Political parties,party systems,and economic reforms: The Turkish case

Turkey’s experience with economic reforms and democratization since the early 1980s underscores the importance of the political parties and the party systems in the interactions between these two processes. The country’s experience with democratic politics and a multiparty system made a significant contribution to the resumption of electoral politics and redemocratization following three years of military rule in the early 1980s. However, the opening up of the political space and the reemergence of competitive party politics ultimately created problems for the successful completion of the economic reforms, as one-party dominance and majority-party governments gave way to fragmentation in the party system with weak coalition governments. The Turkish case is instructive of the difficulties facing countries that seek to simultaneously consolidate their democracies and liberalize their economies. Sabri Sayari is executive director of the Institute of Turkish Studies and research professor at Georgetown University’s School of Foreign Service. He has written extensively on Turkey’s domestic politics and foreign policy, and on issues related to political development, parties and party systems, and democratization.     

Economic development policy in Taiwan: achievements,challenges, and implications

This study examines Taiwan's economic development experience and identifies major achievements and challenges. The study first provides an overview of the past development record by analyzing several key economic indicators. It then explores major factors contributing to economic development, including general social background and supporting economic conditions as well as government development policy and activities. The paper especially focuses on changes and challenges resulting from the implementation of internationalization and liberalization of economic policy and the introduction of political democratization since the 1980s. The paper concludes with the implications of Taiwan's achievements and challenges.     

The Emperor’s new clothes: Labor reform and social democratization in Chile

This article analyzes the relationship between political and social democratization in recent democratic transitions by illustrating how the two processes were at odds in the case of labor reform in Chile (1990–2001). Labor reform served simultaneously to consolidate political democracy and slow down the momentum of social democratization. It was a tool for signalling policy change to legitimate the democratic regime, but at the same time leaving the liberal economy intact. The Chilean case calls into question the thesis of a natural progression from political to social rights prevalent in democratic theory, and allows us to generalize about the way marketization places limits on democratic deepening. The article first discusses what would be appropriate criteria of social democratization considering contemporary labor issues and labor relations in Chile. It then investigates the political process of labor reform. Ongoing legal debates through the 1990s show the extent of path dependence set in motion by the timid nature of the first social reforms in Chile’s new demoncracy and their muting effect on citizenship. Louise Haagh obtained her doctorate from the University of Oxford (St. Antony’s College) in 1998, and for the next three years held a British Academy Postdoctoral Research Fellowship at the College. In 2001 she began a lectureship at the University of York.     

Beyond Boom and Bust: External Rents,Durable Authoritarianism,and Institutional Adaptation in the Hashemite Kingdom of Jordan

Drawing on recent critiques and advances in theories of the rentier state, this paper uses an in-depth case study of the Hashemite Kingdom of Jordan to posit a new “supply and demand” approach to the study of external rents and authoritarian durability. The Jordanian rentier state is not exclusively a product of external rents, particularly foreign aid, but also of the demands of a coalition encompassing groups with highly disparate economic policy preferences. The breadth of the Hashemite coalition requires that the regime dispense rent-fueled side payments to coalition members through constructing distributive institutions. Yet neither rent supply nor coalition demands are static. Assisted by geopolitically motivated donors, the Hashemites have adapted institutions over time to tap a diverse supply of rents that range from economic and military aid to protocol trade, allowing them to retain power through periods of late development, domestic political crisis, and neoliberal conditionality.

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.     

Foreign capital in Korea’s economic development, 1960–1985

The relationship between foreign capital and state autonomy is investigated in the rapidly developing South Korean economy. The changing composition and the sectoral distribution of the different types of foreign capital, the role of the Korean state in the acquisition and distribution of foreign capital, and the implications of foreign capital on the autonomy and capacity of the state are studied. The findings show that public loans and state-guaranteed commercial loans in the 1960s and 1970s have supported and strengthened state autonomy, while direct foreign investment (DFI) and commercial loans in the 1980s could potentially undermine it. Significant changes in the 1980s—rapid increase of Japanese DFI in hotels, commerical loans behaving more like DFI, and changing industrial orientation of the Korean economy toward more high-technology sectors—suggest that the types of foreign capital which are more independent of state control and more keen on market signals will increase in the future. This has importnat implications for future Korean economic development. Eun Mee Kim is an assistant professor of sociology at the University of Southern California. Kim has been conducting research on various topics of economic development and political development in South Korea and East Asia, and has published inPacific Focus, andThe Journal of Developing Societies. Kim’s current research includes the industrial organization and growth of the “chaebol” (business conglomerates) in Korea; the political economy of MNC investment by U.S. and Japanese corporations; and economic liberalization and political democratization in Korea and Taiwan.     

