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Institutional Design in New Democracies

Carlos Waisman and Arend Lijphart

Countries throughout Latin America and Central and Eastern Europe are moving from semi-closed to open economies and from authoritarian to democratic political systems. Despite important differences between the regions, these transitions involve similar tasks: the establishment of governmental institutions and electoral systems conducive to legitimation of the new and fragile democracies and expansion of the institutional infrastructure of a market economy.This volume looks at both regions, focusing on the relationship between the tasks of institutional design and the outcomes of the process of economic and political liberalization. In particular, the contributors emphasize the design of institutions to serve a market economy, the design of electoral laws, and the design of executive-legislative relations. Each chapter discusses the legacy of the pre-existing authoritarian regime; the range of preferences among various strategic actors (the government, state bureaucracies, opposition parties, and interest groups) with regard to the pace and mix of reforms; and the consequences of final choices for the institutionalization of effective economies and the process of democratization.

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