Democracy and the Market: Political and Economic Reforms in Eastern Europe and Latin America

by Adam Przeworski

• ISBN13: 9780521423359
• ISBN10: 052142335X
• Format: Paperback
• Copyright: 1991-07-26
• Publisher: Cambridge University Press

Summary

The quest for freedom from hunger and repression has triggered in recent years a dramatic, worldwide reform of political and economic systems. Never have so many people enjoyed, or at least experimented with democratic institutions. However, many strategies for economic development in Eastern Europe and Latin America have failed with the result that entire economic systems on both continents are being transformed. This major book analyzes recent transitions to democracy and market-oriented economic reforms in Eastern Europe and Latin America. Drawing in a quite distinctive way on models derived from political philosophy, economics, and game theory, Professor Przeworski also considers specific data on individual countries. Among the questions raised by the book are: What should we expect from these experiments in democracy and market economy? What new economic systems will emerge? Will these transitions result in new democracies or old dictatorships?

Table of Contents

INTRODUCTION	ix
A prologue: The fall of communism	1	(9)
1 Democracy	10	(41)
Democracy	10	(5)
How are outcomes enforced under democracy?	15	(22)
The question: democracy, rationality, and compliance	15	(4)
Competing views of compliance	19	(7)
Democracy as an equilibrium	26	(8)
Institutional design	34	(3)
Transitions to democracy	37	(3)
Appendix: Why do outcomes appear uncertain?	40	(11)
2 Transitions to democracy	51	(49)
Introduction	51	(3)
Liberalization	54	(12)
Democratization	66	(22)
Introduction	66	(1)
Extrication	67	(12)
Constitution	79	(9)
Contestation	88	(6)
Conclusions	94	(1)
Appendix: Approaches to the study of transitions	95	(5)
3 Capitalism and socialism	100	(36)
Introduction	100	(1)
Methodological preliminaries	101	(4)
Endogenous preferences	101	(2)
Blueprints and realities	103	(1)
Class bases of preferences	104	(1)
Capitalism and socialism	105	(17)
Blueprints	105	(8)
Feasibility	113	(6)
Realities	119	(3)
What can be reformed?	122	(11)
Reforming socialism	123	(1)
Market socialism	124	(6)
Social democracy	130	(3)
Could we feed everyone?	133	(3)
4 The political dynamics of economic reform	136	(52)
Introduction	136	(3)
Transitional costs of reforms	139	(23)
Conditions and strategies	139	(7)
Aggregate effects	146	(13)
Distributional effects	159	(2)
Conclusion	161	(1)
Political dynamics of reforms: a model	162	(18)
The choice of strategies	162	(5)
The dynamic of popular support	167	(4)
The dynamic of reforms	171	(3)
The effect of income distribution	174	(5)
Conclusion	179	(1)
Political consequences of economic reforms	180	(8)
Conclusions	188	(5)
REFERENCES	193	(13)
AUTHOR INDEX	206	(3)
SUBJECT INDEX	209