Who’s to Blame? The Distribution of Responsibility in Developing Democracies

2010 ◽  
Vol 41 (2) ◽  
pp. 389-411 ◽  
Author(s):  
Isabella Alcañiz ◽  
Timothy Hellwig

International structures tie the hands of policy makers in the developing world. Dependency on the world economy is blamed for low growth, high volatility and less redistribution of income than average, but the effect of international constraints on mass politics is relatively unknown. This study examines how citizens of developing democracies assign responsibility for policy outcomes. A theory of the distribution of responsibility, combining insights from the political economy of development and the study of mass behaviour, is presented. Evidence from seventeen Latin American countries shows that citizens often blame policy outcomes on international and private-sector actors, to which they, as voters, have no direct recourse. Ties to world markets and the International Monetary Fund, especially foreign debt, shift responsibility towards international actors and tend to exonerate national politicians.

Author(s):  
Karleen Jones West

In Candidate Matters: A Study of Ethnic Parties, Campaigns, and Elections in Latin America, Karleen Jones West argues that the characteristics of individual candidates campaigning in their districts shapes party behavior. She does so through a detailed examination of the Pachakutik indigenous party in Ecuador, as well as with the analysis of public opinion in fifteen Latin American countries. Ethnic parties that are initially programmatic can become personalistic and clientelistic vehicles because vote-buying is an effective strategy in rural indigenous areas, and because candidates with strong reputations and access to resources can create winning campaigns that buy votes and capitalize on candidates’ personal appeal. When candidates’ legislative campaigns are personalistic and clientelistic in their districts, niche parties are unable to maintain unified programmatic support. By combining in-depth fieldwork on legislative campaigns in Ecuador with the statistical analysis of electoral results and public opinion, this book demonstrates how important candidates and their districts are for how niche parties compete, win, and become influential in developing democracies. In the process, the author shows that, under certain conditions, niche parties—such as ethnic parties—are not that different from their mainstream counterparts.


1961 ◽  
Vol 15 (4) ◽  
pp. 710-712

On June 7, 1961, it was announced that the International Monetary Fund had entered into a stand-by arrangement authorizing the government of Ecuador to draw up to $10 million in currencies held by the Fund during the following twelve months. Then, on July 19 the Fund announced that it had concurred in the establishment of a new par value for Ecuador's currency, accompanied by a simplification of the country's exchange system. The par value as of that date was changed from 15 to 18 sucres per United States dollar, and Ecuador discontinued most of its multiple rate practices. Under the new system at least 90 percent of all trade and trade-connected transactions, including the export of such major products as bananas, coffee and cacao, was to be conducted within one percent either side of parity, while a small free market with a fluctuating rate, mainly for nonessential invisible transactions and unregistered capital transactions, was to continue to operate, chiefly as a means of controlling capital movements. During the period under review the Fund also entered into stand-by agreements wkh other Latin American countries. On July 14, 1961, the Fund announced a one-year stand-by arrangement with the government of El Salvador authorizing drawings in an amount equivalent to $11.25 million. The Fund's assistance was designed to help to support the country's reserve position and ensure the continued convertibility of its currency while measures were being adopted to improve El Salvador's internal situation through appropriate fiscal and monetary policies.


1968 ◽  
Vol 10 (1) ◽  
pp. 35-52 ◽  
Author(s):  
Wolfgang König

The persistence of trade and exchange controls in developing countries is of growing concern among economic circles and has been dealt with in recent discussions and papers, both published and unpublished. In Latin America exchange practices have severely tested the International Monetary Fund (IMF), which represents the prevailing ideology of a liberal international monetary policy. The principles and activities of this institution have tended to conflict in many ways with the development efforts of Latin American countries—a fact that has not always been fully recognized due to the confidential nature of many of the Fund's actions. One important issue has been the problem of multiple exchange rates, which, in many Latin American countries, came to constitute an important instrument of the policy of industrialization through import substitution.


2020 ◽  
Vol 13 (1) ◽  
pp. 61
Author(s):  
Luis Rene Cáceres

This paper analyzes the causes and consequences of the percentage of the youth population that is not working, in school or in traning, Neets, in Guatemala. The study rests on the estimation of regression equations that explain the percentage of Neet population in terms of variables associated with the labor market; other set of equations were estimated to assess the role that Neets have in the Guatemalan economy. The data employed was taken from the World Bank’s World Development Indicators. The results indicate that the percentage of female and male Neets decrease as the credit to the private sector increase; said percentage increases with the increase of the deficit in the trade balance and with the increase in youth unemployment. Another result is that the Neet population exert negative impacts on the employment to population ratio and on the rate of economic growth. These results are augmented by the analisis of the relationships existing between the percentages of Neets and economic growth, the number of homicides and the number of persons that are incarcerated using a cross section of 2010 data from 13 Latin American countries. The results presented in the paper should motivate policy makers in Guatemala and other countries to design and implement policies geared towards preventing that youth become Neets.


2019 ◽  
Vol 1 (2) ◽  
pp. 5
Author(s):  
Valeriia S. Ryzhkova ◽  
Alexandra G. Koval

The changed geopolitical situation and deterioration of Russia-West relations has induced the expansion of trade and economic cooperation between Russia and Latin American countries. Currently, Paraguay is explicitly showing its readiness to strengthen recently built trade relations with Russia. In order to fuel their increased mutual interest, it is crucial to struggle with impediments that hinder the trade between them. The export potential assessments demonstrate that Russia and Paraguay indeed have potential to intensify bilateral trade, even though the opportunities for export diversification are quite limited. The authors conduct a survey to identify the major trade costs and their role in the development of the Russian-Paraguayan trade relations. The survey findings reveal that transportation and logistics costs significantly impede the exports of both countries as well as information-related obstacles represent the top concern for Russian export companies, while non-tariff measures, language and cultural barriers are relevant for Paraguayan firms. In order to intensify the Russian-Paraguayan commercial relations, the policy makers could deal with these barriers via a higher exchange of market information through different institutional channels.


