nd foreign creditors during the 19th and 20th centuries. Jeffry Frieden is professor of government at Harvard University. He specializes in the politics of international monetary and financial relations. Frieden is the author of Banking on the World: The Politics of American International Finance (1987) Debt, Development, and Democracy: Modern Political Economy and Latin America, 1965-1985 (1991) and the coeditor of many books on related topics. His articles on the politics of international economic issues have appeared in a wide variety of scholarly and general-interest publications.Manuel Pastor is professor of Latin American and Latino studies at the University of California-Santa Cruz. An economics Ph.D. from the University of Massachusetts, Amherst, his research on Latin American issues has focused on such issues as distribution and stabilization, the political economy of trade reform, and the dynamics of transition in Cuba, and has been published in journals such as International Organization, World Development, Journal of Development Economics, Journal of Latin American Studies, and Latin American Research Review.Michael Tomz is assistant professor of Political Science at Stanford University. His research on politics and economics has appeared in the American Journal of Politics, The American Political Science Review, and the British Journal of Political Science. Tomz holds an M.Phil. in politics from Oxford, where he was a Marshall Scholar, and will receive his Ph.D. in political science from Harvard. His current work examines relations between sovereign governments and foreign creditors during the 19th and 20th centuries.

• Introduction -- Theoretical Perspectives -- Contending Perspectives on Market Failure and Government Failure -- The Origins of Structuralism -- Government Failures in Development -- What Washington Means by Policy Reform -- How Can States Foster Markets? -- Improving the State's Institutional Capability -- Explanations of Government Policy -- The Method of Analysis: Modern Political Economy -- Political Models of Macroeconomic Policy and Fiscal Reforms -- Understanding Economic Policy Reform -- What Do We Know About the Political Economy of Economic Policy Reform? -- Uses and Limitations of Rational Choice -- Applications -- The Political Economy of Growth since Independence -- Obstacles to Economic Growth in Nineteenth-Century Mexico -- Economic Retardation in Nineteenth-Century Brazil -- Factor Endowments, Institutions, and Differential Paths of Growth Among New World Economies: -- Latin American Manufacturing and the First World War -- Latin America in the 1930s -- Foreign Trade and Industrial Policy -- Import Substitution Industrialization -- Was Latin America Too Rich to Prosper? Structural and Political Obstacles to Export-Led Industrial Growth -- The Case for Trade Liberalization in Developing Countries -- The Origins of Mexico's Free Trade Policy -- The Political Economy of MERCOSUR -- Foreign Capital and the Macroeconomy -- Forms of External Capital and Economic Development in Latin America: 1820–1997 -- External Debt and Macroeconomic Performance in Latin America and East Asia -- Inflows of Capital to Developing Countries in the 1990s -- Foreign Direct Investment in Developing Countries: Progress and Problems -- The Political Economy of Foreign Direct Investment in Latin America -- Political Institutions and Economic Policy -- Challenging the Conventional Wisdom -- Democratic Institutions, Economic Policy, and Development -- A Game Theoretic Model of Reform in Latin American Democracies -- International Capital Flows and the Politics of Central Bank Independence -- Preemptive Strike: Central Bank Reform in Chile's Transition from Authoritarian Rule -- Social and Economic Issues -- Facing Up to Inequality in Latin America -- Income Distribution, Capital Accumulation, and Growth -- Public Finance from a Gender Perspective -- The Political Economy of Environmental Policy Reform in Latin America -- National Factor Markets and the Macroeconomic Context for Environmental Destruction in the Brazilian Amazon

nd foreign creditors during the 19th and 20th centuries. Jeffry Frieden is professor of government at Harvard University. He specializes in the politics of international monetary and financial relations. Frieden is the author of Banking on the World: The Politics of American International Finance (1987) Debt, Development, and Democracy: Modern Political Economy and Latin America, 1965-1985 (1991) and the coeditor of many books on related topics. His articles on the politics of international economic issues have appeared in a wide variety of scholarly and general-interest publications.Manuel Pastor is professor of Latin American and Latino studies at the University of California-Santa Cruz. An economics Ph.D. from the University of Massachusetts, Amherst, his research on Latin American issues has focused on such issues as distribution and stabilization, the political economy of trade reform, and the dynamics of transition in Cuba, and has been published in journals such as International Organization, World Development, Journal of Development Economics, Journal of Latin American Studies, and Latin American Research Review.Michael Tomz is assistant professor of Political Science at Stanford University. His research on politics and economics has appeared in the American Journal of Politics, The American Political Science Review, and the British Journal of Political Science. Tomz holds an M.Phil. in politics from Oxford, where he was a Marshall Scholar, and will receive his Ph.D. in political science from Harvard. His current work examines relations between sovereign governments and foreign creditors during the 19th and 20th centuries.

