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What are the determinants of economic reform efforts? This paper tries to throw light on this question by examining recent reforms in Brazil, a country which followed a gradualist approach and was a late-starter among Latin American economies. We argue that these first generation reforms (trade liberalization, stabilization, privatization and the adoption of a new macro-policy framework) were driven by the drastic growth slowdown and re- democratization of the 1980s. We argue that their gradual and democratic implementation not only respond for their sustainability but also shows that the country is ready for a second generation of reforms focusing explicitly on institutional deficiencies.

Does it Take a Lula to Go to Davos? A Brief Overview of Brazilian Reforms, 1980-2000