reform of the state - an alternative for change in latin america (2006) - demo
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American Academy of Political and Social Science
Reform of the State: An Alternative for Change in Latin AmericaAuthor(s): Carlos BlancoSource: Annals of the American Academy of Political and Social Science, Vol. 606, Chronicle ofa Myth Foretold: The Washington Consensus in Latin America (Jul., 2006), pp. 231-243Published by: Sage Publications, Inc. in association with the American Academy of Political and Social
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Reform of the
State: An
Alternative for
Changein Latin
America
ByCARLOS BLANCO
Democracyis a current
strugglein several Latin American
and Caribbean countries.Although
amajority
of citizens
preferdemocratic to authoritarian rule, indicators sug
gest support for democratic institutions isprogressively
deteriorating.
From the mid-1980s onward, the
problemofgovernability
rose toprominence,
andproposals
to
reform the stateemerged.
In this context, reform refers
toprofound political
transformations thatproduce
new
institutions, newstyles
ofleadership,
and new social rela
tions whileeradicating existing
ones. Conflict and con
frontation result as structures associated with vested
interests were dismantled andreplaced by
new struc
tures that created new vested interests.Weakening
states
in Latin America are less and less able to deal with inter
nal discontent. The gap between the demandsplaced
on
the state and its ability to address them explains the need
for reform. In some countries, citizens have concluded
thatthey
neither want thedemocracy they
have nor have
thedemocracy they
want.
Keywords: governance; reform of the state; govern
ability;Latin America; democracy
Democracy
isexperiencing
a difficult moment
in Latin America and the Caribbean. Even
thougha
majorityof citizens
prefer democratic
to authoritarian rule, indicators suggesta
pro
gressive deterioration insupport for demo
cratic institutions, a conflict that has posedan
increasinglyserious
challengeto the region
since the 1980s.Although support for
democracydoes not
depend exclusivelyon economic fac
tors,it is
stronglyaffected
by them. Accordingto the Latino-barometer survey, for
example,
support for and satisfaction withdemocracy fell
Carlos Blanco is aprofessor of
Latin American studies
at BostonUniversity
as well as aprofessor of
the
Universidad Central de Venezuela. From 2001 to2005, hewas a
visitingscholar and research associate at Harvard
Universityand before
that served as ministerfor
the
reform ofthestate and also
president ofthePresidential
Commission for State Reform in Venezuela. His recentworks include La Reforma del Estado y la Comisi6n
Presidencial para la Reforma del Estado and Revoluci6n
y Desilusion: La Venezuela deHugo Chavez, the latter
published byEdiciones de La Catarata, Espana,
2002.
DOI: 10.1177/0002716206289333
ANNALS, AAPSS, 606, July 2006 231
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232 THE ANNALS OF THE AMERICAN ACADEMY
by8 points between 1996 to 2003, dropping from 61 to 53 percent and going
from a substantial to a bare majority (Latinobarometro 2003).
Publicopinion
has thus movedaway
from consensus on the value of democ
racy. Butperhaps
the mostimportant and least expected achievement is that sup
port fordemocracy has not eroded
entirely.Given that it has weathered decades
of economic crisis, onemight consider support for
democracyto be robust.
Nonetheless it continues to fluctuate with the ups and downs of the economic
cycleand remains
quite fragile.In terms of
politicsand political parties, the Latino-barometer suggests
a
healthy dose of cynicism among citizens, whose opinions often contradict their
behavior. Forexample, the 2003 report asks
why,if 42 percent of
respondents say
they are disposed to vote for parties and 39 percent believe that the parties areeffective, nearly
90 percent say they lack confidence inpolitical parties,
a dis
crepancy that increased bymore than 13
pointsin 2002 alone (Latinobarometro
2003). These data suggesta
decliningfaith in
democracy. Indeed, theregional
panorama ofpolitical instability and authoritarian rule points to unresolved prob
lems, a lack of confidence in democraticprinciples,
andskepticism
about the
democratic process itself (UNDP 2004). This loss of confidence undermines gov
ernability, especiallyin the Andean region.
