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The Influence of Policy Ideas and Non-State Actors in Economic Policy Change - An Analysis of the Peruvian Case of Neoliberal Economic Reform

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Abstract:

Mainstream approaches in the political economy literature hold that power, interests, and international economic structures are the variables that constrain and determine state behavior. Studies of developing countries? economic policymaking have likewise emphasized the influence of structural constraints in determining these countries? specific policy choices, viewing developing countries largely as passive actors responding to structural international constraints. Consequently, when analysts working under well-established approaches in the field of political economy seek to explain the wave of neoliberal economic reform in Latin America, they emphasize the influence of material variables such as economic crisis and the leverage of international financial institutions (IFIs). Very little (if any) attention is paid to the role of ideas as sources of economic policy change.The literature that gives explanatory primacy to the material variables above mentioned explores interesting issues that undoubtedly have accompanied the process of economic reform in developing countries. Nonetheless, by disregarding or diminishing the importance of the influence that ideational variables might have on actors as they evaluate and select their economic policy options, those studies disregard the complex process of change under way that in some countries has made possible the implementation of neoliberal reforms. Particularly, they overlook the impact that specific policy ideas have on the policy makers' understanding of international and domestic constraints and opportunities, and thus on their particular policy preferences and in economic policy change. Furthermore, studies based on mainstream approaches tend to disregard the important role that non-state actors and state actors other than policy makers and their ideas may play in introducing and advancing the reform agenda. The present paper assesses the role of policy ideas and that of their advocates, state and non-state actors as well, in the Peruvian case of neoliberal economic reform. It attempts to explore why and how market oriented policy ideas became more persuasive and could resonate against widely held domestic understandings and beliefs that previously had define the role of the state and social actors in the economy, and the state?s policy towards core states, foreign capital, and international financial institutions. In this regard, a qualitative comparative analysis of the economic policy pursued by the various administrations that governed Perú during 1975-1992 is applied here. Particular attention is paid to the social-political context, with special focus on the prevailing economic policy ideas surrounding each of these administrations. Examining variation in the dependent variable (economic policy) with one of the independent variables (policy ideas) while holding other potential causal variables (economic crisis and IFIs leverage) constant across time permits seeing that although relevant, material variables appear to not have consequential effect on economic policy change. In contrast, the analysis shows a causal relationship between change in policy ideas and change in economic policy expressed in Perú in the application and consolidation of neoliberal reforms during the 1990s. More importantly, the findings suggest looking not only at the role played by policymakers in the state sector, but also at non-state actors: at the ?soft power? exercised by technocrats, think-tanks, and the press, among others, who during the late 1980s in Perú were a crucial conduit for the diffusion of market-oriented policy ideas throughout society.Although referred to a specific country, this study may offer important contributions. The choice of the Peruvian case of economic reform is a very useful one for studying the influence of ideas in economic policy change. The ideas-based research has focused primarily on developed countries. Although lately there have been studies about third world countries and economies in transition, still few are focused on Latin America and these latter have concentrated on the most developed countries of the region. Furthermore, those that consider the impact of policy ideas regarding the application of neoliberal reforms tackle cases in which these policies were implemented in countries under military rule, or take into consideration only the role of state actors in economic policy change. As such these studies leave aside the important role that non-state actors can play as generators, promoters, and receptors of policy ideas.Perú is a middle-income developing economy that has experienced severe economic and debt crises. As such, it has been exposed to many more structural constraints than are most developed countries. If the present work can demonstrate that even in the Peruvian case ideas affect political economic decisions either independently or in tandem with other factors such as interests, that finding may constitute an important contribution to middle-range theory building in a the ideas-based research program focused mainly on developed countries. Likewise, incorporating the analysis of the role played by non-state actors regarding economic policy change this work takes a step forward in the ideas-based research area, especially in regard to studies about Latin American cases of neoliberal reform.
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Name: International Studies Association 48th Annual Convention
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Hesselroth, Alba. "The Influence of Policy Ideas and Non-State Actors in Economic Policy Change - An Analysis of the Peruvian Case of Neoliberal Economic Reform" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 <Not Available>. 2009-05-24 <http://www.allacademic.com/meta/p179070_index.html>

APA Citation:

