Coalitions and corporate choices in Argentina, 1976–1994: The recent private sector support of privatization

After sabotaging almost every privatization since the 1970s, the Argentine private sector suddenly began to support privatizations in 1991. While public choice approaches that stress the cost impact of policy can explain the anti-privatization behavior of the private sector prior to 1991, they are less successful at explaining this recent shift in behavior. This article explains this shift by focusing on political coalitions. By expanding (or reducing) the set of attainable outcomes, political coalitions shape the political choices of firms. Prior to 1991, the rent-seeking private sector led a huge multi-sectoral anti-privatization coalition that repeatedly preempted the Executive from privatizing. In 1991, this coalition disintegrated as a result of a reordering of economic institutions. Devoid of its traditional allies, the private sector chose to acquiesce to privatizations. Thus, political coalitions can be more important in shaping firm behavior than economic considerations such as the cost-impact of public policy or the size of rent markets. This article also explains why, in many countries confronting comparable anti-privatization coalitions, privatizations are likely to emerge with an unexpected mixture of competition-enhancing and competition-restricting policies. Javier Corrales is assistant professor of political science at Amherst College, specializing in comparative and international politics of Latin America. He is currently writing a book on the effects of executive-ruling party relations on the implementation of market-oriented reforms in Latin America. Newspapers and magazines (from Buenos Aires)ámbito Financiero Clarín El Cronista Comercial La Nación Noticias The Review of the River Plate     

The politics of market reforms: Korea's path from Chaebol Republic to market democracy and back

This paper studies the politics of market-oriented reforms in Korea since the 1997/98 financial crisis. It focuses on the capacity of the state to implement these reforms, and challenges the view that successfully implemented market reforms follow a technocratic ‘best practice’ approach. On the contrary, this paper argues that reforms in Korea were relatively successful because they were political projects that went beyond ownership concepts of the IMF and World Bank. The temporary weakness of big business (chaebol) and the formation of reform coalitions by the government created a balance of power between societal interest groups that opened a political space for the government. The state regained some of the autonomy it had lost during the ‘Chaebol Republic’ from 1987 to 1997 and was able to implement reforms in a temporary corporatist framework. However, the chaebol adapted to the new situation and used the market-friendly reforms in their favour. The re-emergence of the chaebol undermined state autonomy and with the inauguration of the new President and former chaebol CEO Lee Myung Bak in 2008, Korea is arguably entering the second Chaebol Republic.     

Between Decisiveness and Credibility: Transforming the Securities Industry in Singapore and Thailand

This article suggests a political party-centred explanation of economic policy reforms that differs significantly from the standard theoretical models that emphasise social coalitions, government systems, regime types or electoral cycles. The explanatory approach advanced here focuses on inter-party and intra-party organisational dimensions within an integrated analytical framework as the major determinants of both the decisiveness of policy reforms and the credibility of such reforms. A comparative analysis of government efforts to transform the securities industry in Singapore and Thailand provides preliminary evidence with which to explore the proposed causal linkage between the patterns of stock market reforms and the changing configurations of political parties.     

Populist liberalism as dominant ideology: Competing ideas and democracy in post-authoritarian Argentina, 1989–1995

This article identifies a new dominant political ideology, populist liberalism, which emerged in Argentina after 1989. This elite-constructed discourse (combining some neo-liberal ideas with old populist emphases) emphasized leadership more than institutions; glorified grand transformation rather than incremental change; stressed economic efficacy more than political representation and participation; and elevated liberty over equality and solidarity. This ideology, a contributing cause and consequence of the Menemist transformation of the Argentine political economy, is assessed against democratic norms and contrasted with its main ideological competitors in Argentina, populist nationalism, democratic nationalism, and democratic liberalism. The article concludes with a comment on the relationship between populist liberal ideology and the uneven democratization of post-authoritarian Argentine politics.     

Coalitions,convergence and corporate governance reform in Indonesia

This paper argues that Indonesia's corporate governance system is unlikely to converge on the outsider model of corporate governance, at least in so far as this means an exact replication of this model. While the Indonesian government has introduced a range of corporate governance reforms aimed at bringing in key elements of the outsider model since the mid-1980s, and especially since the onset of the Asian crisis, there have been serious problems with the implementation and enforcement of these reforms. Underlying this outcome, it is argued, has been the structure of power and interest within Indonesia: the balance of power between the main coalitions of interest has been such that the political preconditions for the proper operation of the outsider model have not yet been established.     

