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Begin New Search Topic Political Economy Political Geography Latin America Content Type Working Paper Publishing Institution Kellogg Institute for International Studies Publication Year within 10 Years Publication Year within 25 Years

1. Toxic Conflict: Understanding Venezuela's Economic Collapse

Author:
Juan Carlos Fernández-Rodríguez
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper discusses the causes of Venezuela’s recent economic collapse, the largest in modern Latin American economic history and one of the largest in modern world history outside of wartime. I argue that Venezuela’s economic implosion is a combination of two crises. The first one reflects the standard unraveling of a populist macroeconomic cycle fed by overspending during a resource boom, while the second one reflects the severing of the country’s trade and financial links with the global economy. This severing is the consequence of the decision by political actors to adopt “scorched earth” strategies with large negative aggregate economic spillovers in their fight for power. I argue that the inability of Venezuela’s high-stakes, winner-take-all political system to deal with the large negative 2014–16 trade shock precipitated the change in political strategies and the descent into economically destructive political conflict.
Topic:
Development, Political Economy, Democracy, Economic Growth, Conflict, Institutions, and Peacebuilding
Political Geography:
South America and Latin America

2. Beyond a Single Model: Explaining Differences in Inequality within Latin America

Author:
Diego Sánchez-Ancochea
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
Topic:
Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, and Ethnicity
Political Geography:
Latin America

3. Can Conditional Cash Transfer Programs Improve Collective Action? Lab-in-the-Field Evidence on Coordination and Social Norms

Author:
Sandra Polanía-Reyes
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This study tests an unintended benefit of a conditional cash transfer program in Colombia: the ability to overcome coordination failures. Participants interact with fellow beneficiaries, which gives rise to a coordination device. Beneficiaries participate in a minimum effort coordination game. Those enrolled in the program for over a year are exerting the highest level of effort. The improvement in coordination is not due to potential confounds such as willingness to cooperate or connectivity. A structural choice model illustrates that when beliefs about other’s behavior are sufficiently high the Pareto- dominant equilibrium holds. The findings support nascent initiatives to influence beliefs through policy interventions.
Topic:
Civil Society, Development, Political Economy, Poverty, Communications, Governance, Inequality, Economic Growth, Public Policy, and Institutions
Political Geography:
Colombia, South America, and Latin America

4. The Electoral Basis of Ideological Polarization in Latin America

Author:
Juan Andrés Moraes
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Polarization has been always identified as a problem for Latin American democracies. Yet its determinants remain largely undertheorized and without systematic evidence. This paper tackles this shortcoming with a new explanation where polarization is conceptualized as a mobilizational tool used by parties to deliver unequivocal signals to voters about their location in the policy space. The explanation holds that Parties’ strategies depend on the electoral context in which they compete, making volatility a crucial indicator of their behavior. Low-volatility contexts inhibit parties from seeking polarization due to potential electoral punishments by voters and the internal costs of programmatic change within the party organization. High volatility, however, increases the risk of electoral survival, decreasing the costs of seeking polarization. Here, volatility makes polarization more likely. Using time-series cross-sectional regression analysis for eighteen Latin American countries for 1995–2010, this paper provides robust statistical results to support the causal link between electoral volatility and polarization.
Topic:
Democratization, Demographics, Political Economy, and Governance
Political Geography:
Latin America

5. The Politics of Polarization: Governance and Party System Change in Latin America, 1990–2010

Author:
Sam Handlin
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
What are the causes and implications of polarization in new democracies? During Latin America’s “Left Turn” period, highly polarized party systems emerged in some countries–Venezuela, Bolivia, Ecuador, Nicaragua, and El Salvador–but not the rest of the region. This paper proposes a theory to explain variation, centered on the presence of electorally relevant parties of the left in the pre-Left Turn period and, most critically, the quality of governance in that period. Poor governance created opportunities for partisan actors on the left to politicize a second dimension of political contestation, anti-systemic versus systemic positions on the design and operation of the state, and thus chart alternative paths to electoral viability that required little left-right programmatic moderation. This dynamic empowered radical party factions and drove polarizing dynamics in party systems. High quality governance, in contrast, gave left parties little choice but to moderate their programs in search of electoral viability. This dynamic empowered moderate party factions and drove centripetal dynamics in party systems. Empirically, the paper tests these arguments through a broad overview of the case universe and in-depth case studies of Venezuela and Brazil.
Topic:
Democratization, Development, and Political Economy
Political Geography:
Latin America