Institutions and Development in Latin America: A Comparative Analysis

We review the theoretical literature on the concept of institutions and its relationship to national development, propose a definition of the concept, and advance six hypotheses about institutional adequacy and contributions to national development. We then present results of a comparative empirical study of existing institutions in three Latin American countries and examine their organizational similarities and differences. Employing the qualitative comparative method (QCA) proposed by Ragin, we then test the six hypotheses. Results converge in showing the importance of meritocracy, immunity to corruption, absence of “islands of power,” and proactivity in producing effective institutions. Findings strongly support Peter Evans’ theory of developmental apparatuses.

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.     

Path-Dependent Explanations of Regime Change: Central America in Comparative Perspective

This article explores the application of ideas about path dependence to the study of national political regime change. It first reviews the central components of pathdependent explanation, including the concepts of critical juncture and legacy. This mode of explanation is then employed in the analysis of diverging regime trajectories in Central America during the 19th and 20th centuries. The article argues that the 19th-century liberal reform period was a critical juncture that locked the Central American countries onto divergent paths of long-term development, culminanting in sharply contrasting regime outcomes. A final section puts the argument about Central America in a broader comparative perspective by considering other pathdependent explanations of regime change. James Mahoney is assistant professor of sociology at Brown University. He is the author ofThe Legacies of Liberalism: Path Dependence and Political Regimes in Central America (2001). His current research focuses on long-run development and the legacy of Spanish colonialism in Latin America. For helpful comments and criticisms on an earlier draft, I would like to thank David Collier, Gerardo L. Munck, and the anonymous referees.     

Citizen response to regional integration in the Americas: The cases of Costa Rica and El Salvador

This study examines public opinion in Costa Rica and El Salvador regarding regional integration in Central America. Recent efforts at regional integration as well as the response of the governments of the above countries to those efforts are reviewed. Public opinion toward regional integration is significantly more positive but less structured in El Salvador than in Costa Rica. Differences in the international and domestic contexts help to explain the differential responses in these two countries. Likewise, contextual factors help to account for differences between Central American and European publics in attitudes toward regional integration. Charles L. Davis is associate professor of political science at the University of Kentucky. His interests are Latin American politics and comparative political behavior. Matthew J. Gabel is assistant professor of political science at the University of Kentucky. His interests are European politics and the politics of regional integration. Kenneth M. Coleman is a former professor at the University of Kentucky, the University of North Carolina-Chapel Hill, and the University of New Mexico. His interests are Latin American politics and public opinion.     

Outside the den of dragons: The Philippines and the NICs of Asia

The Phillippines is compared with Taiwan and South Korea on six factors, deemed in the literature to account for the economic success of the “little dragons” of Asia: colonial history, ties to the United States, class structures, state autonomy and efficacy, timing of industrialization, and culture. The theoretical implications of the comparative analysis in the study of development and underdevelopment in the Third World are considered, and the Marcos regime and the Aquino administration are evaluated in the light of the comparative analysis M.D. Litonjua is an assistant professor of sociology at the College of Mount St. Joseph in Cincinnati, Ohio. He is originally from the Philippines where he taught at the Ateneo de Manila University. He holds a Ph.D. in sociology from Brown University. His current interests include religion and social change, capitalism and democracy in Third World countries.     

Teachers’ strikes in Argentina: Partisan alignments and public-sector labor relations

In a context of increasing teachers’ militancy in Argentina, this article provides the first empirical analysis of teachers’ strikes in all twenty-four Argentine provinces during the 1990s. Using a cross-provincial statistical analysis, it explains the wide variation across provinces and across time of Argentine teachers’ strikes. It demonstrates that political alignments between provincial governors and teachers’ unions explain these patterns better than organizational and institutional variables, which strongly shape public-sector labor relations in other countries. We emphasize the discretion of provincial governors, for both the application of labor regulations and budgetary appropriations in the politicization of provincial public-sector labor relations in Argentina, especially after the decentralization of education resulted in the provincialization of teachers’ protests. Maria Victoria Murillo is associate professor of political science and international affairs at Columbia University. She was previously an assistant professor at Yale University, a Peggy Rockefeller Fellow at the David Rockefeller Center for Latin American Studies, and a Fellow at Harvard Academy for International and Area Studies. She is the author ofLabor Unions, Partisan Coalitions, and Market Reforms in Latin America (Cambridge University Press 2001) and various articles on the politics of market reforms, labor protest, and privatization of public utilities in Latin America. the authors acknowledge the useful suggestions of the editor and three anonymous reviewers, and the comments of Ernesto Calvo, Javier Corrales, Tulia Faletti, Miriam Golden, Frances Rosenbluth, Andrew Schrank, Kenneth Scheve, J. Samuel Valenzuela, James Vreeland; and the participants in the Seminar on Globalization and Labor Struggle at Columbia University, the Latin American Seminar of the David Rockefeller Center for Latin American Studies at Harvard University, the seventh annual meeting of LACEA, and the Business School seminar at Universidad Torcuato Di Tella. M. V. Murillo acknowledges the support of the Yale Center for International and Area Studies and the Carnegie Program for the Study of Globalization, and L. Ronconi acknowledges the support of the CEDI at the Universidad de San Andrés.     

