(co-published by the IEA in partnership with Timbro) by Dr Nima Sanandaji and Prof Stefan Fölster.
In Renaissance for Reforms Nima Sanandaji and Stefan Fölster show that, in spite of initial resistance to market reforms, governments that implement them are rewarded by voters. This finding is true for both centre-right and left-leaning parties. However, the strongest finding, which goes against conventional wisdom, is that left-leaning governments that have won re-election have been those most keen on increasing economic freedom. Furthermore, when reforms create benefits for society at large, future changes are more easily accepted or even demanded. One example of this is the Australian Labour Party which won five consecutive elections whilst pursuing economic liberalization during the 1980s and 1990s.
Renaissance of Reforms is based on an analysis of 109 governments that completed their term of power in OECD countries between the mid-1990s and 2012. The authors study the link between the chance of re-election and changes in economic freedom for each government. The authors discuss how market reforms not only can boost growth but also expand opportunities for the less well off.
Renaissance for Reforms is co-published by the IEA in partnership with Swedish think tank Timbro. The preface is written by Anders Åslund, Professor at Peterson Institute for International Economics in Washington.
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