Banking on Democracy

Elections inevitably impact financial markets, particularly in regions such as Latin America where the rise of democracy has coincided with economic liberalization. In this timely study, Santiso illustrates the complex interaction of politics and financial decision making in emerging markets, a topic that is vital in the quest for stable and sustainable economic growth.

Luis Alberto Moreno, President, Inter-American Development Bank

Banking on Democracy explores a topic of increasing importance to a broad audience. The question is timeless—do democracies pay a premium to borrow on global financial markets? Javier Santiso answers the question masterfully, drawing on a wide array of financial market indicators, original micro-level evidence, and informative case studies. This is one of the few books that takes the lessons learned in industrial countries and applies them to emerging market economies. It is a must-read for students and practitioners alike.

David Leblang, J. Wilson Newman Professor of Governance, Professor of Politics, University of Virginia

This is a profoundly interesting exploration of the relation between democracy and financial markets in emerging markets. An essential reading for anyone interested in politics, elections, and Latin America.

Laura Alfaro, Warren Alpert Professor of Business Administration, Harvard Business School

Banking on Democracy brings together two dynamite elements: politics and financial markets. The interaction of both, while critical to the economic success of emerging markets, until recently, has not been well understood. Santiso delivers a fine and insightful analysis of how these intricate forces interact and the consequences. A must-read!

Marcelo Claure, Chairman & CEO, Brightstar Corp.

Banking on Democracy is a must read for policy makers and practitioners alike as well as excellent reading for anyone interested in politics, elections, and Latin America.

Société Universitaire Européenne de Recherches Financières