Financial Globalization and Democracy in Emerging Markets: (International Political Economy Series)

This text highlights the financial crises in Mexico and South America (1995) and in East Asia (1997). It explores the risks from portfolio capital flows to democracy in countries like Mexico, Brazil, Russia, India, Vietnam, Thailand and Indonesia. The contributors lament the economic and political strains on governments forced by global markets to reduce expenditures and employment drastically in order to defend their currencies. Possible silver linings of financial globalization include the discrediting of incumbent authoritarians and external reinforcement for sound macroeconomic policies.

Table of Contents:
List of Tables List of Figures Notes on the Contributors Foreword; T.J.Biersteken List of Abbreviations Introduction and Overview; L.E.Armijo PART I: DEMOCRACY AND THE EVOLUTION OF GLOBAL CAPITAL MARKETS Mixed Blessing: Expectations about Foreign Capital Flows and Democracy in Emerging Markets; L.E.Armijo Capital Flows to Developing Economies throughout the Twentieth Century; S.Manzocchi Emerging Market Makers: The Power of Institutional Investors; M.A.Haley The Transnational Agenda for Financial Regulation in Developing Countries; T.Porter PART II: COUNTRY CASES Mexico: The Trajectory to the 1994 Devaluation; W.C.Gruben Mexico: Foreign Investment and Democracy; C.E.Mayer-Serra Brazil: Short Foreign Money, Long Domestic Political Cycles; P.R.Kingstone Russia: The IMF, Private Finance and External Constraints on a Fragile Polity; R.Stone India: Financial Globalization, Liberal Norms and the Ambiguities of Democracy; J.Echeverri-Gent Indonesia: On the Mostly Negative Role of Transnational Capital in Democratization; J.A. Winters Vietnam and Foreign Direct Investment: Speeding Economic Transition or Prolonging the Twilight Zone?; J.Haughton Thailand: What Goes Up...; D.Unger PART III: CONCLUSIONS Tequila versus the Dragon: Comparing the Crises in Mexico and Thailand; W.Molano Mixed Blessing: Preliminary Conclusions; L.E.Armijo Index

About the Author :
LESLIE ELLIOTT ARMIJO is Visiting Scholar, Reed College, Oregon, USA. She has published numerous articles on the interaction of democratization and economic liberalization in developing and transitional countries, the game of inflation in Brazil, and the politics of privatization and market-oriented economic reforms in South America, Mexico, and India.

Review :
'A must read for scholars, officials, politicians, journalists, and students interested in exploring the murky waters of globalization.' - Thomas M. Callaghy, University of Pennsylvania 'Armijo's [collection] is a timely and excellent contribution to the on-going academic debate over the pros and cons of market reforms vs. democratic governance in major developing countries.' - Luigi Manzetti, Southern Methodist University