nuffield college, oxford university oxford 4 may 2006

1

Ulysses, the Sirens and the art of Ulysses, the Sirens and the art of Navigation:Navigation:

Political and Technical Rationality in Latin AmericaPolitical and Technical Rationality in Latin America

Nuffield College, Oxford University

Oxford 4 May 2006

Javier SantisoChief Economist & Deputy Director

OECD Develoment Centre

2

Emerging Democracies in Latin Emerging Democracies in Latin America: Trends and issuesAmerica: Trends and issues

AverageAverage

Source: Javier Santiso, “Latin America’s Political Economy of the Possible: Beyond Good Revolutionaries and Free Marketeers”.Source: Javier Santiso, “Latin America’s Political Economy of the Possible: Beyond Good Revolutionaries and Free Marketeers”.

MIT Press. Cambridge, Massachusetts, 2006MIT Press. Cambridge, Massachusetts, 2006

Based on the Inter-American Development BankBased on the Inter-American Development Bank

Democratic regimes in Latin America since transition (1978-2005)

0

5

10

15

20

25

30

35

40

Colombia Venezuela Peru Mexico Argentina Brazil Chile

Yea

rs

3

Emerging democracies in Latin Emerging democracies in Latin America: The need for further America: The need for further

consolidationconsolidation

Source: IADB Politics of Policies Report, 2006 Source: IADB Politics of Policies Report, 2006

(2005)

4

Institutions are decisive for the Institutions are decisive for the quality of democratic policiesquality of democratic policies

Source: IADB Politics of Policies Report, 2006 and UNDP, 2005 Source: IADB Politics of Policies Report, 2006 and UNDP, 2005

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0

Congressional Capability Index (1-3 scale)

Poli

cy I

ndex

(1-

4 s

cale

)

Congressional Capabilities and the Quality of Policies

5

Key question: how to explain the success and failure of economic policies in Latin America emergi9ng democracies?

Key issue: raising the level of decisional responsibility and institutional transparency.

We need to reinforce the production base and the spread of existing knowledge in open societies

We need to articulate the shared knowledge network between the State and the knowledge production centers.

This articulation is key to the perspective of democratic governance. It is even more relevant in emerging democracies.

How are political and technical How are political and technical rationality articulated in Latin rationality articulated in Latin

America?America?

6

Technopols as “cognitive institutions”.

i.e. institutions that articulate proposals of acceptable economic policies which are both adoptable by and adaptable to their respective democracies

Our objective: elaborate a cognitive map of the specialized institutions dedicated to the creation and application of knowledge.

Our objective: analyze the process of the incorporation of this knowledge into the political and administrative institutions and, above all, in the political process.


America?America?

7

Working hypotheses: the quality of the economic policies will depend on the level on which the expert knowledge would be institutionalized in the policy-making-process (PMP).

This would depend on two main factors:

firstly, the existence of a critical mass of knowledge through the cognitive with capacity to generate and spread expert knowledge.

Secondly, it is essential that this knowledge be filtered in an effective manner in the PMP by an interaction between political and technical rationality.


America?America?

8

Technopols as institutional mastsTechnopols as institutional masts

“In dealing with the multiple and complex problems of development, we have learnt that we must be deaf, like Ulysses, to theseductive chant of the unique paradigm”.

Albert Hirschman

9

Technopols in Emerging Technopols in Emerging DemocraciesDemocracies

What is the cognitive map in Latin America for applied knowledge in economic policies?

There are no in-depth studies that measure the institutional density of production centers and the diffusion of applied knowledge in economic policies.

A strong institutional presence of this kind does not guarantee an adequate articulation between technical and political rationality.

Some examples exist where a high cognitive institutional presence has coincided with an overflow of economic policies due to political rationality (or formulated in weberian terms, an overflow of the ethics of conviction).

10

Technopols as trespassersTechnopols as trespassers

The presence of these institutions contributes to the democratic governance promoting higher deliberative quality in public space.

This is a necessary condition (although not sufficient) for an adequate articulation between technical rationality and political rationality.

If the key institutions for development are those that promote governance accountability and provide information over government actions authorizing citizens to sanction behavior that limits the capturing of rent (Benhabib and Przeworski, 2004), technopols carry out a central role.

11

The cognitive institutions operate in this sense as traders.

or, to use Hirschman terminology, trespassers of knowledge between technical rationality and the political rationality.

This aspect is important: Many of the reformist impulses that are merely adopted from other national or regional contexts without being adapted, fail because of the lack of the trespassing process.

