Political competition between parties to win electoral support is a distinguishing feature of democratic forms of government. Parties seek to attract electoral support with programmatic promises (public goods, services) for the benefit of all citizens as well as targeted redistribution in several countries, broadly termed as “clientelistic linkages.” Cash, gifts and nonmaterial goods such as jobs, exclusive access to public services are forms of clientelistic goods discussed in the literature. Studies on clientelism have spiked since the last quarter of the 20th century in several disciplines including political science and economics. The studies have clarified the definitions and distinguished between the various forms of clientelism while shedding light on how parties decide to adopt the clientelistic approach, the form of benefits offered, whether groups or individuals are targeted for clientelistic benefits, the mechanisms that solve the political commitment problem inherent in clientelistic relationships, and the correlates and consequences of clientelism. The section on theory outlines a spatial model that predicts when political parties will target swing or core supporters for redistributive benefits. The advances in empirical methods for studying clientelism and vote buying, including experimental methods have provided evidence that politicians target swing or core supporters and at times adopt mixed strategies favoring both groups. The burgeoning empirical literature has clarified the effectiveness of vote-buying as well as anti-vote buying campaigns. A direct relationship between poverty and vote buying is now contested and it is evident that further research, particularly those tying up theory with empirical findings is required to understand clientelism and vote buying.
Article
Elizabeth J. Zechmeister and Daniela Osorio Michel
Political culture in Latin America leans democratic and participatory. Even amid institutional backsliding in the early 21st century, most leaders assume office and claim their mandate via elections. However, in the face of significant governance challenges, reservations regarding democracy and democratic processes are on the rise. In 2014, 68% of individuals in the average Latin American country expressed support for democracy. Five years later, in 2019, that figure was 58%. Support for state-led redistribution declined during this period as well. In brief, there are signs that the public is moving away from a social democratic orientation.
Generalizations about political culture risk overlooking significant heterogeneity in Latin American beliefs and inclinations. Survey data, especially from comparative projects, permit assessments of the region’s political culture across time, countries, and population subgroups. Analyses of these data paint an appropriately nuanced portrait of Latin American political culture. Support for core democratic values is highest in the Southern Cone countries of Uruguay, Argentina, and Chile. Support for democratic institutions and processes is far lower in countries that have experienced recent instability and governance challenges, including Honduras and Peru. In Latin America, the young tend to be less committed to democratic institutions and processes. Those in rural areas tend to be more inclined to engage in local politics. Those who are poor tend to perceive themselves as less capable of understanding key national issues. Finally, women tend to be politically more conservative.
How people in the region believe politics ought to be organized and function—that is, political culture in Latin America—matters. This is because the public’s inclinations to express core democratic values and to engage in the system shape political outcomes. Where individuals lack confidence in the democratic state, they are less prone to support it. Further, they are more likely to issue demands, and to look for leadership, outside of formal political channels. The comparatively low and decreasing levels of support for democracy place Latin America at a crossroads. Failure to meet key governance challenges—corruption, inequality, crime—could accelerate declines in confidence and interest in participatory democracy, to the detriment of political culture and democratic consolidation in Latin America.
Article
Research using variants of political settlement analysis have gained prominence in scholarship on Africa. Political settlement research provides an analytical lens that takes the researcher beyond a narrow focus on formal institutions to examine how distributions of power among groups affect the way that institutions work. A political settlement can be defined as a combination of power and institutions that is mutually compatible and also sustainable in terms of economic and political viability. The main theoretical building blocks of the framework are institutions, power, and rents. Despite its burgeoning influence as an analytical approach, existing literature contains considerable differences in the core concepts and causal mechanisms described as constituting a political settlement framework. There are key differences within the literature between research that conceptualizes political settlement as action and political settlement conceptualized as process. In understanding political settlement as process, a political settlement is conceptualized as a stable political order that has not necessarily been planned or consciously willed by different social groups. The outcomes intended from the adoption of any particular set of institutions cannot be taken for granted. Groups that may appear powerful in terms of their formal political and economic positions in society may not be able to actually enforce compliance with formal and informal institutions they desire, leading to a much more complex relationship between institutions and paths of political and economic change. Approaches that understand political settlement as action emphasize the role of agreements made by powerful groups or elites. Forging a viable and inclusive political settlement is treated as a desirable policy outcome where institutions that generate inclusion, stop war, or reduce violent conflict can be purposefully established and enforced by elites. The two versions of the framework have been deployed to explore a range of different phenomena including economic change and industrialization, corruption, social policy, conflict, and state-building in a number of African countries. A key insight of the political settlement framework is that it provides many new insights into the variation between political economies on the continent. However, it is crucial that those seeking either to deploy or to critique the framework recognize the diverse way in which concepts and underlying causal processes have been defined. Such tensions within the framework can be important for driving research and thinking forward.
