The Value of Coalitions in Multiparty Regimes: Policymaking in Brazil and Ecuador

Abstract

Brazil and Ecuador have mostly similar institutional arrangements but have produced significantly different policy outcomes. Both countries are conventionally known as having highly fragmented party systems, where legislators have great incentives to cultivate a personal vote thanks to the workings of a personalized electoral system. Presidents are perceived to be strong and to make large use of government resources in order to advance their agenda. Yet, policies in Brazil are more likely to respond to shocks and to be more stable over time than policies in Ecuador, where policies remain vulnerable to subsequent political changes. This variation of policy outcome has to do with the policymaking ability of presidents to enhance political cooperation and to develop intertemporal political transactions; the availability of valuable coalition currencies; and the extent to which such transactions are credible and effectively enforced.