The postcommunist transitions to a market economy raised doubts about the political sustainability of an economic reform under democracy. At the same time, they turned the attention to the centrality of political factors in policy-making. Latvia has succeeded in proceeding into the consolidation phase of its market reforms while remaining committed to both political pluralism and macroeconomic austerity. Even if politics were not treated as a mere constraint, the basic question does not change: how are the government's adjustment choices in the political process?