It is notenough for
agovernment
tooriginate
in democratic processes; itmustconstantly
relegitimate itselfas
representative ofthe
peopleon an
ongoing basis.
Akey
issue for the perpetuation of democratic rule is not the abilityof gov
ernmental leaders tomaintain control but the disposition of civil societyto
accepta social contract that specifies legal
and constitutional norms. The problemis not
theability
to govern but the legitimacyof government itself, an issue that can
onlybe resolved by
those who aregoverned
and not thepeople who govern them. In
a democracy, governability requires the confidence of citizens toward the state
and its leaders. Governabilityis a new facet of rule in Latin America, which
requires deepening traditional concepts of governance. It is notenough
for a gov
ernment tooriginate
in democratic processes; it mustconstantly relegitimate
itself asrepresentative ofthe
peopleon an
ongoing basis.
The problemof
governabilityhas grown acute in the current era because so
many factors affectingit lie outside of the traditional relation between leaders
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REFORM OF THE STATE 233
and citizens. Globalization means that agrowing array of
productive, mercantile,
financial, technological, social, and cultural circuits cross national boundariesfreely,
creating a new transnational reality that constrains the behavior of individual countries and their
politicalleaders. As
producers, consumers, and social actors, citizens
now lie at the center of ahuge
web of global influences. The forms inwhichthey
articulate their material, symbolic,and
spiritual needs, and the way these needs are
satisfied, areincreasingly determined by transnational factors.
In other words, democraticgovernability
ischallenged
becausepeople
are in
evergreater
measure citizens of the world, eventhough
most of their demands
must still be satisfied within the framework ofthe nation state. As citizens ofthe
world, inhabitants ofdeveloping
nationsincreasingly express demands originat
ing in the political cultures and consumer tastes of advanced postindustrial soci
eties, articulatingwants that go well
beyondthe satisfaction of basic needs.
Global economicintegration has created a new kind of citizen who is
capable,at once, of
demandingan end to
poverty while insistingon environmental pro
tection and gender equity, desiresusually
associated with advanced states of
development.National governments
are also constrained increasingly byinternational insti
tutions. In the case of Latin America and the Caribbean, especially, organizationssuch as the International Monetary Fund and the World Bank, along
with the
U.S. Treasury, have obliged authorities to adopt fiscal and monetary policies that
reflect the viewpoint of the"Washington Consensus"; at least they
must adhere
to these policiesif
they wish to receive economic assistance.During the 1990s,
severe institutionaladjustments
wereimposed
on economiesthroughout
the
region without considering how they might affect governability.As a result,
nation-states and citizens werechallenged by
new conflictsreflecting demands,
needs, andpossibilities originated
in the international arena.
From the mid-1980s onward, the problem ofgovernability
arose to prominence
throughoutLatin America and the Caribbean?not the classic problem of
beingthreatened
byauthoritarianism but a new threat from the dissatisfactions
of citizens and theinability
ofpolitical
institutions and leaders to address their
complaints.In this sense, governability
in thetwenty-first century is not a
problem that is exogenous to the prevailing social, economic, and
political order;
rather, it isendogenous
to theglobal
market economy and threatens its continu
ity from within.
StructuralAdjustment
Thepopulist
economic model of Import Substitution Industrialization was
neverimplemented
in amannercompatible
with sustainable growth,nor were its
policieswell suited to
achieving long-termmacroeconomic
equilibrium, yieldinga crisis of
governabilitythat became
increasingly apparent during the 1980s. At
the end of that decade and at thebeginning
ofthe 1990s, it became clear that exit
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234 THE ANNALS OF THE AMERICAN ACADEMY
from the crisis would require structural changes wellbeyond those in the economic
realm. Thecollapse of the socialist world not
only recognizedthe huge
cost that
humanityhad endured because of social
experimentationin the twentieth
centurybut
representedthe end of a
system that had heretofore offered an alternative to
those seeking greater justice and equalityin
society. The socialist catastrophewent well beyond the
sufferingof those who had lived under its repressive
regimes.It also
signaled the end of amodel for social and economicdevelopment
in the third world.
