The Political Economy of Economic Reforms in Argentina

In 1989, Argentina entered a process of sweeping transformation of its economic institutions which provided for the (temporary) recovery of economic growth and the taming of inflation. The Argentine experience with market-oriented reforms has been regarded by the literature as a salient case of radical and 'unconstrained' reform. Yet, a closer scrutiny portrays that the building and maintenance of a pro-"reform coalition determined the pace, depth and characteristics of the 'new economic institutions'. The idiosyncrasies of Argentina's political institutions, in turn, conditioned this coalition-building strategy. The same idiosyncrasies were at play in the 2001/2002 collapse of the convertibility regime and ensuing social and political chaos.Political Economy, Economic Reforms, Argentina,

Foreign Aid and Market-Liberalizing Reform

Market-oriented economic policies have been strongly linked to faster rates of economic growth. Foreign aid is often provided in part to encourage market-oriented reforms. We analyse the impact of aid on market-liberalizing policy reform, correcting for its potential endogeneity. Results indicate that higher aid slowed reform over the 1980-2000 period, as measured by a broad index of policies. Disaggregating policy into five areas, aid is associated with slower reform in some policy areas but not in others. Disaggregating by decade, the adverse impact of aid on policy reform is much more pronounced for the 1980s than for the 1990s. Copyright (c) The London School of Economics and Political Science 2007.

The Political Economy of Policy Reform in the Philippines: 1992-1998

From 1992 to 1998, the Philippines saw a period of sweeping policy reforms when 273 economic, social and political legislations were adopted. When and why do policy reforms happen and what explains the scope, pace and sequencing of their implementation? My analytic narrative differs from the literature in its emphasis on: (1) the attributes of the players, particularly the role of leadership; (2) the attributes of the policy; and (3) the political rules of the game, including electoral cycles, tenure limits, veto rules and “turncoatism.”Political economy, macroeconomic policy reform, Philippines,