Author(s):  
Simone Cecchini

This chapter examines the digital divide that exists within Latin American countries. It argues that information and communication technology is creating new opportunities that can be seized to support human development and poverty-reduction strategies. However, it also clarifies that ICT on its own cannot leapfrog the old institutional and organizational weaknesses of Latin American economies and societies. The author hopes that understanding the deep-rooted inequalities that underlie ICT access in Latin America will not only inform researchers on the challenges for the development of the information society in the region, but also assist policy makers in the preparation and implementation of appropriate public policies.


2004 ◽  
Vol 24 (3) ◽  
pp. 299-325 ◽  
Author(s):  
COVADONGA MESEGUER

In this paper, I enquire whether 37 governments in industrial and in Latin American countries privatised as a result of learning from experience. Using a rational updating model, I examine whether the decision in the 1980s and 1990s to streamline the public sector was the outcome of a revision of beliefs about the effectiveness of privatisation or whether, alternatively, it was triggered by international pressures or mimicry. The results suggest that rational learning and especially emulation were two important factors in the decision to privatise. International pressures, here proxied by the presence or absence of an agreement with the International Monetary Fund and by European Union membership, are irrelevant to explanations of the decision to privatise. Finally, domestic political conditions appear relevant to the decision to launch privatisation but only when the analysis is carried out for each of the regional sub-samples. In the OECD countries, centre-left governments were more likely to privatise whereas in Latin American more repressive regimes were more willing to divest.


2020 ◽  
Vol 7 (3) ◽  
pp. 266-275
Author(s):  
S. S. Zhiltsov

The collapse of the USSR pushed Ukraine for pursuing a policy aimed at expanding cooperation with Western countries. Ukraine placed great emphasis on economic cooperation with the EU and United States, as well as financial assistance from Western countries and international financial organizations, primarily the International Monetary Fund (IMF). Such interest in collaborating with the IMF was driven by the needs of the Ukrainian economy to solve current social and economic problems, maintain the political stability for the elites in power. The increased focus of the Ukrainian side on external financial assistance related to the Ukraine failure to address economic challenges, appeared after the collapse of the USSR, and initiate a new foreign economic policy. The inefficiency of the economy was aggravated by clear-cut governmental policy deficiency. At the same time, Ukraine continued to open up the country to Western capital. This weakened Ukraine’s position on world markets, negatively affected its economic potential. Hence, Ukraine went in for cooperation with the IMF to gain financial assistance and tackle its economic problems. On the other hand, the IMF showed great attention to Ukraine, granting funds to Ukraine as a part of cooperation programs but setting economic conditions and political demands. The ongoing borrowing policy has led to Ukraine foreign debt increase, triggering the dependence of the Ukrainian authorities on the IMF. In recent years, under the new President of Ukraine V. Zelensky, Ukraine has proceeded with the policy of cooperation with the IMF.


2018 ◽  
Vol 21 (8) ◽  
pp. 1079-1086 ◽  
Author(s):  
Guillermo Paraje

Abstract Introduction Because of its nature, it is very hard to measure illicit tobacco trade in any product. In the case of Latin American countries, there is scant information on the magnitude and characteristics of this cigarette trade. The goal of this article is to provide estimates on the evolution of the illicit cigarette trade in five South American countries: Argentina, Brazil, Chile, Colombia, and Peru. Methods Gap analysis estimates for cigarette tax evasion/avoidance (a comparison on the evolution of the difference between registered cigarette sales and measured population consumption) are developed for Argentina, Brazil, Chile, Colombia, and Peru. Nationally representative surveys, conducted regularly, are used to measure population consumption. Confidence intervals constructed by bootstrapping sample estimates are generated to statistically evaluate the evolution of the gap. Results Illicit cigarette trade has increased as a percentage of total sales in Brazil in recent years. In the case of Argentina, after a relative decrease between 2005 and 2009, it seems to have stabilized. There is no statistical evidence to argue that there has been an increase of illicit cigarette trade in Chile, Colombia, and Peru, despite substantial price increases in Chile and tax increase in both Colombia and Peru. Conclusions Using simple statistical methods, it is possible to assess the trend in illicit tobacco trade over time to better inform policy makers. Getting reliable and regular population consumption surveys can also help to track illicit tobacco trade. Claims by tobacco industry of a positive association between price/tax changes and illicit trade are unsubstantiated. Implications Evolution of illicit cigarette trade in five Latin American countries shows different trajectories, not in line with tobacco industry estimates, which highlight the importance of producing solid, independent estimates. There are inexpensive methodologies that can provide estimates of the evolution of the relative importance of illicit trade and can be used to inform policy makers.


2016 ◽  
Vol 38 (3) ◽  
pp. 298-315 ◽  
Author(s):  
Mathew YH Wong

Based on data from 16 Asian and 18 Latin American countries from 1996 to 2009, this article argues that corruption does indeed affect the distributive outcomes of government spending, but not necessarily in the expected direction. The incentives for bureaucrats and politicians to abuse their power during the budgetary process suggests that corruption should concentrate public funds in the hands of elites, exacerbating inequality. However, this should only be expected when corruption takes the form of looting (embezzlement). When it takes the form of cheating (vote-buying), it may actually reduce inequality as it involves resource distribution and building of clientelistic linkages. It is the level of political competition rather than regional differences that determines the distributional effects of corruption in Asia and Latin America. This article has profound implications for the study of corruption and policy outcomes, suggesting that the level of political competition is a key factor in determining the outcomes of corruption.


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