Article
Federico Maria Ferrara and Thomas Sattler
The relationship between politics and financial markets is central for many, if not most, political economy arguments. The existing literature focuses on the effect of domestic and international political interests, institutions, and policy decisions on returns and volatility in stock, bond, and foreign exchange markets. This research bears implications for three major debates in political science: the distributive effects of politics, globalization and state autonomy, and the political roots of economic credibility and its tensions with democratic accountability. While the study of politics and financial markets is complicated by several theoretical and empirical challenges, recent methodological innovations in political research provide a window of opportunity for the development of the field.
Article
Belén Fernández Milmanda
The historical role of landed elites as obstacles to democratic consolidation in Latin America has been widely studied. Four decades after the onset of the third wave, however, the issue of how these elites have adapted to the new democratic context remains unexplored. The question of why these elites who supported military coups each time a government threatened their interests have mostly played by the democratic rulebook during the past four decades still needs to be answered.
Important structural and political transformations took place in Latin America during the last half of the 20th and the first decade of the 21st century that affected agrarian elites’ incentives and capacity to organize politically. The first change was urbanization, which undermined agrarian elites’ capacity to mobilize the votes of the rural poor in favor of their political representatives. The second was an increase in the importance of agricultural exports as a source of foreign exchange and revenue for Latin American countries thanks to the commodity boom of the 2000s. The third change was the arrival to power of left-wing parties with redistributive agendas, threatening agrarian elites’ interests in the region with the highest land inequality in the world. However, the fact that these governments relied on revenues from agriculture to fund their policy agendas created tension between the leftists’ ideological preferences for a more equal distribution of land and their fiscal needs.
Dominant theories in political science suggest that democratization should lead to redistribution from the rich to the poor, as democracies represent the preferences of a wider spectrum of citizens than nondemocracies. Landowners, given the fixed nature of their assets, should be easy targets for increased taxation or expropriation. However, these theories understate landowners’ capacity to organize politically and use democratic institutions to their advantage. In fact, if we look at contemporary Latin America, we see that four decades of democracy have not changed the region’s extremely high land inequality.
Agrarian elites in Latin America have deployed a variety of political influence strategies to protect themselves from redistribution. In some cases, such as Chile and El Salvador, they have built conservative parties to represent their interests in Congress. In others, like Brazil, they have invested in multiparty representation through a congressional caucus. Lastly, in other countries such as Argentina and Bolivia, agrarian elites have not been able to organize their electoral representation and instead have protected their interests from outside the policymaking arena through protests.
Article
Evelyne Huber and Zoila Ponce de León
Latin American welfare states have undergone major changes over the past half century. As of 1980, there were only a handful of countries (Argentina, Brazil, Chile, Costa Rica, and Uruguay) with social policy regimes that covered more than half of their population with some kind of safety net to insure adequate care during their old age and that provided adequate healthcare services. With few exceptions, access to social protection and to healthcare in these countries and others was based on formal employment and contributions from employees and employers. There were very few programs, and those few were poorly funded, for those without formal sector jobs and their dependents. The debt crisis and the ensuing neoliberal reforms then damaged the welfare state in all countries, including these leading nations. Deindustrialization, shrinking of the public sector, and cuts in public expenditures reduced both coverage and quality of transfers and services. Poverty and inequality rose, and the welfare state did little to ameliorate these trends.
