ON REFORM OF THE STATE AND REGULATION OF THE MARKET

This concluding paper reviews possible interrelationships between the economic and political dimensions of contemporary liberalizations in L atin America and Southern and Eastern-Central Europe. After noting the absence of certain negative,features (impediments to a liberal econom ic and political order) the paper proposes a more positive justificati on, based on the examination of four possible interrelated linking mec hanisms. Responses to chronic fiscal crisis, the stabilization of popu lar expectations, the strengthening of ''transparent'' and accountable institutions, and external forms of reinforcement can all, in princip le, contribute to the coordinated reinforcement of a more democratized state and a more liberalized market system (without this implying a s ingle uniform end-result applicable to all situations). This special i ssue has focused on some theoretical questions. Whether these possible linkages operate in practice requires empirical verification.