Scott Gehlbach

John S. Earle

We analyze the role of privatization in creating a constituency for economic reform, markets, and democratic institutions, focusing on the Czech Republic. Drawing on a 1996 survey, we examine the 1,459 respondents' opinions on reforms, economic policies and systems, the legitimacy of transition, and democratic values. Using ordered probit estimation, we find that receiving property through restitution is strongly associated with support for reform and markets. Concerning voucher privatization, we find positive effects for participants retaining shares, but little impact of participation alone. Our simulations suggest that policy designs have substantial consequences for citizens' support of reforms, markets, and democracy.

Privatization and Popular Support for Reform in the Czech Republic

A Spoonful of Sugar

Evgeny Finkel

Throughout history, reform has provoked rebellion - not just by the losers from reform, but also among its intended beneficiaries. Finkel and Gehlbach emphasize that, especially in weak states, reform often must be implemented by local actors with a stake in the status quo. In this setting, the promise of reform represents an implicit contract against which subsequent implementation is measured: when implementation falls short of this promise, citizens are aggrieved and more likely to rebel. Finkel and Gehlbach explore this argument in the context of Russia's emancipation of the serfs in 1861 - a fundamental reform of Russian state and society that paradoxically encouraged unrest among the peasants who were its prime beneficiaries. They further examine the empirical reach of their theory through narrative analyses of the Tanzimat reforms of the nineteenth-century Ottoman Empire, land reform in ancient Rome, the abolition of feudalism during the French Revolution, and land reform in contemporary Latin America.

Scott Gehlbach

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