The Politics of Competitive Tendering: Political Orientation and Attitudes towards Contracting Out among Finnish Local Politicians

Using survey data on Finnish local politicians (n = 364) we examine the extent to which political orientation affects attitudes towards and perceptions of competitive tendering in social and health service provision. Expectation of cost benefits turns out to be the most important factor accounting for willingness to increase the usage of competitive tendering. The perceived positive impact of tendering on local democracy is also related to local politicians' readiness to implement reforms. However, political orientation does have a strong effect on politicians' perceptions. We also consider whether there are mitigating factors that could mask the relationship between political orientation and attitudes towards tendering. We identify one such factor, municipal employment: public-sector employees form a kind of informal ‘interest group’ resisting public-sector reforms in municipal decision making. In general, our results suggest that macro-level studies on competitive tendering underestimate the effects of political ideology on local decision making.     

Don’t buy from me Argentina: Politics, economics, and trade liberalization in Argentina, 1992–2001

Recently, while opening their markets to international trade through tariff reduction, developing nations have been quietly adopting nontariff measures that impose new barriers on imports. This study contributes to a literature that assesses reactions to recent widespread economic reform, particularly in the developing world. While analysts have identified many determinants of the reform process, we are only beginning to assess the factors that shape its twists, turns, and even reversals. In particular, we do not yet have a clear understanding of the determinants of governments’ treatment of different groups and actors in this process. This article examines these reactions to trade liberalization in Argentina, an important middle-income nation, by drawing upon the significant body of theoretical and empirical literature on trade policy in developed nations that demonstrates that both economic and political factors condition policy implementation. Utilizing a data set of nontariff trade disputes from 1992 to 2001, the analysis employs probit maximum likelihood techniques to assess the relationship between trade policy outputs and economic and political factors. The findings suggest that economic factors, including import flows, and political factors such as the breadth of representation appear to condition trade policy decisions in Argentina. The results also suggest that overall macroeconomic context affects policy outputs. Jeffrey Drope is an assistant professor in the Department of Political Science, University of Miami. His recent articles and current research examine the political economy of trade policy and, more generally, how interests and institutions interact to generate policy. I thank Wendy Hansen, Ken Roberts, and theSCID reviewers and editors for valuable comments, the Latin American Institute at the University of New Mexico for financial support, and Pablo Sanguinetti for helpful introductions in Argentina.     

Strengthening local political leadership through institutional design: how and why

ABSTRACT

Over recent decades, the institutions of political leadership have been criticised for being caught up in outdated designs that are not adapting to societal changes. In many western countries, this diagnosis has spurred design reforms aimed at strengthening political leadership at the local level. Based on a study of reforms in Norwegian and Danish municipalities, this article first develops a typology of reforms aimed at strengthening local political leadership. Leadership reforms are categorised into four types aimed at strengthening Executive, Collective, Collaborative, or Distributive political leadership. The typology is used to map the prevalence of the different types of reforms in the two countries. The results show that design reforms as such are more widespread in Danish than in Norwegian municipalities. In particular, reforms aimed at strengthening Distributive political leadership are used more extensively in Denmark than in Norway. The article discusses the contextual differences that may explain this variation.     

Party presidentialization in post-Suharto Indonesia

ABSTRACT

Indonesia presents an extremely rare quasi-experimental research case: the constitutional reforms and the transition to full presidentialism have effected a presidentialization of political parties that is largely in line with the changes predicted by the model of Samuels and Shugart [2010. Presidents, parties and prime ministers: How separation of powers affects party organization and behaviour. Cambridge: Cambridge University Press]. Especially the rise of the new president and his difficult relationship with his own party are testimony to this. But a closer look reveals that the model has to be adapted to Indonesian politics. Presidents have tools to forge grand coalitions and to overcome the dualism to an extent. The size and history of political parties as well as wider socio-economic changes, that is an increasing oligarchization of party organization, have to be considered. Moreover, highly personalized vehicle parties serving the interests of a presidential candidate have emerged. It follows that institutional and structural incentives combined have produced a party system consisting of different party types.     

Decentralisation,Governance and the Structure of Local Political Institutions: Lessons for Reform?

Many governments are devolving power to elected local councils, hoping to improve service delivery and citizen representation by bringing officials closer to the people. While these decentralisation reforms hold the promise of improved governance, they also present national and sub-national leaders with a complex array of options about how to structure newly empowered local political institutions. This article draws on cross-national experience and the latest research to identify the trade-offs inherent in structuring local political institutions. The study's specific interest is in the impact of strong, locally elected councils on governance and representation. Proceeding from an empirical basis that competitive elections are vital for the legitimacy and efficiency of local political institutions, the analysis first questions the impact of four institutional features – central versus local control, local executive versus local council authority, local council structure, and the role of parties – on service provision and fiscal solvency. The article's second section analyses the impact of decentralisation on political representation, with a particular focus on the role of institutional design in combating the threat of extremist parties. A final section summarises empirical findings and advances some policy-relevant conclusions.     