Exploring the three varieties of East Asia's state-guided development model: Korea,Singapore, and Taiwan

In the postwar era, the East Asian state-guided development model has worked well to create successive economic miracles in the region. However, the enduring variances of the individual economies in East Asia still remain. This article explores the empirical diversities hidden behind the intra-regional commonalities. In particular, on the “growthstability-equity” spectrum, the East Asian development paradigm could be sub-divided into three categories: South Korea's “growth-obsessed” pattern (G); Singapore's “growth-with-stability” model (G-S); and Taiwan's “equity-and-stability-based growth” model (G-S-E). Largely derived from the deliberate political choice of a particular strategic path, each model of East Asia has materialized on the basis of strong developmentalist states. However, unlike the multi-goal options (G-S/G-S-E), as in Singapore and Taiwan, the mono-goal options ((G), as in Korea, could gain the chosen objective at considerable cost to the neglected dimensions. As a result, given a set of necessary political conditions, the multi-goal options are a better choice for Third World policy practitioners than are the mono-goal options.     

Unlikely candidates for democracy: The role of structural context in democratic consolidation

Many contributors to the new literature on democratic consolidation overemphasize the role of political leadership, strategic choices about basic institutional arrangements or economic policy, and other contingent process variables. Their focus on political crafting has encounraged an undue optimism about the possibility of consolidating democracies in unfavorable structural contexts. This article critiques the current literature and asserts the primary importance of structural context in democratic consolidation. The powerful influence of structural context is illustrated by using just two structural variables, economic development level and prior authoritarian regime type, to indicate a group of thirty-eight countries in which democracy has failed to consolidate during the third wave of democratization (1974-present) and is very unlikely to do so in the near or medium-term future. Men make their own history, but they do not make it just as they please; they do not make it under circumstances chosen by themselves, but under circumstances directly found, given and transmitted from the past. J. Mark Ruhl is Gleen and Mary Todd Professor of Political Science and Chair of the Department of Political Science at Dickinson College in Carlisle, PA. He has written extensively on Latin American politics and has specialized in the cases of Colombia and Honduras. Recent publications by Professor Ruhl includeParty Politics and Elections in Latin America (Westview, 1989), coauthored with R.H. McDonald of Syracuse University, and “Redefining Civil-Military Relations in Honduras”Journal of Intermerican Studies and World Affairs (Spring 1996).     

The Transition to Equity in South African Higher Education: Governance,Fairness, and Trust in Everyday Academic Practice

In South Africa, 15 years into a new political order, higher education institutions are under pressure to create and sustain the conditions necessary for the consolidation of democracy. One of the more important of these conditions is the need to shift their academic staff profiles in ways that are more representative of a diverse democracy. This process is mediated by legislative and policy reforms that have as their aims the establishment of a more diverse community of academics (see, inter alia: White Paper, 1997; Employment Equity Act No. 55 of 1998; National Plan for Higher Education, 2001). While much current thinking is at the macro-level and focused on narrow human resource aspects related to “getting the numbers right,” there is limited research on what happens in the daily experiences of faculty. This article draws on a research project conducted at five universities in South Africa in order to explore how academics in their everyday micro-practices of governance, teaching, and research respond to this external systemic pressure. The findings are considered in terms of their implications for the democratization process, in relation to issues of governance, fairness, and trust, at the levels both of institutions and of society as a whole.     

