Democratization and Economic Reform

Abstract

Are democratization and economic reform in tension with each other, or are they mutually supportive processes? A survey of new democracies in Latin America, Southern Europe, and the postsocialist world suggests that the answer varies by region. In the postsocialist cases, the relationship is positive and robust; in the other two regions, the relationship is negligible. Region, however, cannot serve as the explanation. Instead, what emerge as critical—and what happen to vary by region—are three factors that shape the relationship between democratization and economic reform: the timing of democratization, the agenda of transformation, and variations in governing mandates.

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