ABSTRACT

The paper by N. Lustig and Arianna Legovini is a rich and illuminating exposition of the macro and institutional aspects of protecting the poor during economic crises in Latin America and the Caribbean. It is easier to agree that the poor must be protected during the transition to a new policy regime than to agree why. Building coalitions, political parties, unions, and other professional associations may be vital for sustaining not only reform but also democratic institutions. Whether some coalitions matter more than others can be inferred from the coalitions' ranking. First, the rural rich on their own are not an effective coalition. Second, coalitions of rural and urban poor are ineffective in general but are more decisive when they enjoy state support. Third, coalitions of all rural groups, with or without state support, are ineffective against coalitions of all urban groups.