The end of the cold war was more than an armistice to avoid anArmageddon;
it
also involved theimplosion of a social system. Although capitalist society and the
market hadevidendy triumphed,
itquickly became clear that the entry of former
socialist countries into the global economy was not going to be easy. New difficulties arose to
delaythe integration of the global market, a task that was
initiallyassumed to be easy given peaceful
conditionsfollowing
the end of the cold war.
Instead, the transition tocapitalism brought disruptions throughout
the globe,even
in those nations where democracy and market relations had long prevailed.The resurgence of nationalism, fundamentalism, mass
migration, guerillawar
fare, terrorism, and new forms of transnational crime such as narcotics traffick
ing and state-centered mafias, producedlocalized wars that were insoluble using
traditional mechanisms. Moreover, this instability occurredduring
a time when
the ranks of the poor were increasing throughout the world, not diminishing asthe apostles of the market had predicted.
Rather thanrapid
economicdevelop
ment, conflicts and contradictions emergedas the constituent elements of
global
societyat the millennium.
Beneath these deficiencies and sufferings laymore formidable scientific, tech
nological,and cultural challenges. The existence of these challenges
does not
gainsay the need to restructure markets; they simplydemonstrate that when
humanbeings
ceasebeing
the point of reference for reform, they inevitablybecome its victims. In this sense, what is
requiredfor
developmentin the new
century is an ethic that places human beings front and center and makes themthe organizing principle
for the formulation andimplementation
of all social, eco
nomic, andpolitical policies.
The market system that ispresently spreading throughout
the world has both
strengths and weaknesses, even whencarefully
tailored to local circumstances.
Theproblems
areespecially
acute in countrieslacking
the cultural aspirations and
motivations associated with interaction in acompetitive
arena.Although
itmay be
impossibleto build a modern society without the market, it is also
impossibleto
construct amodern society with the market alone. The gap between what the mar
ket can do and what it cannot do alone signals the need to reform the state.
EconomicChange
in Latin America and the Caribbean
The westernhemisphere
entered aperiod
of turbulence in the 1980s.
Originatingin the foreign debt crisis, the economic disorder eventually spread
to
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REFORM OF THE STATE 235
all countries in the regionin immediate or successive waves. The international
community initiallyviewed the crisis as a manifestation of
misguidedeconomic
policies imposed by bloated states on withered civil societies that had been
asphyxiated by government regulationand were
incapable of generating favor
able market conditions. Given the excessive debt runup by many nations, the
natural tendencywas to see the crisis in financial terms, leading
to anemphasis
on economic reform and the structuraladjustments imposed by
the International
MonetaryFund. But in the end, this
partialand incomplete conceptualization
of
the crisiscompromised
democraticgovernability.
As structural economic reforms
wereimplemented,
the need to attend to rising social conflict and civil unrest
becameincreasingly apparent, and social policies emerged
as the order of the
day, offering remedial assistance to certain classes to avoid the intensification of
social conflict.
By the late 1990s, the social problems arising fromreadjustment
hadacquired
greater visibilityand
legitimacyin the international arena, and more resources
were devoted to their solution. The prevailing approachto social
policy, however,
was characterized bytwo
important weaknesses. First, it conceived of socialpol
icy narrowlyas a
"tranquilizer"to
pacify civil society whileapplying
correctives in
the economic realm. Second, it viewed social reform asancillary
to economic
reform and, in sodoing, limited its effectiveness as a
politicalshock absorber. As
societies were pushed to restructure their economic and financial infrastructures,
policy makers assumed that adequate social compensation would ensure a tran
sition that was notoverly
traumatic so that a newequilibrium of economic well
being could ultimately prevail.This sentiment was embodied in the saying,
commonly repeated byinternational officials at the time, "The best social
policyis a
goodeconomic
policy."