Hesselroth, A. , 2007-02-28 "The Influence of Policy Ideas and Non-State Actors in Economic Policy Change - An Analysis of the Peruvian Case of Neoliberal Economic Reform" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA <Not Available>. 2009-05-24 from http://www.allacademic.com/meta/p179070_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Mainstream approaches in the political economy literature hold that power, interests, and international economic structures are the variables that constrain and determine state behavior. Studies of developing countries? economic policymaking have likewise emphasized the influence of structural constraints in determining these countries? specific policy choices, viewing developing countries largely as passive actors responding to structural international constraints. Consequently, when analysts working under well-established approaches in the field of political economy seek to explain the wave of neoliberal economic reform in Latin America, they emphasize the influence of material variables such as economic crisis and the leverage of international financial institutions (IFIs). Very little (if any) attention is paid to the role of ideas as sources of economic policy change.The literature that gives explanatory primacy to the material variables above mentioned explores interesting issues that undoubtedly have accompanied the process of economic reform in developing countries. Nonetheless, by disregarding or diminishing the importance of the influence that ideational variables might have on actors as they evaluate and select their economic policy options, those studies disregard the complex process of change under way that in some countries has made possible the implementation of neoliberal reforms. Particularly, they overlook the impact that specific policy ideas have on the policy makers' understanding of international and domestic constraints and opportunities, and thus on their particular policy preferences and in economic policy change. Furthermore, studies based on mainstream approaches tend to disregard the important role that non-state actors and state actors other than policy makers and their ideas may play in introducing and advancing the reform agenda. The present paper assesses the role of policy ideas and that of their advocates, state and non-state actors as well, in the Peruvian case of neoliberal economic reform. It attempts to explore why and how market oriented policy ideas became more persuasive and could resonate against widely held domestic understandings and beliefs that previously had define the role of the state and social actors in the economy, and the state?s policy towards core states, foreign capital, and international financial institutions. In this regard, a qualitative comparative analysis of the economic policy pursued by the various administrations that governed Perú during 1975-1992 is applied here. Particular attention is paid to the social-political context, with special focus on the prevailing economic policy ideas surrounding each of these administrations. Examining variation in the dependent variable (economic policy) with one of the independent variables (policy ideas) while holding other potential causal variables (economic crisis and IFIs leverage) constant across time permits seeing that although relevant, material variables appear to not have consequential effect on economic policy change. In contrast, the analysis shows a causal relationship between change in policy ideas and change in economic policy expressed in Perú in the application and consolidation of neoliberal reforms during the 1990s. More importantly, the findings suggest looking not only at the role played by policymakers in the state sector, but also at non-state actors: at the ?soft power? exercised by technocrats, think-tanks, and the press, among others, who during the late 1980s in Perú were a crucial conduit for the diffusion of market-oriented policy ideas throughout society.Although referred to a specific country, this study may offer important contributions. The choice of the Peruvian case of economic reform is a very useful one for studying the influence of ideas in economic policy change. The ideas-based research has focused primarily on developed countries. Although lately there have been studies about third world countries and economies in transition, still few are focused on Latin America and these latter have concentrated on the most developed countries of the region. Furthermore, those that consider the impact of policy ideas regarding the application of neoliberal reforms tackle cases in which these policies were implemented in countries under military rule, or take into consideration only the role of state actors in economic policy change. As such these studies leave aside the important role that non-state actors can play as generators, promoters, and receptors of policy ideas.Perú is a middle-income developing economy that has experienced severe economic and debt crises. As such, it has been exposed to many more structural constraints than are most developed countries. If the present work can demonstrate that even in the Peruvian case ideas affect political economic decisions either independently or in tandem with other factors such as interests, that finding may constitute an important contribution to middle-range theory building in a the ideas-based research program focused mainly on developed countries. Likewise, incorporating the analysis of the role played by non-state actors regarding economic policy change this work takes a step forward in the ideas-based research area, especially in regard to studies about Latin American cases of neoliberal reform.

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Similar Titles:
“Leverage, policy ideas, and economic policy change. Some notes about the Peruvian case of neoliberal economic reform.”

Non-State Actors and Economic Policy Change: The Role of Non-State Actors in the Peruvian Process Of Neoliberal Economic Reform


 
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