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Structural Reforms Without Prejudices$
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Tito Boeri, Micael Castanheira, Riccardo Faini, and Vincenzo Galasso

Print publication date: 2006

Print ISBN-13: 9780199203628

Published to Oxford Scholarship Online: May 2007

DOI: 10.1093/acprof:oso/9780199203628.001.0001

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Evidence and Theory of Reforms

Evidence and Theory of Reforms

(p.151) 8 Evidence and Theory of Reforms
Structural Reforms Without Prejudices

Tito Boeri (Contributor Webpage)

Micael Castanheira

Riccardo Faini

Vincenzo Galasso (Contributor Webpage)

Giorgio Barba Navaretti

Carcillo Stéphane

Jonathan Haskel

Giuseppe Nicoletti

Enrico Perotti

Carlo Scarpa

Lidia Tsyganok

Christian Wey

Oxford University Press

This chapter analyses reform over time across countries and sectors. Four scenarios for reforms are identified. In a scenario characterized by strong concentration of power in the hands of the policy-makers, a reform attempt in markets that do not feature entrenched interests may be carried out by exploiting this political power. Policy-makers lacking a substantial concentration of power can instead adopt a consensus building strategy to reform by tailoring the reform package to widen the political base. In the presence of strong entrenched interests, when some specific groups are both too strong to be confronted at once and too expensive to buy out, policy-makers may adopt a strategy of divide and conquer. In several circumstances, the reform efforts of policy-makers are largely affected by the existence of international laws or regulations that make reforms inescapable. Almost regardless of their political power and of the market or institution to be modified, the policy-maker may exploit these external constraints to carry out the reform.

Keywords:   reforms, scenarios, policy-making, international laws, political power

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