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Understanding reform in Latin America

  • Alvaro Forteza

    ()

    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Mario Tommasi

    (Departamento de Economía, Universidad de San Andrés, Argentina.)

This paper provides an overview of the pro-market reform process in eight Latin American countries, based on country studies undertaken within the Understanding Reform project of the Global Development Network. After a brief presentation of the reform in Latin America and in the eight countries in the project, the paper addresses some key themes on the political economy of reform. We review the initial conditions of reform; the role played by technocrats and stakeholders; political participation; the peculiar shortcut to reform represented by "policy switches" (announcing something to do the opposite); some traditional topics in the literature on reform like sequencing, shocks and learning; the apparently key role played by local characteristics; the complex feedbacks between pro-market reforms and the political process; and the recent backlash against reform in Latin America. The paper ends with some remarks mostly on normative lessons from this experience.

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File URL: http://decon.edu.uy/publica/2005/Doc2205.pdf
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Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 2205.

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Length: 33 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:ude:wpaper:2205
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  1. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4301, Inter-American Development Bank, Research Department.
  2. Easterly, William & Loayza, Norman & Montiel, Peter, 1997. "Has Latin America's post-reform growth been disappointing?," Journal of International Economics, Elsevier, vol. 43(3-4), pages 287-311, November.
  3. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  4. Mariano Tommasi & Andres Velasco, 1995. "Where Are We in the Political Economy of Reform?," Working Papers 11, Universidad de San Andres, Departamento de Economia, revised Apr 1996.
  5. James E. Foster & Miguel Székely, 2008. "Is Economic Growth Good For The Poor? Tracking Low Incomes Using General Means," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1143-1172, November.
  6. Fabrice Lehoucq & Gabriel Negretto & Francisco Javier Aparicio & Benito Nacif & Allyson Lucinda Benton, 2005. "Political Institutions, Policymaking Processes, and Policy Outcomes in Mexico," IDB Publications (Working Papers) 39638, Inter-American Development Bank.
  7. Eduardo Fernández-Arias & Peter Montiel, 1997. "Reform and Growth in Latin America: All Pain, No Gain?," Research Department Publications 4078, Inter-American Development Bank, Research Department.
  8. Mariano Tommasi & Pablo T. Spiller, 2000. "The Institutional Foundations of Public Policy: A Transactions Approach with Application to Argentina," Working Papers 29, Universidad de San Andres, Departamento de Economia, revised May 2000.
  9. Norman Loayza & Pablo Fajnzylber & César Calderón, 2005. "Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts," World Bank Publications, The World Bank, number 7315, November.
  10. Checchi, Daniele & Florio, Massimo & Carrera, Jorge, 2005. "Privatization Discontent and Its Determinants: Evidence from Latin America," IZA Discussion Papers 1587, Institute for the Study of Labor (IZA).
  11. Eduardo Lora, 2001. "Structural Reforms in Latin America: What Has Been Reformed and How to Measure It," IDB Publications (Working Papers) 39858, Inter-American Development Bank.
  12. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages F22-F49, 02.
  13. Eduardo Lora, 1997. "A Decade of Structural Reforms in Latin America: What Has Been Reformed and How to Measure It," IDB Publications (Working Papers) 6428, Inter-American Development Bank.
  14. Eduardo Lora & Ugo Panizza & Myriam Quispe-Agnoli, 2004. "Reform fatigue: symptoms, reasons, and implications," Economic Review, Federal Reserve Bank of Atlanta, issue Q 2, pages 1 - 28.
  15. Juliana Bambaci & Tamara Saront & Mariano Tommasi, 2002. "The Political Economy of Economic Reforms in Argentina," Working Papers 43, Universidad de San Andres, Departamento de Economia, revised Mar 2002.
  16. Sebastian Galiani & Daniel Heymann & Mariano Tommasi, 2003. "Great Expectations and Hard Times: The Argentine Convertibility Plan," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  17. Cukierman, A. & Tommasi, M., 1997. "When Does It Take a Nixon to Go to China," Papers 30-97, Tel Aviv.
  18. Harrington, Joseph E, Jr, 1993. "Economic Policy, Economic Performance, and Elections," American Economic Review, American Economic Association, vol. 83(1), pages 27-42, March.
  19. Carlos Arteta & Barry Eichengreen & Charles Wyplosz, 2001. "When Does Capital Account Liberalization Help More than It Hurts?," NBER Working Papers 8414, National Bureau of Economic Research, Inc.
  20. Alberto Melo & Andrés Rodríguez-Clare, 2006. "Productive Development Policies and Supporting Institutions in Latin America and The Caribbean," Research Department Publications 1005, Inter-American Development Bank, Research Department.
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