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Since the 1970s there has been a widespread movement from authoritarian to democratic rule among developing countries, often occuring against a backdrop of severe economic crises and the adoption of market-oriented reforms. The coincidence of these events raises long-standing questions about the relationship between economic and political change. This book analyzes this relationship, addressing a variety of questions: What role have economic crises played in the current wave of political liberalization and democratization? Can new democracies manage the daunting political challenges posed by economic reform? Under what economic and industrial conditions is democracy most likely to be consolidated? Drawing on contemporary political economy and th experiences of 12 Latin American countries, the authors develop a new approach to understanding democractic transitions. The text first analyzes the relationship between economic crisis and authoritarian withdrawal and then examines how the economic and institutional legacies of authoritarian rule affect the capacity of new deomcratic governments to initiate and sustain economic policy reform. Finally, the book analyzes the consolidation of