Unfortunately,economic benefits did not flow from the
policiesat the same
pace as social demands. To address this imbalance and improve execution in the
public sphere, leaders beganto
emphasize institutional transformations to
improve theefficacy
andefficiency
of state services. Thus, the state moved to the
center of thepolicy
reforms but was still subordinate to the need for institutional
reforms in the economic realm. Policies wereadopted
topromote privatization,
secure the independenceof central banks, further the
developmentof
regulatory
institutions, transform the customssystem,
and dismantle economic controls.
Thesechanges
were intended to transform the economic role of the state and
generatenew institutions to
promote the competence and culture of the market.
The deficiencies of this narrowconceptualization
werequickly
revealedby
its
inability
to achieve sustainable democratic
governance
and human
development.Privileging
the economic realm overpressing social questions led to conditions of
ungovernability.The imposition of structural adjustment weakened
democracy
by makingit synonymous with harsh
policiesthat were divorced from the
feelingsand needs of citizens, thus
provokingauthoritarian
nostalgia among both citizens
and leaders. Thepublic grew disenchanted with
political parties and the veryinstitutions of
democracy, which seemedincapable
ofguaranteeing work,
income, and decent conditions of life for all. In the face of this disenchantment,
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236 THE ANNALS OF THE AMERICAN ACADEMY
leaders looked for new ways toimpose unpopular
economicpolicies that they
believed to beobligatory, given pressures from international organizations and
thehegemonic ideology
oftheWashington
Consensus.
The authoritarianstyle
with which many economicadjustment
measures were
imposedled inevitably
to violations of human rights.In some cases, the violations
were chronic and systematicin character, though usually
of low intensity, whereas
in others they acquiredmassive and scandalous proportions.
In the end, as the
period of economicadjustment
wasprolonged and as
poverty, social conflict, and
disorder continued to rise, the vision of economicchange
as the basis for social
transformation collapsed.
The Deterioration of the State
Proposalsto reform the state
implicitly recognize that forces wellbeyond
the
market arefomenting change throughout
theglobe, producing
newprofiles
for
societies, nations, and states. As a result, reform does not refer tosimple
techni
cal or administrative adjustmentsbut to
profound politicaltransformations that
producenew institutions, new
styles of leadership, and new social relations while
eradicating what existed before. Such reform inevitably brings conflict and confrontation as certain structures associated with vested interests are dismantled
andreplaced by
new structures that create new vested interests.
Reform is necessary because the integrity of the nation-state isbeing eroded
on several fronts. The economic crisis hasbrought
about agrowing incapacity
to carry out the redistributive functions associated with thepopulist govern
ments that formerly prevailedin Latin America. The incapacity of the state is
also evident in the deterioration ofpublic
infrastructure and the decline of ser
vices, notably schoolingand sanitation. The resulting decline in
public health
and education represents a reduction in human capital that is rarely taken intoaccount on the national level. The deterioration of state services has brought
a
marked decline in the qualityof life for most
people, putting the state in aweak
positionto arbitrate solutions, especially
when requiredto assume new and
difficult tasks.
The ongoingcrisis in
publicservices has stimulated a loss of confidence in the
stateby important segments of the
population. Manycitizens have lost confi
dence in the leaders and institutions of the democratic state, exacerbatingthe
problemsof governability
that to somedegree prevail throughout
Latin America.
Whatever one believes about the proper role of the state in a market society, no
one proposes abandoningits basic social functions. For this reason, a clear dete
rioration inpublic
services offers a severechallenge
to the legitimacyof the state
itself. When the state can nolonger carry out its social functions, the door is
openedto the erosion of other functions that rely
on its social performance.A
falling qualityof life has led to the belief that the
political system has neither the
interest nor the abilityto confront the manifold challenges posed by globalization.