Growth with pollution: unsustainable development in Taiwan and its consequences

During the 1980s, economic development in Taiwan received much attention in development studies. The “Taiwan miracle” has made Taiwan rich and famous. This article examines an often ignored aspect of development—environmental quality—and argues that Taiwan has achieved “growth with pollution” that will not increase but decrease the welfare of the people in the long run. The root cause of Taiwan's environmental degradation rests on the obsession with fast economic growth at any cost by the powerful coalition between the ruling Kuomington and the capitalists. The article argues that the case of Taiwan is far from being a “model” for developing countries. Taiwan's experience of “growth with pollution,” on the contrary, should stand as a warning to other developing countries pursuing similar development paths. Chun-Chieh Chi received his B.A. in sociology from Tunghai University in Taiwan, and his M.A. and Ph.D. in sociology from State University of New York at Buffalo. He is assistant professor of sociology at the University of Tulsa, Tulsa, OK 74104. His research interests include sustainable development in Taiwan and Kenya, indigenous people and the environment, and women and the environment in developing countries.     

Latin American environmentalism: Comparative views

This article examines three common generalizations from the literature on Latin American environmentalism. The validity of these generalizations, structured as hypotheses, is tested with four case studies from Costa Rica, Mexico, Venezuela, and Brazil. The first generalization is that tensions arise between international environmentalists principally concerned with wildlands conservation and national environmentalists engaged in a broader array of local and domestic issues including urban environmental quality and access to natural resources. The second is that environmental groups in Latin America are elitist in structure and participant base. The third is that the particular tactics employed by environmentalists will be closely tied to the relative openness of their nation’s political system. Through a cross-disciplinary case study approach we find the first two hypotheses quickly break down upon closer inspection, while the third is supported. We suggest a modified framework for interpreting environmental activism in the region, one that weights the role of the state as well as the competing strategies employed by grassroots, private voluntary, and professionalized environmental groups. Latin American environmentalism is highly diverse, presenting many faces in different time periods and different countries. Developing one general theory of environmentalism in Latin America is impossible, but more specific categorizations of the middle range may be achievable.     

Industrial convergence,globalization, and the persistence of the North-South divide

This article demonstrates empirically that widespread convergence in the degree of industrialization between former First and Third World countries over the past four decades hasnot been associated with convergence in the levels of income enjoyed on average by the residents of these two groups of countries. Our findings contradict the widely made claim that the significance of the North-South divide is diminishing. This contention is based on a false identification of “industrialization” with “development” and “industrialized” with “wealthy”. Elaborating from elements of Joseph Schumpeter’s theory of innovation, Raymond Vernon’s product cycle model, and Pierre Bourdieu’s concept ofillusio, the article offers an explanation for the persistence of the North-South income divide, despite rapid Third World industrialization and despite dramatic changes in the world political-ideological context for development (that is, the shift around 1980 from the “development” project to the “globalization” project or “Washington Consensus”). While emphasizing the long-term stability of the Northern-dominated hierarchy of wealth, the article concludes by pointing to several contemporary processes that may destabilize not only the “globalization project”, but also the global hierarchy of wealth that has characterized historical capitalism. Giovanni Arrighi is professor of sociology at The Johns Hopkins University. His latest books areThe Long Twentieth Century: Money, Power and the Origins of Our Times (1994) and (with Beverly J. Silver et al.)Chaos and Governance in the Modern World System (1999). Beverly J. Silver is professor of sociology at The Johns Hopkins University. She is the author ofForces of Labor: Workers’ Movements and Globalization Since 1870 (2003) and co-author (with Giovanni Arrighi et al.) ofChaos and Governance in the Modern World System (1999). Benjamin D. Brewer is a graduate student in the Department of Sociology at The Johns Hopkins University. His dissertation is a commodity chains analysis of the professional-sport economy. He has also published articles on sport and globalization. Previous versions of this paper were presented at the American Sociological Association Meeting, Anaheim, August 2001; Lingnan University, Hong Kong, May 2001; the Graduate School, Chinese Academy of Social Sciences, Beijing, May 2001; the Annual Convention of the International Studies Association, Chicago, February 2001; the Center for International Studies, University of Southern California, November 2000; the Annual Meeting of the American Political Science Association, Washington D.C., September 2000; the Universidad Nacional Pedro Henriquez Urena, Santo Domingo, Dominican Republic, March 2000; and at the Conference on Ethics and Globalization, Yale University, April 2000. We benefited greatly from the comments of Hayward Alker, Charles Beitz, Peter Evans, Walter Goldfrank, Michael Mann, David Smith, Ann Tickner, and two anonymous reviewers forSCID.     

