CAZURRA & Luis Alfonso DAU, 2008. "Structural Reform And Firm Profitability In Developing Countries," William Davidson Institute Working Papers Series wp940, William Davidson Institute at the University of Michigan.
- Alvaro Forteza & Mario Tommasi, 2005.
"Understanding reform in Latin America,"
Documentos de Trabajo (working papers)
2205, Department of Economics - dECON.
- Jacek Kochanowicz & Piotr Kozarzewski & Richard Woodward, 2005. "Understanding Reform: The Case of Poland," CASE Network Reports 0059, CASE-Center for Social and Economic Research.
- Birdsall, Nancy & de la Torre, Augusto & Caicedo, Felipe Valencia, 2010. "The Washington consensus : assessing a damaged brand," Policy Research Working Paper Series 5316, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Meredith Rector).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.