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By Marcus J. Kurtz

Democracy's balance in Chile and Mexico may perhaps count as a lot, or extra seriously, at the transformation of social constitution and social existence triggered by means of the imposition of unfastened marketplace rules within the Nineteen Seventies and Eighties. This e-book demonstrates how rural societal adjustments prompted by means of loose markets aid nationwide democratic consolidation. even though current study has usually tested the impact of democratic politics at the strategy of monetary reform, it has kept away from studying how loose marketplace reforms are attached to the method of democratic consolidation.

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As villages are razed to construct individual farms, the stocks of social capital they embody – norms, personal bonds, trust, and local organizations – go under the 12 Rural communities have long been seen as reservoirs for surplus labor that lacks productive insertion into the broader economy and helps keep urban wages low (de Janvry 1981, 38–9). With the individualization of ownership in postagrarian reform settings, peasants who do not receive land are often expelled as their traditional or collective rights to residence are abrogated.

The Sectoral Foundations of Free Market Democracy 29 agriculture in the United States and coffee production in most of Central America, or a combination also involving the underemployed populations on microsized peasant holdings, production at a technological level sufficient to gain entry into export markets frequently demands great quantities of labor but for only short periods of time. Indeed, one of the characteristic effects of agricultural modernization in Chile and Mexico has been to dramatically heighten the seasonality of agriculture through the widespread introduction of short-term labor contracting.

In fact, the very emergence of democracy was linked to the conflicts between and among various autonomous interests and the state. As Lipset, Trow, and Coleman (1956, 15–16) point out: Democratic rights have developed in societies largely through the struggles of various groups – class, religious, sectional, economic, professional, and so on – against one another and against the group which controls the state. Each interest group may desire to carry out its own will, but if no one group is strong enough to gain complete power, the result is the development of tolerance.

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