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Economic reforms and economic growth: efficiency and politics in Latin America

Luiz Carlos Bresser-Pereira

Chapter 1 of L.C.Bresser-Pereira, J.M.Maravall and A.Przeworski (1993) Economic Reforms in New Democracies. Cambridge: Cambridge University Press: 15-76. Em português: Revista de Economia Política 11(4), outubro 1992. The initial version of this chapter served as base for the comments of Jairo Abud (1992) in "Interpretação gráfica dos custos de programas de ajustamento".

Stabilization and other market-oriented economic reforms face a double challenge in new democracies: they have to be economically effective and politically feasible. Economits usually emphasize the former aspect, political scientists the latter, but the two are interdependent and equally important.