The political economy of inequality and growth: Essays on sovereign debt, democracy and saving

This dissertation addresses three issues in the political economy of growth literature. The first study empirically tests the hypothesis that income inequality influences the size of a country's sovereign debt for a sample of developing countries for the period 1970–1990. The argument examined is that governments tend to yield to popular pressures to engage in redistributive policies, partially financed by foreign borrowing. Facing increased risk of default, international creditors limit the credit they extend, with the result that borrowing countries invest less and grow at a slower pace. The findings do not seem to support the negative relationship between inequality and sovereign debt, as there is evidence of increases in multilateral, countercyclical flows until the mid 1980s in Latin America. The hypothesis would hold for the period 1983–1990. Debt flows and levels seem to be positively correlated with growth as expected. ^ The second study empirically investigates the hypothesis that pronounced levels of inequality lead to unconsolidated democracies. We test the existence of a nonmonotonic relationship between inequality and democracy for a sample of Latin American countries for the period 1970–2000, where democracy appears to consolidate at some intermediate level of inequality. We find that the nonmonotonic relationship holds using instrumental variables methods. Bolivia seems to be a case of unconsolidated democracy. The positive relationship between per capita income and democracy disappears once fixed effects are introduced. ^ The third study explores the nonlinear relationship between per capita income and private saving levels in Latin America. Several estimation methods are presented; however, only the estimation of a dynamic specification through a state-of-the-art general method of moments estimator yields consistent estimates with increased efficiency. Results support the hypothesis that income positively affects private saving, while system GMM reveals nonlinear effects at income levels that exceed the ones included in this sample for the period 1960–1994. We also find that growth, government dissaving, and tightening of credit constraints have a highly significant and positive effect on private saving. ^

Indigenous Movements, Democracy, and U.S. Interests in Latin America

Indigenous movements have become increasingly powerful in the last couple of decades and they are now important political actors in some South American countries, such as Bolivia, Ecuador, and, to a lesser extent, Peru and Chile. The rise of indigenous movements has provoked concern among U.S. policymakers and other observers who have feared that these movements will exacerbate ethnic polarization, undermine democracy, and jeopardize U.S. interests in the region. This paper argues that concern over the rise of indigenous movements is greatly exaggerated. It maintains that the rise of indigenous movements has not brought about a market increase in ethnic polarization in the region because most indigenous organizations have been ethnically inclusive and have eschewed violence. Although the indigenous movements have at times demonstrated a lack of regard for democratic institutions and procedures, they have also helped deepen democracy in the Andean region by promoting greater political inclusion and participation and by aggressively combating ethnic discrimination and inequality. Finally, this study suggests that the indigenous population has opposed some U.S. –sponsored initiatives, such as coca eradication and market reform, for legitimate reasons. Such policies have had some negative environmental, cultural, and economic consequences for indigenous people, which U.S. policymakers should try to address. The conclusion provides some specific policy recommendations on how to go about this.

Disciplining democracy: United Nations peacekeeping, international security and democratization in the post -Cold War era

After the end of the Cold War, democratization and good governance became the organizing concepts for activities of the United Nations, regional organizations and states in the fields of peace, development and security. How can this increasing interest in democratization and its connection with international security be explained? This dissertation applies the theoretical tools developed by Michel Foucault in his discussions of disciplinarity and government to the analysis of the United Nations debate on democracy in the 1990s, and of two United Nations pro-democracy peacekeeping operations and their aftermath: the United Nations interventions in Haiti and Croatia. It probes “how” certain techniques of power came into being and describes their effects, using as data the texts that elaborate the United Nations understanding of democracy and the texts that constitute peacekeeping. ^ In the face of the proliferation of unpredictable threats in the last decades of the twentieth century a new form of international power emerged. Order in the international arena increasingly was maintained through activities aimed at reducing risk and increasing predictability through the normalization of “rogue” states. The dissertation shows that in the context of these activities, which included but were not limited to UN peacekeeping, normality was identified with democracy, non-democratic regimes with international threats, and democratization with international security. “Good governance” doctrines translated the political debate on democracy into the technical language of functioning state institutions. International organizations adopted good governance as the framework that made democratization a universal task within the reach of their expertise. In Haiti, the United Nations engaged in efforts to transform punishment institutions (the judiciary, police and the prison) into disciplined and disciplinary machines. In Croatia, agreements signed in the context of peacekeeping established in detail the rules of functioning of administrations and the monitoring mechanisms for their implementation. However, in Haiti, the institutions promoted were not sustainable. And in Croatia reforms are stalled by lack of consensus. ^ This dissertation puts efforts to bring about democracy through peacekeeping in the context of a specific modality of power and suggests caution in engaging in universal normalizing endeavors. ^

