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The International Political Economy of Transformation in by Eul-Soo Pang

By Eul-Soo Pang

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49 The elections of Carlos Salinas de Gortari and Ernesto Zedillo Ponce de León, neither of whom were the first pick of the dominant party’s dinosaurs of Mexico in 1987 and 1994, added another piece of undisputed evidence that the traditional parties in a successful transitional political economy were no longer firmly in command. 51 These changes brought new players on the scene. The globalization of crossborder financial markets as the result of the liberalization and deregulation of banking practices and investment rules throughout the Third World altered the way to do business.

In Brazil, Fernando Collor de Mello, a governor of an obscure Northeastern state, was elected president in the 1990 election, defeating the candidates of the traditional parties. He introduced a host of draconian reforms and was able to plant the seed of the state reform that is in place today. 46 The breakdown of the old political practices and values played a momentous role in reshaping Latin America. Politicians of traditional parties did not fare well in elections, or were replaced by a new crop of unconventional politicians willing to forge new electoral bases at the grassroots level, often reaching out beyond a party’s ideological confines.

For this reason, the style of the Brazilian military governance was more open and even relaxed thus allowing the continued operation of the legislative system. Argentina and Chile did not have to accommodate the international community by making such a concession, for their economies were more insulated from external pressures. Fernando Henrique Cardoso considered the B-A regime an outgrowth of modernization. 36 How did this statist bureaucratic-authoritarian regime come about? And how Latin America in the Age of Globalization 13 was its political economy structured?

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