The changing roles of free economic zones in development: A comparative analysis of capitalist and socialist cases in East Asia

Free economic zones (FEZs) play important roles in industrialization and economic development of both capitalist and socialist countries in various regions of the world, and thus have become a major subject of study in the development literature. Theoretical debate and empirical analysis have focused narrowly on the positive and negative economic effects of export processing zones (EPZs) in capitalist Third World countries, without giving sufficient consideration to why, when, and how different types of FEZs in both capitalist and socialist economies adapt their roles in achieving development objectives under changing international and domestic conditions. In this article, I systematically compare the dynamic development roles of three FEZs in two different systems—the state capitalist economies of Taiwan and South Korea and the reforming socialist economy of China—during 1966–1990. The comparative findings are interpreted from competing and complementary perspectives of major development theories. Finally, I use the comparative evidence to refine a lifecycle model of the evolution and prospect of EPZs in capitalist newly industrializing countries, and suggest an alternative scenario for FEZs in socialist economies. Xiangming Chen is assistant professor of sociology at the University of Illinois at Chicago, affiliated with the Center for East Asian Studies at the University of Chicago, and a research fellow at the IC² Institute at the University of Texas at Austin. His current research focuses on the interface between urban and economic development from a comparative perspective, with a central focus on China. He has recently published several papers on urbanization, urban housing reform, commodity chains, and regional development in China in a number of social science journals and edited books.     

Trade and development policies in Colombia: Export promotion and outward orientation, 1967–1992

As developing democracies implement programs of economic adjustment and trade liberalization, we need to examine the relationship between the state and society in the making of foreign economic policies. This article examines trade and development policies in Colombia, one of Latin America's more institutionalized democracies. Colombia was one of the first countries in Latin America to begin a major reorientation away from full dependence on ISI as a strategy of development. The research shows that domestic political institutions and actors have had a decisive impact on the character and direction of foreign economic policies. The study also illustrates how state capacity for economic management is enhanced by bureaucratic insulation and institutional reform. Carlos E. Juárez is a Ph.D. candidate in the Department of Political Science at the University of California, Los Angeles. His research focuses on the politics of trade liberalization in Latin America, government-business relations in developing democracies, and comparative political economy. He was a visiting researcher and lecturer at theUniversidad de los Andes in Bogotá, Colombia from 1991–1992. For 1993–1994 he will be a visiting research fellow with the Center for U.S.-Mexican Studies at the University of California, San Diego.     

Neoliberalism: From New Liberal Philosophy to Anti-Liberal Slogan

In recent years, neoliberalism has become an academic catchphrase. Yet, in contrast to other prominent social science concepts such as democracy, the meaning and proper usage of neoliberalism curiously have elicited little scholarly debate. Based on a content analysis of 148 journal articles published from 1990 to 2004, we document three potentially problematic aspects of neoliberalism’s use: the term is often undefined; it is employed unevenly across ideological divides; and it is used to characterize an excessively broad variety of phenomena. To explain these characteristics, we trace the genesis and evolution of the term neoliberalism throughout several decades of political economy debates. We show that neoliberalism has undergone a striking transformation, from a positive label coined by the German Freiberg School to denote a moderate renovation of classical liberalism, to a normatively negative term associated with radical economic reforms in Pinochet’s Chile. We then present an extension of W. B. Gallie’s framework for analyzing essentially contested concepts to explain why the meaning of neoliberalism is so rarely debated, in contrast to other normatively and politically charged social science terms. We conclude by proposing several ways that the term can regain substantive meaning as a “new liberalism” and be transformed into a more useful analytic tool.

The New Commons vs. The Second Enclosure Movement: Comments on an Emerging Agenda for Development Research

The relationship between property rights and development has always been a central concern for both theorists and policy makers. The growing role of information and communications technology in the economies of both North and South intensifies the salience of this issue. This commentary extends the discussion of the two visions of property rights that are introduced by Weber and Bussell (2005). In one, property rights are restructured along the lines pioneered by the open-source software community to create a “new commons” of productive tools; in the other, Northern corporations successfully defend their politically protected monopoly rights over intangible assets and even extend them through a “second enclosure movement” to an ever larger set of ideas, information, and images. Currently, the second enclosure movement remains dominant, but which of these visions is likely to predominate in the longer run depends on the interests and potential power of key actors and on the possibilities for alliances among them—not just Northern corporations, but Southern states and private entrepreneurs, as well. Peter Evans is professor of sociology and Marjorie Meyer Eliaser Chair of International Studies at the University of California, Berkeley. His research has focused on the comparative political economy of developing countries, particularly industrialization and the role of the state, as exemplified byEmbedded Autonomy: States and Industrial Transformation (Princeton: Princeton University Press, 1995). He has also worked urban environmental issues, producing the edited volumeLivable Cities: Urban Struggles for Livelihood and Sustainability (University of California Press, 2002). His current interest in the politics of globalization is reflected in his chapter, “Counter-hegemonic Globalization: Transnational Social Movements in the Contemporary Global Political Economy,” forthcoming in theHandbook of Political Sociology (Cambridge University Press).     

