In the 1980s a large number of Latin American countries reverted from military dictatorships to civilian democracies. In most cases the new democratic governments inherited an extremely precarious economic situation, which left little room to manoeuvre. This book analyzes the special problems that governments face in the formulation and implementation of economic policy after the restoration of democracy. In each of six cases - Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay - an analysis is made of the difficulties encountered and the performance of the democratic governments.

In the last two decades, there has been a widespread movement from authoritarian to democratic rule among developing countries, often occurring against a backdrop of severe economic crises and the adoption of market-oriented reforms. The coincidence of these events raises long-standing questions about the relationship between economic and political change. In this book, Stephan Haggard and Robert Kaufman explore this relationship, addressing a variety of questions: What role have economic crises played in the current wave of political liberalization and democratization? Can new democracies manage the daunting political challenges posed by economic reform? Under what economic and institutional conditions is democracy most likely to be consolidated? Drawing on contemporary political economy and the experiences of twelve Latin American and Asian countries, they develop a new approach to understanding democratic transitions. Haggard and Kaufman first analyze the relationship between economic crisis and authoritarian withdrawal and then examine how the economic and institutional legacies of authoritarian rule affect the capacity of new democratic governments to initiate and sustain economic policy reform. Finally, the authors analyze the consolidation of political and economic reform over the long run. Throughout, they emphasize the relationship between economic conditions, the interests and power of contending social groups, and the mediating role of representative institutions, particularly political parties.

"Many developing countries have launched transitions from authoritarianism to democracy over the past twenty-five years. While some have succeeded in building relatively strong democracies with shared prosperity, others have stumbled. As a wave of change continues to unfold across the Middle East, Africa, and Asia, the policy-relevant insights that can be gleaned from recent transitions are more salient than ever. Through case studies on Brazil, Indonesia, Mexico, Nigeria, Poland, South Africa, Thailand, and Ukraine, Pathways to freedom explores the structural factors and policy choices that shaped eight important transitions--some successful, others less so. The case studies focus on six themes: socioeconomic inclusion and exclusion, economic structure and policies, civil society and media, legal system and rule of law, government structure, and education and demography. Additional chapters examine these themes in light of the quantitative evidence on democratization and highlight concrete policy recommendations from across the case studies. With concise historical analysis and forward-looking prescriptions, Pathways to freedom offers an authoritative and accessible look at what countries must do to build durable and prosperous democracies--and what the United States and others can do to help"--Back cover.

Empirical analysis shows that democracy has facilitated economic liberalization in 25 postcommunist countries of Central and Eastern Europe and the former Soviet Union. The existence of a vibrant civil society at the start of the transition has the most explanatory power in this team's regression.

Brazil is the world's sixth-largest economy, and for the first three-quarters of the twentieth century was one of the fastest-growing countries in the world. While the country underwent two decades of unrelenting decline from 1975 to 1994, the economy has rebounded dramatically. How did this nation become an emerging power? Brazil in Transition looks at the factors behind why this particular country has successfully progressed up the economic development ladder. The authors examine the roles of beliefs, leadership, and institutions in the elusive, critical transition to sustainable development. Analyzing the last fifty years of Brazil's history, the authors explain how the nation's beliefs, centered on social inclusion yet bound by orthodox economic policies, led to institutions that altered economic, political, and social outcomes. Brazil's growth and inflation became less variable, the rule of law strengthened, politics became more open and competitive, and poverty and inequality declined. While these changes have led to a remarkable economic transformation, there have also been economic distortions and inefficiencies that the authors argue are part of the development process. Brazil in Transition demonstrates how a dynamic nation seized windows of opportunity to become a more equal, prosperous, and rules-based society.

This book raises and addresses questions about the consequences of democratic institutions for economic performance.