• Introduction -- Theoretical Perspectives -- Contending Perspectives on Market Failure and Government Failure -- The Origins of Structuralism -- Government Failures in Development -- What Washington Means by Policy Reform -- How Can States Foster Markets? -- Improving the State's Institutional Capability -- Explanations of Government Policy -- The Method of Analysis: Modern Political Economy -- Political Models of Macroeconomic Policy and Fiscal Reforms -- Understanding Economic Policy Reform -- What Do We Know About the Political Economy of Economic Policy Reform? -- Uses and Limitations of Rational Choice -- Applications -- The Political Economy of Growth since Independence -- Obstacles to Economic Growth in Nineteenth-Century Mexico -- Economic Retardation in Nineteenth-Century Brazil -- Factor Endowments, Institutions, and Differential Paths of Growth Among New World Economies: -- Latin American Manufacturing and the First World War -- Latin America in the 1930s -- Foreign Trade and Industrial Policy -- Import Substitution Industrialization -- Was Latin America Too Rich to Prosper? Structural and Political Obstacles to Export-Led Industrial Growth -- The Case for Trade Liberalization in Developing Countries -- The Origins of Mexico's Free Trade Policy -- The Political Economy of MERCOSUR -- Foreign Capital and the Macroeconomy -- Forms of External Capital and Economic Development in Latin America: 1820–1997 -- External Debt and Macroeconomic Performance in Latin America and East Asia -- Inflows of Capital to Developing Countries in the 1990s -- Foreign Direct Investment in Developing Countries: Progress and Problems -- The Political Economy of Foreign Direct Investment in Latin America -- Political Institutions and Economic Policy -- Challenging the Conventional Wisdom -- Democratic Institutions, Economic Policy, and Development -- A Game Theoretic Model of Reform in Latin American Democracies -- International Capital Flows and the Politics of Central Bank Independence -- Preemptive Strike: Central Bank Reform in Chile's Transition from Authoritarian Rule -- Social and Economic Issues -- Facing Up to Inequality in Latin America -- Income Distribution, Capital Accumulation, and Growth -- Public Finance from a Gender Perspective -- The Political Economy of Environmental Policy Reform in Latin America -- National Factor Markets and the Macroeconomic Context for Environmental Destruction in the Brazilian Amazon

nd foreign creditors during the 19th and 20th centuries. Jeffry Frieden is professor of government at Harvard University. He specializes in the politics of international monetary and financial relations. Frieden is the author of Banking on the World: The Politics of American International Finance (1987) Debt, Development, and Democracy: Modern Political Economy and Latin America, 1965-1985 (1991) and the coeditor of many books on related topics. His articles on the politics of international economic issues have appeared in a wide variety of scholarly and general-interest publications.Manuel Pastor is professor of Latin American and Latino studies at the University of California-Santa Cruz. An economics Ph.D. from the University of Massachusetts, Amherst, his research on Latin American issues has focused on such issues as distribution and stabilization, the political economy of trade reform, and the dynamics of transition in Cuba, and has been published in journals such as International Organization, World Development, Journal of Development Economics, Journal of Latin American Studies, and Latin American Research Review.Michael Tomz is assistant professor of Political Science at Stanford University. His research on politics and economics has appeared in the American Journal of Politics, The American Political Science Review, and the British Journal of Political Science. Tomz holds an M.Phil. in politics from Oxford, where he was a Marshall Scholar, and will receive his Ph.D. in political science from Harvard. His current work examines relations between sovereign governments and foreign creditors during the 19th and 20th centuries.

• Introduction -- Theoretical Perspectives -- Contending Perspectives on Market Failure and Government Failure -- The Origins of Structuralism -- Government Failures in Development -- What Washington Means by Policy Reform -- How Can States Foster Markets? -- Improving the State's Institutional Capability -- Explanations of Government Policy -- The Method of Analysis: Modern Political Economy -- Political Models of Macroeconomic Policy and Fiscal Reforms -- Understanding Economic Policy Reform -- What Do We Know About the Political Economy of Economic Policy Reform? -- Uses and Limitations of Rational Choice -- Applications -- The Political Economy of Growth since Independence -- Obstacles to Economic Growth in Nineteenth-Century Mexico -- Economic Retardation in Nineteenth-Century Brazil -- Factor Endowments, Institutions, and Differential Paths of Growth Among New World Economies: -- Latin American Manufacturing and the First World War -- Latin America in the 1930s -- Foreign Trade and Industrial Policy -- Import Substitution Industrialization -- Was Latin America Too Rich to Prosper? Structural and Political Obstacles to Export-Led Industrial Growth -- The Case for Trade Liberalization in Developing Countries -- The Origins of Mexico's Free Trade Policy -- The Political Economy of MERCOSUR -- Foreign Capital and the Macroeconomy -- Forms of External Capital and Economic Development in Latin America: 1820–1997 -- External Debt and Macroeconomic Performance in Latin America and East Asia -- Inflows of Capital to Developing Countries in the 1990s -- Foreign Direct Investment in Developing Countries: Progress and Problems -- The Political Economy of Foreign Direct Investment in Latin America -- Political Institutions and Economic Policy -- Challenging the Conventional Wisdom -- Democratic Institutions, Economic Policy, and Development -- A Game Theoretic Model of Reform in Latin American Democracies -- International Capital Flows and the Politics of Central Bank Independence -- Preemptive Strike: Central Bank Reform in Chile's Transition from Authoritarian Rule -- Social and Economic Issues -- Facing Up to Inequality in Latin America -- Income Distribution, Capital Accumulation, and Growth -- Public Finance from a Gender Perspective -- The Political Economy of Environmental Policy Reform in Latin America -- National Factor Markets and the Macroeconomic Context for Environmental Destruction in the Brazilian Amazon