Working Papers - 1992 (#169 - #185)

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Business Elites and Democracy in Latin America: Reflections on the May 1991 Kellogg Institute Conference

Juan J. López

Working Paper #185 - December 1992


The discussion focuses on three themes. One is the divergence between positions of business associations and concerns of individual entrepreneurs regarding several determinants of investment. Another issue is under what conditions economic growth can be achieved under democracy; why market reforms have generated little private investment in many cases, and which government policies and political institutions can promote investment. The third topic is the relationship between democracy and capitalism in Latin America. The current acceptance of democracy by capitalists challenges assumptions about the conflictual relationship between democracy and capitalism and opens the question of what determines capitalists' preferences for political regimes.


La discusión se concentra en tres temas principales. Uno de ellos es la divergencia existente entre las posiciones que adoptan las asociaciones empresariales y las preocupaciones de empresarios individuales con respecto a varios determinantes de inversión. Otro tema es bajo qué condiciones se puede alcanzar el crecimiento económico en un régimen democrático; por qué las reformas de mercado han generado, en muchos casos, una respuesta pequeña de la inversión privada, y cuáles son las políticas gubernamentales y las instituciones políticas que pueden promover la inversión. El tercer tema es la relación existente entre democracia y capitalismo en América Latina. La aceptación actual de la democracia por parte de los capitalistas cuestiona los supuestos acerca de la relación antagónica entre democracia y capitalismo y formula la pregunta de qué es lo que determina las preferencias de los capitalistas con respecto a los regímenes políticos.

Juan J. López is a Ph.D. candidate in the Department of Political Science at the University of Chicago. His field of specialization is comparative politics (Latin America) and his dissertation is on political institutions and private investment in Argentina. He has been a Lecturer at the College of the University of Chicago and had an article on methodology and the philosophy of science, "Theory Choice in Comparative Social Inquiry," in Polity 25, No. 2 (Winter 1992): 267-282.

Business Perceptions and the Transition to Democracy in Chile

Ernest Bartell, CSC

Working Paper #184 - December 1992


This paper explains and challenges the prevailing view that other Latin American cases should attempt to replicate the successful incorporation of Chilean business elites into a democratic political process and a competitive international economy. He shows that, in contrast to their counterparts in the rest of Latin America, Chilean business elites have successfully competed with foreign and domestic competitors without special privilege and dependence on the government. He also uses his extensive interview material to illustrate that experience under democratic rule has allowed Chilean business elites to overcome certain traditional traits that formerly prevented them from participating in democratic rule, particularly insecurity and defensiveness regarding their social legitimacy and skepticism regarding the prospects for economic expansions under democratic rule. However, he notes that Chilean business elites are likely to thwart any nonmarket motivated attempts at redistributing wealth, thereby limiting the substantive goals of democracy. He further surmises that the Chilean pattern of incorporation into the international economy is unlikely to be successfully replicated in other Latin American cases.


El presente trabajo explica y desafía la visión prevaleciente de que otros países latinoamericanos deberían intentar repetir la exitosa incorporación de las élites empresariales chilenas dentro de un proceso político democrático y una economía internacional competitiva. El autor muestra que, en contraste con sus contrapartes en el resto de América Latina, las élites empresariales chilenas han competido exitosamente con los competidores domésticos y extranjeros sin contar con ningún privilegio especial ni dependencia alguna del gobierno. También emplea su extenso material basado en entrevistas para ilustrar que su experiencia bajo un régimen democrático ha permitido a las élites empresariales chilenas superar ciertos rasgos tradicionales que anteriormente les impedían participar en un régimen democrático, especialmente su inseguridad y su actitud defensiva con respecto a su legitimidad social y su escepticismo con respecto a las perspectivas de expansión económica bajo un régimen democrático. Sin embargo, señala que existe la probabilidad de que las élites empresariales chilenas impidan cualquier intento no motivado por el mercado de redistribución de la riqueza, limitando, con ello, las metas substantivas de la democracia. Más adelante conjetura que es improbable que el modelo chileno de incorporación en la economía internacional se repita con éxito en otros países latinoamericanos.

Rev. Ernest Bartell, CSC, is Executive Director of the Helen Kellogg Institute for International Studies and Professor of Economics at the University of Notre Dame. Among his publications are "John Paul II and International Development" in The Making of an Economic Vision edited by O. Williams and J. Houck (Washington, DC: University Press of America, 1991) and "Private Goods, Public Goods, and the Common Good: Another Look at Economics and Ethics in Catholic Social Teaching" in The Challenge of the Common Good to U.S. Capitalism edited by J. Houck and O. Williams (Washington, DC: University Press of America, 1986). He has conducted research on the private sector and democracy in Chile and Brazil.

Christian Communities in Chile and Peru

Michael Fleet

Working Paper #183 - November 1992


Christian communities and other popular Catholic organizations in Latin America have been objects of controversy in recent years. At issue are the nature of their religious and political radicalism and the extent to which they represent the feelings and commitments of popular sector Catholics generally. This paper looks briefly at recent work on Christian communities in Chile and Peru and goes on to discuss surveys conducted by the author in Santiago and Lima in 1987 in which he elicited the views of Christian community activists and other Catholics on a variety of religious and political topics. The author evaluates the data in terms of political and theological attitudes, differentiating among his respondents according to the degrees of their organizational and ritual involvement with the Church and their experience of secular influences.


Las comunidades cristianas, así como otras organizaciones populares católicas en América Latina, han sido objeto de controversia en los últimos años. Los temas debatidos son la naturaleza de su radicalismo político y religioso y el grado en el que representan los sentimientos y compromisos de los católicos del sector popular en general. Este ensayo analiza brevemente la investigación reciente sobre las comunidades cristianas en Chile y Perú y discute las encuestas llevadas a cabo por el autor en Santiago y Lima en 1987, que presentan las opiniones de activistas de la comunidad cristiana y otros católicos sobre una variedad de temas políticos y religiosos. El autor hace una evaluación de los datos en términos de las actitudes políticas y teológicas, diferenciando a los encuestados de acuerdo con el grado de su asociación organizativa y ritual con la iglesia y con su experiencia en términos de influencias seculares.