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REFORM OF THE STATE 237
Democratic values have suffered as a result, and the view isspreading
that
the constitutions and laws that establish socialrights and guarantees
are of little
practical value.The
spread of this pessimistic sentimentdeepens
the distrust of citizens
toward the state and its institutions, underminingthe
abilityof state actors to lead
andreducing
the range of functions with which theyare entrusted. Public dis
satisfaction isamplified by frequent examples
of corruption that are not ade
quately punishedand ongoing scandals that follow in their wake. The result is
a further decline inpublic
esteem toward the state and its officials, which is
reflected in the growing antagonism between citizens and leaders.
While this crisis of confidence isunfolding
underneath the nation-state,
another is blossoming above it. Processes of economic and financial globalizationnow allocate to
supranationalentities attributes and authorities
formerlyassoci
ated with the nation-state. Fiscal and economic decisions that wereformerly
con
sidered the sovereign right of state actors have been transferred to multinational
institutions and toforeign
markets that, for all intents and purposes, exercise de
facto control overkey
elements of macroeconomic decisionmaking. Despite the
ups and downs oftheglobal economy, there is a
diversityof new forms of transna
tional association, and nosingle country is in a
positionto resist this
integrationist dynamic.As a result, nation-states have
attemptedto
forgeeco
nomic and political connections at the highest levels, through repeated summits
between heads of state and government within the region, thehemisphere,
and
the globe, including theforging
of special links between Spain and its former
colonies.
Meaningfulsocial
change
. . .
presupposes
powerfulresistance
from those who expect
to lose status and power under the
newarrangements.
The inevitable conclusion is that states in Latin America, as elsewhere in the
world, areweakening
in atangible way and are less and less able to deal with
internal discontent. The gap between the social demands placedon the state and
itsability
to address them explainsthe need for reform. There is little doubt at
this point that the crisis has moved beyondits social and economic dimension
into the realm of the political.Even
thougha
majority of citizens continue to
express support fordemocracy
asopposed
todictatorship,
it is nonetheless
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238 THE ANNALS OF THE AMERICANACADEMY
true thatspecific democratic institutions such as the
legislature,the courts, the
presidency, parties, unions, and civil associations find themselves subjectto seri
ous doubt and increased public questioning. In some countries, citizens haveconcluded that
they neither want thedemocracy they
have nor have thedemocracy
theywant.
When state actors areincapable
ofdeveloping policies
topromote change
in
desired directions, the ultimate result is a loss of faith in the political system and
itsprevailing institutions?hence the crisis of democratic governability. Although
strong adjustments have been adopted throughout the regionto
reorganizenational economies, and whereas these may have been
indispensableto restoring
macroeconomic health, the samepolicies have reduced the quality of life for
many people. The fact that some social advances have been achieved through
readjustmentdoes not
gainsay the fact thatlarge segments ofthe population
have
beenimpoverished.
This decline inliving standards opens the way to neoauthor
itarian formulations.1 For those segments of society that have borne the brunt of
economicreadjustment,
authoritarianism has come to beperceived
as desirable,
or at the very least acceptable.The reform of the state thus emerges as a necessary response to these exigen
cies. In the wake of the growing crisis of democraticlegitimacy,
there is apro
found need to redefine and transform the state apparatus throughoutLatin
America (COPRE 1988,17-74). Needed reforms include democratizing the state
and society, increasing the efficiency and efficacy of public services, and recon
figuringthe
relationshipbetween the
publicand private
sectors. Such reforms
offer a democratic alternative to authoritarianism, which may appear inevitable
given the ongoing deterioration of the state and thedeepening
of citizen distrust
toward democracy and its values.
