Another lost decade? The future of reform in Latin America

Abstract

The 1990s ended equivocally in Latin America. What has gone wrong? Is economic failure the cause or the consequence of the democratic decay and the erosion of governance throughout the region? The review essay revisits the debate on the intricate links between politics and economics in the second stage of reform. Moving beyond standard typologies of regime type, it explores the interactions between the quality of democratic governance and the performance of economic policy under democratic auspices, in particular its credibility. It is now amply recognized that reforms have been hindered by inefficient unreliable and unaccountable government institutions. Furthermore, the manner in which market reforms have been implemented has undermined governance and accountability. The importance of policy credibility has essentially been neglected as a pivotal condition for effective economic reform. Consequently, policymakers propose a new round of reforms, centring on strengthening the institutions of governance and modifying the incentives shaping public policy. The essay argues that restoring the credibility of policy requires a fundamental redefinition of the state and reforming the methods of government and the styles of policymaking. The defining challenge of Latin American countries is to strengthen capacity to adequately implement policy and credibly commit to policy reform.

Are Latin American performance audits leading to changes?

“…In Latin American countries, public trust in political institutions has been significantly undermined by widespread corruption (Santiso, 2003). Levels of trust are extremely low compared with other regions of the world, including Africa (World Bank, 2010).…”

Efectos iniciales de la Alianza del Pacífico para Colombia

“…Lo anterior, no obstante el fracaso de la manera como fueron implementadas estas medidas en la región y con una generalización inadecuada. Salvo casos esporádi-cos, entre los que se destaca Brasil, supieron adaptar el set de prescripciones a su realidad (Santiso, 2003).…”

La estructura empresarial mexicana de 2003 a 2008: hacia la cuarta década perdida

“…Aunque el criterio utilizado por estos autores es limitado -producto por persona en edad laboral-, constituye uno de los resultados de la literatura que indican la falta de desarrollo durante dos décadas en México. Dos estudios más que también indican la carencia de un avance en México durante la década de los noventa, son los de Easterly (2001) y de Santiso (2003).…”