Why do leaders of countries opt to sign on to international
institutions that constrain their freedom to enact domestic policy?
In this book, Leonardo Baccini and Johannes Urpelainen address this
enduring question of international relations by looking at liberal
economic reforms. During the past two decades, governments across
the developing world have implemented many liberal economic reforms
that reduce direct state intervention in different industries, for
example with regard to intellectual property rights and
privatization. While failure to implement them can have disastrous
economic and political consequences, liberal economic reforms have
also provoked intense political controversy domestically. Baccini
and Urpelainen argue that international institutions help to cut
this Gordian knot by allowing leaders to credibly commit to liberal
policies while also creating domestic political support for reform.
The book takes a comparative look at developing countries that have
engaged in treaties with the United States and European Union to
develop a full theory of when and how leaders enter into
international institutions to effect economic reform. Cutting the
Gordian Knot of Economic Reform is the first work to provide a
theory on the design of international institutions, the
circumstances that cause leaders to form international
institutions, and the effects of international institutions on
economic reform.
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