Why do presidents fail? Political leadership and the Argentine crisis (1999–2001)

This article explores why Argentine president Fernando de la Rúa (1999–2001) failed to govern and the factors that prevented him from compelting his constitutional mandate. This study draw on current literature about leadership. We argue that President De la Rúa’s ineffective performance was characteristic of an inflexible tendency towards unilateralism, isolationism, and an inability to compromise and persuade. Moreover, we examine how de la Rúas performance, in the context of severe political and economic constraints, discouraged cooperative practices among political actors, led to decision-making paralysis, and ultimately to a crisis of governance This work seeks to make four contributions. First, it conceptualizes political leadership by providing an analytical framework that integrates individual action, institutional resources and constraints, and policy context, thus filling a gap in the literature. Second, it explains the importance of effective leadership in building up and maintaining multiparty coalitions in presidential systems. Third, it complements existing institutional approaches to improve our understanding of a new type of instability in Latin America: the failure of more than a dozen of presidents to complete their constitutional mandates. Fourth, it analyzes the way political and economic variables interact in times of crisis. Mariana Llanos is a researcher at the Institut für Iberoamerika-Kunde (IIK) in Hamburg, Germany, and teaches Latin American politics at the University of Hamburg. Her research focuses on Latin American political institutions particularly to the president-congress relations and the legislatures of the Southern Cone. She is the author ofPrivatization and Democracy in Argentina (Palgrave, 2002), co-author ofBicameralismo, Senados y senadores en el Cono Sur latinoamericano (ICPS, Barcelona, 2005, together with Francisco Sánchez and Detlef Nolte) and co-editor ofControle Parlamentar na Alemanha, na Argentina e no Brasil (KAS, Rio de Janeiro, 2005, with Ana María Mustapic), among other works. Ana Margheritis is assistant professor of international relations and Latin American politics at University of Florida. Her research interests are in international political economy, foreign policy, regional cooperation, and inter-American relations. She is the editor ofLatin American Democracies in the New Global Economy (2003); author ofAjuste y Reforma en Argentina, 1989–1995 (1999); and co-author ofHistoria de las relaciones exteriores de la República Argentina (with Carlos Escudé et al., 1998) andMalvinas: Los motivos económicos de un conflicto (with Laura Tedesco, 1991), as well as of several articles in academic journals and book chapters. The authors are grateful to Vicente Palermo and three anonymous reviewers for their helpful comments.     

The “Imperial Minority”: An Interpretative Framework of the Russians in Kazakhstan in the 1990s

This article is the fifth and final in a Nationalities Papers series providing an overview of the development of Romani political group representation and administration, from the arrival of Roma to Europe up to 1971, the landmark year of modern transnational Romani politics. The article concentrates on the period between the Second World War and 1970 and the emergence of the following phenomena which distinguish this period from those covered in the previous articles: some limited Romani participation in non-Romani mainstream political or administrative structures, an international Romani evangelical movement, reconciliation between Romani political representation and the Catholic Church, national institutions created by various governments to aid the administration of policies on Roma and rapid growth of non-governmental organizations addressing Romani issues.     

Merging county administrations – cross-national evidence of fiscal and political effects

ABSTRACT

While many central governments amalgamate municipalities, mergers of larger county administrations are rare and hardly explored. In this article, we assess both fiscal and political effects of county mergers in two different institutional settings: counties act autonomously as upper-level local governments (Germany), or counties being decentralised branches of the state government (Austria). We apply difference-in-differences estimations to county merger reforms in each country. In both cases, some counties were amalgamated while others remain untouched. Austrian counties (Bezirke) and German counties (Landkreise) widely differ in terms of autonomy and institutions, but our results are strikingly similar. In both cases, we neither find evidence for cost savings nor for staff reductions. Instead, voter turnout consistently decreases in merged counties, and right-wing populists seem to gain additional support. We conclude that political costs clearly outweigh fiscal null benefits of county merger reforms – independent of the underlying institutional setting.     

PETTY BUREAUCRACY AND WOOLLYMINDED LIBERALISM? THE CHANGING ETHOS OF LOCAL GOVERNMENT OFFICERS

Most discussions of the public service ethos ( pse ) have offered polemical accounts of how recent reforms have eroded the distinguishing values of public servants without ever defining this ethos or considering its relationship to other aspects of the public sector. This article considers the deeper and more structural implications of the pse by characterizing it as a political institution that shares the features of'new institutionalism'. It concentrates upon the pse as it manifests itself in local government and uses case studies of four authorities to analyse the extent to which external changes are altering the fundamental values of the ethos. In using the'new institutionalist'perspective it argues that the pse , a vital institution of the UK polity, has been resistant to external pressures for change. Hence, to be successful, public sector reform must take into account the interdependent relationship between the pse and other political institutions.     