Michael Fleet, a Residential Fellow at the Institute during the fall semester 1990, is Associate Professor of Political Science at Marquette University. He received his doctorate from the University of California at Los Angeles. He is the author of The Rise and Fall of Chilean Christian Democracy (Princeton University Press, 1985) and of many articles and chapters on religion and politics in Latin America. The topic of this paper, drawn from research he conducted while at the Institute, is part of a book-length study he conducted with Brian H. Smith, published by ND Press, 1997.

Mexican Business and the State: The Political Economy of a "Muddled" Transition

Blanca Heredia

Working Paper #182 - October 1992


In the late 1970s and early 1980s Mexico, in common with most of Latin America, experienced heightened levels of conflict in state-private-sector relations along with growing politicization on the part of domestic entrepreneurs. In contrast to most other authoritarian regimes in the region, however, conflict in state-business relations stopped short of rupture and business elites' political activation failed to facilitate a full-fledged transition to democracy. While democracy may evolve in the future, business elites have thus far only succeeded in ushering in a process of partial and segmented political liberalization which has tended to reinforce, rather than erode, the basic pillars of authoritarian rule. The main argument developed in this paper is that Mexican entrepreneurs' failure to play a role similar to that performed by other business elites in authoritarian settings during the early 1980s was due to the comparatively greater capacity of the Mexican government to both initially withstand and then effectively respond to business elites' demands. That capacity was, in turn, dependent upon the Mexican state elites' command over large economic and political resources, relative to those controlled by other Latin American authoritarian elites. The first section of the paper examines the conditions that led to high levels of state-private-sector conflict and growing politicization of Mexican business elites during the 1970-1982 period. The second section analyzes the process through which the government managed to deal with and relatively rapidly undermine business elites' opposition after 1982.


A fines de los años setenta y principios de los ochenta, México, al igual que la mayor parte de Latinoamérica, experimentó altos niveles de conflicto en las relaciones entre el estado y el sector privado junto con una creciente politización de los empresarios locales. Sin embargo, en contraste con la mayoría de los regímenes autoritarios de la región, el conflicto en las relaciones entre el estado y los empresarios no llegó a la ruptura y la activación política de las élites empresariales no alcanzó a promover una completa transición hacia la democracia. Aunque existe la posibilidad de una evolución hacia la democracia en el futuro, las élites empresariales sólo han conseguido hasta ahora desencadenar un proceso de liberalización política parcial y segmentada, el cual ha tendido a reforzar, en lugar de desgastar, los pilares básicos del régimen autoritario. El principal argumento que se desarrolla en este ensayo es que el fracaso de los empresarios mexicanos en desempeñar un papel similar al de otras élites empresariales en regímenes autoritarios a principios de la década de los ochentas se debió a la mayor capacidad del gobierno mexicano tanto de resistir inicialmente como de responder posteriormente con efectividad a las demandas de las élites empresariales. Dicha capacidad dependió, a su vez, del control por parte de las élites estatales mexicanas de gran cantidad de recursos económicos y políticos, en relación a aquéllos manejados por otras élites autoritarias latinoamericanas. La primera parte del ensayo analiza las condiciones que condujeron a altos niveles de conflicto entre el sector estatal y el privado así como a una politización creciente de las élites empresariales mexicanas durante el período comprendido entre 1970 y 1982. La segunda parte analiza el proceso a través del cual el gobierno logró manejar y desactivar relativamente rápido la oposición de las élites empresariales después de 1982.

Blanca Heredia is a researcher at the Instituto Tecnológico Autónomo de México (ITAM) and is currently completing her doctoral dissertation for the Department of Political Science at Columbia University. Her most recent article, "Politics, Profits and Size: The Political Transformation of Mexican Business," appeared in Douglas Chalmers, Maria do Carmo Campello de Souza, and Atilio Boron, eds., The Right and Democracy in Latin America (New York: Praeger, 1992) and "The Political Economy of the Mexican Crisis: 1982-88" appeared in Dharam Ghai, ed., The Social Impact of Crisis and Adjustment (London: Zed Books: 1991). She was a Guest Scholar at the Institute during the fall semester 1991.

An earlier version of this paper was presented at a conference on "Business Elites and Democracy in Latin America," held at the Kellogg Institute in May 1991.

State Subsidization of Catholic Institutions in Brazil, 1930-1964: A Contribution to the Economic and Political History of the Church

Kenneth P. Serbin

Working Paper #181 - October 1992


This paper contributes to the economic and political history of the Brazilian Catholic Church by examining the system of federal subsidization organized under the first government of Getúlio Vargas. The political pact with the state gave the Church funds to increase the size of its patrimony and its participation in building the country's educational, cultural, and social-assistance infrastructure. Using examples from unpublished documents and other previously unstudied sources, this paper is a first attempt to determine the amount of that aid and to gauge its importance for both the state and the Church. The findings add another dimension to the debate on the relative strength of the Brazilian state during the first Vargas government. They also help us to understand the financial structure of the Church.


Este artigo contribui para a história econômica e política da Igreja Católica no Brasil no período de 1930 a 1964 através do exame do sistema de subvenções federais organizado durante o primeiro governo Vargas. O pacto político com o estado forneceu à Igreja verbas que ajudaram a ampliar seu patrimônio, estabelecendo-a como uma base importante da infra-estrutura educacional, cultural e assistencial do país. Valendo-se de exemplos de documentos não publicados e outras fontes até agora não estudadas, este trabalho é uma primeira tentativa de determinar o volume dessas subvenções e de avaliar sua importância tanto para o estado quanto para a Igreja. A evidência aqui apresentada adiciona uma nova dimensão ao debate sobre o papel do estado brasileiro no primeiro governo Vargas. Ajuda-nos também a compreender a evolução da estrutura financeira da Igreja.

