Fernando Filgueira

Political Environments, Sector-Specific Configurations, and Strategic Devices: Understanding Institutional Reform in Uruguay

This paper argues for a multi-level explanatory model for understanding institutional reform. The expanding but still modest accumulation in the field tends to clump together different levels of efficient causes. Statements like “reform will be more likely in countries that have swiftly proceeded with macroeconomic reform and stabilization and have the legitimacy and power to push further reform” refer to general political conditions. The notion that reforms will be harder where costs are concentrated and benefits diffuse for beneficiaries, as in the case of Social security reform, relate to sector-specific aspects. Thirdly, the idea that bundling can constitute a viable political strategy for overcoming vetoes refer to concrete strategic devices. Finally, a strong policy entrepreneur behind a reformist impulse is nothing other than a contingency. General enabling conditions, sector-specific configurations, the use of strategic devices and contingent factors all contribute to the success or failure of reformist attempts. This analytic divide is indispensable in imposing some order on the rival explanations attempting to grasp the political logic of institutional reform. Using the case of Uruguay, we seek to show how a changed political environment combined with sector- specific configurations and political strategies of reformist leaders allowed for successful institutional reform. More specifically, we claim that the dynamics of electoral politics and political learning are the clues that explain how the dynamics of cooperation and conflict in the political system in Uruguay moved from free rider behavior, to opposition restraint and finally to cooperative reformism thus enabling institutional reform. Furthermore, for our three cases of reform, technical accumulation and precise diagnosis, the power of administrative and beneficiaries corporations, the perception of the population regarding the quality of services and benefits, and the effects of the institutional diseases on the country as a whole appear as critical factors accounting for the intensity of the reformist impulse. Finally we shall show how changes in the broad political environment were capitalized in social security and education and not in health not only due to the use of strategies that linked sector reform to the broader political process in the first two cases and not in health. Strategies that successfully divided or neutralized losers and identified clear winners were also behind successful reformism. Regarding the launching and sustainability of reforms, both the creation of new stake holders and the adequate use and knowledge of the institutional structures and its potential veto points proved critical.

Decentralization and Fiscal Discipline in Subnational Governments:The Bailout Problem in Uruguay

This paper analyzes the reasons behind Central Government (CG) bailouts of Subnational Governments (SNGs) in the case of Uruguay. We argued that Uruguay represents a good example of the risks of fiscal decentralization, in the context of adjustment policies, and when SNGs` responsibilities and resources have not been carefully defined. We show that, in unitary countries where SNGs lack the opportunities to misbehave that they have in federal countries (e. g. , public debt issuance, international borrowing), SNG officials find ways to finance deficits through non-compliance with politically contestable obligations. In particular, SNGs in Uruguay finance their deficits by accumulating debts with other government agencies and obtaining discretionary transfers from the CG. Through statistical analyses we show that debts and deficits are mainly related to vertical fiscal imbalances and economic conditions in the SN jurisdictions. Yet, the analysis of recent bailout episodes suggests that institutions and political factors play a role (i. e. , they are important ex-post factors). This implies that bailouts have been more than simple compensations for structural imbalances, thus creating opportunities for strategic behavior on the part of SNG authorities (partly confirmed by the disparate fiscal performance of Montevideo vis-a-vis the rest of the country).

Social Protection Systems in Latin America and the Caribbean: A Comparative View

This report pursues three complementary aims. Firstly, it presents the first generation of country case studies on social protection systems in Latin America and the Caribbean, published in the ECLAC Project Documents collection; and it provides justifications for developing such systems. Secondly, it sets out a classificatory approach to social protection system in the region, which aims to provide a comparative basis for interpreting national cases. Lastly, using standardized data and case studies, it identifies major trends in the changes the region is undergoing in terms of social protection.

Critical Choices at a Critical Age: Youth Emancipation Paths and School Attainment in Latin America

This paper discusses how young people become adults in Latin America and how that process affects educational attainment. An examination of four countries at three levels of development shows that individuals` educational attainment is closely linked to the decisions that young people make regarding adult roles, here referred to as emancipation patterns. The paper documents differences among countries in the age at which young people start working, marry and leave the educational system. Factor and hazard analyses further show how these dimensions vary according to gender and income within countries and how they affect the chances that young people will remain in the educational system. Findings indicate that countries` development levels strongly affect the modal ages at which people become adults, hastening the process in less-developed countries and delaying it at higher stages of development. Second, within countries males and females present distinct risk factors regarding educational attainment; public roles (work) increase the risk of drop-out for men and private roles (marriage) increase this risk for women. In addition, and as expected, lower income groups are more at risk and present earlier adoption of adult values than higher income groups. The interrelation of income and gender operate differently in emancipation patterns and in how public and private adult roles affect the chances of remaining in the educational system. Consequently, in order to increase educational attainment the sequence and timing of adult role adoption have to be factored into policies.

Working and reproductive years

The longest stage of the life cycle comes between youth and old age. This stage combines productive development (labour market participation) and reproductive development (childbearing and the unpaid work of raising children and caring for older adults).

Adolescence and youth

Adolescence and youth are increasingly recognized as key stages in life. The accumulation of tools and assets needed for welfare during adulthood starts as early as early childhood and childhood but comes to a crossroads when choosing among paths for the transition to adulthood (ECLAC, 2011b). The physical, social and psychological changes concentrated in a few years during this stage set paths that subsequently condition behaviour in adulthood as well as the individualx92s position in the social structure. In other words, how adult roles are taken on x97and sequencedx97 in the lives of teenagers and young people largely determines access to opportunities and well-being in later years (Coleman, 1974).

Rights and the life cycle: reordering social protection tools

A number of Latin American countries have made major changes to their social protection systems and to social policy generally in the early years of the twenty-first century, with differences attributable to their history and stage of development.