Party Systems and Economic Policy Change in Postcommunist Democracies

Ideological Consensus and Institutional Competition

Are ideological and institutional characteristics of party systems important predictors of economic policy change in postcommunist democracies? The weakness of far left economic parties is an important predictor of market reform. However, institutional and ideological concentration has a larger impact. In particular, the difference between ideological and institutional concentration most strongly predicts market reform. Party system ideological consensus in favor of market reform and on national identity facilitates economic liberalization, but party system institutional concentration has a counteracting, inhibiting effect. Thus, the widely noted tendency of multiparty coalitions to slow and compromise policy reforms is outweighed by the reform-inducing effect of more competitive party systems.