A New
Conception
of
ChangeIn sum, the economic crisis in Latin America has led to a
growingcrisis of
democratic legitimacy,which has
obligedcountries to reconsider the nature and
meaning of the structural adjustment. Different countries havebegun
toexperi
ment with differentapproaches,
which has led to three basic innovations inpol
icy formulation. First, plansfor economic, social, and
political restructuringare
increasingly integrated,so that institutional
changesin
multipledomains are
implementedin a coordinated fashion. Second, leaders have
placeda new
emphasis
on the
sustainability
of reforms, such that economicpolicies
are seen to
dependon a broader set of reforms that serve as
catalysts for greater politicaland
institutional change. Finally,it is
increasingly recognized that, in the long run,
economicdevelopment requires
notonly
economicchanges
but broader trans
formations of culture, social organization, legal institutions, and public policies.In short, sustained economic
development requires the wholesale institutional
transformation ofthe social andpolitical system.
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REFORM OF THE STATE 239
Transformations of thismagnitude
involve changesat all levels of state and
society andultimately
alter preexisting relations of power. Some sectors emerge
from the readjustment better off, whereas others do not. Meaningful social
change thus presupposes powerfulresistance from those who expect to lose sta
tus and power under the newarrangements. The fundamental choices faced by
adeveloping society always
involve a redistribution ofpower?the birth or death
of an institution, the privatizationor socialization of a
productive enterprise, the
incorporationor elimination of some administrative
procedure, thedelegation
or
concentration of power. Whatever choices are madeinevitably enhance the posi
tion of some social actors whileundermining
that of others.
Achievingreform thus
dependson a
political process that isindependent of its
explicit content, be it economic, administrative, technical, or whatever. The political character of the process of social change highlights
the fact that for a reform
to occur, adynamic redistribution of social power is necessary
on both a hori
zontalplane (center to
periphery) and on the vertical dimension (national to sub
national). Reforms are thuspolitical
in a double sense. First, every economic,
political, social, or culturalchange requires
a redistribution of power, for without
such a redistribution the reform would be blocked, delayed,or distorted
byresis
tance from those affected. Second, given thatchange requires
an alteration of
power relations, reformers must formulate apolitical strategy to achieve it.
Reforming the State
Thepossibility
ofreforming
the state was first broached in Venezuela, where
thepresident?in December
1984?appointeda Commission for the Reform of
the State. Over the course of a decade, this commissionopened
aspace for citi
zens to consider potential political, administrative, institutional, and cultural
reforms. The central idea was that economic reforms were not theonly changes
needed. Indeed, the mostimportant reforms were
political and institutional in
nature. Reformers viewed broader institutionalchange
asindispensable
for mak
ing economicdevelopment politically viable and
socially sustainable.
To attack theproblem
ofgovernability directly,
it isultimately necessary to for
mulate apolitical program for the redistribution of
political power. Given this
comprehensiveview of reform, three fundamental
changesare
required: reform
ing the state in the strict senseby transforming
its institutional structure and
organization, reforming relations between the state and civil society byrestruc
turing
the means
by
which citizens and leaders interact, and
reforming politicalparticipation by transforming
the mechanisms under which citizens influence
state actions toguarantee real
popular influence.
Which of thesechanges
ispursued
and inwhat orderdepends
on the countryunder consideration and its
respective lineupof social and political forces. In
some countries, reform may emerge from a conflictivepolitical struggle
rather
than a structured designor
plan, owingto the absence of suitable mechanisms for
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240 THE ANNALS OF THE AMERICAN ACADEMY
citizenpolitical participation. In other countries, reforms may be initiated by the
state in consultation with civil society, particularly bychief executives and in some
cases by legislatures. By the end of the 1980s, awareness of the need for statereform
prompteda
majority of Latin America's executives to formulate plans for
reform and to offer them aspart of broader programs for governance (Grindle
2000, 1-36).
During the 1990s, the reform ofthe state became anobligatory component
in
proposals for leadership and wasexpressed
inmany countriesby the creation of
new institutions todesign and organize administrative reforms. In the course of
successive summits between heads of state and government, the theme of demo
craticgovernability and the reforms necessary to achieve it became a constant.