Kenneth P. Serbin is a Research Associate at the North-South Center and a Ph.D. candidate in the Department of History at the University of California, San Diego, where he will defend his dissertation, entitled "Priests, Social Conflict, and Celibacy: A History of Brazil's Catholic Seminaries." He was a Fulbright Fellow in Brazil, where he published "Igreja, estado e a ajuda financeira pública no Brasil, 1930-1964: Estudos de três casos chaves," Textos CPDOC (Rio de Janeiro: Fundação Getúlio Vargas, 1991), as well as other articles. While in Brazil he was also a freelance correspondent and photographer for the National Catholic Reporter. He has received grants from the Mellon Fellowships in the Humanities program, the Organization of American States, and other organizations. During the spring 1992 semester, he was a Residential Fellow at the Kellogg Institute.

The author wishes to thank the institutions that made it possible for him to conduct research in Brazil for this article: the Fulbright Commission; the Organization of American States; the Department of History of the University of California, San Diego; and the Tinker Foundation. He would also like to thank the personnel of the Centro de Pesquisa e Documentação em História Contemporânea do Brasil of the Fundação Getúlio Vargas. He is grateful for the comments on an earlier version of this work made by Professors Steve Topik, Pedro A. Ribeiro de Oliveira, and especially Ralph Della Cava. He thanks Professors Celso Castro, Zairo Cheibub, and Ralph Zerkowski for their suggestions. However, the responsibility for this article and its shortcomings is entirely that of the author. He thanks the Kellogg Institute for its financial support for his translation of this article from the original Portuguese, and finally, he would like to thank Mr. Robert Grimes for his support.

The NICs, Global Accumulation and Uneven Development: Implications of a Simple Three-Region Model

Amitava Krishna Dutt

Working Paper #180 - August 1992


This paper develops a simple three-region model of the global economy along structuralist lines, with the North, NICs, and the (rest of the) South. The North produces an investment-cum-consumption good while the NICs and the South produce two different consumption goods. The North grows with excess capacity along Kalecki-Keynes lines; the NICs are modelled along Marxian lines with a given rate of exploitation and the South along Lewis lines with a given subsistence wage. The short-run and long-run dynamics and equilibrium properties of the model are analyzed. It is shown that parametric shifts that result in a relative growth of NIC capital (as compared to the North and the South) in the long run usually result in uneven North-South development.


Este trabajo desarrolla un modelo sencillo de tipo estructuralista en el que la economía mundial se desagrega en tres regiones: el Norte, los países de industrialización reciente (NICs) y el (resto del) Sur. El Norte produce un bien tanto de consumo como de inversión mientras que los NICs y el Sur producen dos bienes de consumo diferentes. El crecimiento del Norte se da con exceso de capacidad al estilo de los modelos de Kalecki y Keynes; el modelo que se aplica a los NICs es, en cambio, de inspiración marxista con una tasa dada de explotación, mientras que el Sur sigue una pauta de crecimiento a la Lewis con un salario dado de subsistencia. El trabajo analiza la dinámica de corto y largo plazo así como las propiedades de equilibrio del modelo. Se muestra que cambios paramétricos que dan lugar a un crecimiento relativo del capital de los NICs (comparado con el Norte y el Sur) generalmente dan como resultado en el largo plazo un desarrollo desigual entre Norte y Sur.

Amitava Krishna Dutt is Professor of Economics at the University of Notre Dame and a Departmental Fellow of the Kellogg Institute. He works on growth and distribution theory, post Keynesian economics, the macroeconomics of development, and international trade and uneven development. He is the author of Growth, Distribution and Uneven Development (Cambridge University Press, 1990), coauthor of Keynes's Third Alternative? (Edward Elgar, 1990), and coeditor of New Directions in Development Economics (Edward Elgar, 1992), and he has published numerous articles in such journals as American Economic Review, the Cambridge Journal of Economics, the Journal of Development Economics, the Journal of Development Studies, the Journal of Post Keynesian Economics, Oxford Economic Papers, the Review of Radical Political Economics, and World Development.

The author is grateful to three anonymous referees and the Managing Editor of World Development, and to Robert Blecker and Anthony Thirlwall, for their useful comments on an earlier draft. He also thanks José Cordero for research assistance. This paper is forthcoming in World Development.

Brazilian Business and the Democratic Transition: New Attitudes and Influence

Leigh A. Payne

Working Paper #179 - August 1992


Brazilian business elites were the key civilian supporters of the 1964 military coup. During the transition to democracy these elites have faced the same threats that prompted their support for the coup: economic crisis, capital-labor conflict, and threats to private property. Yet, in contrast to their behavior in the earlier period, and contrary to the predictions in the transitions to democracy literature, these elites are now unlikely to endorse an authoritarian regime to resolve their problems. This paper provides insights into two main reasons why business elites have tolerated the democratic transition: their altered perceptions of the cost of authoritarian rule and their increased influence over political outcomes. It also suggests ways in which the new democratic governments may sustain business elites' acceptance of democracy without allowing them to hold the democratic governments hostage to their interests.


Las elites empresariales brasileñas constituyeron el principal apoyo civil al golpe militar de 1964. Durante la transición hacia la democracia, estas elites se han tenido que enfrentar a los mismos desafíos que determinaron su apoyo al golpe: crisis económica, conflicto entre capital y trabajo, y amenazas a la propiedad privada. Sin embargo, en contraste con su comportamiento durante el período anterior y, contrariamente a las predicciones de la literatura sobre las transiciones hacia la democracia, es muy improbable que, hoy en día, estas elites respaldaran un régimen autoritario para resolver sus problemas. Este trabajo reflexiona en torno a dos razones principales por las que las elites empresariales han tolerado la transición democrática: la modificación de sus percepciones sobre el costo del régimen autoritario y su acrecentada influencia sobre los resultados políticos. También sugiere formas en que los nuevos gobiernos democráticos pueden mantener la aceptación de la democracia por parte de las elites empresariales sin que al mismo tiempo se conviertan en rehenes de estos intereses.

