Stabilizing party systems and excluding segments of society?: The effects of formation costs on new party foundation in Latin America

Abstract

The costs of party formation potentially alter representation and change electoral dynamics before allocation rules come into play. Furthermore, the interaction of formation rules and demographic conditions occasionally produces in new democracies unintended effects on representation that are quite distinct from the effects of other electoral barriers. Currently, however, the literature does not systematically consider the role that institutions play in party formation and party survival in new democracies. This article considers the theoretical importance of formation rules on representation in the context of party-system development. The principal hypothesis proposed is that, while not a sufficient condition for the emergence of separate ethnic political parties, elimination of spatial registration rules, which mandate registration that exceeds the group’s geographic distribution, is a necessary condition. Comparative evidence from Bolivia, Guatemala, Mexico, Peru, and a detailed case study of Ecuador suggests that pre-election spatial registration rules do, indeed, contribute to the general explanation of a lack of indigenous parties in countries with large mobilized indigenous groups. Two supplementary hypotheses and anecdotal evidence from the above countries address the effects of non-spatial pre-election requirements and post-election requirements.