Modern Political Economy and Latin America: Theory and Policy Edited by Jeffry Frieden, Manuel Pastor and Michael Tomz (Forthcoming, Westview Press) Introduction: Modern Political Economy and the Policy Revolution in Latin America Part 1: Theoretical Perspectives I. Contending Perspectives on Market Failure and Government Failure 1. The Origins of Structuralism (H.W. Arndt, 1985) 2. Government Failures in Development (Anne O. Krueger, 1990) 3. What Washington Means by Policy Reform (John Williamson, 1990) 4. How Can States Foster Markets? (Brian Levy, 1997) 5. Improving the State s Institutional Capability (Sanjay Pradhan, 1997) II. Explanations of Government Policy Part 2: Applications 6. The Method of Analysis: Modern Political Economy (Jeffry Frieden, 1991) 7. Political Models of Macroeconomic Policy and Fiscal Reforms (Alberto Alesina, 1994) 8. Understanding Economic Policy Reform (Dani Rodrik, 1996) 9. What Do We Know about the Political Economy of Economic Policy Reform? (Stephan Haggard and Steven B. Webb, 1993) 10. Uses and Limitations of Rational Choice (Barbara Geddes, 1995) III. The Political Economy of Growth since Independence 11. Obstacles to Economic Growth in Nineteenth-Century Mexico (John Coatsworth, 1978) 12. Economic Retardation in Nineteenth-Century Brazil (Nathaniel H. Leff, 1972) 13. Factor Endowments, Institutions, and Differential Paths of Growth Among New World Economies (Stanley L. Engerman and Kenneth L. Sokoloff, 1997) 14. Latin American Manufacturing after the First World War (Rory Miller, 1981) 15. Latin America in the 1930s (Carlos F. Diaz Alejandro, 1984) IV. Foreign Trade and Industrial Policy 16. Import Substitution Industrialization (Eliana Cardoso & Ann Helwege, 1992) 17. Was Latin America Too Rich to Prosper? (James E. Mahon, Jr., 1992) 18. The Case for Trade Liberalization in Developing Countries (Dornbusch, 1992) 19. The Origins of Mexico s Free Trade Policy (Manuel Pastor & Carol Wise, 1994) 20. The Political Economy of Mercosur (Luigi Manzetti, 1993) 1
V. Foreign Capital and the Macroeconomy 21. Forms of External Capital and Economic Development in Latin America: 1820-1997 (Werner Baer and Kent Hargis, 1997) 22. External Debt and Macroeconomic Performance in Latin America and East Asia (Jeffrey D. Sachs, 1985) 23. Inflows of Capital to Developing Countries in the 1990s (Calvo, Leiderman, & Reinhart, 1996) 24. Foreign Direct Investment in Developing Countries: Progress and Problems (Joel Bergsman and Xiaofang Shen, 1995) 25. The Political Economy of Foreign Direct Investment in Latin America (Stephan Haggard, 1989) VI. Political Institutions and Economic Policy 26. Challenging the Conventional Wisdom (Barbara Geddes, 1994) 27. Democratic Institutions, Economic Policy, and Development (Stephan Haggard, 1997) 28. "A Game Theoretic Model of Reform in Latin American Democracies" (Barbara Geddes, 1991) 29. International Capital Flows and the Politics of Central Bank Independence (Sylvia Maxfield, 1997) 30. "Preemptive Strike: Central Bank Reform in Chile's Transition from Authoritarian Rule" (Delia M. Boylan, 1998) VII. Social and Environmental Issues 31. Facing Up to Inequality in Latin America (Interamerican Development Bank, 1998) 32. Income Distribution, Capital Accumulation, and Growth (UNCTAD 98) 33. Public Finance from a Gender Perspective (Ingrid Palmer, 1995) 34. The Political Economy of Environmental Policy Reform in Latin America (David Kaimowitz, 1996) 35. National Factor Markets and the Macroeconomic Context for Environmental Destruction in the Brazilian Amazon (Steven C. Kyle and Aercio S. Cunha, 1992) Conclusion: Toward a New Development Model? 2
Full Citations for Articles in the Text I. Contending Perspectives on Market Failure and Government Failure H.W. Arndt, The Origins of Structuralism, World Development 13, no. 2 (1985): 151-59. Anne O. Krueger, Government Failures in Development, Journal of Economic Perspectives 4, no. 3 (Summer 1990): 9-23. John Williamson, What Washington Means by Policy Reform, in Latin American Adjustment: How Much Has Happened? ed. John Williamson (Washington, DC: Institute for International Economics, 1990): pp. 7-20. Brian Levy, How Can States Foster Markets? Finance & Development 34, no. 3 (September 1997): 21-23. Sanjay Pradhan, Improving the State s Institutional Capability, Finance & Development 34, no. 3 (September 1997): 24-27. II. Explanations of Government Policy Jeffry A. Frieden, The Method of Analysis: Modern Political Economy, excerpted from Debt, Development and Democracy: Modern Political Economy and Latin America, 1965-1985 (Princeton, NJ: Princeton University Press, 1991), pp. 15-41. Alberto Alesina, Political Models of Macroeconomic Policy and Fiscal Reforms, in Voting for Reform: Democracy, Political Liberalization and Economic Adjustment, eds. Stephan Haggard and Steven B. Webb (New York: Oxford University Press, 1994): pp. 37-60. Dani