Leigh A. Payne is Assistant Professor in Political Science at the University of Wisconsin-Madison. She recently completed her doctorate on "Pragmatic Actors: The Political Attitudes and Behavior of Brazilian Industrial Elites" at Yale University, and a version of her dissertation is forthcoming with Johns Hopkins University Press. Her research focuses on business elites, particularly capital-labor relations, in the transition to democracy in Latin America. Her article "Working-Class Strategies in the Transition to Democracy in Brazil" was recently published in Comparative Politics.

The author wishes to thank the following friends and scholars for their comments on earlier versions of this paper: Stephen E. Meili, Ernest Bartell, Ben Ross Schneider, Lynne Wozniak, Scott Mainwaring, Samuel Valenzuela, and Caroline Domingo. She also wishes to acknowledge the following institutions for their financial support for this project: the Social Science Research Council, the Fulbright Commission, the Kellogg Institute, and the University of Wisconsin-Madison. This version of the paper was first presented at a conference on "Business Elites and Democracy in Latin America," held at the Kellogg Institute in May 1991.

The Cautionary Tale of Carolina Maria de Jesus

Robert M. Levine

Working Paper #178 - June 1992


This paper traces the fortunes of an Afro-Brazilian woman from the slums of São Paulo, a self-taught writer who for a brief period during the 1960s became an international celebrity as author of the best-selling book in Brazilian publishing history. Outspoken and independent, she refused to be patronized or conform to the role expected of her by educated white elites and the media, who reacted with a combination of personalistic attacks and neglect. She died in poverty and was buried in a paupers' cemetery, and today her story has been largely forgotten.


El presente trabajo reconstruye el destino de una mujer afrobrasileña, proveniente de los barrios pobres de São Paulo, escritora autodidacta que, durante un breve período en la década de los sesentas, se convirtió en una celebridad internacional como autora del libro de mayor venta en la historia de las publicaciones brasileñas. Franca e independiente, se rehusó a ser patrocinada o a adaptarse al papel que de ella esperaban las élites blancas educadas y los medios de comunicación, los cuales respondieron a ese rechazo con una combinación de ataques personales e ignorancia. Murió en la pobreza y fue sepultada en un cementerio para los pobres y, actualmente, su historia ha sido en gran medida olvidada.

Robert M. Levine is Director of Latin American Studies at the University of Miami and is the author of several books on Brazilian social history, including a new monograph Vale of Tears (University of California Press, 1992).

The author wishes to acknowledge the enthusiastic and diligent assistance of Juliano Spyer in São Paulo and Cristina Mehrtens in Coral Gables, and the help of José Carlos Sebe Bom Meihy and Martha D. Huggins.

The Political Economy of Statism in South Korean Development

Kwan S. Kim

Working Paper #177 - June 1992


This study takes South Korea as a case to assess the role of the state with special reference to the period of rapid economic growth under a strong state (1961-87). This covers the period when state intervention was persistent and most active. It will be argued that the state played a critical role in industrialization, prevailing in every sector of the economy. Market rationality was to be compromised by the paramount goal of industrialization. The paper analyzes the historical process and the social structure that have given birth to an authoritarian state in South Korea. The intention here is not to develop a theory of the state but to bring to attention the particular features of East Asia's developmental state. The next section presents an overview of industrial development in Korea from the historical perspective, looking closely at the choice of development strategy and its consequences over the different phases of industrialization. Section three surveys the origin and scope of state authority, assessing the role of the state in the process of industrialization. A specific question addressed is how the state in postliberation South Korea has been able to maintain dominance over civil society. The concluding section summarizes the main points of the paper and explores the broad lessons from the Korean model.


El presente estudio analiza el caso de Corea del Sur con el fin de evaluar el papel del Estado con especial referencia al período de rápido crecimiento económico bajo un Estado fuerte (1961-87). En este período la intervención estatal fue activa y persistente. Se argumenta que el Estado desempeñó un papel crítico en la industrialización, predominando en cada uno de los sectores de la economía. De esta manera, la racionalidad de mercado quedó sujeta a la meta suprema de la industrialización. Este trabajo analiza el proceso histórico y la estructura social que dieron lugar al estado autoritario en Corea del Sur. La intención en esta parte no es la de desarrollar una teoría del estado, sino la de resaltar las características particulares del estado desarrollista del este de Asia. La siguiente sección presenta un panorama del desarrollo industrial de Corea partiendo de una perspectiva histórica, y poniendo particular atención a la elección de la estrategia de desarrollo y sus consecuencias en las diferentes etapas de la industrialización. La sección tres examina el origen y el alcance de la autoridad estatal, analizando el papel del estado en el proceso de industrialización. Una de las preguntas específicas abordadas es la de cómo el estado, durante la etapa independiente de Corea del Sur, ha sido capaz de mantener el dominio sobre la sociedad civil. La última sección resume los puntos principales del trabajo y explora las amplias lecciones que arroja el modelo coreano.

Kwan S. Kim is Professor of Economics and Departmental Fellow of the Kellogg Institute at the University of Notre Dame. He is a development economist, occasionally serving as an economic consultant for governments of developing countries and for international agencies. His career includes four years as a Rockefeller Foundation scholar in East Africa, two years as a senior economist with the Agency for International Development, and short stints as an economic advisor or consultant at such institutions as the Hudson Institute, UNIDO, and the National Financiera in Mexico. He has published extensively in over fifty professional journals and edited volumes in the areas of development studies, international trade, econometrics, development planning, and industrialization, with a special interest in East Africa, East Asia, and Mexico, and edited Papers on the Political Economy of Tanzania and Debt and Development in Latin America. He is author of Industrial Policy and Development in South Korea and coauthor of Development Strategies for the Future of Mexico and Korean Agricultural Research: The Integration of Research and Extension.

