Corporatist Transitions in the Economic Reforms of Chile and Argentina
Abstract
Overcoming political obstacles in the implementation of economic reforms is of paramount importance for developing nations. Scholars in comparative politics and political economy study these obstacles in order to give policymakers a better understanding of what is necessary to successfully reform economic policy and practice. Leaders in Chile and Argentina introduced economic reform in 1974 and 1989 respectively, and until now Chile has been very successful, while Argentina has for the most part failed. What accounts for the difference in outcomes? While similar in many ways, the two countries have different experiences with the form of interest representation known as corporatism. Prior to reform, Chile's system represented a fairly sound balance of power between the state and interest groups representing business, while Argentina's history is characterized by the state's absolute control over interest representation of all kinds. This study examines both cases in depth, using the comparative method and process tracing to determine what role corporatism plays in their respective reforms. Chile experienced initial success with its reforms, only to falter after less than ten years, which prompted adjustments to the manner and extent that business groups cooperated in the policymaking. Whereas initially all but a few very large corporations were completely left out of the process, after 1984 organizations representing all types of business were made an important part of economic decisions. Argentina also experienced initial success with its reforms, and followed Chile's example in only allowing the largest conglomerates access to policymakers. The economic crisis at the end of 2001 illustrates the failure of this system, but unlike Chile, Argentina has not adjusted its methods to overcome crisis.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2002
- Accession Number
- ADA410746
Entities
People
- Jeremy E. Williams
Organizations
- Air Force Institute of Technology