Economic Reform and Democratization in Argentina and Uruguay: The Tortoise and the Hare Revisited?
1998; Cambridge University Press; Volume: 40; Issue: 3 Linguagem: Inglês
10.1111/j.1548-2456.1998.tb00061.x
ISSN2162-2736
Autores Tópico(s)Economic Theory and Policy
Resumomplementing market-oriented reforms is often a contentious affair, especially in new democracies. It can be time-consuming when the democratic process permits many opportunities to examine (and to block) controversial proposals. Conversely, when debate is limited by various means, the pursuit of can undermine the democratic regime. How, then, can market-oriented reforms and democracy be consolidated simultaneously? Comparing the extent of economic in Argentina and in Uruguay over the past ten years, it is hard to argue that Uruguay has made more visible progress. While both nations have engaged in dramatic trade liberalization, Argentina has achieved more deregulation, more privatization, and more rationalization of public administration. Uruguay, in contrast, has witnessed the reversal of government-led state campaigns in the legislature and in referendums. The contrast between the two countries recalls the old fable of the tortoise and the hare. Is it possible that Uruguay's failure to move quickly on state will improve its prospects for eventually consolidating democracy and economic reform? Or is the Argentine reform first strategy more useful? These questions serve as the point of departure for an investigation of the politics of economic and democratic consolidation in new democracies. In discussing these processes, a few definitions are in order. Marketoriented refers to structural adjustment policies designed to increase the role of internal and external market forces. This diverse package has been dubbed the Washington Consensus (Williamson 1990). It includes fiscal discipline; shifting public spending priorities away from defense, general administration, and untargeted subsidies and toward health, education, and infrastructure; tax reform; financial market liberalization; a unified exchange rate; trade liberalization; equal treatment for foreign direct investment; privatization of state-owned enterprises; deregulation of the economy; and secure property rights for all citizens. Democracy is a political regime characterized by competitive elections, a variety of channels for citizen participation, and protection of civil and political liberties sufficient to safeguard the two other characteristics (Dahl
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