Hence the Przeworski description, “the cemetery of institutional reforms must be enormous”.

Technopols as trespassersTechnopols as trespassers

12

Mapping TechnopolsMapping Technopols

The first aim of this study will be to establish the cognitive map in applied knowledge in economic policies in the different countries of the region.

Cognitive institutions can be

national or foreign;

public or private;

For this mapping we will take into account institutions of knowledge such as analysis units of international organizations or government agencies, private consultants or research departments of banks; academic research centers.

The study will have to incorporate evidence from several countries. Examples will be taken from the largest possible number of countries, considering in the first place the following eight: Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Venezuela.

13

Mapping TechnopolsMapping TechnopolsThe following points of analysis are contemplated in this sense:

What is the inherent capacity of cognitive institutions? What are their human and financial resources?

How many think-tanks and/or university centers contribute to the formulation of policy debate?

What is the contribution of the consultants and the research departments to this formulation? Here we particularly think of the private banks analysis units and the private consultants.

What is the contribution of public entities (Central Bank, Ministry of Economy and or Planning; public agencies etc.)?

What is the inherent technical capacity in the Legislative institutions in terms of economic policies?

What is the role of international institutions (BID, CAF, WB, CEPAL, etc.) in the process of designing economic policies?

14

Types of Cognitive InstitutionsTypes of Cognitive Institutions

BanksBanks

PoliciePoliciess

IOIO

Think-Think-TanksTanks

AcademicAcademicss

GovernmeGovernment nt

AgenciesAgencies

15

11 A Mapping of Latin American Cognitive InstitutionsA Mapping of Latin American Cognitive Institutions

Enter the Matrix: The case of PeruEnter the Matrix: The case of Peru22

Conclusions: The emergence of possibilismConclusions: The emergence of possibilism33

16

Banks: Latin Finance Research Banks: Latin Finance Research OlympicsOlympics

Research Olympics 2004

The Annual ranking of economists and analysts of the sell-side industry.

Every year, Latin Finance asks institutional investors, the principal consumers of Wall Street research, to rank the best analysts and economists covering the region.

17

Banks: Latin Finance Research Banks: Latin Finance Research OlympicsOlympics

LatinFinance sent questionnaires to top portfolio managers and institutional investors in Latin American debt and equity instruments.

A total of 63 responses were received from investors with a combined $33 billion under management.

Votes were weighted in proportion to the assets invested by each firm in Latin America.

Latin Finance Research Olympics 2004

Overakk Rank Bank

1 CSFB2 JP Morgan3 Bear Stearns4 UBS5 SCH6 Itaú7 Citigroup8 Merrill Lynch9 BCP10 Goldman Sachs11 Morgan Stanley12 Deutsche Bank13 ING

18

Banks as Technopols: Research Banks as Technopols: Research DepartmentsDepartments

Number of Latin American Research Analysts in 2005

0

10

20

30

40

50

60

70

80

90

Standar

d Char

tere

d

Wes

t LB

Bear S

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ns

Goldm

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Caja

Mad

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Barcl

ays

Capita

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BNP Par

ibas

Dresd

ner ING

HSBC

Mer

rill L

ynch UBS

Banco

Voto

rantim

Deuts

che

Bank Ita

ú

CSFB

JP M

organ

Brades

co SCH

BBVA

19


Number of Latin American Research Analysts based in Latam in 2005

0

10

20

30

40

50

60

Ba

rcla

ys C

ap

ital

Dre

sdn

er

Go

ldm

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Sa

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Sta

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ard

Ch

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Ca

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arib

as

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ch

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ar

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arn

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HS

BC

JP M

org

an

Ba

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Vo

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ntim

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ú

Bra

de

sco

BB

VA

SC

H

20


Latin American Research Analysts in 2005 (% based in Latam)

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

90,00%

100,00%

Barcl

ays

Capita

l

Dresd

ner

Goldm

an S

achs

Stand

ard

Charte

red

Caja

Mad

rid

Bear S

tear

ns

Deuts

che

Bank

Mer

rill L

ynch

BNP Par

ibas

JP M

orga

nIN

G

HSBC

BBVACSFB

Wes

t LB

SCHIta

ú

Banco

Vot

orant

im

Brade

sco

21

Banks: Wall Street is Watching Banks: Wall Street is Watching You … But Not EverybodyYou … But Not Everybody

Country coverage in 2005(% of research teams covering the country - sample: 17)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

El S

alva

dor

Gua

tem

ala

Jam

aica

Cos

ta R

ica

Rep

. Dom

.

