The Political Economy of Economic Reforms: A Review of the Economic Approach

Abstract

The article analyzes the structural reforms implemented in Latin American democracies in the early ‘90s. In particular, the focus is put on economic reforms and the various modalities they adopted in each country. These reforms have shown a lack of sustainability after going through a honeymoon period of a few years. To do this, the authors analyze the costs of implementation and their consequences (poverty, worsening income distribution, unemployment, reduced public services) as well as the social reactions arose because of these situations in the different countries. They try to explain that there is another package of reforms that could improve the situation of Latin American states, and they clarify the support needed to perform them.