Rodrik, Understanding Economic Policy Reform, Journal of Economic Literature 34, no. 1 (March 1996): 9-41. Stephan Haggard and Steven B. Webb, What Do We Know about the Political Economy of Economic Policy Reform? World Bank Research Observer 8, no. 2 (July 1993): 143-68. Barbara Geddes, Uses and Limitations of Rational Choice, in Latin America in Comparative Perspective: New Approaches to Methods and Analysis, ed. Peter H. Smith (Boulder, CO: Westview Press, 1995): 81-108. III. The Political Economy of Growth since Independence John Coatsworth, Obstacles to Economic Growth in Nineteenth-Century Mexico, American Historical Review 83, no. 1 (February 1978): 80-100 Nathaniel H. Leff, Economic Retardation in Nineteenth-Century Brazil, Economic History Review 25, no. 3 (August 1972): 484-507. 3
Stanley L. Engerman and Kenneth L. Sokoloff, Factor Endowments, Institutions, and Differential Paths of Growth Among New World Economies, in Stephen Haber, ed., How Latin America Fell Behind: Essays on the Economic Histories of Brazil and Mexico (Stanford: Stanford University Press, 1997), chapter 10. Rory Miller, Latin American Manufacturing after the First World War: An Exploratory Essay, World Development 9, no. 8 (August 1981): 707-16. Carlos F. Diaz Alejandro, Latin America in the 1930s, in Rosemary Thorp, ed., Latin America in the 1930s: The Role of the Periphery in World Crisis (London: MacMillan, 1984): pp. 17-49. IV. Foreign Trade and Industrial Policy Eliana Cardoso and Ann Helwege, Import Substitution Industrialization, excerpt from Latin America s Economy: Diversity, Trends, and Conflicts (Cambridge, MA: MIT Press, 1992), pp. 84-101. James E. Mahon, Jr. Was Latin America Too Rich to Prosper? Structural and Political Obstacles to Export-Led Industrial Growth, Journal of Development Studies 28, no. 2 (January 1992): 241-63. Rudiger Dornbusch, The Case for Trade Liberalization in Developing Countries, Journal of Economic Perspectives 6, no. 1 (Winter 1992): 69-85. Manuel Pastor and Carol Wise, The Origins and Sustainability of Mexico s Free Trade Policy, International Organization 48, no. 3 (Summer 1994): 459-89. Luigi Manzetti, The Political Economy of Mercosur, Journal of Interamerican Studies and World Affairs 35, no. 4 (Winter 1993): 101-41. V. Foreign Capital and the Macroeconomy Werner Baer and Kent Hargis, Forms of External Capital and Economic Development in Latin America: 1820-1997, World Development 25, no. 11 (November 1997): 1805-20 Jeffrey D. Sachs, External Debt and Macroeconomic Performance in Latin America and East Asia, Brookings Papers on Economic Activity 2 (1985): 523-64. Guillermo A. Calvo, Leonardo Leiderman, and Carmen M. Reinhart, Inflows of Capital to Developing Countries in the 1990s, Journal of Economic Perspectives 10, no. 2 (Spring 1996): 123-39. Joel Bergsman and Xiaofang Shen, Foreign Direct Investment in Developing Countries: Progress and Problems, Finance & Development 32, no. 4 (December 1995): 6-8. Stephan Haggard, The Political Economy of Foreign Direct Investment in Latin America, Latin American Research Review 24, no. 1 (1989): 184-208. 4
VI. Political Institutions and Economic Policy Barbara Geddes, Challenging the Conventional Wisdom, Journal of Democracy 5, no. 4 (October 1994): 104-18. Stephan Haggard, Democratic Institutions, Economic Policy, and Development, in Institutions and Economic Development: Growth and Governance in Less-Developed and Post-Socialist Countries, ed. Christopher Clague (Baltimore: Johns Hopkins University Press, 1997): 121-49. Barbara Geddes, A Game Theoretic Model of Reform in Latin American Democracies, American Political Science Review 85, no. 2 (June 1991): 371-92. Sylvia Maxfield, International Capital Flows and the Politics of Central Bank Independence, excerpt from Gatekeepers of Growth: The International Political Economy of Central Banking in Developing Countries (Princeton, NJ: Princeton University Press, 1997), pp. 3-4 and 35-49. Delia M. Boylan, Preemptive Strike: Central Bank Reform in Chile s Transition from Authoritarian Rule, Comparative Politics 30 (July 1998): 443-62. VII. Social and Environmental Issues Interamerican Development Bank, Facing Up to Inequality in Latin America: Report on Economic and Social Progress in Latin America, 1998-1999 (Washington: IADB, 1998): introduction. ISBN: 1-886938-31-9 United Nations Conference on Trade and Development, Income Distribution, Capital Accumulation, and Growth, Challenge 41,no. 2 (March/April 1998): 61-80. Ingrid Palmer, Public Finance from a Gender Perspective, World Development 23, no. 11 (1995): 1981-86. David Kaimowitz, The Political Economy of Environmental Policy Reform in Latin America, Development and Change 27, no. 3 (1996): 433-52. Steven C. Kyle and Aercio S. Cunha, National Factor Markets and the Macroeconomic Context for Environmental Destruction in the Brazilian Amazon, Development and Change 23 (1992): 7-33. 5