Why are reforms so politically difficult?

Gino Gancia, Alessandra Bonfiglioli, 14 June 2011

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One of the fundamental questions in political economy is why governments often fail to adopt reforms that are believed to be needed and welfare-improving. The common explanation was well encapsulated by Jean-Claude Juncker, Prime Minister of Luxembourg and President of the Eurogroup: "We all know what to do, but we don't know how to get re-elected once we have done it".

Topics: Politics and economics
Tags: economic reform, Eurozone crisis

Should market liberalisation precede democracy? The citizens’ point of view

Pauline Grosjean, Claudia Senik, 23 August 2007

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One of the unexpected side-effects of China’s spectacular emergence is the spread of a new conventional wisdom about the sequencing of political and economic reforms in developing countries: economic reform should come first, and democracy second. The idea is that democratisation in the early stages of a country’s economic development can slow down further development.

Topics: Politics and economics
Tags: democratisation, economic reform, transition countries

Has Europe’s speed limit been raised?

Barry Eichengreen, 1 May 2007

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Jean-Claude Trichet and his colleagues at the European Central Bank have clearly learned the wisdom of Paul Volcker: without first establishing anti-inflationary credibility, all is lost.

Topics: Monetary policy
Tags: economic reform, growth

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