Analyzing the experience of Mexico under the North American Free Trade Agreement (NAFTA), 'Lessons from NAFTA' aims to provide guidance to Latin American and Caribbean countries considering free trade agreements with the United States. The authors conclude that the treaty raised external trade and foreign investment inflows and had a modest effect on Mexico's average income per person. It is likely that the treaty also helped achieve a modest reduction in poverty and an improvement in job quality. This book will be of interest to scholars and policymakers interested in international trade and development.

This report by the Central Bank Governance Group presents information intended to help decision-makers set up governance arrangements that are most suitable for their own circumstances. The report draws on a large body of information on the design and operation of central banks that the BIS has brought together since it initiated work on central bank governance in the early 1990s. The need to deal with chronic inflation in the 1970s and 1980s prompted the identification of price stability as a formal central bank objective and led to a significant reworking of governance arrangements. The current global financial crisis could have equally important implications for central banks, particularly with respect to their role in fostering financial stability. Although it is too early to know how central banking will change as a result, the report takes an important first step in identifying governance questions that the crisis poses.

From Kosovo to Kabul, the last decade witnessed growing interest in ?electoral engineering?. Reformers have sought to achieve either greater government accountability through majoritarian arrangements or wider parliamentary diversity through proportional formula. Underlying the normative debates are important claims about the impact and consequences of electoral reform for political representation and voting behavior. The study compares and evaluates two broad schools of thought, each offering contracting expectations. One popular approach claims that formal rules define electoral incentives facing parties, politicians and citizens. By changing these rules, rational choice institutionalism claims that we have the capacity to shape political behavior. Alternative cultural modernization theories differ in their emphasis on the primary motors driving human behavior, their expectations about the pace of change, and also their assumptions about the ability of formal institutional rules to alter, rather than adapt to, deeply embedded and habitual social norms and patterns of human behavior.

Americans often complain about the operation of their government, but scholars have never developed a complete picture of people's preferred type of government. In this provocative and timely book, Hibbing and Theiss-Morse, employing an original national survey and focus groups, report the governmental procedures Americans desire. Contrary to the prevailing view that people want greater involvement in politics, most citizens do not care about most policies and therefore are content to turn over decision-making authority to someone else. People's wish for the political system is that decision makers be empathetic and, especially, non-self-interested, not that they be responsive and accountable to the people's largely nonexistent policy preferences or, even worse, that the people be obligated to participate directly in decision making. Hibbing and Theiss-Morse conclude by cautioning communitarians, direct democrats, social capitalists, deliberation theorists, and all those who think that greater citizen involvement is the solution to society's problems.