Foreign aid and the economic growth of developing countries (LDCs): Further evidence

The objectives of this article are to revisit the critical role that foreign aid presently plays in the economic growth of the LDCs and to examine the nature of its utilization in those countries which heavily rely on foreign aid. Other sources of economic growth such as capital (physical and human capital), raw labor, technological changes, and the degree of political and civil liberties will also be considered. Using average cross-sectional data for eighty countries over the 1971–1990 period, the study shows that foreign aid has a statistically positive effect on economic growth in developing countries. Lack of political and civil liberties is found to have a negative, but statistically marginal impact on economic growth. A policy implication which may be drawn from the study is that foreign capital inflow can have a beneficial effect by supplementing domestic savings rather than replacing them. Bichaka Fayissa, Ph.D., is Professor of Economics at Middle Tennessee State University, Murfreesboro, TN. He has published in theInternational Journal of Social Economics, World Development, Keil World Economics, Quarterly Review of Economics and Finance, Applied Economics, Economia Internazionale, Journal of Economics and Finance, Journal of Legal Economics, and several other journals.     

Scaling Down: The Subnational Comparative Method

Subnational units of analysis play an increasingly important role in comparative politics. Although many recent studies of topics such as ethnic conflict, economic policy reform, and democratization rely on comparisons across subnational political units, insufficient attention has been devoted to the methodological issues that arise in the comparative analysis of these units. To help fill this gap, this article explores how subnational comparisons can expand and strengthen the methodological repertoire available to social science researchers. First, because a focus on subnational units is an important tool for increasing the number of observations and for making controlled comparisons, it helps mitigate some of the characteristic limitations of a small-N research design. Second, a focus on subnational units strengthens the capacity of comparativists to accurately code cases and thus make valid causal inferences. Finally, subnational comparisons better equip researchers to handle the spatially uneven nature of major processes of political and economic transformation. Richard Snyder is assistant professor of political science at the University of Illinois at Urbana-Champaign. He is the author ofPolitics after Neoliberalism (2001). His articles on regime change and the political economy of development have appeared inWorld Politics, Comparative Politics, Journal of Democracy, andBritish Journal of Political Science. I appreciate helpful comments on this material from Nancy Bermeo, Dexter Boniface, David Collier, John Gerring, Edward Gibson, Robert Kaufman, Juan Linz, James Mahoney, Kelly McMann, Gerardo Munck, Peter Nardulli, David Samuels, Judith Tendler, and two anonymous reviewers. I also benefited greatly from the insightful comments on an earlier draft provided by the participants in the conference on “Regimes and Political Change in Latin America,” held at the University of Illinois at Urbana-Champaign in August 1999.     

Aid as an encounter at the interface: the complexity of the global fight against poverty

International development discourse has recently shifted its focus from top‐down economic adjustment to participative anti‐poverty policy. This shift hints at an acknowledgement of the local complexities within the poverty process and at a need to listen to and develop actions with the ‘poor’. But, whereas the mainstream argument remains couched in a technical framework, we argue that the fight against poverty is inevitably political. Conceptualising the aid industry as a set of global–local interfaces, it follows that a closer look at ‘participation’ in anti‐poverty interventions is needed to come to grips with the political issues involved. Four issues are discussed: the complexity of local ‘participation’, given the ‘polycephalous’ character of third world societies; the power biases in the aid chain; the potential problem of ‘false consciousness’; and the ambiguities of the role of local development brokers. We conclude that anti‐poverty policy is in need of ‘interface experts’, who, through ‘provocation’ can beget ‘participation’.     

The developmental state: Israel, South Korea, and Taiwan compared

The growth performances of the Israeli economy during the years 1948–1973 were excellent by any criteria, and are comparable to the “miraculous” performances of South Korea and Taiwan. Excellent economic performances in the three countries were accompanied by the presence of an autonomous and an interventionist state as well as by strategies of governed development (in the spheres of finance, investment, and international trade). The comparison is used, to shed new light on the Israeli political economy as well as on the replicability of the developmental state model across regions, cultures, and political regimes. First, by comparing the three countries and pointing to the similarities in the role and autonomy of the state, the article offers a different interpretation of the Israeli economy from that offered by both neoclassical and neomarxist interpretations of the Israeli political economy. Second, successful cases of develoment are rare in our world; this should make the study of the Israeli political economy a valuable case-study for the proponents of the developmental state model. By pointing out the similarities in the growth performances and the developmental strategies of Israel, Taiwan, and South Korea, as well as the dissimilarities in their political regimes, their cultural traditions, and their regional settings, this article further strengthens the arguments in favor of state-guided economic development in developing countries. David Levi-Faur is a lecturer of comparative public policy and business and politics at the University of Haifa. He was a visiting scholar at the L.S.E., University of California, Berkeley, the University of Utrecht, and the University of Amsterdam.     

