Abstract

Uruguay, defining itself as the “Switzerland of Latin America”, took the Swiss model (collegial executives and direct democracy) as an example when building its own political institutions. Despite the similarities of these institutions, the results were quite different due to the different context. The comparison between the institutions in these two isolated countries highlights the ways in which the same institutions may produce different results and evolve in distinctive ways. This is important to recognize as foreign models and experiences continue to inspire policies. Contrary to common arguments presented in the literature, even in such a “most likely case”, institutions cannot simply be copied. Institutional effects are context‐dependent and we need to pay attention to this interaction. This article provides new evidence showing that universalist institutional arguments can be misleading.

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