The second structural factor is the degree of democratic institutionalization within a country. Countries without a democratic tradition have a more difficult time in maintaining stability while carrying out economic and political reform. One conjectural factor is the level of reform in a country. Countries are better off if they fully implemented the macro and micro-level reforms. Another conjectural factor is whether countries have majority governments or successful majority coalitions.
Governments can achieve a better performance when they can count on a majority in the legislature.
Countries like Paraguay have no tradition of democracy and have achieved little in the way of reform. Peru has neglected political reforms such as a transparent and legitimate electoral process. Meanwhile, Bolivia is one of the poorest countries in the region, but it has put together a workable coalition government that supports reform. Political leadership makes a difference. However, the goal of the United States is to work collectively with the countries of the hemisphere and not to exert U.S. leadership unilaterally.