Pan

ama

Uru

guay

Ecu

ador

Per

ú

Col

ombi

a

Chi

le

Ven

ezue

la

Arg

entin

a

Bra

sil

Méx

ico

22


Ratio of Analysts by Country(Latin American Research Teams in 2005)

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

Wes

t LB

Goldm

an S

achs

Barcl

ays

Capita

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Mer

rill L

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Bear S

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Calyo

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Dresd

ner

Caja

Mad

rid

CSFBUBS

BNP Par

ibas

Deuts

che

Bank

JP M

orga

nIN

G

HSBC

BBVASCH

23

Public Actors: Government and Public Actors: Government and National TechnopolsNational Technopols

The research departments of government institutions (Central Bank, Ministry of Economy and all types of public national organisms) that process, produce and spread expert knowledge on economic policies

Samples will also have to include government agencies like Superintendence of AFP in Chile, the BNDES or IPEA in Brazil, DANE in Colombia, etc.

24

Congress as Technopols: A Policy Congress as Technopols: A Policy issue in Latin Americaissue in Latin America

Brazilian Congress - Lower House:Number of analysts in each Area

17

1110

5

11

4

10 10

87

8

67

6

10

65

4

7

15

7

0

2

4

6

8

10

12

14

16

18

I III V VII IX XI XIII XV XVII XIX XI

25

Congress as Technopols: A Policy Congress as Technopols: A Policy Issue Issue

in Latin Americain Latin AmericaArea Name Area Number of consultors

I Constitutional Law, Electoral, Municipal, Administrative, Legislative Process and Judiciary I 17II Civil Law and Procedural Law, Penal and Procedural Penal, Family, Author, Successions, Private InternationalII 11III Tributary Law, Taxation III 10IV Public Finance IV 5V Labor Law and Procedural Labor V 11VI Agrarian Law and Land Policy VI 4VII Financial System, Comercial Law, Economic, Consumer Rights VII 10VIII Public Administration VIII 10IX Politics and Economic Planning, Economic Development, International Economics IX 8X Agricultural and Rural Politics X 7XI Environment and Environmental Law, Territorial Organization, Urban and Regional DevelopmentXI 8XII Mineral, Hydro and Energetic Resources XII 6XIII Urban Development, Traffic and Transportation XIII 7XIV Social Communication, Informatics, Telecommunications, Postal System, Science and TechnologyXIV 6XV Education, Culture, Sports, Science and Technology XV 10XVI Public Health, Sanitarism XVI 6XVII Security and National Defense XVII 5XVIII International Public Law, International Relations XVIII 4XIX Political Science, Sociological Science, History and International Relations XIX 7XX Writing and Parliamentary Speech XX 15XI Social Security, and Social Security Law XI 7

Total= 174

26

International Organizations as International Organizations as TechnopolsTechnopols

Technopols on Latin America: Multilaterals

Argentina: INTAL-IADB http://www.iadb.org/intal/Chile: ECLAC http://www.eclac.org/Costa Rica: FLACSO http://www.flacso.org/México: CEMLA http://www.cemla.org/Venezuela: CAF http://www.caf.com/Venezuela: SELAhttp://www.sela.org/Venezuela: CLADhttp://www.clad.org.ve/United States: IADB http://www.iadb.org/United States: The World Bankhttp://www.worldbank.org/United States: IMF http://www.imf.org/

27

Think-Tanks in Latin AmericaThink-Tanks in Latin America

Sample

Argentina: FIEL http://www.fiel.org/Argentina: Fundación Mediterránea http://www.ieral.org/Argentina: CIPPIEC http://www.cippec.org/Argentina: CEDI http://www.fgys.org/Argentina: CADAL http://www.cadal.org/Argentina: CEI /Torcuato http://www.utdt.edu/cei/Argentina: IADE http://www.iade.org.ar/Argentina: CENIT http://www.fund-cenit.org.ar/Argentina: CEMA http://www.cema.edu.ar/Argentina: Estudio Broda http://www.estudiobroda.com.ar/Argentina: Fundación Capital http://www.fcapital.com.ar/Argentina: Ecolatina http://www.ecolatina.com/Brazil: CEBRAP http://www.cebrap.org.br/Brazil: AC Pastore http://www.acpastore.com/Brazil: MBAssociadoshttp://mbassociados.com.br/Brazil: Tendencias http://ww2.tendencias.inf.br/Brazil: Fernand Braudel Institutehttp://www.braudel.org.br/Brazil: FIPE http://www.fipe.com.br/Brazil: IBRE / FGV http://www.ibre.fgv.br/