These reform efforts not only produced new relations between citizens and the
state but also conferred upon citizens new social and political rights.The coming
togetherof movements
yieldeda broader process of democratization, providing
a new model for social and economic transformation known as Sustainable
HumanDevelopment.
Reforming Market Society
At thebeginning of the 1990s, a debate
ragedbetween two
politicalorienta
tions in Latin America: neoliberal and statist. This debate washighly ideological
and in many ways skirted core issues. In the end, consensus was reached on the
need to restructure market economies, at leastamong
mainstreamparticipants
in
the debate. The remaining questioniswhat are the most efficient and democra
tic means for constructinga market economy. Experience
in Latin America sug
gests that under current conditions ofglobalism,
traditional alliances between
elite privateinterests and state actors often stifle entrepreneurial culture and
leave insufficient space for the development of market relations characterized bythe free play
ofsupply
and demand.
Persistentinequalities
in the region have meant that economicrestructuring
often does not translate immediately and spontaneouslyinto a
competitivemar
ket among equals.On the contrary, opening markets has
frequentlyserved to
concentrate wealth, exclude citizens from economic resources, and perpetuate
existing inequalities.Under such circumstances, the end result is counter to rosy
economic forecasts. Rather than promoting economicgrowth
anddemocracy,
an
institutionally incomplete openingto the market paves the way for the reemer
gence of authoritarianism as a populist tool to overcome the forces of exclusion
emanatingfrom the operation of an
increasingly "savage" market economy.
The proper construction of markets throughoutLatin America is thus a task
the state cannot avoid. The creation of ahealthy, well-functioning market involves
extraeconomic tasks, and for this reason state action is unavoidable. The state
must secure the rule of law,which is fundamental inguaranteeing private prop
erty, respecting contracts, andresolving
conflictspeacefully;
the state must
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REFORM OF THE STATE 241
create alegal and regulatory apparatus
to secure the efficientfunctioning
of markets;
and the state must build institutions and create incentives for the training of labor and
for the promotion of technological progress, building a stock of human capital. Thecreation of the markets is a task the state must assume, not
exclusively but nonethe
less decisively,to
promotean efficient, democratic, and productive society.
Moving toward Governability
Achievingstable democratic government is
necessarilya
question highon the
Latin Americanpolitical agenda.
The issue has surfaced in different ways in differ
ent settings but has nonetheless been addressed consistently in governmental,
political, academic, and intellectual circles throughout the region. Thegoal
of stable
governance has remained elusive, however, owingto a lack of
conceptual development. The
predominant tendency has been to address issues linked to democratic
governabilityas isolated themes, attacking
themthrough
discrete administrative
structures without recognizing their underlying conceptual unity. Simply put,we
lack a coherenttheory
toguide
the formation ofgood
social policy.This lack means that
although governments participate widelyin discussions
of democratic
governability, they
have
generally
failed to
develop strategicdesigns that enable them to tackle the problem
in asystematic and coherent way.
Thoughthe current
politicalenvironment is favorable to an
open discussion of a
myriad of questions related to democraticgovernability,
thepractical and con
ceptual technology for its realization does not yet exist. In macro-social terms, we
appear to be in aperiod
ofexploration, investigating the reach of certain ques
tions andconsidering
the possibilities for certain concrete outcomes. Democratic
governabilityhas become a
keyissue because of worries
by international institu
tions, national governments, and civil society about social andpolitical stability,
yielding
new intellectual
leadership
on the
subject.
It is no
exaggeration
to state
that intellectual leadersthroughout
the regionnow view democratic
governabil
ityas a central concern, with crucial
problemsand obstacles that must be
addressed if economicdevelopment
is to be sustained.