Making Decentralization Work: A Cross-national Examination of Local Governments and Natural Resource Governance in Latin America

There has been increased emphasis in the last three decades on the decentralization of natural resource governance decisions to local government in developing countries as a means of improving environmental quality, public service delivery, and the accountability of local officials. We examine the performance of decentralization of natural resource management services in a large sample of municipal governments in four Latin American countries. Our analysis includes a variety of factors discussed in the literature as important in influencing the responsiveness of government officials to local needs. We provide a nested institutional model in which local officials respond to incentives created by the structure of formal political institutions at both the local and national level. The results provide support for the importance of considering local and national institutional arrangements as these co-determine the political incentives within decentralized systems.

Dominance and change in the global computer industry: Military, bureaucratic, and network state developmentalisms

This article examines the conditions under which firms in different economies were able to emerge as significant actors in the global computer industry during different time periods. To achieve this, the article divides into three periods the history of the industry in terms of the three major policy regimes that have supported the dominant firms and regions. It argues that these policy regimes can be thought of as state developmentalisms that take significantly different forms across the history of the industry. U.S. firms’ dominance over their European counterparts in the 1950s and 1960s was underpinned by a system of “military developmentalism” where military agencies funded research, provided a market and developed infrastructure, but also demanded high quality products. The “Asian Tigers”—Taiwan, Singapore, Hong Kong, and South Korea—in the 1970s and 1980s were able to eclipse their Latin American and Indian rivals due in large part to the significant advantages offered by a highly effective system of “bureaucratic developmentalism,” where bureaucratic elites in key state agencies and leading business groups negotiated supports for export performance. The 1990s saw the emergence of a system of “network developmentalism” where countries such as Ireland and Israel were able to emerge as new nodes in the computer industry by careful economic and political negotiation of relations to the United States, reestablished at the center of the industry, and by more decentralized forms of provision of state support for high-tech development. Finally, the conditions under which new regimes can emerge are a consequence of the unanticipated global consequences of previous regimes. While state developmentalisms have been shaped by existing global regimes, they have promoted further and different rounds of industry globalization. Seán ó Riain is professor of sociology at the National University of Ireland, Maynooth. His research has been primarily on the political economy of high-tech growth in Ireland and elsewhere, and on work and class politics among software developers. He is the author ofThe Politics of High Tech Growth: Developmental Network, States in the Global Economy (Cambridge, 2004).     

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.     

Delegative dilemmas and horizontal logics: Subnational industrial policy in Spain and Brazil

Scholars of “decentralization” have recently revealed the importance of subnational industrial policy in responding to the challenges of globalization. But these treatments tend to make endemic assumptions about either the universal efficiency or inefficiency of decentralization. This article argues that subnational industrial policy performance is politically contingent and develops national patterns that are more composite than endemic. Political contingency is analyzed in terms of subnational incumbents' incentives to delegate authority and resources to industrial policy agencies and the degree of symmetry in authority and information flows across these agencies. A cross-regional/cross-national comparison of several subnational units in Spain and Brazil demonstrates that subnational industrial policy is implemented and maintained where incumbents delegate and policy-making agencies are symmetrically integrated. Alfred P. Montero is an assistant professor of Political Science at Carleton College and book review editor forLatin American Politics and Society. His research on subnational political economy is the subject of his forthcoming book,Shifting States in Global Markets: Subnational Industrial Policy in Contemporary Brazil and Spain, Penn State University Press. He has published on the subject of the political economy of decentralization and federalism inComparative Politics, Latin American Politics and Society, Publius: The Journal of Federalism, and numerous edited volumes.     

Latin american municipal government:the rise of metagovernment

Metagovernment, the extra-legal and informal government that has developed in the squatter settlements and informal economic sectors of Latin American nations is rapidly becoming the most relevent form of government for many Latin Americans. The roots of this phenomenon can be found in the early history of Latin American municipal governments and the persistence of an exclusionist and elitist set of institutions and va:ues from colonial times to the present The social and economic forces contributing to the rise of metagovernment emanate from the rural regions ane the high levels of population growth in the reglor toqether with the unbalanced patterns of regional development in the region. Metagovernment is a response to the exclusionist and elitist political cutture, and :he prcduct of new social forces and groups arising in urban Latin Amerlca.