28

Think-Tanks in Latin AmericaThink-Tanks in Latin America

Colombia: Fedesarrollo http://www.fedesarrollo.org/Colombia: CEDE http://www.uniandes.edu.co/Chile: CIEPLAN http://www.cieplan.cl/Chile: Instituto Libertad y Desarrollo http://www.lyd.cl/Chile: CEP http://www.cepchile.cl/Chile: ILADES http://www.ilades.cl/Perú: IPE http://www.ipeportal.org/Perú: CIUP http://www.up.edu.pe/ciup/Perú: IPE http://www.iep.org.pe/Perú: Apoyo http://www.apoyo.com/Perú: GRADE http://www.grade.org.pe/México: CIDAC http://www.cidac.org/México: CIDE http://www.cide.edu/México: CIE / ITAM http://cie.itam.mx/Uruguay: CERES http://www.ceres-uy.org/Uruguay: CLAEH http://www.claeh.org.uy/

29

Think-Tanks on Latin America Think-Tanks on Latin America Outside the RegionOutside the Region

FOCAL (CANADA):

Based in Ottawa and founded in 1990. http://www.focal.ca/

Fosters informed analysis and debate on North and South American social, political and economic issues.

It has a full time staff of approximately 15.

THE INTER-AMERICAN DIALOGUE (USA):

Based in Washington and founded in 1983.

Engages public and private leaders throughout North and South America in an effort to discuss key hemispheric problems and opportunities.

It has a full time staff of approximately 29.

30


Council on Foreign Affairs – Latin American Studies Program: Based in New York; 1 analyst on Latam; http://www.cfr.org/latinamerica/

The Heritage Foundation: Based in Washington; founded in 1973; 3 analysts on Latam. http://www.heritage.org/

American Enterprise Institute: Based in Washington; founded in 1943; 1 analyst on Latam; http://www.aei.org/

Americas Society: Based in New York and Washington; founded in 1965 by David Rockefeller; 2 experts on Latin America; http://www.americas-society.org/

The Brookings Institution: Based in Washington; founded in 1916; 5 experts on Latam; http://www.brook.edu/

The Institute for International Economics: Based in Washington; founded in 1981; 3 experts on Latam; http://www.iie.com/

Rand - Latin American Policy Research Program:Based in Santa Monica; founded in 1946; 11 experts Latam, http://www.rand.org/nsrd/latinamerica/staff.html

Cato Institute: Based in Washington; founded in 1977; 3 experts on Latam ; http://www.cato.org/

Center for Strategic and International Studies (CSIS)Based in Washington; founded in 1965; 7 experts on Latam; http://www.csis.org/

Hoover Institution:Based in Stanford; foudned in 1959; 6 experts on Latam; http://www.hoover.org/

CIPEBased in Washington; founded in 1983, 2 experst on Latam; http://www.cipe.org/

Carnegie Endowment for Peace: Based in Washington; founded in 1910; 5 experts Latam; http://www.carnegieendowment.org/

31


Royal Institute for International Affairs:Based in London; founded in 1920; 5 experts on Latam; http://www.chathamhouse.org.uk/

Oxford Latin American CentreBased in Oxford; founded in ; 13 experts on Latin America; http://www.lac.ox.ac.uk/

Canning House:Based in London; founded in 1943; http://www.canninghouse.com/

Real Instituto Elcano:Based in Madrid; founded in 2003; 2 experts on Latam; http://www.realinstitutoelcano.org/

32

11 A Mapping of Latin American Cognitive InstitutionsA Mapping of Latin American Cognitive Institutions



33

Public Technopols: The Example of Public Technopols: The Example of PeruPeru

There are, basically, three government institutions that take economic policy decisions in Peru:

• The Ministry of Economy and Finance,

• The Central Bank (BCR); and

• The Congress.

34

The Ministry of Economy and The Ministry of Economy and FinanceFinance

The Ministry of Economy and Finance

It is the institution that leads economic policy.

The function of formulating economic policies formally lies with the Viceminister of Economy who makes economic policy proposals, with the support of four of his Offices (Economic and Social Affairs; International Economy, Competition and Private Investment; Public Revenue Policies; and Multiannual Planning of the Public Sector).