This is an expanded version of part of the paper "Market Miracle and State Stagnation? The Development Experience of South Korea and India Compared," given jointly with Amitava Dutt at the workshop on "The State, Markets, and Development" held at the Kellogg Institute in April 1992.

The Private Sector and the Public Transcript: The Political Mobilization of Business in Bolivia

Catherine M. Conaghan

Working Paper #176 - June 1992


This paper examines the origins and development of business interest group activism in Bolivia. During the 1980s, business interest groups became high-profile political actors that worked openly to reshape the policy-making and ideological landscape of Bolivia. The thrust of the campaign was to promote neoliberal economic ideas and to create a more positive public image of the private sector. While these efforts met with some success, challenges by popular class organizations and criticisms of business behavior by politicians tempered the effects of the business campaign on remaking public opinion. Moreover, the continued reluctance of domestic capitalists to undertake substantial new investments further undercut business's attempt to project itself as progressive and productive. Nonetheless, the business mobilization was effective in heightening class consciousness and solidarity. The mixed political and economic record of the Bolivian private sector underscores the continuing problems involved in constructing bourgeois hegemony in Latin America.


Este trabajo analiza los orígenes y el desarrollo del activismo de los grupos de interés empresariales en Bolivia. Durante la década de los ochentas, los grupos de interés empresariales se convirtieron en prominentes actores políticos, actuando abiertamente para remodelar el panorama ideológico y el proceso de toma de decisiones en Bolivia. Esta campaña consistió en divulgar las ideas económicas neoliberales y en la creación de una imagen pública más positiva del sector privado. Aunque estos esfuerzos tuvieron algo de éxito, los retos de parte de las organizaciones populares y las críticas al comportamiento empresarial de parte de los políticos mitigaron los efectos de la campaña empresarial sobre la opinión pública. Asímismo, el contínuo temor de los capitalistas domésticos de llevar a cabo nuevas inversiones substanciales contribuyó también a diluír la imagen de progreso y productividad que los empresarios intentaban proyectar. Con todo, la movilización empresarial resultó efectiva en términos de elevar la conciencia y la solidaridad de clase. La ambigüedad de los antecedentes políticos y económicos del sector privado boliviano pone de relieve la persistencia de los problemas que enfrentan los intentos por edificar una hegemonía burguesa en América Latina.

Catherine M. Conaghan is Associate Professor of Political Studies at Queen's University in Kingston, Ontario. She is the author of Restructuring Domination: Industrialists and the State in Ecuador (University of Pittsburgh Press, 1988). Funding for her research on business elites has been provided by the Advisory Research Council and Principal's Development Fund of Queen's University.

This paper was presented at a conference on "Business Elites and Democracy in Latin America," held at the Kellogg Institute in May 1991.

Institutional Constraints to Economic Policies: Wage Bargaining and Stabilization in Brazil

Edward J. Amadeo

Working Paper #175 - May 1992


After a short review of the logics of unions' attitudes in wage bargaining the author turns to the origins of the Brazilian corporatist labor system, then directs attention to new developments such as the centralization of the union movement in the last ten years, its relation with political parties, and new trends in collective bargaining. The paper then looks at the effectiveness of policy instruments in recent stabilization attempts, and finally discusses the prospects for a concerted incomes policy.


Después de una breve revisión de la lógica de las actitudes de los sindicatos en las negociaciones salariales, el autor procede a analizar los orígenes de la organización corporativista del trabajo en Brasil y, posteriormente, dirige su atención hacia algunos cambios recientes tales como la centralización del movimiento sindical en los últimos diez años, su relación con los partidos políticos, y las nuevas tendencias en la negociación colectiva. Posteriormente el trabajo analiza la efectividad de los instrumentos de política económica en los intentos recientes de estabilización y, finalmente, discute las perspectivas que puede tener una política de ingresos concertada.

Edward J. Amadeo, Associate Professor of the Department of Economics at PUC-RJ, obtained his Ph.D. in Economics from Harvard University in 1985. He has been external consultant for the Brazilian Central Bank, WIDER, PREALC/ILO, the World Bank, and UNRISD. Among extensive publications, he has authored Keynes's Principle of Effective Demand (1989) and coauthored, with Amitava K. Dutt, Keynes's Third Alternative? The Neo-Ricardian Keynesians and the Post-Keynesians (1990) and, with Marcello Estevão, A Teoria Econômica do Desemprego (1991). He is editor of John Maynard Keynes: Cinquenta Anos da Teoria Geral (1989) and Ensaios sobre Economia Política Moderna (1990). He is currently completing a book on 'New Unionism,' Collective Bargaining, and Distributive Conflict in Brazil.

This paper was written during the author's stay at the University of Notre Dame as Visiting Professor of the Department of Economics and Visiting Departmental Fellow of the Kellogg Institute, spring 1991. He is grateful to Ernest Bartell, c.s.c., Samuel Valenzuela, and Amitava Dutt for their comments; and to Kurt Weyland, Francisco Weffort, and Roberto DaMatta for discussions over issues related to the paper.

Dilemmas of Multiparty Presidential Democracy: The Case of Brazil

Scott Mainwaring

Working Paper #174 - May 1992


Focusing on the case of Brazil, this paper argues that the combination of presidentialism and a multiparty system has created difficult problems in the two (mostly) democratic periods of that country's history, 1946-64 and 1985-present. The situation of permanent minority presidential-ism easily leads to executive/legislative stalemate resulting in political immobilism. Because of the rigid electoral timetable of the presidential system, there are no institutionalized means of dealing with this situation of presidents who lack stable congressional support. The extremely malleable character of Brazilian parties has exacerbated this problem. When presidents are popular, politicians of all stripes and colors support them, but when they lose favor, they often have difficulty winning support even in their own parties. Defections in hard times make it difficult for presidents to pursue coherent measures that could substantially redirect policy. Presidents have responded by trying to bypass parties and congress so that their most important programs will not be endangered by immobilism, congressional inaction, and the patronage designs of party politicians. Realizing that their base of support in any particular party is never entirely secure, they try to form broad multiparty coalitions through the distribution of patronage. Several presidents attempted to mobilize the masses as a means of offsetting their lack of institutional support, but doing so further weakened political institutions. Even with this panoply of measures, chief executives have had difficulties managing as minority presidents in a fragmented party system dominated by malleable parties. Although the empirical evidence is drawn from the Brazilian case, the paper argues that the combination of presidentialism and fragmented multipartism is generally problematic.


