Case-study evidence for Latin American, for example, reveals clearly the role of domestic politics. Marcus Kurtz's study of socail policies in Chile and Mexico demonstrates that, despite the espousal of neoliberal reforms and the presence of external constraints in the 1980s and 1990s, there were important differences in their social welfare regimes. While the global economy and the dominant neo-liberal ideology narrowed the policy space for the Chilean and Mexican govenment , there remained substantial room for variation. This variation flowed form political alliances, the degree of organisation of the poor in society and the competitiveness of the political party system. Along slightly different lines, Sarah Brooks reports that pressures form international financial markets have an effect on social security reforms in a wide sample of countries. But, at the same time, the type of political regime, as well as the distribution of political power and the structure of previous social security arrangements, also influences the reform process. Tax policy in Latin American similarly reveals this mixed pattern. Higher levels of short-term capital flows and foreign direct investment (FDI) place downward pressure on capital's share of taxation. Dependence on international financial institution also predicts that labour will bear a greater share of the tax burden. But left goverment and labour power are important and significant determinant of tax policy. For developing nations, then, a more mixed picture has emerged: as in the advanced democracies, political institutions and domestic interests continue to play a role in the determination of social and economic policies. But, in some cases, the role of domestic factors is rivalled by the pressures emanating from economic globalisation.
Case-study evidence for Latin American, for example, reveals clearly the role of domestic politics. Marcus Kurtz's study of socail policies in Chile and Mexico demonstrates that, despite the espousal of neoliberal reforms and the presence of external constraints in the 1980s and 1990s, there were important differences in their social welfare regimes. While the global economy and the dominant neo-liberal ideology narrowed the policy space for the Chilean and Mexican govenment , there remained substantial room for variation. This variation flowed form political alliances, the degree of organisation of the poor in society and the competitiveness of the political party system. Along slightly different lines, Sarah Brooks reports that pressures form international financial markets have an effect on social security reforms in a wide sample of countries. But, at the same time, the type of political regime, as well as the distribution of political power and the structure of previous social security arrangements, also influences the reform process. Tax policy in Latin American similarly reveals this mixed pattern. Higher levels of short-term capital flows and foreign direct investment (FDI) place downward pressure on capital's share of taxation. Dependence on international financial institution also predicts that labour will bear a greater share of the tax burden. But left goverment and labour power are important and significant determinant of tax policy. For developing nations, then, a more mixed picture has emerged: as in the advanced democracies, political institutions and domestic interests continue to play a role in the determination of social and economic policies. But, in some cases, the role of domestic factors is rivalled by the pressures emanating from economic globalisation.
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