In practice, the formulation of policies, is coordinated through an informal committee, comprising the Minister of Economy, the Vice minister of Treasury, the Head of the Advisors Staff and the Economic Studies Manager of the Central Bank.

The Viceministry of Economy works with approximately 40 employees, distributed in the abovementioned departments.

35

The Central BankThe Central Bank

The Central Bank

Notwithstanding its responsibility in monetary issues the Central Bank also actively participates in the design of other economic policies (fiscal policy) through its participation in the aforementioned committees of the Ministry of Economy.

In these policy decisions, the Central Bank usually has considerable influence, as a consequence of its relatively high institutional development, and the tradition of having a high technical level “army” of analysts, statistics, economic models, etc;

something that the Ministry of Economy (and the public sector in general) has not adequately developed.

36

The Central BankThe Central Bank

The Economic Studies Department

The Economic Studies Department is responsible for the implementation of monetary policy.

It has 120 employees, 80 of them economists.

The Department has an administrative structure influenced by the financial programming schemes of the International Monetary Fund.

It is organized in five departments: global analysis sector, external sector, monetary sector, fiscal sector, and real estate sector.

37

The Central Bank Economic The Central Bank Economic Research Research

38

The Congress: The Lack of an The Congress: The Lack of an Economic Technopol. Economic Technopol.

The Congress

The Congress has 120 congressmen.

They all take part in various Committees where proposals are discussed. Once these proposals have been approved at Committee level they go on to the Congress General Assembly (Pleno del Congreso) for final approval.

The Congress has 24 ordinary committees and congressmen can participate in as many as 3 different committees.

The technical capacity of the Congress is extremely low as its staff do not have the sufficient preparation.

In 2002, the Congress created the Parliamentary Investigation Center (CIP), with the aim to bring technical support, but in actual fact, its support has been incipient, because the congressmen receive support from private advisors that are paid through the national budget.

39

The Congress: The Lack of an The Congress: The Lack of an Economic Technopol. Economic Technopol.

The Congress

Each congressman hires, on average, two private advisors, who specialize in different fields (usually, lawyers, economists and financial experts) who provide expert advice on legislative duties.

However the employment of these advisors does not necessarily assure quality in the formulation of economic policies.

Congress has 2.072 internal employees. Of these, 565 are professionals who carry out executive responsibilities and participate in the various committees.

The technical capacity of the Congress is, however, very weak: 4 analysts in total for Congress. They are appointed by the President of the Congress and, in practice, do not give a professional service to congressists.

40

Think-Tanks in PeruThink-Tanks in Peru

Think-Tanks

The three most important in Peru are: Apoyo Macroconsult; Grade and IPE.

These institutions influence economic policy agendas through periodical publications, research, press appearance, or by giving direct or indirect advice to the government.

Name Web Total employees Total economists/employees Total economists/PhD LevelIPE www.ipe.gob.pe 25 10 2CIUP www.ciup.gob.pe 70 55 4GRADE www.grade.org.pe 47 36 3APOYO www.apoyo.com.pe 65 57 0

Name Web Annual budget (US$) Participation of Private Sector in BudgetIPE www.ipe.gob.pe US$ 300 thousands 100%CIUP www.ciup.gob.pe na naGRADE www.grade.org.pe US$800 thousands 100%APOYO www.apoyo.com.pe US$ 5 millions 100%

41

Think-Tanks in Peru: An Think-Tanks in Peru: An International ComparisonInternational Comparison

Europe Annual Income Endowment

Real Instituto Elcano 3 M Euros No

CEPR 2.6 M GBP No

USA

Rand Corporation 224 M USD 357 M USD

IIE 7 M USD 150 M USD

CEIP (Carnegie) 19 M USD 174 M USD

The Brookings Institution 33 M USD 217 M USD

Heritage Foundation 42 M USD 102 M USD

The Cato Institute 13 M USD No

42


Apoyo Consulting

Apoyo Consulting is one of the firms belonging to The Apoyo Group. Created in 1977. It has 150 firms in its portfolio, including the most important Peruvian and international firms in Peru.

With a working team of more than 250, APOYO has had an average income growth of 25 per cent per year since 1977. Its billing reaches US$200 per every million dollars of Peruvian GDP.

It affects economic policy through the advice that it gives to its clients, and the confidential documents that Apoyo prepares exclusively for them.

http://www.apoyo.com/english/eco_studies/

43


Instituto Peruano de Economía (IPE)

The Peruvian Institute of Economics (IPE), was created in 1995 as an initiative of 31 Peruvian firms.