Concentrándose en el caso del Brasil, este trabajo argumenta que la combinación de presidencialismo con un sistema multipartidista ha creado serios problemas durante los dos períodos de (mayor) democracia en la historia de dicho país, de 1946 a 1964 y de 1985 hasta la fecha. Una situación de presidencialismo minoritario permanente conduce fácilmente a una parálisis en las relaciones entre ejecutivo y legislativo lo cual da como resultado el inmobilismo político. Debido al rígido calendario electoral del sistema presidencial, no existen medios institucionales para superar esta situación cuando los presidentes carecen de un apoyo estable del Congreso. El carácter extremadamente maleable de los partidos brasileños ha exacerbado este problema. Cuando los presidentes son populares, los políticos de todos los tipos y colores los apoyan, pero cuando caen en desgracia, muchas veces tienen dificultad en obtener apoyo, incluso dentro de sus propios partidos. La deserción en tiempos difíciles dificulta a los presidentes adoptar medidas coherentes que podrían reorientar substancialmente la política. Los presidentes han respondido tratando de pasar por alto a los partidos y al Congreso de tal manera que sus programas más importantes no puedan ser puestos en peligro por el inmobilismo, la inactividad del Congreso, y el clientelismo de los políticos de partido. Al darse cuenta de que su base de apoyo dentro de cualquier partido nunca se encuentra completamente asegurada, intentan formar amplias coaliciones multipartidistas mediante la distribución del clientelismo. Varios presidentes intentaron movilizar a las masas como medio para compensar su falta de apoyo institucional; sin embargo, esta práctica trajo como consecuencia el debilitamiento de las instituciones políticas. Incluso con esta panoplia de medidas, los primeros mandatarios han tenido dificultad para gobernar como presidentes minoritarios dentro de un sistema partidista fragmentado dominado por partidos maleables. Aunque la evidencia empírica se refiere al caso brasileño, el trabajo argumenta que la combinación de presidencialismo y multipartidismo fragmentado es problemática en general.

Scott Mainwaring is Associate Professor of Government and Senior Fellow of the Kellogg Institute at the University of Notre Dame. He is the author of The Catholic Church and Politics in Brazil, 1916-1985 (Stanford University Press, 1986), and coeditor of and contributor to The Progressive Church in Latin America (Kellogg Institute/University of Notre Dame Press, 1989) and Issues in Democratic Consolidation: The New South American Democracies in Comparative Perspective (Kellogg Institute/University of Notre Dame Press, 1992). He has published articles on political parties, social movements, and transitions to democracy in Latin America.

Ronald Archer, Michael Coppedge, Daniel Levine, Antonio Paixão, and Matthew Shugart made helpful suggestions on this paper.

Fact and Myth: Discovering a Racial Problem in Brazil

Thomas E. Skidmore

Working Paper #173 - April 1992


This paper examines prevalent attitudes towards race in Brazil's multiracial society. The author notes that, while there is a considerable literature on slavery and the struggle for abolition, relatively little work has been done on race in Brazil today even though color continues to correlate highly with social stratification. He argues that historically the Brazilian elite has been able to hold to a belief in white superiority and at the same time deny the existence of a racial problem by adopting an "assimilationist" ideology. This begins with the late nineteenth- and early twentieth-century thesis that Brazil was progressively "whitening" and continues up to the present day with the widely held view that disproportionate Afro-Brazilian poverty is a legacy of socioeconomic disadvantage and not a result of discrimination. This official ideology has strongly affected the availability of data until recently and has generally been a dominant influence on mainstream academic research on race. The author traces the emergence of criticism of the "myth of racial democracy" from Afro-Brazilian militants and some social scientists, and gives a brief overview of the existing research on contemporary Brazilian race relations. He concludes by outlining a future research agenda for Afro-Brazilian studies.


Este trabajo analiza las actitudes prevalecientes hacia los diversos grupos étnicos en la sociedad multiracial del Brasil. El autor observa que, mientras que existe una considerable literatura sobre la esclavitud y la lucha por abolirla, se ha, en cambio, estudiado relativamente poco a los diversos grupos raciales en Brasil, a pesar de que el color continúa correlacionándose en gran medida con la estratificación social. El autor argumenta que, históricamente, la élite brasileña ha sido capaz de mantener la creencia en la superioridad del blanco y, al mismo tiempo, de negar la existencia de un problema racial adoptando una ideología "asimilacionista". Ello comienza con la tesis de finales del siglo diecinueve y principios del veinte de que Brasil se iba "blanqueando" progresivamente y continúa hasta la fecha con la opinión ampliamente difundida de que la desproporcionada pobreza afrobrasileña constituye un legado del atraso socioeconómico y no un resultado de la discriminación. Esta ideología oficial ha influído fuertemente en la disponibilidad de datos hasta fechas recientes, y ha ejercido generalmente una influencia dominante sobre la corriente principal de la investigación académica que trata el problema racial. El autor analiza el surgimiento de las críticas al "mito de la democracia racial" por parte de militantes afrobrasileños y de algunos científicos sociales y proporciona un breve panorama de la investigación existente sobre las relaciones raciales brasileñas contemporáneas. Concluye presentando una agenda para la investigación futura en el área de estudios afrobrasileños.

