Democratization and Market Reform in Developing and Transitional Countries

James G. McGann

• Publisher: Routledge
• Year: 2010
• ISBN:
  9781135224929
• Edition: 1
• Topic: Politics & International Relations
• Subtopic: Politics
• Index: Politics & International Relations

This book explores the pivotal role of think tanks in the democratization and economic reform movements by evaluating their overall effect on the transformation process in developing and transitional countries around the world.

James G. McGann assesses twenty-three think tanks, located in nine countries and four regions of the world: Chile, Peru, Poland, Slovakia, South Africa, Botswana, the Philippines, Thailand, and Vietnam, that have most impacted political and economic transitions in their respective countries. The author examines the role they played in the process of democratization and market reform during the late 80s and 90s and identifies the importance of think tanks in these processes by evaluating their overall effect on the policymaking process. He argues in the early stages of a transition from an authoritarian regime to an open and democratic society the activities of think tanks are especially critical, and they have provided a civil society safety net to support these fragile democracies.

This book will be of interest to students and scholars of political science, democratization, development, economic development and civil society.

1 Introduction

The growth in numbers and influence of independent public-policy research organizations – ‘think tanks’ as they are commonly called – has been noted by an increasing number of scholars, donors and practitioners in the United States and abroad.¹ Regional and global intergovernmental organizations such as the UN, World Bank, Asian Development Bank and NATO have recently come to recognize the significant role they play in the policy-making process. These organizations have organized nascent think tank networks to help develop and assess policies and programs and serve as a link to civil-society groups at the national, regional, and global level.

Think tanks, which function as public-policy research, analysis and engagement institutions, generate policy-oriented research, analysis, and advice on domestic and international issues, enabling policy-makers and the public to make informed decisions about public-policy issues. Think tanks may be affiliated with a political party, a university or a government, or independent institutions that are structured as permanent bodies, not ad hoc commissions. These institutions often act as a bridge between the academic and policy-making communities, serving the public interest as independent voices that translate applied and basic research into a language and form that is understandable, reliable, and accessible for policy-makers and the public. Policy-research organizations perform a variety of roles: offering original research and analysis as well as generating new information; providing policy advice; evaluating public policies and programs; identifying, training, and developing talent; providing a home for public figures who are out of office or planning to assume key positions in future administrations; convening experts in and outside government to float policy proposals and build consensus; educating and engaging policy-makers, the media, and the public.²

It should be noted that for the purposes of this study, think tanks are considered a part of civil society, otherwise known as the third sector. Civil society organizations occupy what Nancy Baraza refers to as ‘[t]hat space that is neither government nor business, occupied by citizens who take actions responsive to their needs.’³ The London School of Economics’ Centre for Civil Society defines the third sector as

the arena of uncoerced collective action around shared interests, purposes and values. In theory, its institutional forms are distinct from those of the state, family and market, though in practice, the boundaries between state, civil society, family and market are often complex, blurred and negotiated. Civil society commonly embraces a diversity of spaces, actors and institutional forms, varying in their degree of formality, autonomy and power.⁴

Diamond notes that civil society has five important features in a democracy:

1. Civil society must not seek to conquer the state. It must not contain maximalist, uncompromising interest groups or groups with anti-democratic goals and methods.
2. Civil society must have a high level of institutional organization, ensuring it is held accountable to its constituency.
3. Civil-society organizations must function democratically in order to socialize their members into democratic forms of behavior.
4. Pluralism ensures that civil-society organizations cooperate and negotiate with each other.
5. Civil society is best when it is dense, allowing members to participate in more than one organization.⁵

Some observers believe that think tanks fall in the gray areas of civil society, since they are organized to advise and/or assist government, directly or indirectly. However, it is my contention that think tanks are an integral part of civil society and serve as an important catalyst for ideas and action in emerging and advanced democracies around the world. Think tanks take many forms, as do the institutions that comprise civil society. What they all have in common is that they are non-profit-making, independent of the state, and dedicated to transforming policy problems into appropriate public policies.₆

Think tanks now operate in a variety of political systems, engage in a range of policy-related activities and comprise a diverse set of institutions that have varied organizational forms. Over 5,000 academically oriented research institutions (similar in nature to universities but without students), contract research organizations, policy advocates and political party-affiliated think tanks can now be found in 163 countries. While their organizational structure, modes of operation, audience or market and means of support may vary from institution to institution and from country to country, most think tanks share the common goal of producing high-quality research and analysis that is married with some form of public engagement.

That being said, all think tanks face the same challenge: how to achieve and sustain their independence so they can speak ‘truth to power.’ or simply bring knowledge, evidence, and expertise to bear on the policy-making process. Unfortunately, not all think tanks have the financial, intellectual, and legal independence that enables them to inform public decision-making. This problem is most acute in developing and transitional countries where the means of support for think tanks as well as for civil society at large are underdeveloped, and the legal space in which these organizations operate is poorly defined. It is these characteristics that distinguish think tanks in the northern and western hemispheres from their counterparts in developing and transitional countries.