Conceptual advances have been slow because systematicresources for
research are not made available by governments, except for certain academic
centers. Practical advances have been even slower to emerge owingto the diver
sity ofconceptual approaches
and national circumstances, and nocountry has yet
made much progress. On the contrary, spreading poverty andinequality
has
tended to frustrateprogress. Improving
thequality
of life anderadicating misery
constitute essentials tests for governments throughoutthe region. Progress
is also
difficult because state institutions often derive from dictatorial, authoritarian,
and colonial pasts, yielding legal, political,and cultural traditions hostile to the
promotion of change.As a result, the very institutions that should themselves be
dedicated to reform are often most in need of reform themselves, making social
changeall the more
complex.
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242 THE ANNALS OF THE AMERICANACADEMY
Leadership throughoutthe region is
undergoinga transition between older,
populistvisions of society and a newer, more modern vision associated with
reforms ofthe state,society,
and markets. Elements ofthe new vision are evident
in the region, but many leaders remaintrapped
in traditional rhetoric andpolit
ical practiceseven when
they recognize the need tochange.
The reform of the
state is thus theprincipal challenge
to democraticgovernability, recognizing that
old authoritarian, populistmechanisms cannot secure a transition to a more
democratic, efficient, and affluent society. The transformation of the state is
required before broader changecan occur; yet it is not
possibleto tackle the
reform of the state without a broader transformation of societymore
generally.This broader societal transformation is the fundamental issue for Latin America
as itmoves into thetwenty-first century, yielding
a clearagenda
forchange:
1. Reforms must be enacted to modernizeparties
andpersonalize
electoralsystems.
2. Politicalsystems
must be decentralized, developingsubnational
organizationsto
bringcitizens into closer contact with the state and thus
permitting greater efficiencyin the
provisionof
publicservices and
greater public accountability.3. Public administration must be reformed
by creating systemsof merit and
simplifying
publicadministrative
procedures.4. The judiciarymust be modernized with the goal of clearly and definitively establishing
the rule of law.
5. The process offormulating
andenacting public policies
must be reformed todevelop
greater coherence between these two functions and to stimulate greater efficiency in
execution.
6. New mechanisms of citizenparticipation
must bedeveloped
to enable the social mobi
lization ofthepublic
and its effective interventions inpublic
decisions.
7. Thepresidencies
must be reformed toprovide
moreagile, responsive,
and efficient
leadershipof
publicadministration.
8. The armed forces must be modernized toguarantee
astrong
commitment todemocracy
and betterpreparation
for new missions.
Together,these
eightelements constitute fundamentals
requiredfor the effective
reform of the state throughout the region. In some countries, their execution
might require ancillary legaland political changes,
such as constitutional amend
ments to weaken the power of entrenched interests, modernization of the exec
utive branch to overcome alegacy
of authoritarianism, and modernization of the
armed forces to inculcate democratic values and arespect for civilian rule rather
than arepressive militaristic orientation.
Rising dissatisfaction with democracy, the trauma of widespread impoverish
ment, and the deficient performanceof many economies has brought about a cri
sis of democraticgovernability throughout
Latin America. In this context, the
institutional reform of the state emerges as a proposal for integrated societal
transformation, one that offers a newpath for social and economic
developmentin a
globalizingworld.
Note
1. MarinaOttaway (2003, 1-6) labeled it as semiauthoritarian regimes.
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REFORM OF THE STATE 243
References
COPRE?Comision Presidencial
para
la Reforma del Estado. 1988.
Proyecto
de
Reforma Integral
del
Estado. Vol. 1. Caracas, Venezuela: COPRE.
Grindle, Merilee. 2000. Audacious reforms, institutional invention anddemocracy
in Latin America.
Baltimore:John Hopkins University
Press.
Latinobarometro. 2003. Presentacion de Prensa de Informe Resumen la Democracia y la Economia.
http://www.latinobarometro.org/ano2003/presentacion_de_prensa_percent20lb_2003.pd.
Ottaway,Marina. 2003. Democracy challenged:
The riseof semi-authoritarianism.
Washington,DC:
Carnegie Endowment for International Peace.
United NationsDevelopment Program (UNDP). 2004.
Democracyin Latin America.
Projectin
Democracyin Latin America. New York: UNDP.