With the turn of the century, the economic and political situation changed significantly. The commodity boom eased fiscal pressures and made resources available for an increase in public social expenditure. Democracy was more consolidated in the region and civil society had recovered from repression. Left-wing parties began to win elections and take advantage of the fiscal room which allowed for the building of redistributive social programs. The most significant innovation has been expansion of coverage to people in the informal sector and to people with insufficient histories of contributions to social insurance schemes. The overwhelming majority of Latin Americans now have the right to some kind of cash assistance at some point in their lives and to healthcare provided by their governments. In many cases, there have also been real improvements in the generosity of cash assistance, particularly in the case of non-contributory pensions, and in the quality of healthcare services. However, the least progress has been made toward equity. With very few exceptions, new non-contributory programs were added to the traditional contributory ones; severe inequalities continue to exist in the quality of services provided through the new and the traditional programs.
Article
Lucy Barnes
All governments require revenue, and domestic taxes are the primary means for generating it. Yet both the size and shape of taxation vary significantly across countries and have been transformed over time. What explains variation in domestic taxation? To answer this question, recent scholarship on taxation has focused on the politics of taxation as a tool for redistribution. This has led to a wide body of research on the fiscal impact of taxation and on the introduction, evolution, and variation in direct and progressive tax regimes, particularly the income tax. Yet the focus on taxation as a redistributive tool yields a puzzle, as more progressive tax systems tend to be found where redistribution is in fact the lowest. Explanations of this paradox often center on the impossibility of high and progressive taxes on capital in the context of international economic integration. Not as well studied are taxes other than the taxation of income, and the deliberate politics of nonfiscal, regulatory, and incentive effects of different tax choices. Methodologically, problems of endogeneity are ubiquitous in the study of tax policy choices, but more sophisticated experimental work is well underway in research on individual preferences for taxation.
Article
Ryan J. Tonkin
Taxation is perhaps the most important mechanism for realizing a conception of distributive justice. It also confronts citizens with the coercive power of the state in an immediate way. Yet there exists no widely accepted theory of tax justice. This is partly explained by the protean character of modern taxation: taxes allocate resources, create incentives, fund public goods, address collective action problems, and more. As well, claims about fair taxation always implicate technical and practical considerations alongside their normative dimensions. Historically, experts in the technical and practical (such as economists and policymakers) have more readily engaged this tangle of considerations than experts in normative theory (such as philosophers), although that is beginning to change. The results of the engagement are fragmentary and often inconsistent. However, the fragments can be roughly sorted into two broad approaches to questions of tax justice.
The first approach assesses taxation as an institutional interference with a pretax allocation of resource entitlements. It conceives of the collective tax burden as a social invoice that must be fairly distributed across that pretax allocation. Thus, various principles of distribution follow: the tax burden should be distributed according to ability to pay, or benefits received, and so on. But the second approach argues that the project of fairly distributing the tax burden is misconceived for two reasons. First, it is myopic in its assessment of particular taxes without considering how those taxes fit within the broader institutional arrangement. Second, it presumes an existing allocation of resource entitlements with which taxes interfere. In a modern state, however, taxes are antecedent to, and so already presumed by, any allocation of entitlements. Instead of attending to a fair distribution of an illusory tax burden, the second approach conceives of taxation as constructive social architecture. Accordingly, it holds that taxes should be assessed in terms of their contribution to a distribution that satisfies the appropriate principles of justice, whatever those principles may be.
Article
Silja Häusermann
Which risks are social and which are private? How much of their GDP do states spend on social welfare? Who exactly is entitled to which benefits? Is it still possible to finance an encompassing welfare state in times of deindustrialization, technological and demographic change, and globalization? And why do the answers to these questions differ so much across countries? These and similar questions—all central to social cohesion in capitalist democracies—ensure that the analysis of welfare politics is one of the theoretically as well as methodologically most dynamic and richest research areas within comparative political economy and political science more generally. Besides outlining the comparative development and the difficulty of measuring social policy, the focus of this contribution lies in a critical review of the most important past and current theoretical debates in the field of welfare state research, as a subfield of comparative political economy. These debates include party- and power-resource-centered approaches and their critiques, institutional explanations of welfare state retrenchment and restructuring, and the importance of multidimensional distributional effects for the analysis of social policy. The article concludes with a review of three more recent debates: the importance of public opinion and individual preferences for the development of the welfare state, the interaction of social policy and the changes of party systems, and the increasing relevance of social investment policies. The political and scientific need for innovative political science research will continue for the foreseeable future: Theory building and methodological possibilities are developing quickly, and the welfare states as research subject are constantly being challenged.