The numbers and overall impact of policy-research organizations have been growing and spreading. A survey of think tanks conducted in 1999 found that two-thirds of all the public-policy research and analysis organizations in the world today were established after 1970, half since 1980. Preliminary figures from the 2006–2007 Global Think Tank Trends Survey indicate that the number of think tanks may be declining for the first time in 20 years. The reasons for this trend will require greater research and analysis, but we suspect that it may be the result of a combination of complex factors: shifts in funding, underdeveloped institutional capacity, and unfavorable government regulations that attempt to limit the number and influence of think tanks. While think tanks are one of the many civil-society actors in a country, they often serve as catalysts for political and economic reform. Analogous to a ‘canary in a coal mine,’ the indigenous think-tank sector can also function as a key indicator for the state of the civil society in that country. If analysts and critics associated with think tanks are allowed to operate freely, so too can the rest of civil society.

Policy-research centers have been growing rapidly in developing and transitional countries in sub-Saharan Africa; Eastern and Central Europe; East, South, and Southeast Asia – regions where the majority of these institutions were established in the last 10–15 years. Similar centers have also appeared throughout Latin America and the Caribbean, beginning their operations as early as the 1960s and 1970s.

In developing and transitional countries around the world, independent think tanks have served as a catalyst for civil societies and democratic institutions. In countries as diverse as Poland, the Philippines, Peru, and South Africa, think tanks have helped advance political and economic reforms by:

1. Creating the space for independent analysis and debate of issues of national concern.
2. Preparing the policy-makers and intellectual shock troops needed to transform a closed society.
3. Promoting civic participation in government at all levels.
4. Developing and promoting specific transforming policies.

These activities have proven especially critical in the early stages of a transition from an authoritarian regime to an open and democratic society where think tanks have provided a civil-society safety net to support these fragile democracies.

Research design and methodology

During the last 15–20 years, a massive effort was undertaken to support democratization and market reform around the world. The success of these efforts in Eastern and Central Europe seems to be self-evident at this point but what is less clear is to what extent were civil-society organizations such as think tanks responsible for the transformations that took place in this and other regions of the world. In a modest way this study is intended to attempt to begin to answer that question.

To understand the role of think tanks in this process, detailed case studies were developed for countries in Asia, Latin America, Africa, and Eastern and Central Europe. The purpose of these case studies was to demonstrate the role think tanks can play in the complicated process of promoting the rule of law, democratization and market reform. During the 1980s and 1990s, think tanks helped to develop the legislation that created the space for civil-society organizations and democratic institutions such as political parties, trade unions, interest groups, religious groups, and community-development organizations to exist; to draft key pieces of legislation for ministries and members of the legislative councils; to inform and mobilize the public to support the requisite policy and institutional reforms; and finally to provide the leaders and legions needed to do battle with deeply entrenched bureaucracies in these formerly closed societies. The book aims to show the role think thanks have played in transitional reform periods. Before doing this, we must address the issues of democratic and free-market development, as well as the role of think tanks in affecting policy.

The countries and think tanks used in this study were chosen based on extensive consultations with think-tank scholars and country and regional experts. A letter was sent asking for comments and suggestions on the preliminary list of countries and think tanks to be included. Specifically, the letter requested information on which think tanks are thought to have been influential change agents in transitional states.⁷ (A complete list of the original countries and think tanks included and the letter sent are found in Sections 1 and 3 of the Appendix.) The scholars and experts were asked the following questions:

• Are there any countries that should be added or deleted from our list of potential case studies?
• If so, what countries would more strongly exemplify the catalytic role that think tanks have played in the processes of political and economic reform?
• In addition, which think tanks have been the most critical agents of change?
• What specific examples would support this?

Based on the experts’ answers, the countries and think tanks included in this study are listed in Table 1.1.

The following is the basic overview of information included for each think tank in the study:

• Establishment;
• Head of institution;
• Mission statement;
• Division of work;
• Main activities/modes of dissemination;
• Research priorities;
• Projects contributing to democratization and/or market reform;
• Publications.

Additional information on the think tanks was obtained from publications referencing the institutions, interviews with think-tank leaders, cited examples by outside sources of the relevant think-tank activity, and email correspondence with select think tanks.

Qualifications and limitations

There are certain biases inherent when studying influence. The connection between think-tank prominence and influence within government is unclear, at best. Often, the appearance of influence and impact may be a result of effective self-pr...

Table of contents

• Cover Page
• Half Title page
• Title Page
• Copyright Page
• Contents
• Acknowledgements
• 1 Introduction
• Part I Theoretical framework
• Part II Case studies
• Appendix
• Directory of think tanks
• Notes
• Index