Turkey and neo-Ottomanism: Domestic sources, dynamics and foreign policy

This study examined the relationship between the Turkish Islamic movements and the present government of the Justice and Development Party ( Adalet ve Kalkinma Partisi, AK Party). Since the AK Party came to power in 2002 it implemented unparalleled political reforms and pursued to improve Turkey’s relations with the EU. Opponents argued that because of the dominance of the secular military in Turkish politics, the AK Party is forced to secretly advance its Islamic agenda using the language and symbolism of democracy and human rights. This study argued that the ideas of the AK Party show similarities with the “Ottomanist” thought of the late Ottoman era. With special reference to the preservation of the Ottoman State, Ottomanism in an eclectic way was able to incorporate Islamic principles like freedom, justice and consultation into the political arena which was increasingly dominated by the secular European concepts. Literature on Islam and politics in Turkey, however, disregards the Ottoman roots of freedom and pluralism and tends to reduce the relationship between religion and state into exclusively confrontational struggles. This conceptualization of the political process relies on particular non-Turkish Muslim experiences which do not necessarily represent Islam’s venture in Turkey. Contrary to the prevailing scholarship, Islamic movements in Turkey, namely, Naqshbandi, National View and Nur, which are discussed in detail in this study, are not monolithic. They all uphold the same creedal tenets of Islam but they have sharp differences in terms of how they conceptualize the role of religious agency in politics. I argue that this diversity is a result of three distinct methodologies of Islamic religious life which are the Tariqah (Tarikat ), Shariah (Şeriat), and Haqiqah ( Hakikat). The differences between these three approaches represent a typological hierarchy in the formation of the Muslim/believer as an agent of Islamic identity. Through these different if not conflicting modes, the AK Party reconnected itself with Turkey’s Ottoman heritage in a post-Ottoman, secular setting and was able to develop an eclectic political identity of Neo-Ottomanism that is evident in the flexibility if not inconsistency of its domestic and foreign policy preferences.

Venezuela and Chile: Two Opposite Paths of Democratic Consolidation and Economic Development.

In the past 20 years, Chile and Venezuela have followed divergent paths of democratic and economic development. When the Cold War ended, Venezuela was one of the few Latin American countries where democracy had survived the authoritarian wave of the 1960 and 1970s. Heralded in the late 1980s as the most stable democracy and one of the most developed and globalized economies in the region, Venezuela has since experienced deterioration of democratic institutions, political polarization, economic stagnation, and instability. In contrast, Chile has experienced a democratic renaissance since 1990. Rapid economic growth, an increasingly efficient public sector, significant reductions in poverty, and improvements in social programs have all made Chile a regional leader in democratic consolidation and sustainable development. Chile emerges as a success story and Venezuela as a country lagging behind in terms of making progress in economic development and poverty reduction. While Chile has developed a democratic system based on institutions, Venezuela has seen its democracy evolve towards increasing concentration of power on the hands of President Hugo Chávez.

Perceptions of students, teachers, and parents of the student disciplinary code in Ying -Ko Vocational High School, Ying-Ko, Taiwan

Ying-Ko Vocational High School prepares students to become trained craftspeople to support the local industry. At the School it is understood that part of the mission is to build good citizens who will work and live in the emerging democratic society in modern Taiwan. The purpose of this study was to determine the perceptions of the students, parents, and teachers regarding their understanding and appreciation of the code of student conduct currently in use at the school. A three-stage sample clustering was used to obtain the samples of students (N = 2,216), parents (N = 100), and teachers (N = 115) who were surveyed using three distinct but comparable questionnaires. Data were analyzed using t test and ANOVA. ^ After reviewing the results of the analysis of the questionnaire no significant differences were noted which set any one group apart from the others. Each group demonstrated acceptance of the code as written and implemented. It was concluded that Chinese culture and tradition might be stronger than initially thought. This is an important finding as schools in Taiwan move toward teaching democracy and independence to their students. ^

Consolidating Security and Development in Colombia: Lessons for Peru and Panama

Colombia's increasingly effective efforts to mitigate the power of the FARC and other illegitimately armed groups in the country can offer important lessons for the Peruvian government as it strives to prevent a resurgence of Sendero Luminoso and other illegal non-state actors. Both countries share certain particular challenges: deep economic, social, and in the case of Peru ethnic divisions, the presence of and/or the effects of violent insurgencies, a large-scale narcotics production and trafficking, and a history of weak state presence in large tracts of isolated and scarcely-populated areas. Important differences exist, however in the nature of the insurgencies in the two countries, the government response to them and the nature of government and society that affects the applicability of Colombia's experience to Peru. The security threat to Panama from drug trafficking and Colombian insurgents --often a linked phenomenon-- are in many ways different from the drug/insurgent factor in Colombia itself and in Peru, although there are similar variables. Unlike the Colombian and Peruvian cases, the security threat in Panama is not directed against the state, there are no domestic elements seeking to overthrow the government -- as the case of the FARC and Sendero Luminoso, security problems have not spilled over from rural to urban areas in Panama, and there is no ideological component at play in driving the threat. Nor is drug cultivation a major factor in Panama as it is in Colombia and Peru. The key variable that is shared among all three cases is the threat of extra-state actors controlling remote rural areas or small towns where state presence is minimal. The central lesson learned from Colombia is the need to define and then address the key problem of a "sovereignity gap," lack of legitimate state presence in many part of the country. Colombia's success in broadening the presence of the national government between 2002 and the presence is owed to many factors, including an effective national strategy, improvements in the armed forces and police, political will on the part of government for a sustained effort, citizen buy-in to the national strategy, including the resolve of the elite to pay more in taxes to bring change about, and the adoption of a sequenced approach to consolidated development in conflicted areas. Control of territory and effective state presence improved citizen security, strengthened confidence in democracy and the legitimate state, promoted economic development, and helped mitigate the effect of illegal drugs. Peru can benefit from the Colombian experience especially in terms of the importance of legitimate state authority, improved institutions, gaining the support of local citizens, and furthering development to wean communities away from drugs. State coordinated "integration" efforts in Peru as practiced in Colombia have the potential for success if properly calibrated to Peruvian reality, coordinated within government, and provided with sufficient resources. Peru's traditionally weak political institutions and lack of public confidence in the state in many areas of the country must be overcome if this effort is to be successful.