Thomas E. Skidmore is Carlos Manuel de Céspedes Professor of History and Director of the Center for Latin American Studies at Brown University. He is the author of The Politics of Military Rule in Brazil, 1964-1985 (Oxford University Press, 1988) and Black into White: Race and Nationality in Brazilian Thought (OUP 1974), and coauthor, with Peter H. Smith, of Modern Latin America (second edition, OUP 1989). In the fall of 1991 he was Hewlett Residential Fellow at the Kellogg Institute.

Earlier versions of this paper were presented at a conference on "Population, Nationalism and Ethnic Conflict" at the Watson Institute for International Studies, Brown University (April 1991) and at a meeting of specialists on Afro-Brazilian studies organized by the Centro de Estudos Afro-Asiáticos (Conjunto Universitário Cândido Mendes) in Rio de Janeiro (31 October-1 November 1991). Very useful comments were provided by Reid Andrews, Alicia Bercovich, Roberto DaMatta, Calvin Goldscheider, Carlos Hasenbalg, Rhett Jones, Yvonne Maggie, and Fulvia Rosemberg. The author benefitted greatly from contacts in Brazil obtained while consulting for the Ford Foundation on the state of Afro-Brazilian studies in that country. Needless to say, all opinions expressed here are his own.

Delagative Democracy?

Guillermo O'Donnell

Working Paper #172 - March 1992


This paper presents a first result of ongoing research on emerging forms of democracy in contemporary Latin America. The author argues that it may be necessary to conceptualize a new type of "delegative" democracy, as different in some crucial respects from the "representative" democracy that has been theorized in the existing literature. The emergence and workings of delegative democracy are seen as closely interwoven with the deep social and economic crisis that some Latin American countries are undergoing. But those relationships remain to be worked out by research in progress.


Este ensayo presenta los resultados iniciales de una investigación en curso sobre las formas emergentes de la democracia en la América Latina contemporánea. El autor sostiene la necesidad de conceptualizar un nuevo tipo de democracia "delegativa" que difiere en algunos aspectos cruciales de la democracia "representativa" que ha sido teorizada en la literatura existente. El surgimiento y el funcionamiento de la democracia delegativa se encuentran estrechamente vinculados con la profunda crisis social y económica por la que están pasando algunos países latinoamericanos. La especificación de estos vínculos constituye una tarea a realizar en la investigación en curso.

Guillermo O'Donnell, Helen Kellogg Professor of Sociology and Government and Inter-national Studies, is Academic director of the Institute.

The present work is done in the framework of the project "East-South System Transformation," directed by Adam Przeworski; the first version of this paper was presented at the November 1990 meeting, in Budapest, of that project. Research for this paper has been supported by general research funds of the Kellogg Institute, as well as by grants from the Ford Foundation and the International Development Research Centre to the "Grupo de Estudos Políticos" of CEBRAP. This support is gratefully acknowledged.

The Transition to Democracy in Paraguay: Problems and Prospects
A Rapporteur's Report

Nancy R. Powers

Working Paper #171 - January 1992


This rapporteur's report encompasses discussions and formal papers of the December 1990 conference on "The Transitions to Democracy in Paraguay: Problems and Prospects." The essay begins with a brief history of twentieth-century Paraguayan politics, followed by analysis of the effects that various structural factors and social and political actors might have on the transition. Specific structural topics include: the legacy of Stroessner's economic development style, recent economic conditions, the international context, the peasant movement, and questions of how and when to handle demands for land reform. Social and political actors analyzed include: the business sector, organized labor, the military, and political parties. Paraguay, while not yet a democracy, has nevertheless undergone significant political (and some economic) liberalization in a short time. The international climate supports the transition, while the weakness of civil organizations and opposition parties, a politicized military, and intransigent factions of the dominant Colorado Party present challenges to democratic consolidation. Overall, conferees were optimistic that the regime will continue to liberalize and not return to dictatorship.


Este reporte abarca las discusiones y trabajos presentados en el seminario de diciembre de 1990 sobre "La transición hacia la democracia en Paraguay: problemas y perspectivas". El ensayo empieza con una breve historia de la política paraguaya durante el siglo veinte, seguida de un análisis de los efectos que pueden tener varios factores estructurales, así como diversos actores sociales y políticos, sobre la transición. Algunos temas estructurales específicos se refieren al legado del estilo de desarrollo económico bajo el régimen de Stroessner, a las condiciones económicas recientes, al contexto internacional, al movimiento campesino, así como a preguntas sobre como y cuando manejar las demandas de refoma agraria. Los actores políticos y sociales analizados incluyen el sector empresarial, la clase obrera organizada, los militares y los partidos políticos. Aunque Paraguay no es todavía una democracia, ha vivido una significativa liberalización política (y en menor medida económica) durante un corto período de tiempo. Mientras que, por un lado, el entorno internacional es propicio a la transición, por otra parte, la debilidad de las organizaciones civiles y de los partidos de oposición, la politización de los militares y las facciones intransigentes del dominante partido Colorado, presentan retos a la consolidación democrática. En conjunto, los participantes en el seminario expresaron optimismo en cuanto a que el régimen seguirá liberalizándose y no volverá a la dictadura.

Nancy R. Powers is a doctoral candidate in the Department of Government and International Studies at the University of Notre Dame. She is currently conducting fieldwork in Buenos Aires for her dissertation study of political thought among the Argentine poor, focussing on those impoverished by the current economic crisis. She wrote with Timothy Power, "Issues in the Consolidation of Democracy in Latin America and Southern Europe in Comparative Perspective: A Rapporteurs' Report," Kellogg Working Paper no. 113.