Party size and policy outcomes: An empirical analysis of taxation in democracies

Taxation varies widely among democracies. Yet scholars disagree whether differences in political institutions help produce the variation. This article identifies topdown and bottom-up mechanisms by which political institutions are thought to influence taxation. It then combines political and economic data on more than 50 democracies to evaluate the impact of political institutions on government revenues. Cross-sectional and pooled time series analyses that include controls for economic conditions and partisan ideologies of governments confirm an indirect impact of these institutions: there is a curvilinear relationship between the size of political parties in a democracy and the tax revenues collected. Yet the effect of party size on policy outcomes is limited to a subset of democracies. The article opens new paths for research on the roles of electoral, constitutional, legislative, and party institutions in democratic policy making around the world. Andrew C. Gould is associate professor of government at the University of Notre Dame, where he is a Fellow of the Kellogg Institute for International Studies and of the Nanovic Institute for European Studies. He recently publishedOrigins of Liberal Dominance: State, Church, and Party in Nineteenth Century Europe and the article “Conflicting Imperatives and Concept Formation,” which appeared inThe Review of Politics. For their suggestions and/or data, I thank José Antonio Cheibub, Sven Steinmo, Duane Swank, Daniel Verdier, and Michael Wallerstein. For their comments, I am grateful to Carles Boix, Delia Boylan, Lloyd Gruber, Fran Hagopian, Peter Hall, Mark Hallerberg, Gretchen Helmke, Scott Mainwaring, Paul Mueller, Dennis Quinn, Ashutosh Varshney, and two anonymous reviewers. Peter Baker and Tom Lundberg provided insights and skilled research assistance. This work was supported in part by a grant from the Faculty Research Program, University of Notre Dame. A prior version of this article was presented at the 2000 Annual Meeting of the American Political Science Association. The errors that remain are my own.     

Democracy, Colonization, and Human Capital in Sub-Saharan Africa

This article examines an empirical anomaly. In most developing regions, poor democratic nations enroll more primary school students than their authoritarian counterparts. Regime type, however, cannot account for the wide variance in enrollment in Africa. This study demonstrates that colonial heritage is a good predictor of primary school enrollment for low-income countries in Africa. Additional analysis shows that colonization's impact on education has not diminished since independence. Rather, the initial differences in enrollment between the former French and British colonies have grown over time. The results hold important implications for the study of political institutions and their impact on economic development. Even after they no longer exist, political institutions can have substantial lingering effects on important developmental outcomes. David S. Brown is an assistant professor of political science at Rice University. His work has appeared recently inThe American Political Science Review, Political Research Quarterly, and inComparative Political Studies. His work focuses on the political economy of development and is based on cross-regional work with specialization in Latin America. Specific areas of interest are human capital, democracy, and the international determinants of domestic politics.     

Organizational perspectives on the formation and disintegration of terrorist groups

Abstract

This article treats terrorist organizations as political interest groups. Starting from the assumption that terrorists are rational political actors, it follows that organizational considerations will play a role in the formation and decline of terrorist groups, just as is the case in other political organizations. The effects of several factors, including recruitment, ability to provide selective and purposive incentives, the need for entrepreneurial political leadership, competition from other organizations, the ability to attract outside support, and the ability to form coalitions with other groups, are considered.     

Transitional democracies and the shift to export-led industrialization: Lessons from Thailand

The third wave of democratization sweeping the developing world has occurred in tandem with market and export-oriented shifts in economic policy. This article assesses the prospects for the success of this double transition in Thailand. Some have suggested that the political prerequisites of the shift from import substitution industrialization to export-led industrialization are quite narrow. In this view, newly democratic governments are likely to lack sufficient autonomy from distributional coalitions to impose the losses on those organized groups to sustain a successful economic transition. Analysis of the Thai case suggests that such a shift in economic strategy can be politically manageable while providing for the emergence of a democratically based export-led coalition if inherited economic distortions are mild, political mobilization associated with the democratic transition is low, liberalization, of the trade regime is statist, and if the countries’ export markets are strong. This suggests that the political prerequisites of export-led industrialization may be wider than previously thought.     

THE ROLE OF POLITICS AND INSTITUTIONS IN THE ITALIAN ADMINISTRATIVE REFORM TRAJECTORY

This article applies broad conceptual categories of comparative politics to the explanation of administrative reforms in Italy. It takes as its argument some lines of influence on public sector reform of the features of the party system in Italy, the executive‐legislative balance, the politician‐bureaucrat relationship, and the role of administrative law. In the search for explanations for the trajectory of administrative reform, pre‐existing political and institutional factors also have to be interpreted through the lens of negotiated change occurring via processes of conversion and layering involving new and old institutions that has taken place in Italy since the ‘political crisis' began in 1992.