Turkey and Neo-Ottomanism: Domestic Sources, Dynamics and Foreign Policy

This study examined the relationship between the Turkish Islamic movements and the present government of the Justice and Development Party (Adalet ve Kalkinma Partisi, AK Party). Since the AK Party came to power in 2002 it implemented unparalleled political reforms and pursued to improve Turkey’s relations with the EU. Opponents argued that because of the dominance of the secular military in Turkish politics, the AK Party is forced to secretly advance its Islamic agenda using the language and symbolism of democracy and human rights. This study argued that the ideas of the AK Party show similarities with the “Ottomanist” thought of the late Ottoman era. With special reference to the preservation of the Ottoman State, Ottomanism in an eclectic way was able to incorporate Islamic principles like freedom, justice and consultation into the political arena which was increasingly dominated by the secular European concepts. Literature on Islam and politics in Turkey, however, disregards the Ottoman roots of freedom and pluralism and tends to reduce the relationship between religion and state into exclusively confrontational struggles. This conceptualization of the political process relies on particular non-Turkish Muslim experiences which do not necessarily represent Islam’s venture in Turkey. Contrary to the prevailing scholarship, Islamic movements in Turkey, namely, Naqshbandi, National View and Nur, which are discussed in detail in this study, are not monolithic. They all uphold the same creedal tenets of Islam but they have sharp differences in terms of how they conceptualize the role of religious agency in politics. I argue that this diversity is a result of three distinct methodologies of Islamic religious life which are the Tariqah (Tarikat), Shariah (Şeriat), and Haqiqah (Hakikat). The differences between these three approaches represent a typological hierarchy in the formation of the Muslim/believer as an agent of Islamic identity. Through these different if not conflicting modes, the AK Party reconnected itself with Turkey’s Ottoman heritage in a post-Ottoman, secular setting and was able to develop an eclectic political identity of Neo-Ottomanism that is evident in the flexibility if not inconsistency of its domestic and foreign policy preferences.

Czechs Look Back on 1989, a Revolution Betrayed: A Reflection on the Mythology of the Velvet Revolution

Twenty-five years ago today the Velvet Revolution kicked off in what was then Czechoslovakia to bring an end to the one-party government of the Communist Party. This exclusive translation of a feature from the Czech journal A2 Cultural Bi-Weekly explains that the events of 1989 were about more than just Václav Havel, a playwright and leader in the revolution who was elected president in 1990. A generation of unfulfilled promises later, Czechs are struggling to revive the spirit of not only democracy and humanism, but also socialism. This article originally appeared in Ricochet, November 17, 2014.

Broadcasting Modernity

This flyer promotes the event "Broadcasting Modernity: Cuban Commercial Television, 1950-1960" , a book presentation by author and television historian Yeidy Rivero, with comments by Jorge Duany. Rivero will speak on the Cuban television industry enabling different institutions to convey the nation's progress, democracy, and education, among other things. This event was co-presented by the Cuban Heritage Collection of the University of Miami Libraries and held on September 9, 2015 at FIU Modesto A. Maidique Campus DM 445.

The Bankruptcy of Liberalism and Social Democracy in the Neoliberal Age

The increasing similarity between the economic policies of center-left and center-right political parties has effectively diminished the legitimacy of governments in relationship to their citizenry in Western Europe and the U.S. Capitalist democracies during the period of managed capitalism gained legitimacy by the appearance of the separation of capitalist ownership rights in the marketplace from the political institutions that govern capitalism. During this period, Social Democratic parties in Western Europe, and to a lesser extent the Democratic Party in the U.S., paid some amount of attention to labor unions and mass constituents in formulating their policy agendas. The era of neoliberalism (late 1970s to the present) has broken any such appearances, with the dominant political parties, regardless of party label, moving rightward to embrace many of the same economic policy agendas.