1. QUALITIES OF DEMOCRACY IN LATIN AMERICA Economic Policies and Governmental Performance

2. OPTIONAL PAPER 10-12 pages in length Due in class on Wednesday, March 3 Topic: Anything related to course (but get clearance from TA) Approach: An analytical “think piece,” not an exhaustive research paper Define a problem, frame a question, explain evidence and sources, and answer the question you pose at the outset

3. READING Smith, Democracy, ch. 8 Modern Latin America, chs. 9, 11, 12

4. OUTLINE 1. Seeking Keys to Development 2. Declining State Capacity 3. Politics of Economic Growth The Arguments The Findings 4. Democracy and Social Welfare: Infant Mortality and School Attendance 5. Poverty and Inequality

5. IN SEARCH OF SOLUTIONS The Liberal Era (1880s-1920s) Import-Substitution Industrialization (1930s- 1970s) The Socialist Alternative (1950s-1980s) Neoliberalism and the Washington Consensus (1980s-present)

6. HYPOTHESES: THE POLITICAL ECONOMY OF DEVELOPMENT H 1 : The greater the prevalence of democratic rule, the greater the provision of material benefits. H 2 : The greater the prevalence of undemocratic (authoritarian) rule, the greater the provision of material benefits. H 3 : The prevalence of democratic or undemocratic rule bears no systematic relationship to the relative provision of material benefits.

8. Public Spending as Share of GDP: ABC + Mexico

9. Patterns of GDP Growth, 1960-2000

10. Table 8-2. Electoral Regimes and GDP Growth, 1960s-2000 | _____________Electoral Regime__________ GDP | Autocracy Semi-Democracy Democracy Growth (%) (%) (%) -----------+-------------------------------------------+---------- Low | 27 26 24 | Med-Low 20 31 29 | Med-High 24 26 26 | High | 30 18 22 | -----------+-------------------------------------------+---------- 101 101 101 N | 306 109 319 | 734

12. Table 8-4. Electoral Regimes and Infant Mortality, 1960s-1990s Infant | _____________Electoral Regime______________ Mortality | Autocracy Semi-DemocracyDemocracy (%) (%) (%) -----------+-------------------------------------------+- High | 48 17 12 | Medium-High 22 32 24 | Medium-Low 22 32 25 | Low | 8 19 39 | -----------+--------------------------------------------+ Total | 100 100 100 | N 128 53 186

13. Table 8-7. Electoral Regimes and Primary School Enrollment, 1980s-1990s Primary | _____________Electoral Regime______________ School | Autocracy Semi-DemocracyDemocracy Enrollment (%) (%) (%) -----------+-------------------------------------------+- Low | 40 27 14 | Medium-Low 15 14 38 | Medium-High 31 14 27 | High | 13 45 22 | -----------+--------------------------------------------+ Total | 99 100 101 | N 67 44 101 Note: Columns may not add up to 100 because of rounding.

14. FOLLOW-UP STUDY Universe=Middle income countries—55 in lower-middle, 41 in upper-middle, N=96 Time frame=1990-2004 Units of analysis=country-years Dependent variables= Annual GDP growth rate (%) Infant Mortality (per 1,000) Primary School Enrollment (%)

15. REGIONAL DETERMINANTS __Growth__ __Mortality__ __Schooling__ (1,091) (280) (370) East Asia (0, 1).8961 -6.7748 5.9032 Eastern Europe (0, 1) -1.9764* -11.3097* -.6376 Central Asia (0, 1) -1.8337* 13.0827* 1.4343 Middle East (0, 1).7693 -1.3313 -.1781 Sub-Saharan Africa (0, 1) -.2954 18.9078* -11.8868* South Asia (0, 0) ---- ---- ---- LatinAmerica & Caribbean (0, 1) -.1103 -2.4558 2.2513 Constant: 3.6313* 71.2188* 82.5390* R 2.0096.6234.3227 *Significant at.05 level or better.

16. REGION AND DEMOCRACY __ __Growth__ __ Mortality__ __ Schooling__ (1,032) (266) (346) Latin American & Caribbean Democracy (0, 1).2373 -11.8388* 8.5104* Other Democracy (0, 1).3569 -10.4353* 4.5804* Nondemocracy (0, 0) ---- ---- ---- Constant: 3.9008* 83.8488* 76.6599* R 2.0690.5336.2027 *Significant at.01 level or better.

17. DEMOCRACY WITHIN LATIN AMERICA __Growth__ __Mortality__ __Schooling_ (240) (48) (80) Liberal (0, 1) 1.1157 -12.5294.3389 Illiberal (0, 1) 1.1872 -.0239 -2.2475 Semi (0, 1) 1.1818 4.2093 2.3719 Nondemocracy (0, 0) ---- ---- ---- Constant: 3.1253 46.8197* 95.7521* R 2.0609.4680.1792 *Significant at.05 level or better.

18. Patterns of Inequality, 1960-2000: ABC + Mexico

20. ANTI-POVERTY PROGRAMS (CCTs) Goals: –Empowerment of poor, improvement of life chances –Increase of human capital –Reduction of poverty and inequality Features: –“conditional cash transfers” –social contract between state and beneficiaries –typical conditions: children’s attendance at school, of health care, nutrition –payments usually made to women (mothers), not men (traditional heads of family) –requirements for oversight (entry, exit, funding)

21. Perceptions of Poverty in Latin America, Europe and the United States Percentages (%) who believe that: The poor are poor because: “Society is Unjust” “They are Lazy” “The poor have very little chance to escape from poverty” LAC - Average 65.8 28.3 62.0 Mexico 65.8 24.6 56.9 Argentina 74.0 26.0 74.5 Brazil 75.7 20.5 70.5 Chile 55.6 36.9 58.5 Peru 56.5 34.2 47.1 Venezuela 52.9 47.1 59.6 Uruguay 77.2 12.4 73.5 Dom. Republic 68.6 24.5 61.2 Colombia n.a. n.a. 55.8 Continental Europe 63.3 17.1 60.2 United States 38.8 61.2 29.5

22. CASES: MEXICO AND BRAZIL Mexico: “Oportunidades” (1997- ) –5 million households –20 % of household consumption –payment to mothers –major impact on school attendance –excellent data collection –0.5% of GDP Brazil: “Bolsa Família” (2003- ) –11 million households –$14 USD per child up to 3 children (+ “basic benefit” ≈ $37) –payment through debit card –distribution > human capital formation –20% decline in inequality –0.5% GDP Elsewhere: Argentina, Colombia, Chile, Ecuador, Honduras, Nicaragua, Paraguay, Peru…