Economic Reform and Democratization: Evidence from Latin America and Post-Socialist Countries

Abstract

What are the political consequences of economic reform in new democracies? Is the effect of economic reform on democratization the same across regions? Some scholars of transitology argue that economic reform has negative consequences on democratization largely because the resistance of established groups can undermine democratization processes. Others, mainly scholars of the post-socialist region, argue that in the post-socialist region economic reform has positive consequences on political democratization due in large part to the region's distinctive historical and structural legacies. The heated debate between Philippe Schmitter with Terry Karl and Valerie Bunce provides ample opportunity to (re)think about democratization in a more contextual and cross-regional perspective. However, there has been little systematic empirical analysis across regions. This analysis attempts to fill the gap by examining whether the dominant research paradigm of democratization is empirically valid across regions in transition.