The Political Formation and Consolidation of Peak Business Associations: The Case of Peru

Francisco Durand

Working Paper #170 - January 1992


This paper examines the question of business organization building in the 1980s, a time of economic and political transformation in Latin America. It focuses on the Peruvian case. The study of the Peruvian peak business association, CONFIEP, shows how the business sector was able to form and consolidate an umbrella organization that became the single spokesman of the private sector. A new generation of business leaders was able to mobilize the business sector around the peak association in order to face the challenges posed by the changing rules of the political game that came with the transition to democracy and macroeconomic policy changes. In the 1980s, the peak business association successfully struggled to obtain recognition among its peers and "others" (state, labor unions, political parties). CONFIEP became capable of recognizing the dangers of its own members' lack of coordination, and the association became less vulnerable to the state elite's efforts to exploit internal divisions. In the process of institutional consolidation, because of the political nature of this struggle, business leaders became national figures and decided to intervene in party politics.


Este trabajo analiza el tema de la organización empresarial durante la década de los ochentas, período de transformaciones económicas y políticas en América Latina, y se concentra en el análisis del caso peruano. El estudio de la máxima asociación empresarial peruana, CONFIEP, muestra como el sector empresarial fue capaz de formar y consolidar una amplia organización que llegó a ser el único portavoz del sector privado. Una nueva generación de líderes empresariales fue capaz de mobilizar al sector empresarial alrededor de esta asociación cúpula con el objeto de hacer frente a los retos planteados por la modificación de las reglas del juego político que se dió con la transición hacia la democracia y con los cambios en la política macroeconómica. Durante los años ochenta, este organismo luchó con éxito para obtener el reconocimiento de los suyos y de los "otros" (el Estado, sindicatos, partidos políticos). CONFIEP fue capaz de identificar los peligros derivados de la falta de coordinación de sus miembros, y logró hacerse menos vulnerable a los esfuerzos de la élite estatal para sacar partido de las divisiones internas. Durante el proceso de consolidación institucional, debido a la naturaleza política de esa lucha, los líderes empresariales se convirtieron en figuras nacionales y decidieron intervenir en la política partidaria.

Francisco Durand, a Residential Fellow at the Institute during the 1991 spring semester, obtained his Ph.D. in Latin American Studies at the University of California, Berkeley. He received his M.A. in Sociology at the Pontificia Universidad Católica del Perú, where he has been Associate Professor since 1981. He has also been Researcher at DESCO in Lima (1986-88) and Consultant to the United Nations Development Program (1987) and the Ford Foundation Office for the Southern Cone and Andean Region (1987-88). He has received doctoral research fellowships from the Inter-American, Ford, and Tinker Foundations. His book La década frustrada: Los industriales y el poder, 1970-1980 was published in Lima by DESCO in 1982. His articles include "La nueva derecha peruana: orígenes y dilemas" (Mexico, 1990) and "L'Affirmation de la bourgeoisie péruvienne comme acteur politique dans les années quatre-vingt" (Paris, 1990).

This paper was presented at a conference on "Business Elites and Democracy in Latin America," held at the Kellogg Institute in May 1991.

Unions, Social Structures, and Wage Restraint: A Suggested Scheme of Analysis

Edward J. Amadeo

Working Paper #169 - January 1992


The aim of this paper is to provide an overview of the literature on the relation between institutional aspects of wage bargaining and stabilization policies. The paper starts with a discussion of the logics of unions' attitudes in wage bargaining in an attempt to highlight the costs and benefits associated with wage restraint. Next, it relates the conditions of wage restraint to the literature on union movement centralization, trade dependency, workers' militancy, neocorporatism, and stabilization policies. We then create a taxonomy of industrial relations systems, and identify two "ideal cases"-the corporatist and pluralist cases-and two "hybrid" cases. We conclude that certain hybrid characteristics have a potential to generate ustable macroeconomic outcomes, and to render particular economic policies either infeasible or ineffective.


El objetivo del presente trabajo es presentar una revisión general de la bibliografía sobre la relación existente entre los aspectos institucionales de la negociación salarial y las políticas de estabilización. El trabajo comienza con una discusión sobre la lógica de las actitudes de los sindicatos en la negociación salarial, en un intento por destacar los costos y beneficios asociados con la moderación salarial. Enseguida relaciona las condiciones de la moderación salarial con la bibliografía sobre el grado de centralización del movimiento sindical, de apertura y dependencia comercial de la economía, la militancia de los trabajadores, el neocorporativismo y las políticas de estabilización. Esta discusión nos conduce a presentar una taxonomía de los sistemas de relaciones industriales, y a identificar dos "casos ideales"-los casos corporativista y pluralista-y dos casos "híbridos". Llegamos a la conclusión de que ciertas características de los casos híbridos pueden potencialmente generar resultados macroeconómicos inestables y volver impracticables o inefectivas ciertas políticas económicas.

Edward J. Amadeo, Associate Professor of the Department of Economics at PUC-RJ, obtained his Ph.D. in Economics from Harvard University in 1985. He has been external consultant for the Brazilian Central Bank, WIDER, PREALC/ILO, the World Bank, and UNRISD. Among extensive publications, he has authored Keynes's Principle of Effective Demand (1989) and coauthored, with Amitava K. Dutt, Keynes's Third Alternative? The Neo-Ricardian Keynesians and the Post-Keynesians (1990) and, with Marcello Estevão, A Teoria Econômica do Desemprego (1991). He is editor of John Maynard Keynes: cinquenta anos da Teoria Geral (1989) and Ensaios sobre Economia Política Moderna (1990). He completed the book, Institutional Constraints to Economic Policies: Wage Bargaining and Stabilization in Brazil (University of Notre Dame Press: 1992).

This paper was written during the author's stay at the University of Notre Dame as Visiting Professor of the Department of Economics and Visiting Departmental Fellow of the Kellogg Institute, spring 1991. He is grateful to Ernest Bartell, c.s.c., Samuel Valenzuela, and Amitava Dutt for their comments in a seminar presented at the Kellogg Institute series. Kurt Weyland, Francisco Weffort, and Roberto DaMatta provided insightful suggestions for which he is also very thankful.