It was originally supported by the World Bank, receiving contributions from the World Bank Institutional Development Fund.

IPE is a private civil association and its aim is to promote the sustainable development of market economy in Peru, through research, analysis and other activities.

Since 1999, IPE gets its funding from member contributions and from its investigations.

During Fujimori´s government, most of its members had a direct participation, exercising different positions in the Ministry of Economy and Finance.

http://www.ipeportal.org/

44


Grade

The Analysis Group for Development (GRADE); non governmental organization. Carries out investigations on public policy.

Set up in 1980. The results of its investigations are made known through different resources, such as publications, a web page and the press, amongst others.

GRADE is directed by an Associated Assembly and most of the principal researchers take an active part.

This Assembly determines the topics and directions for research as well as defining the development strategies that guarantee GRADE´s independence.

GRADE participates in policy debate at a very high and technical level, and it does not usually participate in public debate.

http://www.grade.org.pe/

45


Academics:

There are two universities with research centers contributing to economic publications.

One is the Research Center at “Universidad del Pacifico” (CIUP), and the other is the Center of Sociology, Economics, Politics and Anthropology, belonging to the “Universidad Catolica”(CISEPA).

However, their contribution to the economic policy debate is marginal.

“Centro Universitario Universidad del Pacífico” (CIUP): It was created in 1972 and is financed with public university funds and specific financial programs from international and multilateral organizations.

http://www.up.edu.pe/ciup/

46

International Organizations Based International Organizations Based in Peruin Peru

International Organizations

In Peru there are two main international organizations: IDB and CAF.

IDB mainly develops operational labor such as checking the advance of financial programs to the government.

CAF, although it has an economist, makes a marginal contribution to domestic economic policy debate.

However, the headquarters of IDB and CAF, as well as IMF, could accomplish an important role by conditioning domestic economic policies. Acting as cognitive assets for reformers.

47

Banks Based in PeruBanks Based in Peru

Banks

Three important banking institutions with economic departments participating in the economic policy debate through their publications or press commentaries.

These institutions are: BBVA Banco Continental, Banco de Credito and Banco Wiese Sudameris.

These institutions contribute in a similar way to economic debate, basically through publications, articles, press appearances, seminars, conferences and interviews.

Bank Web Total analysts Total Phd level GovernmentBanco de Crédito www.bcp.com.pe 9 0 Yes

Banco Wiese Sudameris www.bws.com.pe 7 0 YesBBVA www.bbvabancocontinental.com 3 0 Yes

48

11 A Mapping ofA Mapping of Latin American Cognitive InstitutionsLatin American Cognitive Institutions



49

The Emergence of The Political The Emergence of The Political Economy of the Possible: ChileEconomy of the Possible: Chile

The key is probably in the cognitive policy making style that has been developed in Chile throughout the past decades, precisely in the equilibrium reach between technical and political rationalities.

If one gets recent decades into perspective, what really stands out are the profound transformations which give rise to a “bias for hope” as Albert Hirschman would say, rather than “fracasomanía” (failure syndrome).

What most draws one’s attention is that, for the last quarter of a century, Chile has been searching for ways to grow through pragmatic economic policies.

It has been inventing and creating institutional masts, looking for monetary and fiscal anchors, and more importantly it has been doing all of this outside the predetermined paths of any rigid ideological model.

50

Not surprisingly Chile is the Not surprisingly Chile is the country in with the highest country in with the highest

stability policy scorestability policy score

Source: IADB Politics of Policies Report, 2006 Source: IADB Politics of Policies Report, 2006

Policy Stability Index (2005)

0 0.5 1 1.5 2 2.5 3 3.5 4

Venezuela

Argentina

Peru

Mexico

Colombia

Brazil

Chile

Stability Index (1-4 scale)

AverageAverage

51

The quality of policy making: The quality of policy making: A pending issue for Latin AmericanA pending issue for Latin American

Source: IADB Politics of Policies Report, 2006 and World Economic Forum, 2005Source: IADB Politics of Policies Report, 2006 and World Economic Forum, 2005

0 0.5 1 1.5 2 2.5 3 3.5 4

Stability

Enforcement andimplementation

Public regardedness

Efficiency

Policy index

Scale 1-4

OECD

East Asia

LatinAmerica

Key features of Public Policies: Inter-regional comparison

nuffield college, oxford university oxford 4 may 2006

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