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ID: 091034

Openness, uncertainty, and social spending: implications for the globalization- welfare state debate / Nooruddin, Irfan; Simmons, Joel W

Nooruddin, Irfan	Journal Article
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2009.

Summary/Abstract

We extend the literature on openness and spending in developing countries arguing that the effect of increasing openness depends on both regime type and the level of openness. Democracies respond to increases in openness by increasing spending while dictatorships respond by decreasing spending. However, the degree to which countries pursue the strategy of choice depends on the level of openness. In autarkic countries, an increase in import competition has more severe consequences for perceptions of job insecurity and dislocation. In response, government management of openness will be more vigorous under these conditions regardless of whether the leader increases or decreases spending. Economic selection mechanisms at work will produce an outcome wherein, at higher levels of openness, further import liberalization has smaller effects on perceptions of job insecurity and dislocation. Hence, both the demand and the supply of government management of openness will be lower.

Key Words

Globalization ; Welfare ; Social Spending ; Debate

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ID: 075226

Politics of hard choices: IMF programs and government spending / Nooruddin, Irfan; Simmons, Joel W

Nooruddin, Irfan	Journal Article
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Publication

2006.

Summary/Abstract

A central component of International Monetary Fund (IMF) programs is reducing government budget deficits. We ask how domestic political considerations shape the distribution of cuts made by governments in IMF programs. Our central finding is that IMF programs shrink the role played by domestic politics. While democracies allocate larger shares of their budgets to public services in the absence of IMF programs, the difference between democracies and nondemocracies disappears under IMF programs. This result has important implications for our understanding of government spending priorities under different resource constraints.

Key Words

International Organization ; IMF ; International Monetary Fund ; Democracies ; Government Spending ; Nondemocracies

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