Varieties of Authoritarianism: The Organization of the Military State and its Effects on Federalism in Argentina and Brazil

While much has been written about democracy and democratization, far less attention has been paid to the institutional organization of authoritarian regimes. Scholars have focused on the causes, economic policies, societal support, intra-elite conflicts, or human-rights violations of authoritarian regimes. More recently, political scientists have also studied the role of elections and legislatures on the survival of authoritarian regimes. However, the very different ways in which authoritarian regimes, and military regimes in particular, organize the government, occupy the state apparatus, and modify the country’s political institutions have largely gone under-theorized. This essay contributes to fill in this void by analyzing how the last military regimes of Argentina (1976–1983) and Brazil (1964–1985) organized power within the state and the legacies of such organization on the institutions of federalism. The essay argues that variation in the organization of the state under the military regimes accounts for the divergent origins of post-developmental decentralization, which in turn explains the contrasting evolution of intergovernmental relations in each country. The article contributes to the recent literature on electoral authoritarian regimes by showing that elections and legislatures matter not only to regime survival but also to policy outcomes.     

An assessment of native American economic development: Putting culture and sovereignty back in the models

Economic indicators in the United States document the poor economic straits in which Native Americans find themselves. Historically, scholars have explained delayed economic development using Linear Stage, Structural-Change, Dependency and Neoclassical Counter Revolution Models. All of these, however, are unable to fully explain the Native American case. We discuss the deficiencies of these models and point out the effects of constantly changing United States policies on Native American economic well-being. We present data from a survey of tribal government respondents about preferred business arrangements on the reservation to support greater attention to cultural identity in economic development studies. A model that incorporates cultural and sovereignty variables is presented. Diane Duffy, Ph.D., is assistant professor of political science at Iowa State University. She combines the study of political psychology and public policy by examining citizen perceptions of political issues. Currently she is examining Native American perceptions of “patriotism.” Jerry Stubben, Ph.D., is an Extension State Communities Specialist and adjunct associate professor in the Professional Studies Department at Iowa State University. He descends from the Ponca Tribe of Nebraska and served as Chair of the American Indian Studies Program at ISU from 1990–1995. Presently, he serves as co-investigator on a National Institute on Drug Abuse funded project to develop, implement, and evaluate a tribally based, family oriented substance abuse prevention program on the Mille Lacs reservation in Minnesota and Lac du Flambeau reservation in Wisconsin.     

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.     

International assistance and democracy: Assessing efforts to assist post-communist development

