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How does democracy affect social services? Theory argues competitive elections create incentives for politicians to provide broad-based public goods. Quantitative research finds democracy increases spending, but has little or no impact on education & health outcomes, after appropriate controls are introduced. Not only money, but also equitable & efficient allocation & institutional reforms are crucial for better results. However, case studies suggest that democratic politics generate weak or negative incentives for politicians to promote reforms. When they do so, it is rarely because of electoral pressures. Democracy's impact on social services is much more complex, contingent, & nuanced than recent theorizing suggests. Adapted from the source document.

The article addresses the recent influence that foreign models have had on social sector reforms in Latin America. Specifically analyzed are Chile's 1981 model of pension reform & the positive impact it has had on Latin American countries. While external models have gained success in social security reforms, no single model has dominated the recent debates surrounding health care & education policy. References. B. Boyce

Two sets of Third World nations can shed light on the politics of economic transformation in Eastern Europe. First, there are nations that pursued particularly vigorous reforms in the 1980s. They shared three key political features: popular consensus that basic reforms were imperative; antireform groups largely in disarray or suppressed; and substantial executive autonomy in economic management. The first of these features is clearly present in Eastern Europe; the second is questionable; and the third is present but precarious and probably temporary. Second and also relevant to Eastern Europe is the growing group of Third World nations seeking to consolidate political openings simultaneously with major economic reforms. Economic and political liberalization conflict with, yet are crucial for, each other. Proposals that they be sequenced are unrealistic. In Eastern Europe as in the Third World, a crucial dilemma is reconciling public demands for access to decision making with sufficient executive autonomy for coherent economic management.

Lessons from developing nations that adopted large-scale economic adjustments either with or without major political transformation.