Internacionalização, democracia e gasto social na América Latina, 1980-1999
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2004
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We examine the impact globalization and democratization have on social spending in Latin America. To measure globalization we construct a new indicator of financial liberalization for the Latin American cases based on Dennis Quinn s measure of financial openness (Quinn 1997). We find there are two logics upon which globalization operates. Trade openness has a decidedly negative impact on social spending as a percentage of GDP while financial openness has a strong positive correlation with increased spending on social welfare. Politicians operating under democratic constraints are also more likely to spend on social welfare programs. Our research implies that globalization is a complex process that simultaneously holds both beneficial and deleterious consequences for the provision of social welfare programs in Latin America.