This article surveys political development frameworks for analyzing the post-Communist transition to political democracy. Parallels with postcolonial events in Third World countries should caution against overoptimism about the prospects for mutually reinforcing economic and political development. In general, the study of Third World political development suggest that rapid regime transition with low mass participation is unlikely to result in sustainable democratic politics, especially where severe economic dislocations are present. High rates of participation during regime change may lead to rapid disillusionment with the performance of postrevolutionary government. It is thus argued that states wishing, for various reasons, to assist in smoothing the transition from communism should pay heed to the cautionary experience of Third World development assistance and monitor the political dimensions of the transformation, such as the stability of coalition governments, electoral turnout, ethnonationalism, as well as the orthodox economic indicators like inflation and rates of domestic investment. With respect to international assistance to the former Communist countries of Eastern and Central Europe, the article shows that the capacity of the Group of Twenty Four (G-24) donors to aid economic recovery is well below what is requested, or needed. Despite hosting a donor summit, the United States is taking a far less prominent role in the post-Cold War donor community than was the case in the analogous program for post-World War II recovery. This is having an impact on both volume and coordination of assistance. Finally, a strong, possibly ideological, preference among donors for finding private sector recipients for the bulk of assistance may erode the capacity of the post-Communist states to provide both infrastructure and political stability needed for investor confidence. Those making decisions about levels and modes of Western assistance should look beyond economic indicators of privatization as criteria for continued support and retain, where possible, political development objectives in both financial and project assistance. While we must not assume that the record of supporting democracy in Central and Eastern Europe will prove to be any better than in many Third World regimes, the greater security salience of Eastern Europe’s stability adds urgency to the task of applying political development lessons to the post-Communist experience. Malcolm J. Grieve specializes in political development and international political economy and in his current research is exploring the connections between the two fields with regard to analysis of the post-Communist transition. Recent publications include “Economic Imperialism”, in D. Haglund and M. Hawes, eds.,World Politics: Power, Interdependence and Dependence (Harcourt Brace Jovanovich, 1990) and “Debt and Imperialism: Perspectives on the Debt Crisis,” in S. Riley ed.,The politics of global debt (Macmillan 1993). ...in Central and eastern Europe, we are seeking to demonstrate in practice the idea that free government can mean good and stable government, and that free enterprise can mean economic opportunity for all.U.S. Deputy Secretary of State, Lawrence S. Eagleburger, 27 February 1991. There is nothing more difficult to arrange, more doubtful of success, and more dangerous to carry through, than to initiate a new order of things.Machiavelli, The Prince     

Limitations of rational-choice institutionalism for the study of Latin American politics

This article analyzes the analytical limitations of rational-choice institutionalism for the study of Latin American politics. Adherents of this approach have made important contributions by analyzing topics that Latin Americanists traditionally neglected, such as the political impact of electoral rules and the processes of legislative decision-making. But rational-choice institutionalism has difficulty explaining the complicated, variegated, and fluid patterns of Latin American politics. It overemphasizes the electoral and legislative arenas and—in general—the input side of politics; it overestimates the importance and causal impact of formal rules and institutions; it does not explain the origins of political change and often suggests a static image of political development; it offers an incomplete analysis of institutional creation by neglecting the importance of political beliefs; it cannot fully account for crisis politics; and it puts excessive, analytically arbitrary emphasis on “microfoundations.” The article questions whether these limitations can successfully be overcome, arguing that rational-choice institutionalism—while an important addition to the debate—is not inherently superior to other approaches applied in Latin American Studies. Kurt Weyland is associate professor of government at the University of Texas at Austin. He is the author of two books—Democracy without Equity: Failures of Reform in Brazil (Pittsburgh, 1996) andThe Politics of Market Reform in Fragile Democracies: Argentina, Brazil, Peru, and Venezuela (Princeton, 2002)—and of numerous journal articles on democratization, market reform, social policy, and populism in Latin America. His current research focuses on the diffusion of policy innovations across countries. I would like to thank Barry Ames, James Booth, Ruth Collier, Marcelo Costa Ferriera, Wendy Hunter, Mark Jones, Fabrice Lehoucq, Scott Mainwaring, Gerardo Munck, Anthony Pereira, Tim Power, Ken Roberts, Charles Shipan, Richard Snyder, Donna van Cott, and two anonymous reviewers for excellent comments.     

Patronage,District Creation,and Reform in Uganda

The effects of economic and political reforms on patronage in Africa remains unclear. In particular, there is much disagreement about whether structural adjustment programs and democratization have helped to make patronage less pervasive in African politics. Here, I examine the case study of Uganda, which has received much praise for its large-scale economic and political reforms since the late 1980s. However, at the same time, Uganda has also experienced a near-explosion in the number of districts (the highest level of local government), going from 39 to 80 in less than a decade. I examine a variety of potential reasons why these districts might have been created and argue, through the use of both qualitative and quantitative analysis, that district creation has functioned as a source of patronage. Specifically, I show that President Museveni’s government has created new districts as a means to compensate for other patronage resources lost through reforms and that new districts have helped him to continue to win elections. This paper thus constitutes the first rigorous demonstration that the creation of new sub-national political units can constitute a form of patronage and suggests that similar processes may be currently taking place across Africa.