ABSTRACT
This chapter assesses the evidence on which the conventional wisdom about the relationship between regime type and economic reform was based. It examines the implicit theory that made the conventional wisdom plausible, despite the absence of strong supporting evidence. The chapter suggests a revision of that theory that emphasizes the importance of government actors, their interests, and their incentives for explaining differences in the extent and success of economic liberalization in various political settings. Evidence to support the notion that carrying out economic liberalization prior to political liberalization involves less risk of chaos or derailment of the reform process is even flimsier. In short, the strategy prescribing economic liberalization prior to political liberalization is risky because most authoritarian governments fail to liberalize their economies and because those that do carry out successful economic reform find that success reduces the short-term demand for democracy.
